New report: CDFIs create jobs, expand access to capital

December 17, 2012 at 9:34 am 2 comments

The Support Center released a new report today, examining the important role that Community Development Financial Institutions (CDFIs) play in the state’s economy. As traditional banks pull back from small business lending and tighten their lending standards, CDFIs have stepped in to fill the gap. In 2010, the 17 CDFIs in North Carolina helped to finance 33,000 businesses and developments that have created 3,100 jobs across the state.

In addition, the report found that:

  • In Fiscal Year 2011 alone, the 999 CDFIs nation-wide made 16,000 loans and investments, worth $1.2 billion, that supported 5,000 small businesses, 17,000 affordable housing units, and 25,000 jobs.
  • In North Carolina there are 17 CDFIs. As of 2010, they hold $1.17 billion in assets, and nearly 33,000 outstanding business, microenterprise, home purchase, consumer, and residential and commercial construction loans. The projects that CDFIs supported created over 3,100 jobs.
  • CDFIs are healthy and financially sound institutions. They perform better on key performance ratios than standards established by the CDFI Fund as well as industry comparisons.
  • CDFI credit unions and loan funds in the state also provide financial education and technical assistance services to help their members and borrowers, as well as to members of their broader community, increase their financial management skills.
  •  CDFIs can be a strategic partner to the State of North Carolina and to private institutions, such as banks, in revitalizing the state’s economy. As such, they need additional affordable capital and investments to meet the increased demand for capital and financial services.

The services provided by CDFIs are more important now than ever before, as CDFIs provide a vital link to financial services, capital, and financial literacy that help to improve the financial and economic security of individuals and families in underserved communities. CDFIs are not only support the businesses that create much-needed jobs for our state, but they also serve as generators of community economic development. CDFIs can be a partner to the public and private sectors in building our state’s economy as we continue on the path toward economic recovery.

 

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Entry filed under: Banks, CDFI, Credit Unions, Economic Development, Economy, Housing, Jobs & Employment, Small Business. Tags: , , , , , , , , , .

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