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Beyond Investment: How CDFIs Support Community and Economic Development in Low- and Moderate-Income Areas

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  • Merissa Piazza

Abstract

Community development financial institutions (CDFIs) support low- and moderate-income areas by providing not only investment, but also technical assistance, capacity building, financial coaching, and more. Drawing on transaction-level investment data and interviews with CDFI loan funds from across the Fourth Federal Reserve District, this report examines how these mission-driven organizations play a key role in community and economic development.

Suggested Citation

  • Merissa Piazza, 2026. "Beyond Investment: How CDFIs Support Community and Economic Development in Low- and Moderate-Income Areas," Community Development Publications 103087, Federal Reserve Bank of Cleveland.
    • Handle: RePEc:fip:c00034:103087
    DOI: 10.26509/frbc-cd-20260414
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    References listed on IDEAS

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    1. Kaitlyn R. Harger & Amanda Ross & Heather M. Stephens, 2019. "What matters the most for economic development? Evidence from the Community Development Financial Institutions Fund," Papers in Regional Science, Wiley Blackwell, vol. 98(2), pages 883-904, April.
    2. Robert Marquez, 2002. "Competition, Adverse Selection, and Information Dispersion in the Banking Industry," The Review of Financial Studies, Society for Financial Studies, vol. 15(3), pages 901-926.
    3. Merissa Piazza & Mark Schweitzer, 2026. "The Growing Role of Community Development Finance in Economic Development," Economic Development Quarterly, , vol. 40(1), pages 41-55, February.
    4. Matthew Klesta, 2025. "Community Issues and Insights 2025: Inflation Continues to Strain Households’ Budgets," Community Development Publications 100069, Federal Reserve Bank of Cleveland.
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