Community development finance is a broad term encompassing the varied sources of funding that support stronger and more resilient communities around the country. Community Development staff at the Federal Reserve promote new and established sources of community development finance for low- and moderate-income (LMI) communities by working closely with financial institutions, community development organizations, nonprofits, foundations, research and policy centers, and government agencies.

Financing community development investments in LMI communities often requires a creative mix of public, private, and philanthropic resources. The Federal Reserve helps community development organizations access the technical and financial resources required to complete these often-complex deals. The Federal Reserve also uses its research and convening capabilities to explore new and emerging sources of capital to support community development finance. In addition, the Federal Reserve, as a regulator of the Community Reinvestment Act (CRA), seeks to educate banks and community stakeholders about how to partner to direct CRA-eligible loans and investments in a manner that is most impactful for the local community.

Community Development Investments


Related Information

Community Reinvestment Act (CRA)
The CRA, enacted in 1977, requires the Federal Reserve and other federal banking regulators to encourage financial institutions to help meet the credit needs of the communities in which they do business, including low- and moderate-income (LMI) neighborhoods.

Community Development Financial Institutions
Community Development Financial Institutions (CDFIs) are certified by the Treasury Department's CDFI Fund and support a wide range of community development projects in LMI communities across the country.

Financial Innovations Roundtable
Created in 2000, the Financial Innovations Roundtable creates cross-sector partnerships among conventional and non-traditional lenders, investors, and markets to provide low-income communities with increased access to capital and financial services.

Impact Investing
Impact investing is a broad term that encompasses a number of financial strategies investors can employ to receive a social return along with a financial return. Some of these strategies have the potential to bring significant new capital into community development finance, as explored in "Pay for Success Financing (PDF)."



Chair Jerome H. Powell
December 3, 2018
Celebrating Excellence in Community Development

Governor Lael Brainard
December 3, 2018
Celebrating Excellence in Community Development

Chairman Ben S. Bernanke
April 12, 2013
Creating Resilient Communities

Chairman Ben S. Bernanke
April 29, 2011
Community Development in Challenging Times

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Last Update: June 11, 2019