July 25th, 2024 – By Trajan Warren – Reporter, Boston Business Journal
Community development financial institutions, or CDFIs, have been a lifeline for local businesses in underserved communities for three decades. But when the nearly 100 CDFIs in Massachusetts have trouble accessing capital themselves, the whole pipeline suffers.
CDFIs support organizations in various markets and sectors, from housing projects to community organizations, by providing necessary capital to keep businesses running and growing. But a recent report from MassInc, a nonprofit focused on civic vitality, surveyed 22 CDFIs in the state and found that all of them have encountered challenges when securing funding, with 24% of survey respondents saying they’ve faced “significant challenges.”
“In order to grow, we have to grow responsibly, and part of that is being able to tap into different sources of philanthropic capital for operations,” said Betty Francisco, CEO of Boston Impact Initiative.