In 2016, our Social Investment Practice made a commitment to invest millions of dollars through a standard loan offering to Community Development Finance Institutions (CDFIs) and Development Finance Agencies (DFAs) whose work aligned with Kresge program strategies to expand opportunity and equal access to capital in America’s cities. CDFIs and DFAs responded to a call for proposals with requests for more than $280 million in investment. Ultimately, 14 organizations received financing totaling $30 million through program-related investments.

The 14 organizations selected – 11 CDFIs and three DFAs – are working to advance equitable access to capital in neighborhoods across the country, particularly in those populated by people of color with low incomes and low community wealth. Each one strategically aligns with one of Kresge’s program areas.

“We wanted to test the demand for a standardized product of patient capital for CDFIs and DFAs,” said Joe Evans, the foundation’s Social Investment Practice portfolio manager, “and to demonstrate to other investors an efficient approach to meeting the capital needs of low-income communities.”

CDFIs are nonprofits that leverage private sector investment to provide financing and technical assistance for a range of community development activities, including job creation, small business development, housing and other community development.

DFAs are public, private and nonprofit development entities that provide financing for programs that foster job creation and economic development with a focus on growing housing and employment opportunities in low-income communities.