This paper, published in Chicago Fed Insights by Lourdes Germán, Robin Newberger and Heidi Reijm, examines how CDFIs can better leverage public funds and utilize subsidized financing mechanisms, such as loan funds and other debt instruments, to invest in low-and-moderate income communities. Could CDFIs make larger and more sustainable investments if they had expanded access to public finance mechanisms? Are there opportunities for CDFIs and public and private actors to work together in new ways to increase the funding needed in the most disinvested places?