Community Development Financial Institution (CDFI)
In 2016, Grand Rapids Opportunities for Women (GROW) received the designation of a Community Development Financial Institution (CDFI) in addition to their existing loan program. A CDFI is a private financial institution that provides loans to small business owners, entrepreneurs, and community organization that might not qualify for loans for banks for a variety of reasons. Many times, lending is focused on low-income, disadvantaged, and underserved communities. CDFIs are certified by the Community Development Financial Institutions Fund (CDFI Fund) at the U.S. Department of the Treasury, which provides funds to CDFIs through a variety of programs.
CDFIs are part of a national network promoting economic growth in America’s underserved communities by financing businesses, creating jobs, and rebuilding neighborhoods.