Are Community Investing Institutions (CIIs) stable financial institutions?
CIIs have proven safe and attractive for many investors, but there are risks. Community development banks and credit unions are federally insured per depositor up to at least $100,000, just like traditional banks and credit unions. The community development loan funds and venture capital funds are not insured or regulated, but do employ lending and management strategies that ensure their stability, and also have credit enhancements. Investors who are considering investing in a particular CII should visit our section on Evaluating Risk for a complete due diligence primer for assessing the risk of CIIs. Investors should also contact the CIIs directly to ask specific questions regarding their stability as an organization.
