What is a CDFI? How is it different from a CII?
Community Investment Institution (CII) is the umbrella term for the many different financial institutions that do community investing. Community development financial institutions (CDFIs) are the primary type of institution for community investing because they are specifically designed to accept investor capital and carry out community development work. CDFIs are federally certified financial institutions that accept investor capital and extends or guarantees credit to low-income individuals for endeavors with a community development or personal advancement focus. CDFIs include banks, credit unions, loan and guarantee funds, and venture capital funds. For a more detailed explanation of these different institutions and the investment products they offer, see Community Investing Products.
