The Transformative Impact of CDFIs

Community Development Financial Institutions (CDFIs) have fundamentally shaped the landscape of community investment and support. Over the past 40 years, Jim Burnett, Executive Director of VestedIn noted, “CDFIs have had a major impact on the communities that they serve, whether they be urban, rural, or native populations. We have made an impact.” CDFIs do more than provide capital—they foster entrepreneurship, build networks, and help address the root causes of systemic poverty.

CDFIs recognize that true community development is about more than money. Jim explains, “We look at how communities can be self-sufficient and not necessarily dependent upon us or other resources. The reality is something entirely different. We are all dependent upon each other.” This perspective drives CDFIs to create programs that are both sustainable for the organization and transformative for the communities they serve.

Key Programs and Initiatives

1. Small Business Lending and Support

CDFIs play a vital role in supporting small businesses, particularly those that are often overlooked by traditional banks. As Craig Williams
President, HiTouch Luxury Charter described, “I found my way to the program out of necessity and vision. As a Black entrepreneur trying to build a luxury transportation brand, traditional funding routes weren’t as accessible.” CDFIs provide not just capital but also mentorship and guidance. “They didn’t just write a check—they took the time to understand me as a person and my vision as an entrepreneur. I was connected to mentors who helped me refine my strategy, build financial systems, and even navigate the emotional ups and downs of running a business.“

2. Youth and Workforce Development

Initiatives like the WesGold Fellows program at VestedIn are designed to invest in the next generation. “We hire high school students. We still invest with loans to small businesses to help those communities and also help them in terms of their planning so that they can think through what’s important to them,” says Burnett. CDFI programs such as this exposes community members to entrepreneurship and real estate, giving them new perspectives and valuable experiences.

3. Industry-Specific Accelerators

CDFIs respond to community needs with targeted support. For example Burnett explains, “Our other accelerator program is for barbers and salons. Through Covid, the barbers and salons or the beauty industry was one of the hardest hit because they had to close for such a long period of time. But what we saw was they were also one of the industries that had the biggest need in terms of support.” These accelerators help professionals transition from service roles to business management, supporting both individual growth and community resilience.

4. Asset-Based Community Investment

CDFIs invest in community assets to generate sustainable revenue and support ongoing programs. “We, in turn, created WesGold Fellows, where we bring in high school students,” says Burnett. “We still invest with loans to small businesses to help those communities and also help them in terms of their planning.”

Partners for Change

As agents of change, the impact of CDFIs is felt through innovative programs, strategic investments, and a commitment to both financial and social outcomes. As Craig Williams reflected, “The biggest investment was belief. That kind of care—where you’re seen, challenged, and uplifted—that’s what really keeps you moving when the money runs out or things get hard.” This combination of capital, mentorship, and community engagement defines the unique value of Community Development Financial Institutions (CDFIs) in building stronger, more resilient communities.

As Burnett advises, “Identify a CDFI that you feel comfortable working with. In Philadelphia, the luxury of having 13 CDFIs that all do some things that are slightly different means you can find a CDFI to help you through that.” He emphasizes, “Community development isn’t just about capital—capital’s important part, but also being able to bring our networks to the table is just as important as the capital that we bring.”