The IFF has taken a leadership role in building Illinois’ network of CDFIs — Community Development Financial Institutions. CDFIs are institutions that provide needed financial services to low-income communities, while promoting business activity, economic vitality and opportunities that benefit everyone.

Recognizing the vital role of CDFIs in Illinois, the IFF has pursued two important goals:

• Building partnership among CDFIs by leading the formation of The Illinois CDFI Coalition, a partnership of CDFIs working to expand, strengthen and publicize the industry
• Creating partnership with the State of Illinois by working to advance The Illinois Fund for Investment and Development (IFID), a state-funded program to help build the CDFI industry in Illinois.
  

The Illinois CDFI Coalition: Building the Network

In 2000, the IFF led the formation of the Illinois CDFI Coalition.  The Coalition is a network of Community Development Financial Institutions, other organizations and professionals working together to expand and support community and economic development finance services and products for low-income and underserved markets throughout Illinois.

In January 2003, the Coalition succeeded in advocating for the creation of the Illinos Fund for Investment Development (IFID).  This new state program will provide grants and technical assistance to help build the CDFI industry in Illinois.  Illinois is now only the fourth state to have a comprehensive state-based CDFI Program.

What are CDFIs?

Here are some important characteristics of CDFIs:

CDFIs are financial institutions that provide services to economically disadvantaged markets and communities.

CDFIs provide affordable and flexible financing options to individuals and small businesses, as well as religious and nonprofit organizations, in low-income and underserved communities.

CDFIs can take many forms including revolving loan funds, consumer credit unions, banks and venture capital funds. 

CDFIs have different business models — some are nonprofit, while others are for-profit corporations.

CDFI products include loans, deposit services, equity investments, mortgages and IDAs. 

CDFIs structure their rates and terms to meet the needs of the borrower. 

CDFIs provide added services to help clients meet their goals and keep the money working in the community.

Community Development Lenders in Illinois:
A Directory of Federally Certified CDFIs

Community Development Lenders in Illinois: A Directory of Federally Certified CDFIs Find out more about the CDFIs that are working in Illinois. [PDF 172kb]

U.S. Department of Treasury CDFI Fund Awardee List View a list of Illinois CDFIs and investors who have been awarded funds from the U.S. Department of the Treasury CDFI Fund. [PDF 19kb]

IFID: CDFIs Joining Hands With The State of Illinois

Now the Coalition is working hard to ensure that the Illinos Fund for Investment and IFID is implemented so that the state does not miss opportunities to partner with CDFIs.  IFID is designed to provide grants and technical assistance to help build the CDFI industry in Illinois.

IFID will help accomplish the following goals:

• Catalyzing growth and increasing market activity in all underserved communities across the state
• Attracting additional federal funds for alternative lenders
• Bringing new private financial activity to underserved markets
• Building capacity in the growing Illinois CDFI industry.

There are strong mutual benefits for tboth parties: as Illinois helps CDFIs grow and develop, CDFIs can help Illinois solve economic development problems, create business opportunities and stimulate economic vitality.

Act now to support IFID!

Illinois CDFIs: A Proven Track Record of Success

Illinois' CDFI Industry has an impressive track record in providing needed financial services to low-income communities and stimulating Illinois' economy by generating entrepreneurial activity, creating small business, supporting community services and financing affordable housing development.

Find out more about this track record in the Woodstock Institute's report: Impact of CDFIs in Illinois at www.woodstockinst.org