Iowa Center Loan Fund CDFI
The Iowa Center Loan Fund is certified as a Community Development Financial Institution (CDFI) by the US Treasury. The Loan Fund supports community and economic development by providing access to capital for Iowans starting or expanding a business who do not have access to traditional forms of financial assistance. In addition to financing, The Loan Fund clients receive education and technical assistance at every step of the loan process, and credit counseling to improve their credit histories.
The mission of The Iowa Center Loan Fund CDFI is to reduce poverty and inequality and further community development by providing access to capital to Iowans starting or expanding a business who do not have access to traditional forms of financial assistance. The Loan Fund serves low-income business owners, business owners who live in economically distressed areas and otherwise diverse or historically-disadvantaged business owners. The Loan Fund will provide responsible, affordable lending to expand economic opportunity. In addition to financing, the Iowa Center Loan Fund provides applicants with technical assistance, connects clients with necessary business services and offers credit counseling to improve credit history.
What is a CDFI?
CDFIs are community based organizations with a primary mission of promoting community development by providing access to affordable financial products services in underserved communities. These specialized financial institutions must meet a series of rigorous eligibility requirements in order to receive CDFI certification from the US Treasury.
CDFIs create economic opportunity for individuals and small businesses by providing access to financial products and services. They help communities thrive by ensuring equitable access to financial services, affordable credit, and investment capital. There are only approximately 1,000 CDFIs operating nationwide.
How do CDFIs support the Community Reinvestment AcT?
The Community Reinvestment Act was enacted by Congress in 1977 to encourage traditional financial institutions to meet the credit needs of the communities in which they do business. The Iowa Center Loan Fund partners with local and national financial institutions in order to meet the needs of underserved populations and achieve the goals of the Community Reinvestment Act. Many of The Loan Fund’s clients are referred by local financial institutions, and The Loan Fund has the sophisticated infrastructure and policies in place that are required to receive impact investments from banks. Impact investments generate a small but guaranteed return to the investor, and deliver a big impact for small business growth that drives economic and community development.