5 Ways CDFIs Are Driving Community Engagement

In ancient Greece, the word “agora” referred to a gathering place. It was a bustling marketplace but also a political forum and social hub — the heart of democratic life. Citizens would gather there to discuss ideas and express concerns informally before taking them to more formal platforms such as the “ekklesia”, or assembly. Similar forums have proven effective for community development financial institutions (CDFIs) to learn about their communities’ needs.Community Development Financial Institutions (CDFIs) are well known for their community engagement efforts. Looking to these organizations’ activities may provide inspiration for other institutions striving to boost community engagement, a powerful force in fostering innovation and inclusivity in finance.Here are five ways that CDFIs are successfully engaging with their communities to drive economic development.1. Listening. A deep understanding of a community’s needs, challenges, and culture is key to delivering services that benefit its members. Hosting focus groups, listening circles, and local advisory boards with local business leaders and decision-makers enables CDFIs to truly understand the individuals they serve and build trust with them.HOPE Credit Union, a CDFI with $581MM in assets, conducts listening sessions across the Deep South to ensure that its solutions are shaped by direct community input. The CDFI regularly hosts Economic Mobility Forums in which experts present local and regional data that highlight the economic challenges facing community members. These events also include panel discussions, where local leaders describe the difficulties in accessing resources needed to drive economic development, such as upgrades in infrastructure.2. Providing financial education. An annual survey conducted by the World Economic Forum shows that financial literacy is around 48% among American adults. Financial education programs that can help people and businesses thrive should go beyond basic money management and enable them to achieve long-term stability and success.Chicago Community Loan Fund, a CDFI with $180MM in assets, offers a range of educational workshops to help developers understand financing and the development process and improve their project management skills. It also provides a technical assistance program that gives organizations the tools to successfully manage the process of developing community-oriented real estate. Finally, CCLF has designed a series of workshops to help construction companies develop energy-efficient and environmentally friendly projects. This includes support in identifying and collecting rebate incentives, reducing the overall cost of the project.3. Offering customized financial solutions. Traditional banking products may not suit the individual needs of some communities. For example, rural communities that may be vulnerable to seasonal income fluctuations could require smaller, more frequent loans. Tailoring solutions to these needs ensures greater relevance and impact.Florida-based CDFI Black Business Investment Fund (BBIF) is committed to supporting Black-owned businesses and entrepreneurs through a suite of financial products designed to overcome systemic inequities. Their offerings include flexible working capital loans, lines of credit designed for contract-based businesses, and bridge financing options to help companies grow and hire. BBIF also provides robust technical assistance — including credit-building programs, business advisory services, and sector-specific training—ensuring that capital is paired with the knowledge and support needed for sustained success. Over the CDFI’s 37-year history, its tailored solutions have enabled over one thousand minority-owned businesses to thrive and generated over 14K local jobs.4. Developing local partnerships. CDFIs can leverage local partnerships — with community-based organizations, educational institutions, local businesses, local government, and more — to better understand community needs, collaborate on joint solutions, and amplify their impact.Beneficial State Bank, a CDFI with $1.7B in assets operating across three states, engages with many local organizations to achieve its vision of an economy that “restores our planet and extends prosperity to all”. For example, the institution partners with the CROP Organization — a nonprofit that supports formerly incarcerated individuals as they reenter society. Beneficial State Bank offers them a 10-week financial wellness program and tailored banking products. What’s more, Beneficial State Bank has entered a partnership with AltaSea at the Port of Los Angeles, the leading destination for the blue economy, which promotes the sustainable use of ocean resources for economic growth, improved livelihoods, and jobs. This partnership increases access to capital and expertise for environmental change-makers and helps finance the blue-green revolution.5. Supporting workforce development and job creation. CDFIs can play a vital role in advancing employment opportunities in their local economies by offering financing for small businesses that drive job creation, funding workforce training programs, and providing business coaching to entrepreneurs to help them grow their business.California FarmLink, a CDFI that focuses on California’s agricultural community, provides comprehensive support to small- and mid-scale farmers, ranchers, and fishers through specialized educational programs and tailored lending products. Courses are offered in both English and Spanish and focus on topics ranging from bookkeeping to business acumen. Graduates of these courses gain access to one-on-one assistance, low-interest loans, and continued workshops, ensuring ongoing support. Alongside this educational foundation, California FarmLink integrates fair and flexible financing options. These lending products are specifically structured to meet the unique needs of underserved and limited-resource farmers, including options for land acquisition, working capital, and operational investments. The organization emphasizes accessibility, often serving populations who have historically faced barriers to credit, and combines its lending with technical assistance to maximize business success and economic resilience.By actively listening to members of the community, providing much-needed financial education, offering products that are tailored to their unique needs, and supporting economic development in partnership with local organizations, CDFIs around the country are leading the way in community engagement, fostering innovation and financial inclusion while addressing systemic barriers and creating sustainable growth.