CDFIs Stepping into the Breach: An Impact Evaluation

Carsey School of Public Policy
Wednesday, March 4, 2015

A new study by the Carsey School of Public Policy at the University of New Hampshire finds that CDFI lending accomplishes its mission of filling market gaps for key underserved low-income populations. The authors found that CDFIs deliver between two-thirds and ninety percent of all loan volume to borrowers living in CDFI Fund-designated investment areas. The report said that CDFIs provide borrowers that may not qualify for loans from mainstream sources with loan terms and interest rates that are comparable to mainstream products, but tend to entail less risk to borrowers. Among the study’s recommendations are standardization of impact metrics, greater reporting to the CDFI Fund’s Community Investment Impact System, and new financial supports for innovative financial practices.