A report by the Cleveland Fed finds that CDFI Fund awards substantially improve institutions' dedication to lending in distressed areas. The study compares the increase in lending at CDFI credit unions that receive grants to the baseline lending level of credit unions that apply but are rejected. The institutions which received CDFI grants increased lending by 3 percent on average. For every dollar awarded, awardees loaned 45 cents to borrowers in the first year and up to $1.60 within three years. The authors note that the CDFI Fund's core program works well because of its institutional independence, direct injection of funds to low-income neighborhoods and its transparent review process.