What is the Ohio CDFI Network?

The Ohio CDFI Network was started in 2018 and helps facilitate and expand relationships among CDFIs, document the impact of CDFI lending in Ohio, and raise the profile of CDFIs within the banking community and other potential partners, like philanthropy and community developers — particularly in small and mid-sized communities. We also serve as a matchmaker connecting CDFIs with development-ready communities, projects, and organizations.

The Ohio CDFI Network is comprised of 13 CDFI loan funds operating in Ohio. The Network is convened by Greater Ohio Policy Center. A 2017 report by Greater Ohio Policy Center, entitled “Building Assets: Ohio’s CDFI Industry” prompted the formation of the Network.

What is a CDFI?

Community Development Financial Institutions (CDFIs) are U.S. Department of Treasury certified organizations that lend at affordable rates and terms in under-served markets. They provide access to credit and specialized loan products for entrepreneurs who may not qualify for a typical bank loan. Those customers work with the CDFI to establish credit worthiness and long-term plans for financial success. CDFIs also finance affordable housing, small businesses, nonprofit organizations, and commercial real estate to stabilize and redevelop Ohio neighborhoods and cities and create job growth.

Where do CDFIs operate?

CDFIs lend in designated “Target Markets” that are certified by the U.S. Department of Treasury. These markets are typically designated to target low-income populations, geographic investment areas, or other communities that have historically lacked access to credit.

Target Markets exist all over the state of Ohio. Six Ohio CDFIs are certified to lend in every county. Another thirteen Ohio CDFIs lend in regional or county-specific markets.

How do CDFIs operate?

CDFIs pull together capital from a variety of sources — including foundations, banks, and federal and state government — and then lend it with the goal of expanding economic opportunity in disadvantaged areas. CDFIs make strategic investment decisions, just like banks do. They also maintain default rates, lower or comparable to most banks. In Ohio, the average CDFI default rate from 2014 to 2016 was 0.9%.

What type of financing is offered?

In Ohio, CDFIs offer financing for Small Businesses, Residential Development, Mixed Use Development, Commercial Development, Industrial Development, Sustainability, Facilities, and Healthy Food. One CDFI offers Residential Mortgages and Home Repair Loans.

Are you thinking of starting a new CDFI?

Greater Ohio Policy Center
Aaron Clapper
Senior Manager of Outreach and Projects
(614) 224-0187
aclapper@greaterohio.org