Building Assets: Ohio’s CDFI Industry is an independent analysis of Ohio’s Community Development Financial Institutions (CDFIs). Community Development Financial Institutions (CDFIs) are business-minded entities that lend money to people and in places where it is not readily available from conventional banks. CDFIs are essential partners in stabilizing and redeveloping Ohio’s weak-market neighborhoods and cities.
As captured by Greater Ohio Policy Center’s independent analysis, Ohio’s 18 CDFI loan funds have helped expand and create new businesses, and uncovered untapped markets. CDFI lending has provided critical capital for community revitalization, affordable housing development, and the establishment of other important assets, like health, education, and daycare facilities in nearly every corner of the state.
Greater Ohio Policy Center found that from 2005 to 2016:
Ohio’s CDFIs loaned more than $975 million in 80 of Ohio’s 88 counties
CDFIs leveraged $5 of private investment for every $1 financed by a CDFI; that generated $4.9 billion in investments over 11 years
CDFI lending helped develop 3,304 units of housing, and create or retain 17,240 jobs
Greater Ohio Policy Center’s report highlights that maximum CDFI impact can be found when vibrant community institutions are present, like banks, competent real estate developers, supportive community groups, and dynamic business and city leaders.
To bolster CDFI effectiveness and further strengthen the ability of individuals and communities to access capital and credit, the report offers four recommendations to enhance capacity both within individual CDFIs and with potential CDFI partners:
CDFIs should strengthen the ecosystem they work within
CDFIs should work to educate partners and local banks of their work
CDFIs should adopt the mindset they are uncovering latent markets, rather than responding to markets
CDFIs should establish a professional network to share best practices and establish a united front for the previous recommendations
Building Assets: Ohio’s CDFI Industry was made possible with support from JPMorgan Chase & Co., which has been a leading investor in CDFIs nationally. “As a global financial institution, JPMorgan Chase is in a unique position to collaborate with local CDFIs by leveraging not only our financial assets, but the expertise within our firm to make a difference as well,” said Alex Derkson, Global Philanthropy for JPMorgan Chase. “We see this partnership as a critical tool for expanding access to opportunity for those in underserved corners of the community and helping more people move up the economic ladder.”