The Four Sectors of the CDFI Industry

As with mainstream lenders, a variety of institutions has emerged to serve the broad range of needs in emerging domestic markets. Although they share a common vision of expanding economic opportunity and improving the quality of life for low-income people and communities, the four CDFI sectors—banks, credit unions, loan funds, and venture capital (VC) funds—are characterized by different business models and legal structures:

• Community development banks
• Community development credit unions (CDCUs)
• Community development loan funds (CDLFs)
• Community development venture capital (CDVC) funds