Marvin Ginn, Native Community Finance and HAC board, explains the value of CDFIs to serve vulnerable populations

1. Marvin Ginn
Executive Director
Phone: 505-552-7050
Cell: 505-205-4376
E-mail: MarvinG@nativecf.org
NATIVE COMMUNITY FINANCE
5 Capital Road, PO Box 176 Laguna, New Mexico 87026 Tele: (505)552-7050

2. A CDFI is a Community Development Financial Institution
A certified Community Development Financial Institution
(CDFI) is a specialized financial institution that works in market
niches that are underserved by traditional financial institutions.
CDFIs provide a unique range of financial products and
services in economically distressed target markets, such as
mortgage financing for low-income and first-time homebuyers
and not-for-profit developers, flexible underwriting and risk
capital for needed community facilities, and technical
assistance, commercial loans and investments to small start-
up or expanding businesses in low-income areas. CDFIs
include regulated institutions such as community development
banks and credit unions, and non-regulated institutions such
as loan and venture capital funds.

3.  Primary Activity of a CDFI is lending or investing
 CDFI’s develop financial products to meet the needs of their markets
 Make loans that are riskier, often to unconventional borrowers
 CDFI’s also provide Development Services (aka Technical Assistance)
 CDFI’s provide Capital & Technical Assistance to projects that help
create a healthy economy
 CDFI’s leverage grants, bank loans and other sources of capital into the
community
 CDFI’s build capacity of businesses and community members
CDFI Role in Creating a Healthy Economy

4. Asset building is the process of assimilation and development of all
types of assets then maintaining of the asset whether existing or one
being developed. This process is normally targeted to the low-
moderate income levels but can be beneficial to all levels of income.

5. Development of the project and a guiding strategy
Tribal/Rural Communities continue to have the challenge
of assets, primarily money, which comes into the community
then spent outside of the community. Asset building creates
the situation where the assets circulate within the community
Predatory businesses operating in rural communities strip assets
from the community

6. HOW DOES NCF HELP MEET THESE
CHALLENGES?
 Free Tax Preparation Site: VITA/TCE
 Individual Development Accounts (IDA)
 Financial Education
 Mortgage Assistance Services
 Community Oriented Affordable Lending
 Construction Loans for HUD184 Loans

7. Individual Development Accounts
Matched savings account
Financial Education Course Required
First time homeownership
Business creation or expansion
Post-secondary education

8. US TREASURY CDFI FUND
EQ2 INVESTMENTS
TRIBAL INVESTMENTS
PRIVATE INVESTMENTS
BANK BEA AWARDS
FOUNDATIONS