WASHINGTON—A new national network of state coalitions representing community development financial institutions, including credit unions, has been launched to strengthen public policy advocacy, attract additional capital and expand lending in underserved communities.
The Network of State CDFI Coalitions, announced Oct. 30, brings together leaders of statewide organizations representing mission-driven lenders serving urban, rural and Native communities. The initiative is intended to strengthen collaboration among state coalitions, share successful policy approaches and increase the influence of CDFIs in decisions affecting economic development and access to financial services.
Opportunity Finance Network (OFN), a national organization representing nearly 500 CDFIs, is a key partner in the initiative, providing support through conference programming and federal advocacy.
“CDFI policy doesn’t begin and end in Washington, D.C.,” said Harold Pettigrew, president and CEO of OFN. “State coalitions bring CDFIs together to strengthen their voice, unlock new capital opportunities and expand their impact.”
Pettigrew said the new network will help state leaders exchange successful strategies and strengthen the institutions serving communities traditionally overlooked by mainstream financial providers.
Effort Has Been Building Since 2023
According to OFN, the new organization builds on several years of work by volunteer leaders seeking to organize CDFIs at the state level.
Since 2023, those leaders have:
- Conducted 13 webinars focused on state coalition development and advocacy.
- Briefed the Congressional CDFI Caucus on the importance of community development finance.
- Supported the development of more than 15 emerging state coalitions, from Maine to Hawaii.
- Worked to strengthen collaboration among CDFIs before the new national network had any dedicated staff.
The network is expected to help coalitions pursue stronger state policies, develop new funding partnerships and expand the availability of affordable credit for small businesses, housing and community development projects.
Bipartisan Support in Congress
The announcement drew support from Sens. Mike Crapo, R-Idaho, and Mark Warner, D-Va., co-chairs of the Senate Community Development Finance Caucus.
“CDFIs create economic growth in rural and underserved communities,” Crapo said in a statement released by OFN. He said stronger state policies and partnerships could help the institutions better address local financial needs, the statement added.
Warner also welcomed the initiative, pointing to the network’s development into a nationwide effort and the bipartisan support CDFIs have attracted in Congress.
He said continued collaboration could help CDFIs support small businesses, create jobs, revitalize neighborhoods and expand economic opportunity.
Implications for Credit Unions
The new network includes organizations representing CDFI-certified credit unions, which provide financial services and affordable lending in low-income and underserved markets.
OFN’s membership includes credit unions, community development loan funds, banks, minority depository institutions, green banks and venture capital funds.
The increased emphasis on state-level advocacy comes as CDFIs seek to diversify their funding sources and reduce their vulnerability to changes in federal support.
State coalitions have already demonstrated their ability to secure additional resources.
In September, the Michigan Economic Development Corp. announced approval of a loan of up to $10 million to the Michigan CDFI Coalition to establish a pooled lending fund supporting small businesses, affordable housing and community development.
Michigan has at least 45 CDFIs, including 18 credit unions, according to the state agency. The new pooled fund, however, is intended for nondepository CDFIs rather than credit unions.
Other states, including California, Pennsylvania and Virginia, have developed programs providing additional capital or other assistance to CDFIs, according to research published by the Milken Institute.
Billions in Community Investment
OFN said its members provided $136.9 billion in cumulative financing from 1985 through 2024, helping create or maintain approximately 3.8 million jobs and finance nearly 3 million housing units.
The organization also said CDFI investments can leverage as much as $8 in private capital for every $1 in public investment.
OFN has identified stronger capitalization, expanded partnerships and greater policy influence as priorities for its membership through 2030.
The new Network of State CDFI Coalitions is expected to play a role in those efforts by giving state organizations a stronger collective voice and helping community lenders expand their reach.
