Who is CDBA?

CDBA is the national trade association of the Community Development Banking sector. We are the national voice of community development banks and thrifts that are certified as community development financial institutions (CDFIs). We strive to educate policy-makers, regulators, legislators and the general public on the importance of Community Development Banks, the unique circumstances under which they operate and the special needs our institutions have. CDBA seeks to lead the growth and development of our sector in a manner that builds healthy institutions with the capacity to promote access to capital and financial services in distressed and underserved communities. For more information on how CDBA can benefit your bank or thrift, please visit our "Join" page.

What is a Community Development Bank?

The Quintana Family, owners of Casa Del Taco. Casa Del Taco received financial and technical assistance from Neighborhood National Bank. They have a thriving business in National City, California.

A Community Development Bank (CDB) is a Federal Deposit Insurance Corporation-insured bank or thrift that has a primary mission of promoting community development. Often referred to as CDFI Banks, these institutions are distinct from traditional banks and thrifts because they primarily target low and moderate income markets. Most traditional banks do not focus on specifically serving these areas. Our member banks and other CDBs work in urban and rural communities that lack access to credit and are not adequately served by the traditional banking industry.

The U.S. Treasury Department’s Community Development Financial Institutions (CDFI) Fund has a certification process used to identify our institutions as specialized Community Development Financial Institutions (CDFIs). All CDFI Banks must demonstrate that at least 60% of their total lending, services, and other activities benefit low income communities.

The most current list of certified CDFI banks can be found at the CDFI Fund's website.

What Do Community Development Banks Do?

CDBs serve urban and rural communities that lack access to credit and consumer financial services. They work in partnership with their local communities to promote revitalization and access to capital among those that are often left out of the economic mainstream. Read about the impact our member banks have had in their local communities by visiting our impact page.

Our members and other CDFI-certified banks and thrifts: 
 

• build wealth in communities by investing in areas often under-served by the traditional banking sector.

• are engaged in a wide range of lending to support affordable housing, small business, community facilities, mixed use and commercial real estate, and consumers. CDBs provide financial services and technical assistance to low-income consumers in order to help move these individuals from the unbanked to the formal banking sector.

• provide technical financial assistance to make sure their customers are informed consumers, and understand the products and services they are receiving.

• do not practice any form of predatory lending.

• are a variety of institutions, including state and nationally-chartered banks and thrifts. Most CDBs are privately held institutions with support from socially motivated investors.