CDFIs and MDIs

Community Development Financial Institutions (CDFIs) are private financial institutions with a mission to provide affordable lending and financial services to low-to-moderate income and disadvantaged communities.

Minority Depository Institutions (MDIs) are private financial institutions that serve Black, Latino/Hispanic, Native American and Asian American communities in the United States. The FDIC defines MDIs as institutions that have: 51 percent or more of the voting stock owned by minority individuals, or a majority of the board of directors is minority and the community that the institution serves is predominantly minority.

No. While many MDIs are also CDFIs, and vice versa, MDIs and CDFIs were founded for different historical reasons. Also, CDFI institutions are certified as such by the Department of Treasury. Both CDFIs and MDIs are dedicated to delivering responsible, affordable services to help low-income, low-wealth, and both people and communities join the economic mainstream.

Applications for CDFI certification are submitted to the Department of Treasury’s CDFI Fund for review. Applicants must meet each of the following requirements:

• Is a legal entity at the time of certification application;
• Has a primary mission of promoting community development;
• Is a financing entity;
• Primarily serves one or more target markets;
• Provides development services in conjunction with its financing activities;
• Maintains accountability to its defined target market; and
• Is a non-government entity and not under the control of any government entity (Tribal governments excluded).