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ABA: The American Bankers Association
Banking Topic

CDFIs and MDIs

Community Development Financial Institutions and Minority Depository Institutions support job creation and economic vitality in underserved communities.

Related Topics

CDFIs and MDIs are critical parts of the banking industry, with a mission to serve communities of color and low- to moderate-income communities across the United States. While many of these institutions are also ABA members, we support the missions of all CDFIs and MDIs and the important work they do to ensure that all communities are receiving the economic opportunities they need and deserve. 

CDFIs and MDIs at a Glance

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).

Funding Opportunities

There are a variety of funding sources that are set aside specifically for CDFIs and MDIs.

View list of funding sources

Related Training & Events

  • Partnering With MDIs and CDFIs for Greater Impact

    Recorded Webinar | June 22, 2023

    Learn leading practices for cultivating partnerships with Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs).

  • Emergency Capital Investment Program (ECIP): Program Updates and New Guidance from Treasury

    Recorded Webinar | August 16, 2021

    This webinar will provide an in-depth overview about the new application deadline, program changes, and how the new guidance will affect efforts by certified Community Development Financial Institutions (CDFI) or Minority Depository Institutions (MDI) to access up to billion in capital to support low- and moderate-income and minority communities.

  • Addressing Racial Wealth Gaps Through MDI/CDFI Bank Investment

    Recorded Webinar | April 1, 2021

    Explore opportunities to partner with Minority Depository Institutions (MDIs) and Community Development Financial Institutions (CDFIs). These groups have a long history of providing economic investment and resources to financially underserved communities. The webinar features a panel discussion followed by Q&A. It showcases real examples of how investing in these partnerships can spur greater economic mobility in underserved communities.

ABA Resources

Other Organizations Supporting the CDFI/MDI Mission

National Bankers Association

ABA’s strategic partnership with the National Bankers Association builds on existing membership overlap to more successfully collaborate on a variety of initiatives including: policy coordination, expanding NBA member access to ABA's training and education programs, and enhancing participation in the U.S. Treasury Department's Mentor-Protégé program for MDIs. ABA encourages its member banks to join NBA as associate members.

Community Development Bankers Association

As the national trade association of the community development bank sector, CDBA’s mission is to educate policy makers, regulators, and legislators on the importance of community development banks and thrifts. Visit the CDBA’s website to learn more.

Professional Development Grants from MinBanc

MinBanc Foundation has distributed professional development grants in excess of $600,000 to further employee education and training opportunities at minority- and women-owned banks since their founding. MinBanc reimburses tuition, certificate and online training, and conference registrations—up to $5,000 per bank, per calendar year. To learn more, visit minbanc.org or call (202) 489-9932.

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