There are more than 500 Community Development Financial Institutions (CDFIs) in the United States, with at least one in every state. The primary mission of CDFIs is to promote economic development in struggling areas, both urban and rural, that are underserved by traditional financial institutions. CDFIs are playing a critical role in building a healthier economy by providing these communities with the access to capital that they so sorely need.

 

CDFIs provide an array of financial services in their target areas, including mortgage financing for home buyers, financing for the rehabilitation of rental housing, financing for the building and rehabilitation of community facilities, commercial loans to small- and micro-enterprise businesses, and financial services needed by low-income households and businesses in the target areas.

 

CDFIs include:

 

• Community Development Banks, which provide needed capital to help rebuild economically distressed communities through targeted lending and investment.
• Community Development Credit Unions, which provide affordable credit and financial services to low-income and minority communities.
• Community Development Loan Funds, which typically raise capital from socially responsible investors at below-market rates and then re-lend the money to nonprofits that build housing and community facilities in struggling urban and rural areas.
• Community Development Venture Capital Funds, which provide start-up capital for real estate and new business development in economically distressed areas.
• Microenterprise Loan Funds, which provide loans and technical assistance to low-income people starting very small businesses.

 

Domini Social Investments helps you invest in CDFIs through the Domini Money Market Account and the Domini Social Bond Fund. Assets in the Domini Money Market Account are deposited with ShoreBank, the nation's oldest and largest community development bank. Up to 10 percent of the Domini Social Bond Fund’s assets are devoted to direct investment in community development, including a number of CDFIs around the country.

 

 

The Domini Social Bond Fund (“The Fund”) is not insured and is subject to market risks.  You may lose money.  Some of the Fund’s community development investments may be unrated and carry greater credit risks than its other investments. The Domini Social Bond Fund currently holds a large percentage of its portfolio in mortgage-backed securities. During periods of falling interest rates these securities may prepay the principal due, which may lower the Fund’s return by causing it to reinvest at lower interest rates. View the Fund’s most recent Annual or Semi-Annual Report, containing a complete description of the Fund’s portfolio.  The composition of the Fund’s portfolio is subject to change.

 

This information is provided for informational purposes only and should not be considered a recommendation as to the financial merits of any of the stocks or investment vehicles mentioned.

 

The Domini Funds, Domini Social Investments LLC, and DSIL Investment Services LLC are not affiliated with ShoreBank.

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