Community Investments

Winter 2009

Community Investments Vol 21, Issue 3
Strength in Adversity: Community Capital Faces Up to the Economic Crisis


This paper reviews the impact of the economic crisis on the community development industry. Specifically, it asks, how are Community Development Financial Institutions (CDFIs) faring? What trends are emerging? What steps are CDFIs taking to respond to the crisis? In addition, the paper offers “best practices” to help all CDFIs manage this difficult climate. To answer these questions and to learn from our CDFI peers, we conducted a series of eleven interviews with leading CDFIs across the country. A number of common themes emerged, from heightened portfolio risk and decreased liquidity, to the need to develop new skills such as how to implement an effective loan workout.

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