Search Results
Briefing
Community Development Financial Institutions as a Means to Overcome Market Failures
Neighborhood and information externalities can lead to market failures, leaving communities underinvested and underprovided with financial services.Community development financial institutions (CDFIs) can serve as a means of implementing government subsidies aimed at overcoming these market failures.To spur positive externalities, however, CDFI investments must clear a critical mass threshold, which they do not appear to have been able to achieve to date.
Journal Article
District Digest: Working on Wellness: The Rural Health and Employment Link
Adverse health events can be disruptive to employment. A health shock, such as suffering an injury or developing a chronic condition, can limit an individual's ability to perform the physical and mental demands of work, potentially leading to lower productivity, fewer hours, and even a labor force exit. But the relationship between health and employment doesn't end there — employment outcomes also influence health outcomes. Employment is a key social determinant of health, supporting well-being through financial stability and access to employer-provided health insurance. For some, workplace ...
Journal Article
District Digest
Many Americans take access to credit for granted. It's easy for them to underestimate the importance of credit. But without it, a person's economic advancement may become more challenging. For example, in many areas, the inability to secure an auto loan — and thus, a car — could limit employment options, access to healthy food, or medical care.Different people have disparate experiences in accessing credit. For those who are financially underserved, the market has produced credit alternatives. But many of those alternatives, such as payday lenders, offer unfavorable terms that often ...
Discussion Paper
Early Results: The Federal Reserve's 2025 CDFI Survey
This spring, we fielded the 2025 Community Development Financial Institution (CDFI) Survey. The survey provides policymakers and community development stakeholders with information about how CDFIs are faring as they work to close gaps in credit and capital access. We heard from 448 institutions during the survey fielding period from April 10 to June 13, which accounts for nearly 30 percent of all certified CDFIs in the country. CDFIs shared their experiences in the following areas:Goals for scaling their operationsDemand for productsChallenges in meeting demandPublic programs that have ...
Discussion Paper
2025 CDFI Survey: Can Secondary Markets Help CDFI Loan Funds Grow?
Our recent 2025 CDFI Survey Key Findings Report summarized responses from all community development financial institutions (CDFIs) who took the survey. However, "CDFI" is a broad moniker for a very diverse set of organizations. Many people are familiar with community banks and credit unions, but perhaps less so with loan funds. Loan funds are place-based organizations, often nonprofits, that can leverage external funding to deliver financing for undeserved individuals and communities. They are the most common business model type of all certified CDFIs, and they accounted for just under half ...
Discussion Paper
From Incentive to Impact: What Extended Tax Credits Mean for Community Development Finance
In July 2025, H.R.1 (otherwise known as the One Big Beautiful Bill Act) was passed in the United States. Among other things, this legislation expanded three tax credit programs that are designed to spur economic development in disinvested places. Community development financial institutions (CDFIs) have historically participated in all three tax programs: the New Markets Tax Credit (NMTC), the Low-Income Housing Tax Credit (LIHTC), and Opportunity Zones (OZ).The Federal Reserve's 2025 CDFI Survey asked several questions about respondents' use of federal and state programs, including federal ...
Discussion Paper
Same Sector, Different Stories: How CDFI Credit Union Experiences Vary by Institution Type
Credit unions are a keystone of community banking that date back centuries. Compared to banks, credit unions are cooperative in model, which means they are governed by their membership; they provide financial and depository services to members.One hundred sixty-two community development financial institution (CDFI) credit unions responded to the Federal Reserve's 2025 CDFI Survey. This Regional Matters post captures responses across credit unions — including recent changes in demand, their capacity to meet new demand, and factors that limit their ability to expand financial services to more ...
Discussion Paper
The Federal Reserve’s COVID-19 Community Impact Survey
The Federal Reserve developed and fielded a survey of community-based organizations to better understand the impacts of COVID-19 on their operations and the communities they serve. Fifth District respondents in April and June expressed that while organizations and communities are experiencing significant disruptions, effects are expected to be longer-lasting for the latter.
Discussion Paper
Observing Recent Trends in Job Postings
The number of job postings dropped considerably in the United States and the Fifth District in March and April but showed signs of recovery in May. A look at the data reveals how labor demand has varied by types of jobs amid the COVID-19 pandemic.
Discussion Paper
Unemployment Benefits and Changes under the CARES Act
As part of the U.S. response to COVID-19, unemployment insurance recipients are receiving increased weekly payments. For many individuals in the Fifth District, these enhanced unemployment benefits are greater than the wages they earned while at work.