The CDFI Fund was established under the Reigle Community Development and Regulatory Improvement Act of 1994, and since then it has become one of the largest single sources of funding for CDFIs and is the largest source of hard-to-get equity capital. While the number of CDFIs grew in the 1990s after the creation of the fund, these banks still represent only a small percentage of the total universe of community banks.

CDFIs are specialized financial institutions that create economic opportunity for individuals and small businesses, and help provide quality affordable housing and essential community services. CDFIs help bridge the growing U.S. financial services access gap by bringing capital and financial services to low-income people and communities, affording them access to capital to start and expand businesses, build and purchase homes, and develop needed community facilities.

The CDFI industry has five sub-sectors:

• Community Development Banks and Thrifts
• Community Development Credit Unions
• Community Development Loan Funds
• Community Development Microenterprise Funds
• Community Development Venture Capital Funds