The 2022-2023 state budget signed by Governor Gavin Newsom on June 30th, included $50M to establish the California Investment and Innovation Fund, a state-level Community Development Financial Institution (CDFI) fund.
This one-time General Fund investment will provide grants to community development financial institutions to provide technical assistance and capital access to economically disadvantaged communities in the state.
CDFIs play an important role in generating economic growth and opportunity in communities that mainstream finance doesn’t traditionally reach.
With community development as their primary mission, CDFIs can be banks, credit unions, microloan funds, or venture capital providers that help deliver affordable housing, small business support, access to health care, and more.
With several economic challenges hitting communities across the state, the new Investment and Innovation Fund will support the work being done by CDFIs in under-resourced communities throughout California.
“As the challenges confronting California grow, from homelessness to environmental degradation to increasing social inequality, CDFIs have never been more important” said Alan Hoffman, Senior Vice President and CFO of Century Housing.
“Historically underfunded, CDFI’s have struggled to access the financial resources they need to address these societal issues. The California Investment and Innovation Fund will provide welcome and much needed support to CDFIs in pursuing their mission.”