CDFI Information

FCI is more than a loan fund. We are a community development financial institution (CDFI). CDFIs are profitable but not profit maximizing. They put community first, not the shareholder. They have had great success over the past 30 years and have a proven track record of making an impact in those areas of America that need it most.

CDFIs have been around since 1994 and are certified by the CDFI Fund at the US Department of Treasury. A CDFI is a financial institution that has a primary mission of community development, serves a target market, is a financing entity, provides development services, remains accountable to its community, and is a non-governmental entity.

CDFIs provide a unique range of financial products and services in economically distressed target markets, such as mortgage financing for low-income and first-time homebuyers and not-for-profit developers, flexible underwriting and risk capital for needed community facilities, and commercial loans and investments to small start-up or expanding businesses in low-income targeted areas.  CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions such as loan and venture capital funds.

In addition, because CDFIs are high-touch, they don't just provide funding without also providing support. So an important component of the CDFI model is that they provide technical assistance and form long-term relationships with their borrowers and find public and private partnerships with organizations that can provide training, that add value to the business.

CDFIs in Wisconsin

Today, there are 800+ CDFIS nationwide.  These CDFIs – including the 21 located in Wisconsin – fall into the following categories:

• COMMUNITY DEVELOPMENT LOAN FUNDS –WI examples include Community Assets for People (Stevens Point); First American Capital Corporation (Waukesha); Forward Community Investments (statewide); Impact Seven (Almena); Milwaukee Economic Development Corporation (Milwaukee); Partners Advancing Values in Education (statewide); Ways to Work (nationwide) and WBD Opportunity Fund (statewide)
• MICROENTERPRISE FUNDS – WI examples include NiiJii Small Business Loan Fund (Keshena) and Wisconsin Women’s Business Initiative Corporation (statewide)
• COMMUNITY DEVELOPMENT BANKS – WI bank CDFIs include Mitchell Bank and North Milwaukee State Bank, both located in Milwaukee
• COMMUNITY DEVELOPMENT CREDIT UNIONS – WI CDFI credit unions include Brewery Credit Union, First Service CU, Greater Galilee Baptist CU and New Covenant Missionary Baptist Church CU all located in Milwaukee; CoVantage Credit Union located in Antigo and Lac Courte Oreilles Federal CU located in Hayward.

Each of these 21 CDFIs provides loans to un-served and under-served urban and rural markets, including micro businesses, small businesses, individual consumers and nonprofits across the state. Over the years, these CDFI loans have produced real, tangible gains—good jobs, the growth of small businesses, quality affordable housing, education, community facilities, and more.

At the end of 2009, Wisconsin CDFIs had more than $400 million in loans outstanding – and growing!

Forward Community Investments

FCI is a member of the Opportunity Finance Network and we are the only Wisconsin CDFI that is dedicated to working with nonprofits.  It’s what we do.  We lend money at below-market rates of interest so that our nonprofit borrowers can develop quality affordable housing, build community facilities and promote economic development strategies in distressed rural and urban communities.

Why nonprofits?

• Because they are the safety net for people in communities across Wisconsin.
• Because they are the THIRD SECTOR, providing balance and equilibrium to the for-profit and public sectors.
• Because they are the fifth largest employer in the state, representing 10% of Wisconsin’s workforce.
• Because they provide nearly 250,000 jobs for Wisconsin’s residents.
• And, because the nonprofit sector is growing rapidly as the need for their services increase.  need for their services increase.