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 operations
- Demand for products
- Challenges in meeting demand
- Public programs that have enabled them to provide their services
This Regional Matters post provides an early look into some of our findings before we release a full key findings report on Sept. 15.
What Are Community Development Financial Institutions (CDFIs)?
CDFIs are mission-driven banks, credit unions, loan funds, and venture capital funds. They deliver a range of financial products and services to individuals and communities underserved by traditional lenders. CDFIs also provide an affordable alternative to nontraditional — sometimes predatory — lenders.
CDFIs are uncertain about the extent of funding disruptions but are still planning on future growth
During the survey fielding period, CDFIs were uncertain about the future of several federal programs that offer funding, investment, and other support to CDFIs. Respondents, therefore, did not have a clear picture of how their funding landscape was going to change in the near future.
While many CDFIs expressed that this uncertainty was disruptive, most are still planning to continue to expand their organization in the future. For example, 95 percent of respondents indicated that they sought to grow their customer base over the next five years. More than half of respondents also indicated that they wanted to increase the level of financing and development services they offered (87 percent and 69 percent, respectively) as well as expand their geographic reach (57 percent). Very few respondents planned to decrease financing and development services (1 percent each).
Strong demand for their products supports CDFIs goals to grow
CDFIs' intention to scale up their businesses tracks with the survey's findings about demand in the industry: Nearly three-quarters of respondents saw demand increase over 2024 and expect continued increases throughout 2025. Since the survey began in 2019, CDFIs have consistently reported increasing demand for their products and services.
Despite growth, the industry grapples with longstanding challenges such as shortages of staffing, inadequate technology, and a lack of capital
What limits CDFIs' ability to meet demand? Most 2025 respondents indicated that inadequate staffing was most likely to impede their ability to meet demand (72 percent). This finding is consistent with previous years: The industry has experienced longstanding challenges attracting, training, and retaining enough qualified staff to keep up with demand. In total, a smaller share of respondents indicated that lending capital was a barrier to their ability to meet demand (63 percent). However, that category had the largest share of respondents who indicated that it was a significant challenge (31 percent).
Full key findings report coming soon!
The full key findings report will further explore the opportunities and challenges that CDFI loan funds, credit unions, and banks reported. It will dig into the factors that led to increased demand over the last year, the inhibitors to meeting this demand, and much more.
Stay tuned to our website for the full 2025 CDFI Survey key findings report.
More About the Federal Reserve’s CDFI Survey
The Federal Reserve's CDFI Survey aims to understand current challenges and opportunities for community development financial institutions (CDFIs) across the nation. The information we collect helps provide policymakers, researchers, practitioners, funders, investors, and other community development stakeholders with timely information about the CDFI industry. CDFIs can also use the results to compare their organizations to a larger national sample and to learn about other CDFIs' products and practices.
The Federal Reserve Bank of Richmond launched a biennial survey of CDFIs in the Southeast in 2009. Due to growing interest, the survey expanded nationally in 2019. The 12 regional Federal Reserve Banks administered the 2025 survey, with help from industry organizations, to distribute the survey widely.
Views expressed are those of the author(s) and do not necessarily reflect those of the Federal Reserve Bank of Richmond or the Federal Reserve System.
