Why Community Development Financial Institutions are Essential for Community Health and Prosperity

Build Healthy Places Network’s Video Snapshots offer quick deep dives with experts from the community development, health, and finance sectors. Our current series focuses on the vital role of Community Development Financial Institutions (CDFIs) in fostering healthy and prosperous communities. 

In this snapshot, Build Healthy Places Network’s Co-Executive Director, Colleen Flynn, speaks with Donna Gambrell, President & CEO of Appalachian Community Capital (ACC), whose remarkable career includes serving as the longest-tenured Director of the CDFI Fund under both the Bush and Obama administrations, and notably, as the first African American woman to hold that position. Donna dives into what CDFIs are and why they are crucial, especially for communities historically excluded from traditional financial systems. 

CDFIs are mission-driven lenders that expand access to capital and financial services in low-income communities nationwide. With over 1,500 CDFIs, including banks, credit unions, and loan funds, these institutions support affordable housing, small businesses, health, education, and commercial real estate. Donna emphasizes that CDFIs are deeply rooted in their communities, providing tailored solutions rather than one-size-fits-all approaches.

Donna shared a powerful example of CDFIs acting as first responders during crises. Following Hurricane Helene’s devastation across five southeastern Appalachian states, ACC quickly mobilized. Leveraging its network of 41 CDFI members across the 13-state Appalachian region, ACC assessed damage, navigated connectivity challenges, and conducted door-to-door outreach to deliver resources to affected small businesses.  

CDFIs help build healthy, thriving communities by meeting people where they are and guiding them toward financial stability. Donna describes CDFIs as the “on-ramp” to the financial mainstream, supporting individuals and small businesses who may not yet qualify for traditional bank loans.

Without CDFIs, communities lose access to affordable credit, vital business advisory services, and trusted financial partners who understand local needs. Their absence creates a critical gap in the community development ecosystem, hindering collaboration essential for economic resilience and opportunity. Now is the time to raise awareness, advocate for sustained investment, and champion the vital work of CDFIs and the CDFI Fund. Equipping them ensures communities can continue to grow, thrive, and build lasting economic equity.

Watch the video: