Asset-Backed Securitization for CDFIs

Community Development Financial Institutions (CDFIs) have long served Black, Brown, and other underserved borrowers, with 60% of CDFI loans made to people of color between 2002 and 2020. But CDFIs lack sufficient flows of sustainable capital. Using asset-backed securitization for CDFIs creates a scalable and sustainable market-based approach to increasing these capital flows to Black, Brown and underserved communities.

The Sorenson Impact Institute partnered with the US Impact Investing Alliance to develop an understanding of barriers, solutions, and potential roles of federal policy in asset securitization for small and medium CDFIs that do not have access to capital markets. The Institute’s report assesses the initial feasibility of an asset securitization framework which would preserve flexibility to support the impact missions of financial inclusion in underserved communities.

Our Partners

The US Impact Investing Alliance

Our Challenge

Assess feasibility of asset securitization frameworks to preserve capital flows to underserved communities.

Our Work

Literature Review Landscape Analysis Qualitative Interviews Innovative Financial Structure Federal Policy