Discussion Paper

Perspectives From Small-Town Mission-Driven Lenders

Abstract: Smaller towns and more rural communities often face lower per capita private investment than more densely populated places. But there are opportunities to unlock investment and expand credit access in smaller communities through community development financial institutions (CDFIs). CDFIs are mission-driven lenders who serve low- and moderate-income communities with limited access to financial products and services. From April 10 through June 13, 2025, the Federal Reserve Banks collected data from nearly 450 CDFIs as part of a recurring survey led by the Richmond Fed. The survey asked respondents to indicate if their organization works in urban, suburban, or rural places — or some combination of the three. If a respondent selected a combination of the three, a follow-up question asked them to indicate if their organization primarily dedicates resources and staff time to urban, suburban, or rural places. Of the 448 organizations represented in the survey sample, one-fourth (116 CDFIs) responded that they work exclusively or primarily in rural areas. For the purposes of this post, we refer to that subset of the sample as "rural CDFIs." Survey respondents who do not work exclusively or primarily in rural areas are referred to as "nonrural CDFIs."

Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Regional Matters

Publication Date: 2025-10-16