Washington, DC - The Community Development Financial Institutions Fund (CDFI Fund) today released a report that examines the state of the Community Development Financial Institution (CDFI) industry and its performance through years that encompassed the difficult recent economic recession.

The "CDFI Industry Analysis: Summary Report," produced by the Center on Social Innovation and Finance at the Carsey Institute of the University of New Hampshire, looks at the performance of the CDFI industry from 2005 to 2010. The report was developed under contract with NeighborWorks® America as part of the CDFI Fund's Capacity Building Initiative.

"An important goal of the Capacity Building Initiative is being sure that we are addressing the needs of CDFIs through the trainings and resources that we offer," said CDFI Fund Director Donna J. Gambrell. "The development of this report is a key, comprehensive overview of how CDFIs are doing, allowing the CDFI Fund to better pinpoint where we are needed in the future."

The data analysis suggests that CDFIs have succeeded in lending to and investing in individuals and communities not served by conventional financial institutions, while maintaining loan performance standards generally equivalent to those of the conventional financial sector. While it is true that "the costs of serving these individuals and communities is somewhat higher" due to the technical assistance provided by CDFIs, said report co-author Michael Swack of the Carsey Institute, "some additional costs incurred by CDFIs could be mitigated" if as a group they undertook certain changes in their operating procedures.

The range of time the report studies allows for an examination of how CDFIs performed during the recession. Other topics the report covers include CDFI portfolio performance, scale effects, the impact of operating expenses on CDFI self-sufficiency, and the barriers to leveraging capital effectively.

The full summary report can be found on the CDFI Fund's website. For more information about the Capacity Building Initiative, or other CDFI Fund programs, please visit www.cdfifund.gov.

About the U.S. Department of Treasury's CDFI Fund

The CDFI Fund invests in and builds the capacity of community-based, private, for-profit and non-profit financial institutions with a primary mission of community development in economically distressed communities. These institutions certified by the CDFI Fund as community development financial institutions or CDFIs are able to respond to gaps in local markets that traditional financial institutions are not adequately serving. CDFIs provide critically needed capital, credit and other financial products in addition to technical assistance to community residents and businesses, service providers, and developers working to meet community needs.

About NeighborWorks® America

NeighborWorks® America (NeighborWorks®) is a national nonprofit organization chartered by Congress in 1978. Its mission is to create opportunities for Americans to live in affordable homes, improve their lives, and strengthen their communities. NeighborWorkså has over 22 years of experience providing training and is recognized as the premier provider of training in the affordable housing and community development industry.

About The Carsey Institute

The Carsey Institute at the University of New Hampshire conducts policy and applied research on vulnerable families and on sustainable community development, giving policy makers and practitioners the timely, independent resources they need to effect change in their communities.