With recent shifts in federal funding, organizations pursuing crucial climate-related projects are seeking innovative financial solutions. Fortunately, a robust network of alternative financing options exists to bridge this gap. Green banks, Community Development Financial Institutions (CDFIs), and CDFI-friendly organizations offer specialized programs and resources designed to support sustainable initiatives. These institutions prioritize community development and environmental impact, providing crucial capital and sometimes technical assistance to drive climate action at the local and regional levels. The following resources offer detailed information on how these alternative financing models can empower your organization to achieve its climate goals
- Green Banks
- Green banks are public, quasi-public, or nonprofit financing entities that leverage public and private capital to pursue goals for clean energy projects that reduce emissions. Generally, state and local policymakers use green banks to deliver projects that are not sufficiently met by other financial markets and to achieve desired economic development or public benefit outcomes.
- To learn more about Green Banks, visit the EPA website.
- See here for Green Banks that serve the Midwest region.
- Community Development Financial Institutions (CDFIs)
- The Community Development Financial Institutions Fund (CDFI Fund) plays an important role in generating economic growth and opportunity in some of our nation’s most distressed communities. By offering tailored resources and innovative programs that invest federal dollars alongside private sector capital, the CDFI Fund serves mission-driven financial institutions that take a market-based approach to supporting economically disadvantaged communities.
- Mission-driven organizations are encouraged to apply for CDFI Certification and participate in CDFI Fund programs that inject new sources of capital into neighborhoods that lack access to financing.
- To learn more and apply for CDFI certification, visit the CDFI Fund website.
- To find a CDFI that can meet your needs and service your area, check out the CDFI Locator courtesy of the Opportunity Finance Network.
- CDFI Friendly Organizations
- While CDFI’s are the financial institutions that provide the capital, CDFI Friendly organizations are the entities that help connect those institutions with the communities that need it, especially since CDFIs have limited reach.
- Their support extends beyond mere introductions, as they frequently provide invaluable technical assistance, guide applicants through the loan process, and foster strategic partnerships, ensuring that vital resources reach those who need them most.
- To learn more and connect visit CDFI Friendly America.