Are CDFIs the original capital renegades?: Donna Gambrell, CEO of Appalachian Community Capital

Certified Developmental Financial Institutions (CDFIs) are government-certified banks, credit unions, loan funds, and other types of capital providers that are dedicated to putting stakeholders first instead of shareholders. These organizations are vital in channeling capital to underserved economies and small-businesses yet have the unfortunate distinction as one of the best-kept secrets in the social finance space. Today’s Renegade Capital will hopefully correct that. We’re joined by RC-certified CDFI guru Donna Gambrell, current President and CEO of Appalachian Community Capital and former director of the Treasury’s CDFI Fund, to tell us what exactly these important institutions are and what regular people can do to support them.

About Donna.

If anyone can be called a pioneer in the CDFI movement, it’s Donna Gambrell. Prior to her appointment as President & CEO of Appalachian Community Capital in 2017, Donna led a distinguished tenure as Director of the Treasury’s CDFI Fund, the first African American to hold the job. Her stewardship between 2007 and 2013 saw the Fund grow significantly, more than doubling in size under its flagship program. This in turn boosted the CDFI industry’s ability to provide affordable capital, credit, and financial services to low-income communities across the country. The Renegade Capital Crew is now proud to count Donna as an official RC alum, and we thank her for sharing her wisdom with us.

A renegade not only listens but acts. We've consolidated a few tips from this episode to help you invest in local communities.

1. Refer small businesses to CDFIs for support: If you know a small business that wants to grow but needs fair financial services to do so, refer them to a community development financial institution for help.
2. Invest in CDFI banks & credit unions: Move your savings to a CDFI bank or credit union that supports lending in local communities. Check out this site to locate a CDFI bank or credit union near you.
3. Donate to CDFIs: If you admire the work that CDFIs are doing to uplift local communities, consider donating to support their work
4. Learn more about how CDFIs work: If you want to learn more about how CDFIs were the economic first-responders during the COVID-19 pandemic, check out this webinar here.