What is community development lending?

Community development lending refers to loans and financial services provided by banks and financial institutions to support projects that benefit low- and moderate-income communities. This can include financing for affordable housing, small businesses, community facilities, and revitalization projects. The goal is to stimulate economic growth, create jobs, and improve living conditions in under-resourced areas. Community development lending is often guided by regulations such as the Community Reinvestment Act (CRA), which encourages financial institutions to help meet the credit needs of all segments of their communities.