PIDC is happy to announce that, as of April, PIDC-Regional Development Corporation (PIDC-RDC) was certified as a community development financial institution (CDFI) by the U.S. Treasury’s Community Development Financial Institutions Fund (the CDFI Fund). PIDC-RDC is a non-profit subsidiary created by PIDC to attract public, private, and philanthropic capital for targeted community lending and development initiatives.
CDFIs are specialized financial institutions that work in market niches that are underserved by traditional financial institutions. CDFIs provide a range of financial products and services in economically distressed areas across the country.
PIDC and PIDC-RDC will use this new CDFI status to continue and expand their work creating jobs and supporting small businesses in Philadelphia through lending and business support services. PIDC’s financial products include subordinate, low-interest term loans for capital investment projects, lines of credit for small, minority, women, and disabled owned businesses performing City or other institutional credit contracts, and loan guarantees in partnership with local private banks. These innovative programs provide flexible financing to small businesses that have difficulty accessing the full amount of private capital needed to maintain and expand their operations.
As a CDFI, PIDC-RDC will be better positioned to access funding directly from the federal government’s CDFI Fund and to leverage new sources of capital from the private sector. This CDFI designation will allow PIDC-RDC to capitalize additional loan funds which target small and growing businesses throughout all neighborhoods of Philadelphia.