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Could CDFIs Be One Way To Finance Economic Justice?

Profit-driven investing has often fueled extractive capitalism, damaging the environment and harming marginalized communities. Impact investing is so named because it has infused positive social and environmental impact alongside financial returns. To advance economic justice, the investment community as a whole, including venture capital and major banks, must change the way it invests, which currently leaves out people of color in huge margins. Federally certified Community Development Financial Institutions (CDFIs) can help investors direct their capital — through purposeful lending — to the places that traditional financial institutions won’t invest.

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