Lending Glossary

Types of Lending and Definition of Terms

Affordable Housing

Affordable housing activities: (a) promote the supply of housing through the provision of acquisition, pre-development financing, construction, rehabilitation, permanent and other similar financing, and related development services, and/or (b) increase homeownership opportunities through the provision of first mortgage financing, subordinated mortgages (for home purchase and rehabilitation) and related development services.

Angel Investor

An individual that provides capital for economic, housing, or community development projects.

CDFI Intermediary

An entity that qualifies as a CDFI and whose primary business activity is the provision of financial products to CDFIs and/or emerging CDFIs.

Community Development Entity

A certified organization that provides investment capital for low-income communities or low-income persons.

Community Development Financial Institution (CDFI)

An entity that has been certified by the US Department of Treasury as meeting the criteria set forth to provide a range of products and services dedicated to community development.

Community Facilities

A facility in which health care, childcare, educational, cultural or social services are provided.

Consumer Financial Services

All personal loans to individuals for health, education, emergency, debt consolidation, and consumer purposes.

Development Services

A CDFI’s activities that promote community development and are integral to the CDFI’s provision of financial products. Such services shall prepare or assist current or potential borrowers, or investees, to utilize the financial products of the organization. Such services include: financial or credit counseling to individuals for the purpose of facilitating home ownership, promoting self-employment, or enhancing consumer financial management skills; or technical assistance to borrowers, or investees, for the purpose of enhancing business planning, marketing, management, and financial management skills.

Financial Services

Checking or savings accounts, check cashing, money orders, certified checks, automated teller machines, deposit-taking, safe deposit box services, and other similar services.

Healthy Food

Projects that involve providing healthy food choices to underserved communities or food deserts.

Individual Development Account (IDAs)

IDAs are matched savings accounts, similar to 401(k)s, that can be used by low-income households to purchase homes, seek post-secondary education, capitalize small businesses, fund retirement accounts, or engage in other types of economic development activities.

Loan Fund

An organization whose predominant business activity is the provision of loans.

Native American CDFI

A CDFI that primarily serves Native American communities.

Small Business

Capitalized funds to provide for the purposes of expanding small business development.