In Conversation with Michael Shuman: Local Investment and CDFIs

For decades, community development finance has depended on a mix of institutional, philanthropic, and public-sector capital. Increasingly, however, community development financial institutions (CDFIs) are exploring ways to engage individual investors—not only as a source of funding, but as stakeholders in the future of their communities. Interested in impact investing? There’s no path more direct than channeling catalytic capital through local lenders.

I had a lively conversation with community economics visionary Michael Shuman, editor of the Main Street Journal, about research into CDFI investment offerings, what makes grassroots investment different from conventional capital raising, and why relationships remain at the heart of successful community investment programs.

One question that continues to intrigue me and Michael is this: What happens when community members are given meaningful opportunities to invest in the places they care about?

Read the full interview here.