Field Insights: “CDFI Deserts” and the State of CDFIs in Georgia

A “CDFI desert” is defined by two key factors: a high concentration of census tracts experiencing economic distress and CDFI lending that falls short of the national per capita average. In Georgia, over half of the state’s counties have areas where more than 50% of the census tracts meet criteria for economic need, yet receive significantly less capital per person than the national benchmark. For instance, while the national average CDFI financing per capita stands at roughly $714, many parts of Georgia fall well below that level—indicating a deep and persistent shortfall in community investment. Even though Georgia is home to more than 30 certified Community Development Financial Institutions (CDFIs), the distribution of their lending is highly uneven. A large portion of available federal funding and technical capital remains concentrated in the Atlanta metropolitan area, leaving rural, micropolitan, and some urban pockets with limited access.

The lack of robust CDFI presence in underserved regions stifles local economic growth. Without accessible and flexible capital, communities struggle to finance essential services—from affordable housing and healthcare to small business development and workforce training. This gap not only undermines local entrepreneurial activity but also reinforces cycles of disinvestment that leave vulnerable populations further behind. Moreover, the absence of locally embedded CDFIs hampers a community’s ability to attract additional federal funding. CDFIs play a pivotal role in channeling resources from programs such as the New Markets Tax Credit, Community Reinvestment Act initiatives, and other federal funding streams. When these institutions are scarce, entire regions may miss out on opportunities to drive sustainable development and inclusive growth.

Despite these challenges, there is significant potential for transformation. The concentration of capital in Atlanta highlights the need for strategic interventions that build capacity outside major urban centers. Here are several approaches that could help bridge the gap:

• Enhancing Data Transparency: Better tracking of where and how capital is deployed can shine a light on underserved areas and drive more targeted investment strategies.
• Building Local Capacity: Establishing roles such as “community market leads” can provide the on-the-ground expertise necessary to connect local entrepreneurs with available capital. This targeted support can help ensure that even remote areas can absorb and effectively use new investments.
• Fostering Collaborative Networks: Creating communities of practice between foundations and CDFIs can facilitate knowledge sharing, coordinated action, and the co-creation of innovative financial products tailored to local needs. Such networks can also help bridge the gap between federal funding priorities and local realities.
• Leveraging Recertification Processes: Supporting CDFIs through their certification and recertification processes can open up new service areas, expanding their reach into communities that have historically been overlooked.