Amidst a deepening economic crisis associated with the COVID-19 pandemic, CDFIs are springing into action, reprising the role of “economic first responders” that they have played during past crises. CDFIs are creating emergency loan funds for small businesses, restructuring loans, suspending interest payments, and working directly with their borrowers to see them through these difficult times.
CDFIs need an infusion of flexible capital to support this work. Investors are already responding to this need, but much more is required. Aeris believes that we can best support new capital flows to CDFIs by providing timely information on CDFIs’ strength and capacity, especially to new investors.
Aeris Performance Maps, a subscription service of quarterly financial updates on CDFIs, helps investors keep abreast of key performance indicators in these fast-changing times. We are offering this service free through yearend 2020 to new and prospective CDFI investors that do not already subscribe.
Investors can use the Fund Selector search tool to identify CDFIs in our database that meet their impact objectives.
With 15 years of historic CDFI performance data, Aeris Performance Maps can also be used to examine CDFI performance during past recessions. While the current crisis is different in many ways, it can be instructive to look back at 2008-2010, when CDFIs increased their engagement, even as some lenders were pulling back. Aeris Performance Maps data show that CDFIs:
- Immediately restructured loans when the financial crisis hit in 2008
- Kept loan losses low, while building up loan loss reserves
- Began cleaning up portfolios when the economy was in recovery in 2010
Investors that are contemplating CDFI investments as part of their COVID-19 response may fill out this form to indicate interest in this offer. You will be contacted by an Aeris staff member, who can provide more information about activating your free subscription.