Community Development Financial Institution (CDFI)

CDFI logo from the US Department of the Treasury

We’re proud to be a CDFI.

Beneficial State Bank was founded to prove that a better banking system is possible, so it was clear from the start that we would become a Community Development Financial Institution (CDFI). We are proud to be one of 176 CDFI banks in the United States and one of nine CDFI banks on the West Coast. CDFI certification, issued by the United States Treasury Department, requires that at least 60% of our lending occurs in low-to-moderate income (LMI) neighborhoods. We go beyond that requirement by committing at least 75% of our lending portfolio to sectors that have a positive impact on communities and the planet.

Our impact as a CDFI is rooted in our commitment to shared prosperity. Wholly owned by nonprofits and governed in the public interest, Beneficial State Bank operates with a triple bottom line: People, Planet, and Prosperity For All.

A group of folks raising a framing structure for a greenhouse. Trees are visible in the background.
A1DesignBuild is a Beneficial State Bank client and cooperative-led residential design firm in Washington. Pictured: The A1DesignBuild team rebuilding a greenhouse for a Latino-owned co-op after a storm.

Our products and services positively impact low-to-moderate income communities.

  • Banking products, services, and programs designed to meet community needs
  • Small business, commercial, and affordable housing lending programs
  • FDIC-insured property management operating and accounts and treasury services
  • Financial education services, including a Virtual Financial Coach
  • Auto loan refinancing that can reduce your rate or monthly payment
  • Cash-secured credit cards
  • Matched savings accounts (Individual Development Accounts - IDAs)
  • Community-focused collateral and underwriting guidelines

When you bank with a CDFI, you know your money is being used for good in your community. If you’re interested in moving your organization’s money to Beneficial State Bank, connect with one of our bankers to get started. We’re here to help.

United Bakery owner and founder Dinh Nguy stands in front of a sourdough bread conveyor belt in a factory.
Our client United Bakery, located in West Sacramento, California, specializes in producing sourdough bread.

What is a CDFI?

Community Development Financial Institutions (CDFIs) are mission-driven organizations that create economic opportunities for low-to-moderate income (LMI) communities and individuals by making financial services more accessible. CDFIs support businesses and organizations that create jobs, develop affordable housing, invest in community facilities, and more. Learn about the impact that CDFIs make across the county.

A play structure with a "Kids Only" sign in front of a Housing Hope affordable housing development.
We’re proud to be the bank for Housing Hope, a nonprofit providing long-term housing solutions for low-income families and families experiencing homelessness in Washington.

Why do CDFIs exist?

Research shows that historical and modern-day discriminatory policies and practices negatively impact wealth outcomes like homeownership for people of color because of unequal access to banking and lending services. According to research, improving accessibility of essential banking services like savings accounts could result in up to $40,000 in additional savings for individual Black Americans. Stories of homes being unfairly appraised because of racial bias demonstrate that systemic barriers like redlining are not the only challenges that limit fair and equitable access to financial services. CDFIs provide fair and accessible financial services where they are most needed.

Krystell Guzman, Founder of Plazita School Inc., stands in a play yard.
Krystell Guzman is the founder of Plazita Schools, Inc, a Beneficial State Bank client and bilingual preschool serving Oakland and San Leandro, California.

How does a financial institution become a CDFI?

Financial institutions receive CDFI designation from the U.S. Treasury Department. Our CDFI designation means that a government agency has evaluated our work and determined that we walk our talk. While other institutions may say the right things, CDFIs like Beneficial State Bank prove our impact. CDFIs must recertify annually.

A group of people in masks pose together in Street Roots hoodies in front of a storefront
Street Roots is a nonprofit media organization that creates community and opportunities with and for people experiencing houselessness in Portland. We’re proud to be their bank.

How do CDFIs finance their programs and services?

Each organization is different. Nonprofit CDFIs rely on philanthropic donations and municipal public funding sources. Depository institutions like banks and credit unions use deposits to make investments in the communities they serve. In addition, the U.S. Treasury awards grants and funds to CDFIs to support their work in marginalized and excluded communities. In December 2021, the Treasury announced $8.7 billion in new capital to CDFIs. Beneficial State Bank is proud to be included in the list of organizations awarded. Other grants and funding sources are also available to CDFIs.

Children playing on a playground, outside of an affordable housing development
Our Just Future is an affordable housing development and social services organization building vibrant, healthy neighborhoods in East Portland, Oregon.

Where you bank makes a difference.

Your bank uses your deposits to make investments. By choosing to bank with a CDFI, your deposits support affordable housing, locally-owned small businesses, and fair financial services in your community. Find a CDFI near you.

CDFI logo in white

If you’re interested in banking with Beneficial State, please connect with us. Our experienced team is ready to work with you.

Take action with your deposits.

Icon Payday Lenders

Banks are powerful, but so are you. When pooled together, our deposits can finance affordable housing, renewable energy, and business cooperatives – a new, inclusive economy. Whether you are an individual or an organization, where you put your money matters.