Community Investment

Term popularized by the US socially responsible investment industry to refer to direct investment into community-based intermediaries with the objective of benefiting disadvantaged communities. Many community investment options are relatively low risk, such as deposits in regulated CDFIs or notes into community-loan funds. Typically these instruments provide a less than risk adjusted financial return. In recent years, community investment has begun to incorporate higher risk sectors such as community development corporations, social enterprises and community development venture capital. Returns from these newer market segments are less predictable. Approximately US$ 13 billion has been channelled to community investment intermediaries in the US.

Source: World Economic Forum: 2008 Blended Value Investing: Capital Opportunities for Social and Environmental Impact 

Community Investment (CI)

The term “community investing” describes using investor capital to provide finance and technical assistance to underserved communities.  The financing may take the form of a loan, a loan guarantee, or an equity investment.

Source: Canadian Community Investment Network Cooperative