Trade association and network for community development venture capital funds providing equity financing to businesses in low-income communities.
Editorially reviewed by Harvey Brooks
The Community Development Venture Capital Alliance (CDVCA) is a membership-driven trade association representing the community development venture capital (CDVC) industry. Founded to strengthen an emerging field focused on social and economic impact, CDVCA serves as the central network connecting CDVC funds, investors, policymakers, and stakeholders committed to venture capital deployment in underserved markets.
CDVCA itself does not directly lend or provide capital to businesses. Instead, it operates as an industry platform and advocacy organization. The alliance promotes the CDVC field by facilitating education programs, organizing networking opportunities, disseminating best practices among member funds, coordinating capital availability information, managing communications, and contributing to public policy development. Member funds under the CDVCA umbrella provide flexible equity risk capital to businesses in low-income communities with the dual goals of creating jobs and building productive wealth while advancing distressed regional economies.
What distinguishes CDVCA is its exclusive focus on the intersection of venture capital and community development. Unlike traditional venture capital associations or general small business lending networks, CDVCA specifically mobilizes private equity capital for public good outcomes. The organization has secured significant institutional support, including a $50 million New Markets Tax Credit allocation, and actively co-invests in portfolio companies alongside member funds. Their annual Unlock Capital Showcase demonstrates commitment to connecting underrepresented entrepreneurs with growth capital.
Important caveat: CDVCA is an intermediary organization and trade association, not a direct lender. Entrepreneurs seeking capital must work with individual CDVC member funds, not CDVCA directly. The organization's primary value lies in industry convening, research, and policy advocacy rather than direct capital provision. Prospective borrowers should view CDVCA as a resource for identifying member funds rather than a source of financing.
Yes. CDVCA is a registered company headquartered in 475 Riverside Dr #1264, New York, NY 10115. They hold a NR rating with the Better Business Bureau.
CreditDoc Diagnosis
CDVCA is best for entrepreneurs in low-income communities and mission-driven investors seeking to deploy venture capital for community development impact, but it is fundamentally a trade association and intermediary, not a direct lender. Prospective borrowers should use CDVCA to identify and connect with member CDVC funds that provide the actual financing.
AAFE Community Development Fund is a HUD-certified housing counselor and CDFI offering free homebuyer education, down payment assistance loans, and homeowner repair financing for low- to moderate-income New Yorkers.
Best for: First-time homebuyers in NYC with low-to-moderate income seeking education and down payment help, Asian American and immigrant communities in NY seeking bilingual housing counseling
Bank of America's Kensington branch in Philadelphia offers full-service banking, walk-up ATM, notary, commercial deposits, and appointment-based specialist advice.
Best for: Existing Bank of America customers in the Kensington and North Philadelphia area, Small business owners needing commercial deposit services or business banking advice
Bank of America Financial Center in Philadelphia's Kensington neighborhood offering full-service banking, financial advice, and walk-up ATM access with extended Saturday hours.
Best for: Customers seeking comprehensive personal and business banking with professional financial guidance, Philadelphia residents needing multilingual banking support in non-English languages
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Read guide →New to credit and lending? Here are the key terms used on this page, explained in plain language with real-number examples.
The total yearly cost of borrowing money, including the interest rate plus any fees the lender charges. Think of it as the 'true price tag' on a loan.
Lenders must show APR by law (Truth in Lending Act) because the interest rate alone can hide fees. Comparing APR across lenders is the most reliable way to find the cheapest loan.
Example
You borrow $10,000 at 6% interest for 3 years, but there's a $300 origination fee. The interest rate is 6%, but the APR is 6.9% because it includes that fee. You'd pay $304/month and $946 total in interest.
The percentage a lender charges you for borrowing their money, calculated on the amount you still owe. It's the lender's profit for taking the risk of lending to you.
Even a 1% difference in interest rate can cost you thousands over a loan's life. Lower rates mean less money out of your pocket.
Example
On a $20,000 car loan for 5 years: at 5% you pay $2,645 in interest. At 8% you pay $4,332. That 3% difference costs you $1,687 extra.
The original amount of money you borrowed, before any interest or fees are added. It's the 'real' amount of your debt.
Your interest is calculated on the principal. Paying extra toward principal (not just interest) is the fastest way to reduce your total cost and pay off a loan early.
Example
You borrow $25,000 for a car. That $25,000 is your principal. Your first payment of $450 might split as $150 toward interest and $300 toward principal, bringing your balance to $24,700.
How long you have to repay the loan, measured in months or years. A shorter term means higher monthly payments but less total interest paid.
Longer terms feel more affordable monthly but cost much more overall. A 30-year mortgage costs almost double in interest compared to a 15-year mortgage on the same amount.
Example
Borrowing $200,000 at 6.5%: A 15-year term costs $1,742/month ($113,561 total interest). A 30-year term costs $1,264/month ($255,088 total interest). You save $141,527 with the shorter term.
A one-time fee the lender charges to process and set up your loan. It covers their costs for underwriting, verifying your information, and preparing paperwork.
Origination fees are usually 1-8% of the loan amount and are often deducted from your loan proceeds — so you receive less than you borrowed.
Example
You're approved for a $10,000 personal loan with a 5% origination fee. The lender deducts $500 upfront, so you receive $9,500 in your bank account but owe $10,000 plus interest.
A person who agrees to repay your loan if you can't. They're equally responsible for the debt, and their credit is affected by your payment behavior.
Cosigning helps people with thin credit get approved or get better rates. But it's a huge risk for the cosigner — they're on the hook for the full amount if you default.
Example
A parent cosigns their child's $30,000 student loan. The child stops paying after 6 months. The parent is now legally required to make the payments or face collections, lawsuits, and credit damage.
The process where a lender evaluates your finances — income, debts, credit history, assets — to decide whether to approve your loan and at what rate.
Understanding what underwriters look for helps you prepare a stronger application. They check your DTI ratio, employment stability, credit score, and the asset's value.
Example
You apply for a mortgage. The underwriter reviews your pay stubs (income), bank statements (savings), credit report (history), and orders an appraisal (home value). This takes 2-4 weeks.
Want to learn more? Read our Financial Wellness Guides for in-depth explanations and practical advice.
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