Loans to businesses, nonprofits, and residential properties located in census tracts designated as Low or Moderate Income according to the 2010 Census American Community Survey. While “Loans to LMI Communities” is a common measure and generally anticipated to provide economic benefit to those communities through blight reduction, employment, and ownership, Beneficial State recognizes that this data point is a proxy for loans to LMI individuals and that not all loans to low income LMI communities benefit the residents of those communities.
As such, loans that Beneficial State provides to LMI communities are not automatically marked as mission loans; they may or may not be designated as mission loans depending on the borrowing entity’s ownership model, organizational structure and practices, and sector. Additionally, as part of our Contra Mission Principles we seek to avoid loans to LMI communities that may, in fact, have negative consequences on the residents of those communities through displacement, environmental harm, or other impacts.
Note that loans to LMI communities listed in the Business & Nonprofit Lending section of our Impact Snapshot page indicate the dollar amount of commercial loans outstanding to LMI communities at the end of year.
For CDFI Certification, we monitor the number of loans to LMI communities in qualified Investment Areas. Investment Areas are designated by CDFI and are designated based on poverty rate, unemployment, median family income, and other indicators of neighborhood disadvantage. See the CDFI definition of Investment Area and criteria on the CDFI website.