ommunity development financial institutions (CDFIs) share a distinct mission: to expand economic opportunities in communities traditionally overlooked by banking and investing services. There are approximately 1,000 certified CDFIs in the United States, and 8 of them operate in Alaska.

The CDFIs in Alaska are Alaska Growth Capital (AGC), Alaska Benteh Capital, Cook Inlet Lending Center (CILC), Haa Yaḵaawu Financial Corporation, NeighborWorks Alaska, HomeOwnership Center, Spruce Root, and Tongass Federal Credit Union (TFCU). These mission-driven, private-sector entities often work together to serve low- and middle-income individuals in urban and rural areas. They promote self-sufficiency, economic growth, and community redevelopment.

TFCU—Alaska’s only depository CDFI—focuses on improving the lives of individuals and organizations throughout Southeast by offering innovative financial services and education. “By supporting small businesses and nonprofits through loans, technical assistance, and partnerships—like our work with Native CDFI Spruce Root—we help foster economic growth,” says President and CEO Helen Mickel. “Financial literacy is also a key focus, as we equip our members with the knowledge to make informed financial decisions.”

With its “people-helping-people” philosophy, TFCU works to be a part of each community it serves. “We wear that CDFI banner with commitment to community development in any way we can support and build on it. Our CDFI certification allows us to cultivate communities where everyone has access to opportunity, respect, and the resources they need to thrive,” Mickel says.

At CILC, the primary goals are to improve the financial knowledge and wellness of its communities; expand its outreach, products, and services to serve more people; and diversify its funding sources for greater sustainability and opportunities. “As a Native CDFI, CILC vigorously pursues opportunities to financially empower Alaska Native families, businesses, and communities,” says President and CEO Jeff Tickle.

CILC offers a variety of financial products and services to underserved populations, including down payment assistance loans, primary mortgage loans, and down payment assistance grants (Home$tart and Native American Homeowner Initiative) as a member of Federal Home Loan Bank of Des Moines. It also provides micro and small business loans and credit lines, as well as financial wellness services. For 2025, CILC plans to launch a credit builder loan product.

AGC is also a Native CDFI, founded by Arctic Slope Regional Corporation in 1997 as the state’s first Business and Industrial Development Corporation. McKinley Management acquired AGC in 2022 with Bristol Bay Native Corporation. As of 2025, McKinley became the minority partner while Bristol Bay Native Corporation took majority control.

AGC’s niche and expertise is lending in rural areas and to Native-owned businesses. “Our goal is really to help get our clients to a ‘yes’ on their loan when they have not been able to successfully access financing elsewhere,” says Mary Miner, vice president of community development.

AGC primarily provides Small Business Administration 7(a), US Department of Agriculture, and Business and Industry Guaranteed loans. With its average loan being about $1 million, AGC lends in the range of $250,000 to $10 million. “Our structure and utilizing government guarantees allows us to be more flexible than other lenders,” Miner says.

AGC, whose portfolio is just under $100 million, has a loan volume of $17 million to $25 million annually. It provides financing for diverse industries, ranging from transportation to hospitality to tourism. AGC also offers technical training and community education.

Spruce Root has a unique vision: to amplify its Haida, Tlingit, and Tsimshian ancestral imperative to ensure Southeast thrives for future generations. “We are a driver of a regenerative economy across Southeast Alaska, so communities can forge futures grounded in this uniquely Indigenous place,” says Executive Director Alana Peterson.

Spruce Root offers Fast Start Loans—zero-collateral financing up to $50,000 for qualifying borrowers—and standard business loans up to $500,000. Since its inception in 2012, it has deployed more than $4 million in lending capital to establish small businesses in Alaska. “In 2023 alone, ten loans totaling $850,000 were deployed across seven Southeast Alaska communities,” Peterson says.

Although the term “CDFI” is relatively new, the concept extends back to the 1930s with African-American communities forming the first credit unions and even earlier to the 1800s with immigrant guilds in New York City’s Lower East Side. In 1994, Congress extended CDFIs nationwide when the Riegle Community Development and Regulatory Improvement Act established the CDFI Fund.

Managed by the US Treasury Department, the CDFI Fund offers certification to CDFIs, which allows them to apply for financial and technical assistance awards. For example, grant funds enabled TFCU to establish local services in remote villages through community microsites.

“The funds have also allowed us to provide affordable lending to low- to moderate-income borrowers with less-than-perfect credit,” Mickel says. “Our financial education initiatives have also been supported through funding received.”

During the COVID-19 pandemic, federal funding had a significant impact on CILC. It was able to partner with the Municipality of Anchorage to administer grants to small businesses, nonprofits, and artists totaling more than $30 million.

The CDFI Fund also has the New Markets Tax Credits Program. Begun in 2002, it encourages private-sector investment by offering tax credits for qualified community development investments. In Alaska, AGC is the only entity that receives those credits, according to Miner. The Native Initiatives CDFI Program provides further capital. “The CDFI fund is our largest supporter, and we are grateful for all the resources that it provides,” Miner says.

There are six basic types of CDFIs: community development banks, community development loan funds, community development credit unions, microenterprise funds, community development corporation-based lenders and investors, and community development venture funds. CDFIs do not replace conventional financial institutions; they complement them.

Partnerships are vital to the success of CDFIs. “For example, the Kake Tribal Corporation and the Hoonah Indian Association have provided space for our community microsites, allowing us to bring essential financial services to remote areas,” Mickel explains. “We also partner with schools and community organizations to deliver financial literacy programs, ensuring that individuals and families have the knowledge to make sound financial decisions.”

Spruce Root has partnered with local banks to spread the word that a “no” on traditional financing does not have to mean the end of a small business owner’s journey to financing. Peterson adds, “We have worked very hard to build relationships with municipalities, tribes, nonprofits, and other non-traditional lenders to find the entrepreneurs that are seeking support and to make sure that we are giving them the option that is best for their business—whether or not that is Spruce Root.”

CILC is part of a small business scaffold in the Anchorage area. “We have a very strategic partnership with the Anchorage Community Land Trust (ACLT) and Cook Inlet Tribal Council around ACLT’s initiative of an Indigenous Peoples Set Up Shop program, in which ACLT provides business training and assistance and CILC provides lending services and capital,” Tickle says. “This partnership with ACLT is a primary reason Cook Inlet Lending now has a Small Business Lending program.”

CILC is also part of a Native CDFI and Friends cohort that shares best practices, challenges and opportunities, and regular updates. It has also engaged in a home lending cohort with Colorado-based Oweesta Corporation and other Native CDFI’s. They have provided CILC with insights into various mortgage financing opportunities, along with technical assistance from the Homeownership Council of America.

AGC is somewhat positioned in the middle between CDFI partners and conventional lenders. For instance, AGC relies on Spruce Root’s award-winning, nationally recognized Path to Prosperity curriculum for its regional Marketplace business plan competitions. Spruce Root serves as AGC’s lead facilitator of training. On the lending side, AGC exchanges referrals with Spruce Root and CILC. Miner explains, “Our teams are regularly meeting and figuring out how we can support small businesses.”

AGC also collaborates with traditional lenders. “All of our loan officers here came from the conventional banks in Alaska, so they have deep connections with those lenders and are regularly meeting with them,” Miner says. “It takes a village to help move some of these big initiatives forward and to help small businesses.”

CDFIs often measure success by focusing on the “double bottom line” of economic gains and the contributions they make to the local community, according to the CDFI Coalition. CILC, for instance, measures the number of families or individuals who secure affordable stable housing through its homeownership programs as well as the number of businesses started or expanded due to its financing. CILC also assesses the businesses’ demographics and impact within the community. “We use a ‘mission matrix’ within our small business loan program,” Tickle says. “We track the number of jobs created or retained through our small business lending as well.”

CILC also plans to measure participation in financial education workshops and its soon-to-be-launched credit builder loan program. It will evaluate how its people are improving their financial literacy and long-term financial health through changes in credit scores, savings, and debt levels being tracked over time.

“We aim to collect client feedback and success stories to help us assess the broader, less tangible benefits of our services,” Tickle says.

A recent funding success story of CILC is Yukon Tails, a mobile pet grooming business in Wasilla. Its owner, Teela Bieschke, identified the need for mobile pet grooming when she was unable to find services for her elderly dog experiencing mobility challenges. After being placed on lengthy waiting lists, she decided to start Yukon Tails. “Cook Inlet Lending Center was thrilled to partner with Teela and Yukon Tails to help launch this exciting new business venture,” Tickle says.

Spruce Root helped long-time client Edith Johnson launch Our Town Catering in Sitka. According to Peterson, Johnson’s journey included Spruce Root from the beginning when she received assistance to establish her LLC. From there, she participated in Spruce Root’s training programs to start her first small business and worked on her personal finances to purchase her first home. By then, she was ready to approach Spruce Root for a loan to purchase her second business. “Her journey exemplifies our missions to empower local talent and support local businesses,” Peterson says. “We feel so fortunate to be witness to the positive impact people like Edith have on our region’s community, culture, and economy.”

One of TFCU’s proudest success stories is its work with the Metlakatla Indian Community. When the only bank branch on the isolated island closed in 2005, residents were left without access to essential financial services. TFCU stepped in by offering weekly services and, within a few months, opened a branch in the old bank building. “Over the years, we’ve introduced a range of services from home equity loans to financial education in local schools,” Mickel says. “Today, 85 percent of the community are Tongass FCU members, and the median credit score has risen by seventy-four points, reflecting the positive impact of our services.”

TFCU is committed to continuing its efforts to strengthen the economic resilience of Southeast, Mickel says. The credit union recently hired additional staff to support the growing team at its main office in Ketchikan, which oversees all its other locations. It’s also planning to build a larger office in Ketchikan to accommodate this expansion. Additionally, TFCU is expanding its financial education programs and introducing new financial products like Lifestyle Loans to meet the evolving needs of its members. Mickel says, “These initiatives, along with continued partnerships with local organizations, will help us provide the financial tools and resources that our communities need to thrive.”