Aeris Finance

Aeris Finance, often referred to as Aeris, is a non-profit organization dedicated to rating and supporting Community Development Financial Institutions (CDFIs). These institutions play a critical role in revitalizing underserved communities by providing access to capital, financial services, and development expertise that mainstream financial institutions often neglect. Aeris acts as an independent information source, providing standardized, objective, and reliable analysis of CDFIs’ financial strength, impact management, and overall performance. Aeris' primary function is to provide ratings, using a transparent and rigorous methodology that assesses the financial health and social impact of CDFIs. This rating system helps investors, grantmakers, and other stakeholders make informed decisions about deploying capital to these crucial organizations. The ratings are based on a comprehensive review of a CDFI's financials, management practices, and community development outcomes. The analysis focuses on key indicators such as asset quality, capitalization, liquidity, profitability, and mission alignment. Beyond assigning ratings, Aeris also offers advisory services to CDFIs seeking to improve their performance and attract investment. These services encompass strategic planning, risk management, impact measurement, and financial modeling. By providing tailored technical assistance, Aeris helps CDFIs strengthen their operations, enhance their impact, and achieve their mission more effectively. The importance of Aeris lies in its ability to bridge the information gap between investors and CDFIs. Many investors, particularly larger institutional investors, lack the resources or expertise to thoroughly assess the risk and potential impact of investing in individual CDFIs. Aeris' ratings and analysis provide a standardized and credible framework for evaluating these institutions, making it easier for investors to allocate capital with confidence. This increased investment, in turn, enables CDFIs to expand their reach and deepen their impact in underserved communities. Furthermore, Aeris promotes transparency and accountability within the CDFI industry. By publicly disclosing its rating methodology and rating rationale, Aeris encourages CDFIs to adopt best practices in financial management and impact measurement. This transparency fosters greater trust among investors, borrowers, and the communities served, leading to a more sustainable and effective CDFI ecosystem. In essence, Aeris Finance plays a vital role in channeling capital to communities that need it most. By providing independent, objective assessments of CDFIs, Aeris empowers investors to make informed decisions, strengthens the capacity of CDFIs to deliver meaningful impact, and ultimately contributes to a more equitable and inclusive economy. The organization's work is crucial for ensuring that CDFIs can continue to serve as engines of economic opportunity and community development in underserved areas across the nation.