The Community Development Capital Initiative (CDCI) was created on February 3rd, 2010, with the program beginning to disburse funds on July 30. The program essentially serves as a more "generous" alternative to the Capital Purchase Program (CPP) for Community Development Financial Institutions (CDFIs, or institutions that work in traditionally underserved markets).

Under the Initiative, CDFIs can get an investment of capital by the Treasury Department--similar to CPP--but they pay a lower rate on the dividends: the rates are two percent for the first eight years and then nine percent if Treasury's shares are not repaid within eight years (under CPP, the initial dividend rate is five percent and the period is only five years before the rate rises to nine percent). Also, CDFIs can receive investments up to a maximum of five percent of their risk-weighted assets, as opposed to three percent under CPP. CDFIs that are currently participating in CPP can switch to the CDCI if they so choose.