Community Development Financial Institution (CDFI)

Making capital grants, equity investments, and awards to fund technical assistance and organizational capacity-building.

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The CDFI Fund makes capital grants, equity investments, and awards to fund technical assistance and organizational capacity-building. Typically, CDFIs apply for limited funds through a competitive process that requires the financial institution, in most cases, to provide at least a 1:1 match of non-federal funds to receive financial assistance.

The Fund also invests in CDFIs and distressed communities through its Bank Enterprise Award Program and The New Markets Tax Credits Program. CDFIs use the money awarded through CDFI Fund programs to leverage private-sector resources into distressed communities in different ways, including by offering tax credits for qualified community development investments.

The CDFI designation limits who can apply for CDFI Fund resources, ensuring the program benefits those who need it most and holding institutions accountable to their missions of making a difference in their communities.

Please get in touch with the Foundation Strategic Initiatives Manager, Nayab Abbasi, for questions about exploring CDFI Certification and CDFI Grants.

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What is a CDFI Certification?

CDFIs are mission-driven financial institutions that create economic opportunity for individuals and small businesses, quality affordable housing, and essential community services.

CDFI certification is a designation given by the CDFI Fund to specialized organizations that provide financial services in low-income communities and to people who lack access to financing. CDFI Certification opens the door to opportunities for CDFIs to excel—both operationally and financially. Through certification, CDFIs are eligible to apply for awards through a variety of programs offered by the CDFI fund, which include grants, technical and financial assistance, and loans.

The CDFI Fund plays an important role in generating economic growth and opportunity in some of our nation’s most distressed communities. The CDFI designation provides access to CDFI Fund resources to ensure the program benefits communities who need access to capital the most and holds financial institutions accountable to their missions of making a difference in their communities.

Benefits

CDFI certification allows an organization to apply for awards under the CDFI Fund’s competitive programs, including the Capital Magnet Fund, CDFI Bond Guarantee Program, Community Development Financial Institutions Program, and Native Initiatives (CDFI Certification.)

Qualifications & Eligibility

To qualify for CDFI certification, credit unions must

Be a legal entity at the time of Certification application.
Have a primary mission of promoting community development.
Be a financing entity and primarily serve one or more target markets.
Provide development services in conjunction with its financing activities.
Maintain accountability to its defined target market.
Be a non-government entity and not under the control of any government entity (Tribal governments excluded).

Use Amis Mapping tool on cdfifund.gov for more details.

Eligibility

To be eligible for CDFI Certification, an organization must meet the following criteria:

Have a primary mission of promoting community development.
Provide both financial and educational services.
Serve and maintain accountability to one or more defined target markets.
Maintain accountability to a defined market.
Be a legal, non-governmental entity at the time of application.

Applications are open year-round, and there is no application fee. Contact Nayab Abbasi, Foundation Strategic Initiatives Manager, for more information.

CDFI Programs

These awards enable CDFIs to finance a wide range of activities, including mortgage lending for first-time homebuyers, capital for entrepreneurs and small business owners in low-income areas, and commercial loans for affordable housing.

CDFI Program & Benefits › 
Small Dollar Loan Program ›
Capital Magnet Fund › 
Bank Enterprise Award Program › 
CDFI Bond Guarantee Program › 
Native Initiatives › 
New Markets Tax Credit Program › 

Still have questions or unsure if the certification or grant opportunities are right for you? Reach out to Foundation Strategic Initiatives Manager Nayab Abbasi.