Jump to Content
close
close
ABA: The American Bankers Association
Guide

CDFI Funding Programs

  • Published January 19, 2022

Top

A variety of funding sources are available specifically for CDFIs and MDIs.
Download
Bank Enterprise Award Program
Application Procedure2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. All applications must be received by the deadline.
Eligibility

Qualified Activities for Eligibility*

  • CDFI-Related Activities: Provide equity investments, grants, equity-like loans, loans, deposits, and/or technical assistance to CDFIs.
  • Distressed Community Financing Activities: Provide direct lending or investment in the form of affordable home mortgages, affordable housing development loans or investments, home improvement loans, education loans, small business loans or investments, small-dollar consumer loans, commercial real estate development loans or investments to residents or businesses located in distressed communities.
  • Service Activities: Provide access to financial products and services, such as checking accounts, savings accounts, check cashing, financial counseling, new banking branches or individual development accounts to residents of distressed communities.

*Unlike other CDFI Fund programs, the BEA Program provides awards for increasing past activities in distressed communities and not for planned or proposed activities. Any FDIC-insured depository institution is eligible to apply for a BEA Program award.

Funds Available$25.2 million
Range of AwardFY 2018 range of awards: $14,700 to $233,244
Length and Time Phasing of AssistanceFunds must be used within one year of executing an Award Agreement and must be used for BEA-authorized activities. Method of awarding/releasing assistance: lump.
How May Funds Be Used?(1) invest in or otherwise support CDFIs, (2) increase lending and investment activities within distressed communities, and/or (3) increase the provision of certain services and technical assistance within distressed communities.
Capital Magnet Fund
Application Procedure2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Each applicant must complete an application package. All applications must be received by the established deadline.
EligibilityA certified CDFI, or a nonprofit organization operating with a principal purpose of developing or managing affordable housing solutions. All Applicants (regardless of entity type) must demonstrate that they have been in existence as a legally formed entity for at least three years prior to the funding round application deadline.
Funds Available$173.8 million
Range of AwardFY 2020 range of CMF awards: $562,500 to $7,750,000. The average FY 2020 award was $3.4 million.
Length and Time Phasing of AssistanceRecipients must commit all funds within two years, begin initial expenditure of funds within three years, and complete the projects within five years of executing the award agreement. Method of awarding/ releasing assistance: lump.
How May Funds Be Used?To finance: (1) the development, preservation, rehabilitation or purchase of affordable housing for primarily extremely low-, very low- and low-income families, and (2) economic development activities or community service facilities, such as day care centers, workforce development centers and healthcare clinics, which, in conjunction with affordable housing activities, implement a concerted strategy to stabilize or revitalize a low-income area or underserved rural area. Grant funds must be used to finance and/or support physical structures. Grants must be used to support projects whose aggregate costs are at least 10 times the grant amount.
CDFI Bond Guarantee Program
Application Procedure2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards applies to this program. Application procedures will be set forth in the CDFI Bond Guarantee Program regulations, the applicable Notice of Guarantee Availability (NOGA) and application materials.
EligibilityBe a certified CDFI (as designated by the CDFI Fund), or its designee;
Be able to issue bonds and make loans; and
Demonstrate the capacity to perform specialized administrative functions, including loan servicing and financial reporting.
Funds Available$500 million
Range of AwardFY 2021: may guarantee bond issues with a minimum guarantee of $100 million each, and up to an aggregate total of $500 million.
Length and Time Phasing of AssistanceThis program is subject to annual congressional authorization and appropriation. Guaranteed bonds may have terms up to 29.5 years.
How May Funds Be Used?Eligible CDFIs must use the Bond Proceeds for Eligible Community and Economic Development Purposes. This may include, but is not limited to, lending activities in low-income communities and underserved rural areas such as: owner-occupied home mortgages, charter schools, and municipal and community entity lending, among others.
CDFI Program
Application Procedure2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Each applicant must complete a CDFI Program Application, which includes a Comprehensive Business Plan.
EligibilityBe a certified CDFI (as designated by the CDFI Fund), or its designee. Certified CDFIs and entities seeking to become certified CDFIs may apply for Technical Assistance (TA) awards. Awardees of TA awards must become certified CDFIs two years after receiving award.
Funds Available$150 million
Range of AwardFY 2021: no higher than $2 million, no more than $5 million in total awards over a three-year period. FY 2018: range of FA awards was $125,000 to $1,525,000.
Length and Time Phasing of AssistanceRecipients must use all FA funds within three years and TA funds within two years, unless the recipient is uncertified then it must use all TA award funds within three years. Method of awarding/releasing assistance is either lump sum or in multiple disbursements based on the projected use in upcoming 12 months.
How May Funds Be Used?FA monetary awards can be expended for activities in the following five categories: financial products, financial services (insured depository institutions only), loan loss reserves, development services and capital reserves (insured depository institutions only). Each allowable activity category is eligible for indirect costs and an associated indirect cost rate.
NoteBy statute, awardees must match the monetary award dollar for dollar. The form of the FA award is based on the form of the matching funds, which must be from non-federal sources and not used as matching funds for any other federal award.
Native Initiatives Program
Application Procedure2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. Each applicant must complete a CDFI Program Application, which includes a Comprehensive Business Plan.
EligibilityOnly certified CDFIs that demonstrate the majority of its activities are targeted to a native community are eligible to apply for Financial Assistance awards. Technical Assistance is available to both native CDFIs and emerging native CDFIs (those on the path to certification). To be eligible for native CDFI certification, at least 50 %of your activities must serve Native Americans, Alaska Natives and/or Native Hawaiians.
Funds Available$16.5 million
Range of AwardFY 2018 range of Financial Assistance awards: $150,000 to $1,220,000; FY 2018 range of Technical Assistance awards: $112,293 to $150,000. FY 2021 FA awards up to $1 million, TA grants up to $150,000.
Length and Time Phasing of AssistanceRecipients must use all FA funds within three years and TA funds within two years, or if the recipient is uncertified then it must use all award funds within three years, or if the recipient is a sponsoring entity then it must use all award funds within four years. Method of awarding/releasing assistance is either lump sum or in multiple disbursements based on the projected use in upcoming 12 months.
How May Funds Be Used?FA and TA awards are provided to build the capacity of new or existing native CDFIs serving native communities. FA awards enhance the recipient’s ability to make loans and investments and to provide financial services that promote economic revitalization and community development. TA awards build the recipient’s internal capacity.
New Markets Tax Credit Program
Application ProcedureElectronic applications must be submitted solely by using the format made available via AMIS. Business strategy, community outcomes, management capacity, capitalization strategy, information regarding previous awards.
EligibilityNMTC Program applicants must be certified as CDEs by the CDFI Fund.
Funds Available$5 billion in equity as to which NMTCs may be claimed.
Range of AwardCDFI Fund may issue up to $100 million in tax credit investment authority per allocatee.
Length and Time Phasing of Assistance

The New Markets Tax Credit is taken over a 7-year period.

  • The credit rate is:
    – 5% of the original investment amount in each of the first three years, and
    – 6% of the original investment amount in each of the final four years.
  • Total credit equals 39% of the original amount invested in the CDE.
How May Funds Be Used?(i) Achieve significant and measurable community development outcomes in its low-income communities, (ii) invest in particularly economically distressed markets including areas identified in the allocation application, such as federally designated opportunity Zones, (iii) engage with local communities regarding investments, (iv) the level of involvement of community representatives in the governing board and/or advisory board in approving investment criteria or decisions and (v) demonstrate a track record of investing in businesses that spur additional private capital investment in low-income communities.
Small-Dollar Loan Program
Application Procedure2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. 2 CFR and 2 CFR 400-418 applies to this program. Application Form SF-424 is filed at the rural development local office.
EligibilityCertified CDFIs or Partnerships between a Certified CDFI and any Federally Insured Depository Institution with a primary mission to serve targeted investment areas or partnerships between two or more certified CDFIs.
Funds Available$13.5 million
Range of AwardUp to $350,000 for loan loss reserves, up to $150,000 for Technical Assistance awards and up to $500,000 for both combined.
Length and Time Phasing of AssistanceLLR award recipients that start a new small-dollar loan program must expend 50% of the recipient’s first payment amount by the second year of the period of performance and expend 100% of the total award amount by the period of performance. LLR award recipients that will use the SDL Program award to expand an existing small-dollar loan program must expend 75% of the recipient’s first payment amount by the end of the period of performance.
How May Funds Be Used?Loan Loss Reserve (LLR) awards must be set aside in the form of cash reserves, or through accounting-based accrual reserves, to cover losses on small dollar loans. LLR awards may be used to mitigate losses on a new or established small-dollar loan program. TA awards may be used for technology, staff support, and other costs associated with establishing and maintaining a small-dollar loan program. The seven eligible activity categories are: (i) Compensation—Personal Services, (ii) Professional Service Costs,(iii) Travel Costs, (iv) Training and Education Costs, (v) Equipment, (vi) Supplies and (vii) Development Services.
Social and Economic Development Strategies
Application Procedure2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards applies to this program. ACF requires electronic submission of applications at www.grants.gov.
EligibilityNative CDFIs and several other nonprofit and for-profit entities related to Natives.
Funds Available$9 million
Range of Award$100,000 to $400,000
Length and Time Phasing of AssistanceGrantees may apply for non-competitive continuation support within a project period of 1 to 5 years, depending on the funding opportunity announcement.
How May Funds Be Used?(1) Social Development projects that develop and implement culturally appropriate strategies to meet the social service needs of Native Americans, foster the well-being of Native youth, promote family preservation and responsible parenting, and reconnecting with traditional healing; (2) Economic Development projects that promote the creation of a sustainable local economy; (3) Governance, which is defined as increasing the ability of tribal and Alaska Native village governments to exercise local control and decision-making, and to develop and enforce laws, regulations, codes and policies that reflect and promote the interests of community members.
NoteA mandatory 20% match is required unless waived in accordance with criteria published in 45 CFR 1336.50.
Program for Investment in Micro Entrepreneurs
Application ProcedureApplications for this program must include the following elements: (i) a cover sheet, (ii) a technical proposal, (iii) certifications, forms and assurances, (iv) attachments and exhibits and (v) budget information.
EligibilityA microenterprise development organization or program (or group or Collaborative thereof), is a non-profit Community Development Financial Institution or similar entity, that has a demonstrated record of delivering microenterprise services to disadvantaged entrepreneurs.
Funds Available$5 million (2018)
Range of AwardMinimum for technical assistance and capacity building grants: $50,000 during the first year. The maximum that an organization may receive from one or more awards may not exceed $250,000 or 10 percent of total funds, whichever is less.
Length and Time Phasing of AssistanceOne-year funding period. Funding may be available on an annual basis for a project period of up to five years. In the final year of a project, grantees may request a one-time, no-cost extension, not to exceed 12 months.
How May Funds Be Used?Technical Assistance grant: provides training and technical assistance to disadvantaged microentrepreneurs. Capacity Building grant: provides training and capacity building services to micro-enterprise development organizations and programs to assist them in developing micro-enterprise training and services. Research and Development grant: aids in researching and developing the best practices in the field of micro-enterprise development and technical assistance programs for disadvantaged micro-entrepreneurs. Discretionary grant: Conducts such other activities determined to be consistent with these purposes.
NoteRequires recipients to contribute a non-federal match of not less than 50% of each dollar awarded.

In Depth

Related to This