Community Development Financial Institutions (CDFI) Program
The Community Development Financial Institutions (CDFI) Program uses limited federal resources to invest in and build the capacity of private, for-profit and non-profit financial institutions to provide capital and services to underserved people and communities. CDFIs are specialized financial institutions that work in market niches that have been inadequately served by traditional financial institutions. CDFIs provide a wide range of financial products and services, including mortgage financing for first-time home-buyers, financing for community facilities, commercial loans and investments to start or expand small businesses, loans to rehabilitate rental housing, and financial services needed by low income households and local businesses. In addition, these institutions provide services that help ensure that capital is used effectively, such as technical assistance to small businesses and credit counseling to consumers. CDFIs include community development banks, credit unions, loan funds, venture capital funds, and micro enterprise loan funds. The Fund invests in CDFIs using flexible tools such as equity investments, loans, grants, and deposits, depending upon market and institutional needs.
The CDFI Program has
three separate components: the Core/Intermediary Component; the Small and
Emerging CDFI Assistance (SECA) Component; and the Native American CDFI
Technical Assistance (NACTA) Component.
The Core Component is the Fund’s main program under which CDFIs, or
entities proposing to become CDFIs, may apply for financial and technical
assistance. The Intermediary Component is created specifically for
intermediaries that focus primarily on providing financing and TA to other
CDFIs. The SECA Component is designed to better meet the unmet capacity needs
of CDFIs, or entities proposing to become CDFIs, who have significant potential
for increasing their community development impact. Through SECA, eligible
entities may receive financial and/or technical assistance. The NACTA Component
is designed to provide technical assistance grants that will specifically
benefit Native American, Alaska Native and Native Hawaiian communities and to
promote the development of CDFIs that serve these communities.
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Funding Category: |
Funding for Community Development Financial Institutions for Equity Investments, Loans, Grants, and Deposits |
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Target Population: |
Loan applicants |
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Funding Available: |
A Notice of Funds Availability for the 2002 CDFI Program – the Core/Inter-mediary, SECA, and NACTA Components – was published in the Federal Register on September 24, 2001. Subject to funding availability, the Fund expects that it may award $36.9 million under the Core/Intermediary Component, $5.6 million under the SECA Component and $3.5 million under the NACTA Component. |
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Application Information: |
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Contact: |
Community Development Financial Institutions Fund, (202) 622-8662 |
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Links To More Info: |
CDFI Fund SECA Component |
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Administering Agency: |