How does CDFI funding work?
How does CDFI funding work?
The CDFI Fund makes capital grants, equity investments, and awards to fund technical assistance and organizational capacity-building. CDFIs apply for limited funds through a competitive process that requires the CDFI, in most cases, to provide at least a 1:1 match of non-federal funds to receive financial assistance.
How big is the CDFI Fund?
The CDFI Fund was authorized by the Riegle Community Development and Regulatory Improvement Act of 1994. Since its inception, the Fund has made more than $1.4 billion in awards to community development organizations and financial institutions.
How do you qualify for a CDFI loan?
All applicants must be registered and have active accounts in SAM.gov, Grants.gov, and the CDFI Fund’s Awards Management Information System (AMIS) to apply for funding by March 22, 2021, or their application will be considered ineligible.
What do CDFIs do?
Community development financial institutions (CDFIs) are private financial institutions that are 100% dedicated to delivering responsible, affordable lending to help low-income, low-wealth, and other disadvantaged people and communities join the economic mainstream.
Where do CDFIs get their money?
CDFIs are private-sector organizations that attract capital from private and public sources. Private sector funds come from many sources: corporations, individuals, religious institutions, and private foundations.
Can a bank be a CDFI?
Four types of institutions are included in the definition of a CDFI: CD banks, CD credit unions, CD loan funds (most of which are nonprofit), and CD venture capital funds.
Is Lisc a CDFI?
LISC’s role as a non-profit CDFI is to provide capital to projects in low-income, disadvantaged and underserved communities at affordable rates. Our loans have financed affordable housing, supermarkets, schools, health centers and other vital community projects.
Do CDFIs pay taxes?
Under current federal law, income earned on investments made through CDFIs is taxed at the same rate as income earned from a savings account, certificate of deposit or corporate bond, all of which typically have no obligation or intent to produce clear social or environmental benefits.
Where do CDFIs get their money from?
Who regulates a CDFI?
4. Regulation Depending on their individual charter, the primary federal regulator for CDFI banks is the FDIC, the Federal Reserve, or the OCC. State-chartered institutions are also regulated by state banking agencies.
Is LISC legit?
The Local Initiatives Support Corporation (LISC) is a US non-profit community development financial institution (CDFI) that supports community development initiatives in 35 cities and across 2,100 rural counties in 44 states. LISC was created in 1979 by executives from the Ford Foundation.
What is community development banking?
Community development bank Definition. Community development banks (CDBs or CDFI Banks) are commercial banks that operate with a mission to generate economic development in low- to moderate-income (LMI) geographical areas and serve residents of these communities.
What is community development lending?
Community Development Loans. Community Development Loans are special loans to nonprofit organizations or other groups. To qualify, the project must provide economic, recreational or other benefit to the community. Community Development Loans are consistent with safe and sound banking practices.
What is a community development loan?
A community development loan is a loan that has a primary purpose of community development and, except in the case of a wholesale or limited purpose bank, has not been reported or collected by the bank or an affiliate for consideration in the bank’s assessment as a home mortgage, small business, small farm, or consumer loan, unless the loan is for a multifamily dwelling and benefits the bank’s assessment area(s) or