On Nov. 4, US Treasury proposed revised CDFI certification form.
US Treasury requested comment on data collection CDFI certification application
Background
Certified community development financial institution (CDFI) is specialized financial institution that works in markets are underserved by traditional financial institutions.
CDFIs provide financial products, services in economically distressed target markets.
CDFIs include regulated institutions such as community development banks and credit unions, and non-regulated institutions such as loan and venture capital funds.
CDFI certification designation conferred by CDFI Fund, is required for accessing some CDFI Fund programs; financial institution seeking to become Certified CDFI, qualify to apply for assistance from CDFI Fund must complete CDFI certification application.
Rules governing CDFI certification are found at 12 CFR 1805.201; CDFI certification serves as qualifier for other federal government, private sector resources and benefits.
Revisions
Revised certification policies and application attempts to provide flexibility necessary for CDFIs to grow and to serve the hardest to reach distressed communities.
Revisions were made to the application and guidance to provide greater transparency and clarity around criteria entities must meet to obtain and maintain CDFI certification.
Consultation
Comments must be submitted by Dec. 5, 2022.
In Dec. 2022, Treasury sought input on revised annual certification report, #156651.
Revised form clarifies what it means to be a CDFI, incorporates community feedback.
Takes into account CDFI business models, including both regulated and unregulated institutions, and needs of target markets, such as rural and Native communities.
Collects demographic information about the board and executive leadership of CDFIs.
Certified CDFIs must reapply for certification using the revised form by Dec. 20, 2024.
Only non-certified organizations are able to immediately apply for CDFI certification.
US Treasury also released the final Annual certification and data collection report (ACR) and the abbreviated Transaction level report (TLR), see #156651.
Under revised CDFI certification policies, all new applicants and certified CDFIs are required to file TLR, as part of an initial application and on annual basis as part of ACR.
