Benefits of CDFI Certification

Community development financial institutions (CDFIs) are specialized financial institutions that have community development as their primary mission.

The benefits of being certified as a CDFI include, but are not limited to, access to financial and technical assistance from the CDFI Fund; eligibility for partnership opportunities with banks that are seeking Bank Enterprise Awards from the fund; access to the New Markets Tax Credit (NMTC) program; and enhanced ability to raise funds from foundations, corporate donors, and/or state and local governments. For national banks, investments in CDFIs are considered qualified public welfare investments for the purposes of CRA and Part 24 (12 CFR 25.23 and 12 CFR 24.6).

To be certified by the U.S. Treasury Department’s CDFI Fund, a CDFI must:

• Serve an eligible target market – criteria require that 60 percent of a CDFI’s activity must be primarily directed toward investment areas, low-income targeted populations, and/or other targeted populations.
• Be predominantly a financing entity.
• Provide developmental services – such as technical assistance or financial counseling in conjunction with its financial products.
• Maintain accountability to its target market.
• Be a nongovernmental entity.

List of Minority-Owned CDFI Banks

Bank Data: as of 12/31/05
CDFI Certification Status:  as of 9/01/2006