Free Project Analysis

CDFI

Financial Assistance Awards

CDFI Financial Assistance Program

The CDFI Financial Assistance (FA) Program is a cornerstone initiative designed to support Community Development Financial Institutions (CDFIs) in their mission to provide affordable financial products and services to low-income and underserved communities. This program offers substantial financial support to help CDFIs sustain and expand their operations, ultimately fostering economic growth and stability in distressed areas.

Maximum Grant Amount

• Up to $2M Matching Grant: The FA Program provides up to a $2M matching grant to eligible CDFIs. These funds can be utilized for various purposes, including lending capital, loan loss reserves, capital reserves, operations, and development services.

cdfi-fund

Additional Information

Eligible Uses of Funds

  • Lending Capital: Funds can be used to increase the lending capacity of CDFIs, enabling them to offer more loans to small businesses, affordable housing projects, and other community development initiatives.
  • Loan Loss Reserves: Grants can be allocated to loan loss reserves, providing a safety net that allows CDFIs to manage risk and maintain financial stability.
  • Capital Reserves: These funds can be used to bolster the capital reserves of CDFIs, ensuring they have the necessary financial backing to support their operations.
  • Operations: Grants can cover operational expenses, including salaries, benefits, and other administrative costs.
  • Development Services: Funds can be used for development services that support the growth and sustainability of CDFIs, such as technical assistance, training, and capacity-building activities.

Supplemental Funding Opportunities

In addition to the base FA awards, the CDFI Program offers several supplemental funding opportunities to further support the mission of CDFIs in addressing economic distress and expanding economic opportunities through collaboration and partnerships. These include:

Persistent Poverty Counties-Financial Assistance (PPC-FA)

• Maximum Grant Amount: Up to $600K
• Purpose: This award is specifically targeted at CDFIs operating in counties where 20% or more of the population has lived below the poverty line for the past 30 years. The funds can be used for lending capital, loan loss reserves, and operational expenses to support projects that alleviate poverty and promote economic development in these areas.

Disability Funds-Financial Assistance (DF-FA)

• Maximum Grant Amount: Varies
• Purpose: The DF-FA award supports CDFIs that provide financial products and services to individuals with disabilities. The funds can be used for lending capital, loan loss reserves, and operational expenses related to projects that enhance the economic opportunities and quality of life for people with disabilities.

Healthy Food Financing Initiative-Financial Assistance (HFFI-FA)

• Maximum Grant Amount: Up to $10M
• Purpose: The HFFI-FA award aims to improve access to healthy foods in underserved areas, with a focus on food deserts. The funds can be used for lending capital, loan loss reserves, and operational expenses related to projects that increase the availability of nutritious food options. This includes financing for grocery stores, mobile food retailers, farmers' markets, and food hubs.

Application Process

Eligible CDFIs can apply for the FA Program and its supplemental funding opportunities through a competitive application process. The application emphasizes the extent of economic distress in the areas served, the potential for expanding economic opportunities, and the degree of collaboration with communities and other partners.

Conclusion

The CDFI Financial Assistance Program, along with its supplemental funding opportunities, plays a vital role in empowering CDFIs to drive economic development and improve the quality of life in low-income and underserved communities. By providing substantial financial support, the program helps CDFIs expand their reach, enhance their services, and foster sustainable economic growth.
It must provide at least one Development Service in conjunction with its arm’s-length, on-balance sheet Financial Products. Development Services are structured training, counseling, or technical assistance services provided by a CDFI, its Affiliate, or contractor to promote community development and assist current or potential borrowers or investees in using the CDFI’s Financial Products or Financial Services. These services must be offered regularly, have a defined curriculum or set of goals, and aim to increase clients' knowledge or ability to access financial products and services. Development Services can be delivered in various formats, including in-person or online, with or without a live instructor.
The organization must maintain accountability to its defined Target Market(s) by having a Governing and/or Advisory board that is majority comprised of individuals who are accountable to the Target Market by being a resident of, or business owner in a low income census tract, an executive of an organization with a primary mission of serving disadvantaged communities, and/or a member of a Targeted Population.
It must be a non-government entity and not under the control of any government entity, with the exception of Tribal governments.
We are here to help you with any questions you might have. Feel free to submit a Free Project Analyis Request for more detailed information regarding your specific scenario.

Does Your Project Qualify for Low-Cost Financing or New Markets Tax Credits?

Reach out to our specialists to discuss how we can work together.
Get a Free Project Analysis

Our Financing Programs

The CBO Financial team specializes in helping project sponsors secure flexible, below-market financing with a focus on high-impact projects in low-income communities. Our financial experts are skilled at combining public and private funding sources so that projects that might have otherwise stalled can move forward quickly and cost-effectively.

We’ve financed over $1 billion in high-impact investments nationwide, including $150 million using New Markets Tax Credits awarded to a CBO subsidiary. Backed by powerful funding tools and expertise, you’ll be pushed through to the finish line.

New Markets Tax Credits

A federal subsidy program designed to revitalize distressed communities by providing forgivable gap financing for up to 25% of costs for high-impact projects.
New Markets Tax Credits

Capital Magnet Fund

Grants up to $15M to CDFIs and nonprofit housing organizations to finance affordable housing and related economic development activities.
Property Assessed Clean Energy Financing

Bond Guarantee Program

A program that provides CDFIs with access to long-term, low-cost capital by guaranteeing bonds issued by qualified CDFIs, providing fixed rate financing for up to 29 years at ~100 bps over Treasuries.
Federal Historic Tax Credits

Technical Assistance Awards

Grants up to $125K to startup and existing CDFIs to build capacity to serve low-income communities by funding activities such as staff training, technology purchases, and consulting services.
Community Development Financial Institutions

Financial Assistance Awards

Matching grants up to $2M awarded to CDFIs to enhance their ability to provide loans, investments, and financial services to underserved populations.
US Department of Agriculture

Small Dollar Loan Program

Up to $500K to provide a loan loss reserve to support making affordable consumer loans to low-income individuals for up to $2,500, helping them avoid predatory lending practices.
Redevelopment Assistance Capital Program

CDFI Certification

A designation for specialized financial institutions that provide financial products and services in low-income communities and to targeted populations that lack access to financing.
Puerto Rico Financing Programs

EPA Programs

Community Change Grant Program

A $10M to $40M grant program that supports community-led projects aimed at improving environmental and public health outcomes in underserved communities.
New Markets Tax Credits

Clean Communities Investment Accelerator

Provides community lenders with grants up to $11M to help accelerate investment in clean energy and sustainable infrastructure projects in low-income communities.
Property Assessed Clean Energy Financing

National Community Investment Fund

Loans and guarantees will be made directly to projects with this funding starting in early 2025.
Federal Historic Tax Credits

USDA Programs

Business & Industry

A program that provides loan guarantees up to $25M to rural businesses to improve, develop, or finance business, industry, and employment.
New Markets Tax Credits

Community Facilities

A program that offers direct loans, loan guarantees, and grants to develop essential community facilities in rural areas up to $5M.
Property Assessed Clean Energy Financing

Rural Energy for America Program

A program that provides grants up to $1M and loan guarantees to agricultural producers and rural small businesses for renewable energy systems and energy efficiency improvements.
Federal Historic Tax Credits

Other Funding Programs

Federal Historic Tax Credits

The federal Historic Tax Credit is available for the rehabilitation of historic, income-producing buildings determined by the Secretary of the Interior, through the National Park Service, to be “certified historic structures” for approximately 20% of project costs.
New Markets Tax Credits

You see challenges. We see possibilities.
Your community sees change.

Established in 1999, CBO Financial is a financial consulting firm that specializes in helping businesses secure funding for development projects in the nation’s most distressed communities. Our experts understand how to present economic, environmental, and societal benefits to public and private organizations so your project receives the funding it needs to move forward quickly and reasonably. A CBO Financial subsidiary, Community Development Funding, LLC, has received six awards under the federal New Markets Tax Credit program totaling $150M. In addition the team has taken a leadership role in securing 18 awards for clients totaling over $400M.
Our Services
community-development-project-funding

The funding is out there

CBO can be your access point for a variety of federal financing and subsidy programs, including those offered by the CDFI Fund, EPA, USDA and other agencies.
Programs
community-development-project-financing

 a Significant Impact

CBO is on a mission to help elevate the lives of people living in distressed communities by providing flexible, below-market gap financing to high-impact projects that cannot otherwise move forward. Does your project qualify for financing?
Team
low-income-community-development-project-financing

Million-dollar stories

The CBO team has funded over $1 billion in projects for local and national nonprofits, for-profit developers, and municipal agencies. Our team can help you find the low-cost financing or new market tax credits needed for your projects.
Projects

Does Your Project Qualify for Low-Cost Financing or New Markets Tax Credits?

Reach out to our specialists to discuss how we can work together.
Get a Free Project Analysis