CDFI Fund Clarifies Data Collection, Cure Process; Announces Awards
FY22 Technical Assistance and Small Dollar Loan Program award recipients include several credit unions.
Even as the CDFI Fund blackout period approaches, Treasury Department officials announced Monday that CDFIs with pending Annual Certification and Data Collection Reports or pending cure requirements will continue to be considered as CDFIs until they are otherwise notified.
The update came as part of a flurry of announcements from CDFI Fund officials, including details of financial institutions that received FY22 awards as part of the Treasury Department’s Small Dollar Loan Program initiative and its Technical Assistance (TA) program.
The CDFI Fund will pause acceptance of new CDFI Certification applications and Target Market Modifications for six months starting on Oct. 1. During the blackout period, CDFIs will be required to submit data collection reports and other documents required by the Office of Compliance Monitoring and Evaluation.
The CDFI Fund will begin accepting applications again on April 3, 2023. Existing CDFIs will have a one-year grace period to comply with the new CDFI Certification criteria.
Technical Assistance Awards
The Treasury Department announced this week that 218 organizations received $27.57 million in CDFI Technical Assistance awards and Native American Assistance awards for FY22.
“The continuing high demand for funding for technical assistance reflects the urgent need that CDFIs are facing in their communities today,” CDFI Fund Director Jodie Harris said, in announcing the awards.
Harris noted that 202 organizations received $25.22 million in CDFI Program TA awards. Those organizations are headquartered in 41 states, the District of Columbia and Puerto Rico; more than 60 of them are credit unions.
In addition, 16 organizations received $2.35 million as part of the Native American technical assistance program.
Small Dollar Loan Program
The CDFI Fund also revealed that 66 CDFIs received a total of $11.4 million in grants as part of the fund’s Small Dollar Loan Program, which is designed to help CDFIs develop alternatives to high-cost payday lenders. The institutions receiving awards included 34 credit unions.
“In today’s economic climate, so many Americans live paycheck to paycheck,” Harris said. “I’m proud that these awards will expand the access to affordable small dollar loans for underserved and distressed communities.”