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CDFI aims to define “minority lending institution” for data collection and reporting purposes.
As the Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund implements its new Equitable Recovery Program (ERP), Director Jodie Harris announced late last week that the fund soon will be soliciting comments on the definition of “minority lending institution.”
The CDFI Fund will define minority lending institutions (MLIs) in accordance with the pandemic legislation creating the program, officials said. The definition will be used for data collection and reporting purposes, including designating certain CDFIs as minority lending institutions.
Officials added that reporting on CDFIs meeting the standards will be valuable in understanding the landscape of CDFIs serving minorities.
Background to the Economic Recovery Program
The ERP program will provide funding to CDFIs to respond to the economic impact of the COVID-19 pandemic, and will award the full $1.73 billion authorized in the law in a single grant application round. Credit unions, banks, loan funds and venture capital funds may all be certified as CDFIs provided they meet the requirements.
Program officials said the CDFI fund is using COVID-impacted geography as the primary eligibility factor, rather than reserving funds for organizations designated as MLIs.
To learn more about the CDFI Fund and how your credit union can access its various awards programs, visit our page on CDFI Certification or schedule a free consultation with our consulting team today!
CDFI Fund
