Proposal could shape new CDFI Certification process for credit unions and other organizations.
The CDFI Fund is soliciting comments on a new list of pre-approved Target Market assessment methodologies that financial institutions seeking CDFI Certification could use to assess whether consumers and businesses are members of a pre-approved Target Market, Treasury Department officials announced Wednesday.
The officials said the proposal is part of their effort to revise how new organizations can become CDFIs and how current institutions may meet annual reporting requirements.
How Does the Process Work Now?
Currently, applicants must describe and seek approval for each assessment methodology they use—and plan to use—to demonstrate financing activities within their identified Target Markets.
How Would it Change?
Using the revised application, applicants would select from a drop-down menu the options in the list that they used for each of their Target Market components.
The CDFI Fund is seeking public comment on the list of proposed pre-approved Target Market assessment methodologies.
Applicants that want to use an alternative methodology would be permitted to submit a service request for consideration of that process.
Comments on the plan are due by Dec. 19.