The U.S. Department of the Treasury announced FY 2025 and FY 2026 awards through four Community Development Financial Institutions (CDFI) Fund programs, supporting access to capital, small business and consumer lending, and community development investments nationwide. The announcement comes as the CDFI Fund has faced increased scrutiny and operational uncertainty, including staffing reductions and delays in the disbursement of funds. Read the Treasury Department statement here.
CDFI funding has been an important part of IEDC’s federal advocacy, and we have continued to emphasize the role these programs play in helping communities expand access to capital, support entrepreneurs and small businesses, and spur local economic growth. We will continue to engage with Congress and the administration on the importance of maintaining strong federal support for CDFIs and the communities they serve. This work reflects IEDC’s broader focus on ensuring that economic development organizations have the tools and resources they need to support businesses, workers, and communities.
What is the CDFI Fund?
The Community Development Financial Institutions Fund (CDFI Fund) is an office within the U.S. Department of the Treasury that provides federal resources to mission-driven financial institutions serving low-income and underserved communities. Through grants, technical assistance and other programs, the CDFI Fund helps expand access to capital and financial services, including financing for small businesses and community development projects.
The latest
The CDFI Program provides Financial Assistance and Technical Assistance awards to emerging and certified CDFIs to strengthen their organizational capacity and expand their ability to provide financial products and services in underserved communities. Financial Assistance can support activities such as lending, loan loss reserves, capital reserves, financial services, and development services.
The Native American CDFI Assistance (NACA) Program operates alongside the CDFI Program but specifically supports CDFIs that primarily serve Native American, Alaska Native, and Native Hawaiian individuals and communities.
The Bank Enterprise Award (BEA) Program provides incentives to FDIC-insured financial institutions that increase investments in CDFIs or expand lending, investing, or financial services in severely distressed communities.
The Small Dollar Loan (SDL) Program helps certified CDFIs establish or maintain small-dollar loan programs, providing alternatives to high-cost small-dollar lending and expanding access to affordable financial products for unbanked and underbanked communities.
Treasury said the awards are being made using funding appropriated by Congress through the Full-Year Continuing Appropriations and Extensions Act, 2025 (P.L. 119-4). Awardees will receive official notification through the CDFI Fund's Awards Management Information System by September 30, 2026.
Treasury will also monitor awardees throughout their periods of performance through audits, compliance reviews and other oversight activities, including reviews of awardee expenditures and compliance with applicable federal requirements.
For economic development organizations, CDFIs can serve as important partners in expanding access to capital for entrepreneurs and small businesses, financing community development projects, and supporting investment in communities that may have limited access to traditional sources of financing.