CDFI Fund Eases Rural Certification Standard, Lowering Threshold To 60%
By CU Today Staff —
WASHINGTON--The Treasury’s Community Development Financial Institutions Fund (CDFI Fund) updated the Target Market activity thresholds for organizations interested in achieving or maintaining CDFI Certification with a non-Metro Customized Investment Area (CIA), including non-Metro counties and parishes, America's Credit Unions reported.
Effective today, entities proposing to be or are already approved for a non-Metro CIA must direct at least 60% of eligible financial products or services into the area. This is down from the current 75%, and lower than the 85% proposed by the previous administration.
This update gives CDFIs more flexibility to count lending activity toward the benchmark, potentially making it easier for certain CDFIs to obtain or maintain certification, ACU noted.
CIAs consist of specially designated geographic areas that meet the following conditions:
Originally reported by CU Today.