CDFI Looking for Public Comments

The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) is soliciting comments regarding its Community Development Financial Institutions Program (CDFI Program) Application.

The purpose of the CDFI Program is to use federal resources to invest in Community Development Financial Institutions (CDFIs) and to build their capacity to serve low-income people and communities that lack access to affordable financial products and services. Through the CDFI Program, the CDFI Fund provides two types of monetary awards to CDFIs - Financial Assistance awards and Technical Assistance awards. CDFIs may use the funds to pursue a variety of goals, including:

•           To promote economic development, to develop businesses, to create jobs, and to develop commercial real estate;

•           To develop affordable housing and to promote homeownership; and

•           To provide community development financial services, such as basic banking services, financial literacy programs, and alternatives to predatory lending.

The CDFI Program Application solicits information concerning applicants’ eligibility to participate in the program and appropriate supporting documentation. The questions that the application contains, and the information generated thereby, will enable the CDFI Fund to evaluate applicants’ activities and determine the extent of applicants’ eligibility for a CDFI Program award.

•           Potential CDFI Program applicants, community and economic development trade groups, and members of the general public are invited to provide written comments on the CDFI Program Application. The CDFI Fund specifically requests comments on the following:

•           Is targeting CDFI Program award funds into highly distressed communities an appropriate use of CDFI Program funds?

•           Are there ways that the fillable PDF application form can be improved that would ease applicant paperwork burden?

•           Should detailed Matching Fund documentation be collected later in the application review process and, if so, what would be a reasonable amount of time to expect an applicant to provide such documentation?

•           Does the application ask the appropriate questions to determine applicant’s financial health and viability?

Written comments should be received on or before May 18, 2012 for consideration. Submission details can be found in the Federal Register notice.