Becoming a CDFI: Introduction & Overview Presented By: Lisa Wagner

Welcome & Introductions Poll: How familiar are you with the CDFI Certification and the CDFI Fund programs? 2

AGENDA  History & Mission of the CDFI Fund  What is a CDFI  CDFI Certification Eligibility & Process  Reporting and Allowed Use of CDFI Funds  Benefits of Becoming CDFI Certified 3

History 5 CDFI Fund Mission To increase economic opportunity and promote community development investments for underserved populations and in distressed communities in the US Community Reinvestment Act 1970’s-1980’s - Spurred grassroots movement of CDFIs 1994 – CDFI Fund created through bipartisan initiative More than $2 billion awarded to CDFIs since inception

6  C ommunity  D evelopment  F inancial  Institution What is a CDFI?

Source: CDFI Fund - as of October 31, 2015 Types of CDFIs CDFI TYPETOTAL # Loan Fund514 Credit Union265 Bank112 Depository Institution Holding Company61 Venture Capital14 TOTAL966 7

What Can CDFI’s Do? 8 Financial Products Small business loans Affordable housing loans Down payment assistance loans Community facility loans Energy efficiency loans Consumer loans Credit builder loans Loan guarantees Venture capital Deposit accounts Development Services Financial literacy training Credit coaching Homebuyer education Business training Life skills training On-on-one assistance IDA accounts VITA sites

Benefits of Becoming a Certified CDFI 9

Access to CDFI Fund Programs 10 CDFI Program Monetary awards for CDFIs to invest in distressed communities Training Bank Enterprise Award Monetary awards for banks to invest in distressed communities or CDFIs CDFI Bond Guarantee Debt instrument from Federal Financing Bank Min $100MM New Markets Tax Credits Tax credits for investments in distressed communities

CDFI Program – Funding Awards 11 Technical Assistance Do not have to be CDFI Certified Up to $125,000 grant No matching funds required Used for capacity building Cannot be used for lending Financial Assistance Must be CDFI Certified Up to $2MM grants and loans Matching funds required Used for lending, development services; loan loss reserves

Other Benefits of Certification  Access to other funding sources  Access to a great network of people, organizations, resources & ideas  Credibility 12

7 CDFI Certification Eligibility Requirements 1. Be a legal entity 2. Have a primary mission of promoting community development 3. Be a financing entity  >50% of assets dedicated to financing and development services supporting financing  >50% of staff dedicated to financing and development services supporting financing 13

7 CDFI Certification Eligibility Requirements 4. Primarily serve one or more Target Markets  Low-income people Family income <80% area MFI  Low-income areas On average, MFI <80% Poverty rate >20% Unemployment rate 1.5x national avg  Other targeted populations African-American, Hispanic, Native American 14

7 CDFI Certification Eligibility Requirements 5. Provide development services  Directly or through another entity 6. Maintain accountability to Target Market(s)  Usually board representation 7. Be a non-government entity  Can’t be controlled by a gov’t 15

The Certification Process  90 days for an answer  The Fund may have follow-up questions 16 Assess Your Org for Readiness Review eligibility criteria Determine best time to apply Complete Application Download from CDFI Fund website Complete narrative and excel workbook offline Complete mapping online Submit Application Create online org account Complete online info and upload attachments Rolling deadline

So you received certification…now what?  Maintaining CDFI Certification:  At least 60% of products and services provided to approved Target Market  Maintain similar organizational status as when you applied  Reporting  No specific reporting for being a certified CDFI  Reporting required only if you receive a funding award 17

Questions / Comments?