2026-20047NoticeWallet

CDFI Certification Form Gets Comment Call: Ho Hum

Published Date: 9/30/2026

Notice

Summary

The Treasury Department wants your thoughts on the form used to apply for certification as a Community Development Financial Institution (CDFI). This certification helps banks and lenders serve low-income communities better. If you’re involved with these institutions, now’s the time to comment before November 30, 2026, to help shape the process and reduce paperwork hassle.

Analyzed Economic Effects

10 provisions identified: 3 benefits, 6 costs, 1 mixed.

Possible Requirement: Audited Financial Statements

The CDFI Fund is considering whether to require submission of audited financial statements for any questions referencing the most recently completed fiscal year balance sheets and is asking commenters to estimate the burden hours to comply with that requirement.

Estimated Paperwork Burden Numbers

The CDFI Fund estimates 150 respondents submitting the Certification Application annually, with an estimated 55 hours per respondent and a total estimated annual burden of 8,250 hours.

Race-based Target Markets Removed

The CDFI Fund will no longer allow any "Other Targeted Population" (OTP) Target Market types that are based on the race and/or ethnicity of the borrower. Specifically, OTP types labeled "Other Targeted Population--African American", "--Hispanic", "--Other Pacific Islander", "--Filipino", and "--Vietnamese" will no longer be eligible Target Market types for certification.

Accountability Measured by Activity, Not Boards

The CDFI Fund will replace the existing certification requirement that an entity maintain accountability through board representation with a new approach that measures accountability through Target Market activity. The Application will no longer include a separate "Accountability" section or the separate "NATIVE COMMUNITIES ACCOUNTABILITY" subsection.

Possible Higher Eligibility Threshold

Under current policy, Applicants must have closed at least one (1) financial product in their proposed Target Market during their most recently completed fiscal year prior to application. The CDFI Fund is considering raising this threshold and asks whether it should vary by institution type or years in operation.

CDFI Fund Expects Net Burden Reduction

The CDFI Fund anticipates that the overall effect of the proposed changes to the Certification Application will be a net reduction in burden to Applicants.

One-Year Transition for Affected CDFIs

The CDFI Fund is planning a one-year transition period for currently Certified CDFIs that rely on a now-prohibited Target Market type (those OTPs based on race/ethnicity) to qualify under one or more of the remaining eligible Target Market types.

New Questions on Federal Award Compliance

In the Basic Information section, several questions have been added to assess an Applicant's and any relevant Affiliate's past administrative proceedings history and compliance in other federal award programs.

Fewer Board/Staff Demographic Questions

The Application will eliminate the subsection on "BOARD AND EXECUTIVE STAFF DEMOGRAPHIC INFORMATION" except for two questions: total size of governing leadership members and total size of Executive Staff.

Considering Annual Application Cycle

The CDFI Fund is considering moving from allowing applicants to submit CDFI Certification Applications at any time to permitting submissions only during a set annual application period, similar to its award programs.

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Key Dates

Published Date
Comments Due
9/30/2026
11/30/2026

Department and Agencies

Department
Independent Agency
Agency
Treasury Department
Community Development Financial Institutions Fund
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