In determining whether an entity has a primary mission of promoting community development, the CDFI Fund will consider whether the activities of the Applicant (and of certain Affiliates, including those subject to the CDFI Certification collective review process for Depository Institution Holding Companies (DIHCs), Affiliates of DIHCs, and Subsidiaries of Insured Depository Institutions (IDIs)) are, per regulation,2 purposefully directed toward improving the social and/or economic conditions of underserved people3 and/or residents of economically distressed communities. As part of its assessment, the CDFI Fund will consider whether the entity:
- has a documented community development mission;
- has a board-approved strategic plan or narrative that shows evidence of a community development strategy to implement the mission (see Question 17 of this FAQ for additional information); and
- meets the CDFI Fund’s standards for responsible financing practices.
2 12 CFR § 1805.201(b)(1)
3 Includes Low-Income persons and/or, as approved by the CDFI Fund, other persons who lack adequate access to capital and/or Financial Services.