DIHCs, Affiliates of DIHCs, and Subsidiaries of IDIs are subject to the Collective Review process for CDFI Certification. This means that during the CDFI Certification application review process the CDFI Fund will review (1) the individual activities of the Applicant and (2) the activities of the Applicant’s Affiliates to make sure that the Applicant and its Affiliates all meet the requirements for CDFI Certification.
An Applicant subject to Collective Review must identify its individual CDFI Certification Target Market as part of the CDFI Certification Application. In addition, the Applicant must identify a Collective Review Market for each of its Affiliates, which can be either the same Target Market components as the Applicant or a different Target Market type. The CDFI Fund will evaluate the combined Collective Review Markets of all of the Applicant’s Affiliates as well as the Applicant’s proposed CDFI Certification Target Market for the CDFI Certification Collective Review process.
- The Applicant must dedicate at least 60% of its individual financing activity to its Target Market.
- At least 60% of the combined financing activity of the Applicant and its Affiliates must be dedicated to their collective Certification Market. The Affiliates do not need to meet the 60% threshold individually for their Target Market components of the collective Certification Market.
Please note: If the Applicant is a DIHC that does not engage in its own direct eligible Financial Product activity, at least one Affiliate relevant to that DIHC’s CDFI Certification collective review process must have been engaging in eligible Financial Product and/or eligible Financial Services activity for at least one full 12-month fiscal year.