Update to CDFI Certification Policy for Non-Metro Customized Investment Areas including Non-Metro Counties and Parishes

The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) has updated the Target Market activity thresholds for organizations interested in achieving or maintaining CDFI Certification with a non-Metro Customized Investment Area (CIA) including non-Metro counties and parishes.

CIAs consist of specially designated geographic areas that meet the following conditions:

• include a contiguous mix of both qualified and non-qualified geographic units of a single type, which may be census tracts or non-Metro counties or parishes; and
• validate as a distressed community per the CDFI Fund’s mapping system (CIMS) by meeting the following criteria: 
  • More than 85% of the population must be in qualified geographic units. 
  • The geographic units must be contiguous.

In December 2023, the CDFI Fund released the revised CDFI Certification Application. As part of the policy changes with the revised application, the CDFI Fund implemented the following Target Market activity thresholds for CIAs and non-Metro counties and parishes in September 2024:

“Prior to October 1, 2027, an entity that serves a non-Metro customized Investment Area, county, or parish also must direct at least 75% of its non-Metro customized Investment Area, county, or parish eligible Financial Products or eligible Financial Services activity within the individually qualified census tracts of the respective non-Metro geography for activity in the non-qualifying tracts of the non-Metro geography to count toward the 60% Target Market benchmark…Beginning October 1, 2027, an Applicant that serves a non-Metro customized Investment Area, county, or parish must direct at least 85% of its non-Metro customized Investment Area, county, or parish eligible Financial Products or eligible Financial Services activity within the individually qualified census tracts of the respective non-Metro geography for activity in the non-qualifying tracts of the non-Metro geography to count toward the 60% Target Market benchmark.”

Effective with today’s announcement, the CDFI Fund has revised the non-Metro CIA policy  to be the following:

“Beginning August 6, 2026, an entity that proposes or is approved for a non-Metro customized Investment Area, county, or parish must direct at least 60% of its non-Metro customized Investment Area, county, or parish eligible Financial Products or eligible Financial Services activity within the individually qualified census tracts of the respective non-Metro geography for activity in the non-qualifying tracts of the non-Metro geography to count toward the 60% Target Market benchmark. Qualified census tracts are those geographic units that meet the criteria of economic distress (e.g., high poverty and/or low income).

For all other CIA types, the eligible Financial Products or eligible Financial Services activity within the individually qualified census tracts remains at 85% in order for any eligible Financial Products or eligible Financial Services activity in the non-qualifying tracts of the CIA to count toward the 60% Target Market benchmark.”

Policy Implementation

• The revised policy will be effective immediately, as of August 6, 2026.
• New CDFI Certification Applicants that include a non-Metro CIA, non-Metro county or parish in their proposed Target Markets must meet the revised Target Market activity threshold as established by this policy to be eligible for CDFI Certification. 
• Currently Certified CDFIs with approved Target Markets that include non-Metro CIA, non-Metro county or parish will be required to meet the revised Target Market activity threshold to maintain their CDFI Certification the next time they submit their Annual Certification and Data Collection Report (ACR). 

The CDFI Fund is still in the process of updating all relevant guidance materials to reflect this effective date change. The change has been updated in AMIS so any Target Market Calculator runs incorporate the new policy.

Any organization that submitted a Service Request in AMIS at the end of December 2025/early January 2026 requesting an extension to the CDFI Certification Application Submission Deadline because of the previous non-Metro CIA policy will receive an AMIS notification of its new Application submission deadline.

All CDFI Certification Application guidance materials and resources can be found on the CDFI Fund’s website at www.cdfifund.gov/cdficert under ‘Step 2: Application Process’. 

Questions

Questions about the CDFI Certification Application should be directed to the Office of Certification Policy and Evaluation (OCPE) via AMIS Service Request.