CDE Certification Benefits
A Community Development Entity (CDE) is a domestic corporation or partnership that is an intermediary vehicle for the provision of loans, investments, or financial counseling in low-income communities. Certification as a CDE allows organizations to participate either directly or indirectly in the New Markets Tax Credit Program.
There are no deadlines for CDE Certification except for when applying to the NMTC Program. Please see below for more information.
A CDE is a domestic corporation or partnership that is an intermediary vehicle for the provision of loans, investments, or financial counseling in Low-Income Communities (LICs). Benefits of being certified as a CDE include being able to apply to the CDFI Fund to receive a New Markets Tax Credit (NMTC) allocation to offer its investors in exchange for equity investments in the CDE and/or its subsidiaries; or to receive loans or investments from other CDEs that have received NMTC allocations.
To become certified as a CDE, an organization must submit a CDE Certification Application to the Fund for review. The application must demonstrate that the applicant meets each of the following requirements to become certified:
- Be a legal entity at the time of application;
- Have a primary mission of serving LICs; and
- Maintain accountability to the residents of its targeted LICs.
CDE Certification Application Deadlines
CDE Certification Applications may be submitted at any time, except when there are specific deadlines applicable to an open application period for the New Markets Tax Credit Program. Please visit www.cdfifund.gov/nmtc to view relevant application deadlines for the New Markets Tax Credit Program.