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 is targeted LICs.
CDE Certification Application Deadlines
CDE Certification Applications may be submitted at any time, except in the following circumstances:
- Applying for NMTC Allocation: submitted on or before Friday, November 6, 2015
- Service Area Amendment Requests: submitted on or before Friday, November 6, 2015
- CDE Certification of Subsidiaries for meeting QEI issuance: submitted on or before Friday, November 6, 2015