February 1, 2023

CDFI Fund: Application Demand for Equitable Recovery Program Released

The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) released today the application data for the fiscal year (FY) 2022 round of its CDFI Equitable Recovery Program (CDFI ERP).

The CDFI ERP is a new program created through the Consolidated Appropriations Act, 2021 (Pub. L. 116-260) that is intended to respond to the economic effects of the COVID-19 pandemic. Up to $1.75 billion in awards is available through the FY 2022 round of the CDFI ERP, which is the first and only award round of the program. The CDFI ERP is designed to:

“The grants provided by CDFI ERP will provide opportunity to borrowers and communities disproportionately impacted by the pandemic, helping them to regain stability and get back on their feet,” said CDFI Fund Director Jodie Harris. “With more than 50% of all Certified CDFIs applying for an ERP award, I know that their collective work to grow economic opportunity will achieve the mission of this program and expand inclusive economic prosperity across the country.”

In total, 696 Community Development Financial Institutions (CDFIs) from across the country requested a total of $7.69 billion in awards, which is nearly 4.4 times the amount of available funding ($1.75 billion). Nationwide, FY 2022 CDFI ERP applicants are headquartered in 46 states, the District of Columbia, Guam and Puerto Rico. More than half of all Certified CDFIs submitted an application for an ERP award, which included applications submitted by:

Per the Notice of Funds Availability (NOFA), eligible applicants may request no more than three times their annual average on-balance sheet Financial Products closed in their five most recent historic fiscal years or $15 million, whichever is less.

During the application process, CDFI ERP applicants were required to select from one of five policy priorities where they would commit to deploy their CDFI ERP Awards. CDFI ERP Applicants committed to devote their prospective awards in the following areas:

The FY 2022 CDFI ERP application period closed on September 22, 2022, but was extended for organizations impacted by Hurricane Fiona to October 6, 2022. The CDFI Fund currently expects to announce the awards in winter 2023.

For more information about the CDFI ERP, visit the CDFI Fund’s website at www.cdfifund.gov/erp.

This post was originally published here.