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Capacity Building and Growth Grant

Helping Community Development Financial Institutions Grow Communities

Program Overview

Community Development Financial Institutions (CDFIs) play a critical role in supporting affordable housing, small businesses and community economic development. They are mission driven financial institutions that provide access to capital and technical assistance to underserved communities.

The FHLB Dallas Capacity Building and Growth Grant (CBGG), launched in March 2024, is designed to increase non-depository CDFIs’ ability to fulfill their mission by providing grants and technical expertise in specific areas. The maximum monetary grant for nondepository, member CDFIs is $500,000 and $100,000 for nondepository, nonmember CDFIs.

Funds Available for 2024: $3 Million

  • Letter of inquiry due April 17, 2024
  • Letter of inquiry results will be announced by May 17, 2024
  • Formal proposals due June 28, 2024
  • Awards announced on or about August 15, 2024

The CBGG program offers two types of grants for qualifying applicants:

  • The Monetary Grant can be used for future operations or technology improvements, leadership or skills development or development of new sources of income
  • The Expertise Grant leverages FHLB Dallas’ resources and technical expertise to assist with projects or initiatives related to communications or marketing strategy and small-scale automation

Note: Applications for CBGG funding must be submitted by an eligible FHLB Dallas member financial institution.

Benefits for Your Financial Institution

Increase CDFI capacity to make a greater impact on affordable housing, small businesses and community economic development.

Expand client base by partnering with nondepository CDFIs to provide access to grant funding and technical assistance.

Propel community growth by enhancing the effectiveness of CDFIs to deliver on their mission-related activities.

Capacity Building and Growth Grant Pilot

CBGG is available to non-depository CDFIs that are FHLB Dallas members or that are sponsored by an FHLB Dallas member institution in applying for a CBGG grant. Grant funds may not be used for general operating expenses, litigation, support of existing programs (unless there is a significant change in focus or strategy), conferences, publications, media/audiovisual productions, or financial deficits.


CDFI Capacity Building & Growth Grant

Discover how to apply for the FHLB Dallas Capacity Building and Growth Grant.

Eligibility Criteria

To be eligible for a CBGG grant, CDFIs must be:

  • Located in the FHLB Dallas District of Arkansas, Louisiana, Mississippi, New Mexico or Texas
  • Certified as a CDFI by the U.S. Treasury's CDFI Fund
  • Focused on affordable housing, small businesses or community economic development
  • Able to provide financial statements, audited if available

CDFIs that are awarded grants must provide:

  • Certification that the funds were used as described during the application process
  • An impact report of the effectiveness of the grants in achieving the desired outcomes

Eligible Uses of Funds

CBGG grants funds must be used for CDFI activities supporting affordable housing, small businesses or community economic development.

Examples of activities that may be funded by monetary grants include:

  • Operating expenses that fund significant changes in strategy or focus
  • Technology improvements
  • Leadership or expertise development
  • Development of new sources for earned income

Applicants for expertise grants may receive FHLB Dallas’ staff expertise in the areas of communication and marketing strategy or small-scale automation.

Note: Applications for CBGG funding must be submitted by an eligible FHLB Dallas member financial institution. 

Applying for a CBGG Grant 

The 2024 CBGG application process opened on March 5, 2024. Members must submit a letter of inquiry to by April 17, 2024.

  • For expertise grants, FHLB Dallas will respond to Letters of Inquiry and send proposal forms to applicants by May 17, 2024. Formal proposals are due by June 28, 2024, and FHLB Dallas will announce the awards on or around August 15, 2024
  • For non-monetary grants, FHLB Dallas is conducting interviews with applicants and will announce the awards on May 17, 2024


For more information about the CBGG program, please refer to the materials listed below.

FHLB Dallas CBGG Frequently Asked Questions