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Member Bulletin

  • February 19, 2024
  • Bulletin No: 2024-05

New CDFI Capacity Building and Growth Grant

The Capacity Building and Growth Grant (CBGG) is a pilot program that was created by the Federal Home Loan Bank of Dallas (Bank) to increase nondepository CDFIs’ ability to support affordable housing, small businesses and community economic development. Through the pilot program, the Bank will make available to eligible CDFIs $3 million in CBGG grants as well as the ability to leverage Bank staff expertise on a project or initiative. 

The program is available only to nondepository CDFI loan funds that are members of the Bank and nonmember nondepository CDFIs that are sponsored by a member institution. All nondepository CDFI applicants will need to meet the following eligibility criteria: 

  • Located in the Bank’s 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 

Nondepository member CDFIs can qualify for $50,000 to $500,000 in monetary grants while sponsored nonmember CDFIs can qualify for $50,000 to $100,000 in monetary grants. Award recipients will be selected based on assessment criteria that are weighted based on impact. Grants will be awarded in mid-August. CDFIs that are awarded grants must provide a certification that the funds were used as committed to in the application process and an impact report regarding the effectiveness of the grants in achieving the CDFI’s desired outcomes.  

Examples of activities that can 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 of income 

Nondepository member CDFIs — and sponsored nonmember CDFIs — can also qualify to receive Bank assistance with communication and marketing strategies and/or small-scale automation projects. 

Those interested in applying for grants must submit a letter of inquiry (LOI) by April 17, 2024.  If the LOI is accepted, then applicants will be invited to submit a formal proposal by June 28, 2024.  

To learn more, please attend a webinar at 9:30 a.m. on March 5, 2024.  Members are encouraged to share this information with nonmember CDFIs. A recording of the webinar will be made available on the Bank’s website.  

Please see the FAQs for more information or contact Community Investment at 800.362.2944 with questions. Click here to register for the webinar. For additional information on this and other pilot programs, visit our website.  

 

Sincerely, 
Sanjay K. Bhasin 
President and Chief Executive Officer