CDFI Fund Opens FY2027 Financial Assistance Round With Expanded Persistent Poverty Set-Aside

The CDFI Fund has opened its fiscal year 2027 application round for the Financial Assistance (FA) component of the CDFI Program, with changes that applicants say will reward lenders already deploying capital in the country's most distressed places.

The Notice of Funds Availability raises the share of awards directed to persistent poverty counties and introduces stricter quarterly deployment reporting for organizations that received awards in the prior two rounds.

Key figures — FY2027 FA round

• Persistent poverty set-aside: at least 20% of FA dollars
• Maximum base award: $2.0 million
• Application deadline: January 14, 2027

What changed

The largest shift is in how the Fund evaluates prior performance. Applicants that have received an award in either of the two prior rounds must now document deployment against their stated targets on a quarterly basis rather than annually.

Practitioner reaction

Several CDFI executives said the higher set-aside aligns with work their organizations are already doing, but warned that quarterly reporting will add compliance load for smaller loan funds without dedicated data staff.

"The intent is right," said one executive at a rural loan fund in the Mississippi Delta. "The burden falls hardest on the organizations with the thinnest back offices."

What to watch

Applicants should review the revised Target Market eligibility guidance before submitting, and confirm their certification status is current in AMIS.