The New York State Department of Financial Services (DFS) issued guidance allowing state-chartered banks to receive Community Reinvestment Act (CRA) credit for lending to or investing in Community Development Financial Institutions (CDFIs) even if the CDFIs’ 2024 federal certification has lapsed. The guidance is intended to help sustain bank funding for mission-driven lenders supporting affordable housing, small business financing, and other services in underserved communities. The DFS guidance is framed around certification lapses that are unrelated to a CDFI’s programs or mission, providing a route for continued CRA-recognized activity amid federal certification uncertainty. The announcement followed a convening of CDFIs, Minority Depository Institutions (MDIs), and senior representatives from New York’s largest banks on measures to strengthen these institutions and maintain access to capital, alongside references to related Empire State Development support including nearly USD 18 million in CDFI grants over five years and allocations of USD 35.5 million to 16 CDFIs through the Small Business Revolving Loan Fund 2.0 and USD 18.2 million to seven CDFI partners through the Contractor Financing Program.
New York State Department of Financial Services 2025-09-26
New York State Department of Financial Services allows CRA credit for state-chartered banks’ CDFI lending and investment despite lapsed 2024 federal certification
The New York State Department of Financial Services issued guidance allowing state-chartered banks to receive Community Reinvestment Act credit for lending to or investing in Community Development Financial Institutions, even if their 2024 federal certification has lapsed. This aims to sustain funding for mission-driven lenders supporting underserved communities. The guidance follows discussions with CDFIs, Minority Depository Institutions, and major banks, highlighting Empire State Development's support.