The CDFI page on CBO Financial’s website, located at https://cbofinancial.com/financing/cdfi/, shines a spotlight on the firm’s role as a certified Community Development Financial Institution (CDFI) and its commitment to channeling capital into underserved communities. Established in 1999, CBO Financial leverages its CDFI status to deliver innovative financing solutions, supporting high-impact projects that range from $7 million to $150 million across the U.S. and its territories.
The page kicks off with a clear definition: CDFIs are private financial institutions dedicated to providing affordable lending and investment in low-income areas often overlooked by traditional banks. CBO Financial, through its subsidiary Community Development Funding, LLC, embodies this mission, acting as a conduit for federal and private funds to spark economic growth and revitalization in distressed regions.
Central to the CDFI page is the New Markets Tax Credit (NMTC) Program, a federal initiative that CBO Financial has mastered. The firm’s subsidiary has secured $150 million across six NMTC awards, while its broader efforts have unlocked over $400 million through 18 additional awards for clients. This funding powers projects that create jobs, enhance infrastructure, and breathe new life into struggling communities.
The page simplifies the NMTC process: investors receive a 39% tax credit over seven years for injecting capital into CDFIs like Community Development Funding, LLC. These funds are then deployed as flexible, below-market loans—often covering up to 25% of project costs—to support developments like commercial hubs and community facilities. The “forgivable” nature of this financing is a game-changer, easing the financial strain on borrowers and amplifying community benefits.
While the NMTC Program takes center stage, the page hints at CBO Financial’s wider CDFI capabilities. As a certified entity, the firm taps into a suite of federal programs and private investments to offer gap financing and technical assistance. This holistic approach targets both nonprofit and for-profit developers, ensuring that projects in economically challenged areas—whether urban or rural—can move from blueprint to reality.
The CDFI page underscores CBO Financial’s deep expertise, honed over decades, in structuring deals that align investor returns with community upliftment. It positions the firm as a trusted partner for organizations seeking to navigate the complexities of development financing. While specific project examples are housed elsewhere on the site, the page ties its services to tangible outcomes: revitalized neighborhoods, new jobs, and stronger local economies.
Closing with a nod to accessibility, the page links to a free project analysis form, inviting potential clients to explore how CBO Financial’s CDFI resources can support their goals. It’s a succinct yet potent overview of a firm that’s not just a financier, but a catalyst for lasting change in underserved communities.