You may have been fascinated by the idea of ​​getting small business grants federal money to start or grow your business. As wonderful as it may seem to get a government grant that you do not have to repay, making such subsidies do not exist in reality. You did not believe that funding for small businesses was that easy, huh?

While the federal government does not provide grants for starting or growing small businesses, it offers a multitude of services to help entrepreneurs in pursuing their dreams. One of the mechanisms in place to encourage small business growth and economic development is the CDFI Fund managed by the US Treasury. In the current fiscal year, the federal government allocates more than $ 12 million to support CDFIs.

CDFIs divided into three groups:

Community Development Loan Funds

Community Development Credit Unions

Community development banks - including savings banks and holding companies

Community Development Fund Venture Capital

The genesis of the CDFI Fund has been the community development and better regulation Riegle Act 1994. The reason for the existence of the Fund is to promote economic revitalization and community development.

All program participants go through a CDFI certification process conducted by the Treasury Department. The certification allows access to a wide range of CDFI programs offered by the Fund. These programs provide financial and technical assistance to CDFIs through the CDFI Program, the CDFI Program Native American Program tax credit for emerging markets and the Awards Program of the Bank of the company.

Small business owners should be particularly aware of the transaction, such as bank CD, CD and CD Loan Fund Venture Capital Fund.

Banks CD offers a wide range of financial services and consulting for individuals and businesses who live and work in underserved areas or economically disadvantaged.

CD Loan Fund are available to provide development services and financing to businesses, organizations and individuals from low income rural and urban areas. They serve a variety of types of organizations, including micro, small businesses, and housing services and community organizations.

The venture capital fund CDs are an excellent source of equity or quasi equity for small businesses in underserved neighborhoods. Many of these funds provide business consulting for financial services.

While community development banks are nonprofit institutions with a significant representation of their neighborhood boards, Community Loan Fund of development are usually non-profit entities. Community Development Fund Venture Capital can be either for-profit or nonprofit.

CDFIs provide nationwide services to marginalized populations and low incomes. There is also a subset of these entities that focus on areas of extreme economic hardship, including the Mississippi Delta, the Gulf Opportunity Zone, indigenous communities, neighborhoods, and the Appalachians.

If your small business operates in a sector is bad, clearly low-income population or in an area of ​​extreme economic distress, you should consider how a CDFI can help you grow your business.