CITM2050 - Accreditation: Retail Community Development Finance Institutions
ITA/s340; SI2003/96 Schedule 1 (11)
Community Development Finance Institutions (CDFIs) provide funding to enterprises in under- developed areas in two ways -
either
- directly, by financing individual enterprises in or for disadvantaged communities
or
- indirectly, by investing in businesses which themselves fund enterprises in or for disadvantaged communities
CDFIs applying for accreditation will be asked to say whether
they are applying as retail CDFIs, that is, as a CDFI whose
principal objective is to finance trading enterprises directly. If
so, and if successful, the accreditation notification will specify
that the body is accredited as a ‘retail CDFI’.
Any CDFI that is not accredited as retail CDFIs is a
‘wholesale CDFI’.
The distinction between ‘retail’ and
‘wholesale’ CDFIs is relevant because in some cases the
CITR scheme rules provide for different treatment of the two types
of body. See:
