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Benefits of CBDF qualified investments

  • Funds may target broad or specific community development needs
  • Instant access to Colorado’s extensive SBDC network
  • CBDF utilizes sophisticated databases to track how funds are used and has extensive reporting capabilities
  • 96% of investments dollars are used for community development purposes

Community Reinvestment Act: Qualified Investments in CBDF

Investments in the Colorado Business Development Foundation (CBDF) are eligible for CRA credit. 

What does CBDF do?

CBDF is a not-for-profit organization that provides grant funds to communities and organizations in Colorado that promote economic development. CBDF’s primary purpose is to develop and fund small business and community development programs across Colorado. 

Is CBDF a Community Development organization?

Yes, CBDF is a qualified community development organization. 

  • CBDF provides indirect financing for small businesses by providing grants to SBDC offices that manage revolving loan funds
  • CBDF also supports activities essential to helping low- and moderate-income (LMI) individuals or geographies to use credit or sustain economic development by providing funding to SBDC offices that provide credit counseling services and job-training programs

How will an investment in CBDF be used?

Investments (grants & donations) are used by CBDF for a variety of uses and generally have restrictions limiting how the funds can be used. Any investment from a bank seeking CRA credit will be used specifically for CRA eligible activities that benefit the bank’s assessment areas (AA), or a broader regional or statewide area that includes the bank’s AAs. Below are a few examples:

  • Grants to organizations in Colorado that are seeking funds that will be used as capital for a revolving loan fund that will promote economic development by providing financing for small businesses or small farms
  • Grants to organizations in Colorado that are seeking funds that will be used to provide community services for LMI individuals

Are investments in CBDF eligible for CRA credit?

Yes, investments in CBDF are eligible for CRA credit because CBDF provides indirect financing for small businesses & CBDF provides financial support to assist LMI individuals or geographies to use credit or sustain economic development. 

Additionally, investment fund proceeds are used for a primary purpose of community development, the investment funds are used in geographic areas that benefit the bank’s Assessment Area (AA), and the investment funds are used indirectly for loans originated by third party lenders (SBDC offices that establish revolving loan funds). 

Please note, it is the investor’s responsibility to work with CBDF to place restrictions on any such investments to ensure funds are used as the investor intends. 

How will the beneficiaries of an investment in CBDF be tracked?

CBDF serves as a resource for Colorado’s Small Business Development Center (SBDC) network. Each SBDC has trained professionals that use extensive database systems to track the beneficiaries of their services. Below is a visual of how this relationship, and data tracking works:

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Can CBDF manage where and how investments are used?

Yes, CBDF works closely with its investors to develop investment restrictions. After the restrictions are set, CBDF alerts the SBDC network that funds are available that can be used for certain, restricted, uses. The SBDC offices are allowed to apply for the funds, and any awardees are required to track how the funds are used. Investment restrictions can include, but are not limited to:

  • Geographic restrictions: metropolitan or non-metropolitan area, certain counties or cities, etc.
  • Community development restrictions: distressed (non-metro middle-income areas), underserved (non-metro middle-income areas), or designated (major disaster areas designated by FEMA) areas
  • Use restrictions: help with revitalization or stabilization efforts in low- or moderate-income (LMI) geographies, distresses geographies, non-metro middle-income geographies, or designated disaster areas

IMPORTANT NOTICE TO POTENTIAL INVESTORS: Not all CBDF investments are eligible for CRA credit. CBDF is responsible for ensuring investments are used appropriately and in compliance with any investor or donor restrictions. It is the responsibility of the investor to ensure appropriate restrictions are in place so that the funds are used in the way the investor intends. The information contained on this webpage is for informational purposes only, and cannot be relied upon as legal advice regarding Community Reinvestment Act laws and regulations

Get Started

Let us help with your community development efforts, partner with CBDF today! Benefits of CBDF qualified investments include:

  • Funds may target broad or specific community development needs
  • Instant access to Colorado’s extensive SBDC network
  • CBDF utilizes sophisticated databases to track how funds are used & has extensive reporting capabilities
  • 96% of investments dollars are used for community development purpose

Please contact us to get started, or with any questions.