The Community Development Financial Institution (CDFI) Fund Program provides grant support to New York State federally certified Community Development Financial Institutions (CDFIs) in their efforts to provide technical assistance to New York State small business and underserved individuals.

In May 2022, Governor Hochul signed legislation that boosts consumer protection and addresses inequities in the State’s financial services system. New York State is committed to expanding access to safe and affordable banking services. 

Under this program, ESD will make grants to New York State CDFIs to expand their efforts to provide technical assistance and enhance each organization’s capacity to meet the needs of New York State small businesses, non-employer firms and entrepreneurs, and bank-challenged and other underserved individuals. The technical and financial assistance services range from banking services, such as opening traditional accounts and providing transaction services, to developing financial literacy and financial education programming, and increasing access to capital and banking services to small businesses. 

$5 million is allocated to this program, and selected CDFIs can receive grants of up to $200,000. ESD will enter into an agreement (no longer than 12 months) with each selected CDFI. Grant awards can be used for institutional capacity, administrative services and operating expenses, and technical assistance.

To be eligible for ESD grant proceeds, applicants must meet the following criteria: 

1. Certification & Legal Standing

• CDFI Certification: Must be U.S. Treasury-certified at the time of approval and during all disbursements. If you are unsure of your status, please check here. 
• NYS Prequalification: Must be registered and prequalified through the Statewide Financial System (SFS). To register or check your status, please click here.

2. Comprehensive Strategic Plan

Applicants must provide a detailed plan:

• Operations: Mission, target markets/regions, competition, and infrastructure.
• Institutional Capacity: Evidence of a management team capable of operating as a CDFI without relying solely on this program.
• Coordination: Strategies to leverage other government programs, private financial services, and community partnerships.

3. Financial & Programmatic Requirements

• Mission: Primarily focuses its activities on small business lending and technical assistance, as described in the application. 
• Matching Funds: Grant proceeds shall be matched with funds from sources other than the State’s on the basis of no not less than 25% of the award. Matching funds shall be comparable in-kind services or equal cash value to assistance provided by the Program. ESD shall provide no financial assistance until the CDFI has secured firm commitments for the matching funds required.
• Compliance: Must be current on all ESD reporting and have met previous ESD program goals (if applicable).
• AFS 2 Compliance: Non-compliance with CDFI AFS 2 will negatively impact scoring and eligibility (if applicable).

Applications went live Friday, January 23, 2026, at 10am EST, and closed on Friday, March 6, 2026 at 5pm EST. 

Awards will be announced in Spring 2026.