If your credit union is exploring Community Development Financial Institution (CDFI) funding opportunities, you’ve probably come across two common terms: Technical Assistance (TA) grants and Financial Assistance (FA) grants. While both programs are offered through the CDFI Fund, they serve very different purposes.
Understanding the difference can help your institution determine which opportunity is the right fit.
What Is a CDFI FA Grant?
A Financial Assistance (FA) award is designed for already Certified CDFIs that are ready to expand lending, products, services, or impact within underserved communities.
FA awards can be used to:
- Increase lending capital
- Expand affordable loan programs
- Support housing or small business initiatives
- Grow staffing or operational capacity
- Launch new financial products
One important detail: FA awards typically require a dollar-for-dollar match from non-federal funding sources.
For established CDFI credit unions actively serving low-income or underserved communities, FA grants can provide significant growth opportunities.
What Is a CDFI TA Grant?
Technical Assistance (TA) grants are intended to help organizations build capacity and prepare for growth.
TA awards may support:
- Strategic planning
- Technology upgrades
- Staff training
- Compliance improvements
- Consulting services
- Certification preparation
Unlike FA awards, TA grants are available not only to Certified CDFIs, but also to “Certifiable CDFIs” — organizations working toward certification.
This makes TA grants especially valuable for smaller credit unions or institutions just beginning their CDFI journey.
TA vs. FA: Which One Is Right for Your Credit Union?
In simple terms:
| TA Grant | FA Grant |
|---|---|
| Builds organizational capacity | Expands lending and community impact |
| Great for newer or growing institutions | Best for established Certified CDFIs |
| Helps prepare for certification | Requires existing certification |
| Typically smaller awards | Typically larger awards |
| No matching funds requirement in many cases | Requires matching funds |
Many credit unions begin with a TA award, then pursue FA funding once they achieve certification and strengthen operational readiness.
Why CDFI Funding Matters for Credit Unions
CDFI programs exist to help mission-driven financial institutions better serve underserved communities through affordable financial services and community investment.
For credit unions, these grants can support:
- Financial inclusion initiatives
- Small business lending
- Affordable consumer lending
- Community partnerships
- Growth in low-income target markets
Need Help Navigating the Process?
Applying for CDFI certification or grant funding can feel overwhelming, especially for smaller institutions managing limited staff resources.
At Your CU Partner, we help credit unions navigate CDFI strategy, certification preparation, grant readiness, and operational planning so they can maximize funding opportunities and community impact.
