Accreditation of community development finance institutions (CDFIs): Retail community development finance institutions
ITA/s340; SI2003/96 Schedule 1 (11)
CDFIs provide funding to enterprises in under-developed areas in two ways:
* 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 are 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 specifies that the body is accredited as a retail CDFI.
Any CDFI that is not accredited as retail CDFI 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:
- CITM3040 - Investments which are not relevant investments
- CITM4070 - Limit of issue of tax relief certificates