Community Development Financial Institutions (CDFIs) play an essential role in fostering economic growth and supporting development in communities underserved by traditional financial institutions. To maintain their status as a certified CDFI, and continue delivering on their mission, CDFIs must submit the Annual Certification and Data Collection Report (ACR) on an annual basis. Here is why the ACR is so crucial and what could happen if it is not submitted on time and completed accurately.
Why the ACR Matters
The ACR is not just a regulatory and statutory requirement. It is a tool that ensures CDFIs remain accountable to the communities they serve. Submitted annually within 90 days of the end of a CDFI’s fiscal year (or 180 days under the revised ACR submission guidelines), the ACR allows the Community Development Financial Institutions Fund (CDFI Fund) to:
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Assess compliance by verifying CDFIs continue to meet the CDFI Certification criteria, including their dedication to serving targeted markets and adhering to responsible financing practices;
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Collect critical data and gain insights into the state of the CDFI industry and ensure Certified organizations maintain their focus on community development; and
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Protect the integrity of the Certification process by confirming organizations remain mission-driven and meet the rigorous standards expected of CDFIs.
Until recertified under the revised CDFI Certification Application, any currently Certified CDFI whose existing CDFI Certification date is before October 1, 2023, must continue submitting the ACR within the existing 90-day deadline. Regardless of the timeline, the ACR remains mandatory for all CDFIs unless otherwise notified by the CDFI Fund. Failure to complete and submit the report could lead to loss of CDFI Certification and further penalties, especially for those receiving program funds or with active CDFI Program award(s).
For more details about the updated ACR and TLR requirements, refer to the official guidance materials provided by the CDFI Fund, which are located on the CDFI Certification section of the CDFI Fund’s website under Step 3: Reporting. The CDFI Fund also holds quarterly webinars on the ACR submission process, information on these webinars can also be found here. Additionally, guidance information regarding the revised CDFI Certification Application can be found here.