How Funding Works
The CDC is a flexible investment vehicle. It can lend, it can grant, and it can partner, and the right structure depends on the project. This page explains what the CDC looks for, who can ask, and what happens after you do.
Two ways capital moves
Loans through the Revolving Loan Fund. Capital for projects that can repay, structured for borrowers conventional lending does not reach. Repayments return to the fund and finance the next project.
Grants and program support. Direct funding for community projects and partnerships where a loan is not the right instrument, subject to available funding and board priorities.
What the CDC funds
- Affordable housing development and rehabilitation.
- Small business and nonprofit lending.
- Workforce training partnerships.
- Transportation, mobility, and community infrastructure.
- Energy and utility affordability programs.
- Predevelopment and planning that moves a project toward construction.
What the CDC does not fund
- Political campaigns, candidates, lobbying, or partisan activity.
- Religious activity that is not open to the whole community.
- Debt refinancing with no new community benefit.
- Individual personal expenses or personal loans.
- Projects outside Arkansas, Louisiana, Mississippi, and Texas.
- Anything already fully funded, where CDC capital would not change the outcome.
Who can ask
Nonprofits, small businesses, community development financial institutions, parishes, counties, municipalities, housing developers, educational institutions, and workforce organizations working in the four states the CDC serves. If you are not sure whether your organization qualifies, ask.
What happens after you ask
Apply
Submit an inquiry describing the project, the community, and what the capital would do.
Review
The CDC team reviews eligibility and conducts due diligence.
Evaluate
The project is assessed for community impact and alignment with CDC priorities.
Approve
Funding decisions are made through the appropriate approval process.
Invest
Capital is deployed into the community.
Reinvest
As loan capital is repaid, funds return to the pool and support the next opportunity.
What to have ready
- A short description of the project and the community it serves.
- The total project cost and what other funding is committed.
- The amount you are asking the CDC to consider.
- Your timeline, including when funding is needed.
- Who else is at the table.
The CDC team responds to every inquiry. Expect an initial response within ten business days.
Submission does not guarantee approval. Projects are subject to applicable eligibility, due diligence, and approval requirements.