Targeted Beneficiaries for Economic Development

Members may use CICA funding from the FHLBanks to finance economic development for the following targeted beneficiaries:

• Geographic: (not subject to income limits except as stated): Any project located in:
• A neighborhood in which the area median income (AMI) is at or below the applicable targeted income level (e.g., 115% of AMI for Rural Development Funding (RDF), 100% of AMI for Urban Development Funding (UDF), 80% of AMI for Community Investment Program (CIP))
• A Champion Community, Empowerment Zone, or Enterprise Community
• A Native American area, Alaskan Native Village or Hawaiian Homeland
• An area affected by federal military base closings
• A designated community affected by the North American Free Trade Act (NAFTA)
• A federal or approved state disaster area
• An area eligible for a federal Brownfield Tax Credit
• An approved area that qualifies for assistance under another federal- or state-targeted economic development program
• Individuals: Projects in which at least 51% of annual salaries created or retained by the project are at or below the applicable targeted income level, or at least 51% of the families who benefit from or are provided services from the project are at or below a targeted income level (e.g., 115% AMI for RDF, 110% of AMI for UDF, and 80% of AMI for CIP).
• Small businesses (not subject to income limits): Small businesses as defined by the Small Business Administration (SBA).

CICA programs with targeted Income Limits:

• Rural Development Funding Program: Projects in rural areas for beneficiaries with incomes at or below 115% of the area median income.
• Urban Development Funding Program: Projects in urban areas for targeted beneficiaries with incomes at or below 100% of AMI.
• Community Investment Program: Projects located in low- or moderate-income (80% of AMI) neighborhoods or that benefit low- or moderate-income families.