OCC allocates $500 million to CDFIs under financial inclusion program

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OCC allocates $500M to CDFIs

Highlights

OCC announces $500 million in Round Two of the Financial Inclusion Fund, targeting CDFIs to expand services in underserved U.S. communities.
CDFIs can apply for grants for technology upgrades, loan fund capitalization, and staff training with applications open until year-end and awards expected in early 2027.
Launched in 2025, the Financial Inclusion Fund underscores ongoing strong demand for capital in low-income markets and continued regulatory support for CDFI lending.

Round two funding and application timeline

As announced by the Office of the Comptroller of the Currency, the agency is making $500 million available in Round Two of its Financial Inclusion Fund program for Community Development Financial Institutions, or CDFIs. The funding is intended to help those institutions increase access to financial services in underserved communities across the U.S.

Acting Comptroller of the Currency Michael J. Hsu says the funding is meant to support CDFIs as they expand their offerings and extend their reach. He says the program is designed to help more individuals and families gain access to financial resources needed to meet long-term financial goals.

Under the second round, CDFIs can apply for grants tied to technology upgrades, loan fund capitalization and staff training programs. Applications are being accepted until the end of the year, and awards are expected to be distributed in early 2027.

Support for lending in underserved markets

The Financial Inclusion Fund was first announced in 2025 with a goal of strengthening the capacity of CDFIs to provide loans, investments and related services in low-income neighborhoods. Interest in the initiative has been strong, underscoring continued demand for capital in markets that often face limited access to mainstream financial services.

CDFIs play a specialized role in serving communities that may be overlooked by traditional lenders, making the program relevant for local development, small business financing and household access to credit. The latest funding round signals continued regulatory backing for institutions focused on closing financing gaps across the country.

In our earlier coverage of the Philippine financial system’s resources topping P38 trillion, we reported that banks and nonbank financial institutions continued to expand balance sheets, supported by steady loan growth and firmer deposits. We also noted that the pace of growth could moderate as higher interest rates, inflation risks, and further Bangko Sentral ng Pilipinas policy tightening weigh on credit conditions in the months ahead.

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