Under federal law, banks are required to reinvest capital, services, and loans back into Low-to-Moderate Income (LMI) communities where they operate. When you show a banker how your program helps them meet their regulatory compliance goals, you stop asking for “charity” and start offering a high-value strategic partnership.
Here is everything your non-profit needs to know about what qualifies for CRA credit—and how to package your next proposal.
The Golden Rule: The LMI Focus
To qualify for CRA credit, your activity must primarily benefit Low-to-Moderate Income (LMI) individuals or geographies.
💡 What is LMI?
An individual or family earning less than 80% of the Area Median Income (AMI), or a geographic census tract where the median family income is less than 80% of the area median.
If at least 51% of the people your program serves fit this criteria, your project is in prime CRA territory.
The 4 Core CRA Qualification Buckets
When pitching a banker, map your program directly into one of these four federal CRA categories:
1. Community Services Targeted to LMI Individuals
This is where the majority of non-profit programs fit. If your services help LMI families build stability or mobility, it qualifies.
- Workforce Development & Job Training: Career coaching, vocational skills, youth employment initiatives, and interview prep.
- Youth & Education Programs: Free or low-cost after-school programs, tutoring, and financial literacy workshops in LMI school districts.
- Basic Needs & Safety Net Services: Food banks, healthcare clinics, homeless shelters, and domestic violence support targeting LMI residents.
- Childcare & Family Support: Affordable childcare options that allow LMI parents to work or attend school.
2. Affordable Housing
Housing initiatives that help LMI individuals secure safe, stable, and affordable places to live are high-priority targets for bank investments.
- Development & Preservation: Building, rehabilitating, or maintaining affordable rental units.
- Homeownership Counseling: Pre-purchase financial education, foreclosure prevention, and down-payment assistance programs for LMI first-time buyers.
- Land Trusts & Advocacy: Community land trust support focused on permanent affordability.
3. Economic & Small Business Development
Activities that promote local economic growth by supporting small businesses or microenterprises that create/retain jobs for LMI workers.
- Small Business Technical Assistance: Offering free marketing, accounting, legal, or business planning assistance to neighborhood merchants.
- Micro-Lending Support: Partnering with Community Development Financial Institutions (CDFIs) or loan funds.
- Incubators & Accelerators: Programs that lower the barrier to entry for diverse or neighborhood-based entrepreneurs.
4. Revitalization & Stabilization
Projects that improve the physical infrastructure, safety, or economic vitality of designated LMI census tracts or designated disaster zones.
- Community Facilities: Renovation or development of local youth centers, parks, or health facilities in LMI areas.
- Commercial Corridor Revitalization: Programs that beautify or restore blighted business districts to attract foot traffic and local investment.
Beyond Cash: The 3 Ways Banks Can Give
Banks earn CRA points through three separate “test” buckets. Knowing which bucket you are tapping helps you ask for the right resources:
| Bank Resource Type | What You Ask For | How It Helps The Bank |
| Philanthropic Grants | Event sponsorship, operational grants, program funding | Fulfills their CRA Investment/Grant Test |
| Employee Time & Expertise | Board service, financial literacy teaching, pro-bono consulting | Fulfills their CRA Service Test |
| Loans & Program Investments | Low-interest loans, facility financing, deposit placement | Fulfills their CRA Loan/Financing Test |
