Income Tax Act 2007 section 340

Application and criteria for accreditation

Section 340 sets out how an organisation applies for accreditation as a community development finance institution (CDFI) and the criteria the Secretary of State must be satisfied are met before granting accreditation.

• Applications for CDFI accreditation must be made to the Secretary of State in the prescribed form and manner, and accreditation is granted only where the body's principal objective is providing finance (or finance and business advice) to enterprises serving disadvantaged communities
• Disadvantaged community enterprises include businesses located in deprived areas and businesses owned, operated by, or designed to serve members of disadvantaged groups
• The Treasury may make regulations setting additional accreditation criteria, which can vary by case, circumstance or area, and may reference material published by or on behalf of the Secretary of State
• Where a body's main aim is to invest directly in enterprises that use the money for their own business rather than on-lending to other enterprises, it is designated a "retail CDFI", a distinction that affects the investment limits applying during each accreditation period