CDE - Community Development Entity

A Community Development Entity (CDE) is a domestic corporation or partnership that is an intermediary vehicle for the provision of loans, investments, or financial counseling in Low-Income Communities. Community Development Entities (CDEs) through a competitive application process. CDEs are financial intermediaries through which private capital flows from an investor to a qualified business located in a low-income community. CDEs use their authority to offer tax credits to investors in exchange for equity in the CDE. Using the capital from these equity investments, CDEs can make loans and investments to businesses operating in low-income communities on better rates and terms and more flexible features than the market.

QEI – Qualified Equity Investment

A Qualified Equity Investment is an investment made into a CDE to provide cash for either stock in a corporation or a capital interest in a partnership in exchange for tax credits.

QLICI – Qualified

A Qualified Low-Income Community Investment. Any capital or equity investment in, or loan to, a Qualified Active Low-income Community Business (QALICB)

QALICB- Qualified Low-income Community Business

A Qualified Active Low-income Community Business is any corporation (including a non-profit corporation) or partnership engaged in the active conduct of a qualified business in a low-income community meeting standards pertaining to gross income, use of property, and services performed. In most cases, an entity formed to own real estate in a low-income community will meet the standards for a QALICB.