Community Development Entities (CDE’s): The Doorway to Capital That Overlooked Communities Were Never Meant to Access — Until Now

Joy D. Johnson

For decades, organizations serving overlooked, under-resourced, and structurally neglected communities have been expected to perform miracles with pennies. Whether you lead a CDC in an urban core, a rural development group in Appalachia, or a small-town revitalization nonprofit trying to keep your Main Street alive—your story is familiar:

The need is enormous. The funding is scarce.
And the system wasn’t built with you in mind.

I’ve worked in community development for more than twenty years, and one truth has become impossible to ignore:

Traditional funding routes alone cannot get us where we need to go.
Not because our leaders lack vision, but because the capital structures designed decades ago were never built for the communities we serve today.

And that’s where Community Development Entities (CDEs) come in.

Most organizations—large or small, urban or rural—don’t realize that becoming a CDE instantly moves them into a completely different capital environment. It doesn’t matter whether you’re a nonprofit, a for-profit developer, a rural community organization, or a regional economic development group:

CDE status opens doors that traditional CDC pathways simply cannot.

Why CDE Status Is a Game-Changer for ALL Underserved Communities
A CDE isn’t a replacement for your CDC.
It isn’t an alternative to what you’re already doing.
It’s an expansion. A complement. A key to unlock capital.

Whether your community is East Cleveland or rural Kentucky, Ward 5 or West Virginia coal country, the benefits are the same:

• Eligibility for New Market Tax Credits (NMTC)
• Direct access to federal and state programs
• A stronger platform to attract private investors and philanthropic partners
• Increased authority as a regional development leader

And it’s important to say this plainly:

CDE designation is not just for nonprofits. For-profits can obtain it as well.

This Is About Fixing a Broken Ecosystem — Not Playing Within It
For generations, communities that needed the most investment received the least. The ecosystem was fragmented, inconsistent, and structurally biased.

CDEs represent a structural correction.

When organizations serving overlooked populations—urban, rural, or anything in between—obtain CDE status, they gain the power to:

• Get direct access to funding without obstruction

• Access new sources of money

Access larger amounts of money

Join Me for a Live Training: Unlocking Capital, How to Become a CDE
January 13, 2026
MidTown Tech Hive
12:00 PM
6815 Euclid Avenue, Cleveland, OH 44103

To RSVP, Click Here

Stay Tuned
The next article in this series will explore how overlooked urban and rural communities alike can use CDE status to anchor wealth-building ecosystems that last for generations.

With more than two decades of experience in community development, real estate strategy, and organizational leadership, Joy Johnson brings a seasoned, solutions-focused voice to the field. She is committed to helping communities and institutions avoid systemic pitfalls and build models that truly work. To reach Joy call at (216) 238-2235.