CDFI BOND GUARANTEE PROGRAM
The Bond Guarantee Program provides (a) authorization to issue bonds to provide Community Development Financing Institutions (“CDFIs”) with access to substantial capital that is then used to reignite the economies of very distressed communities, and (b) a 100% guarantee on such bonds through their maturity dates.- An applicant must be a “Qualified Issuer,” which must (a) be a CDFI; (b) be able to issue bonds and make loans; and (c) demonstrate the capacity to perform specialized administrative functions, including loan servicing and financial reporting.
- A successful applicant Qualified Issuer uses the proceeds of its bonds under the Bond Guarantee Program to (a) finance large-scale project (including the development of commercial real estate, housing units, charter schools, daycare or healthcare centers, and municipal infrastructure), and (b) extend credit to other community development Borrowers (the “Borrowers”) or refinance existing loans at low interest rates, freeing up capital for additional investments.