Our CDFI Program Services

4 of the CDFI Programs permits Community Development Financing Institutions (“CDFIs”) and, in some case Community Development Entities (“CDEs”) to participate in various programs of the Community Development Financial Institutions Fund (the “CDFI Fund”).

There are potentially 2 types of applicants for CDFI Programs.  First, a “first-tier” applicant (such as a bank), which directly applies for the CDFI Program.  Second, if applicable, a “second tier” applicant (such as a Borrower), which applies to the successful “first-tier” applicant (such as a bank), which facilities the deployment of the particular subsidy to the “second-tier” applicant.

Our legal and accounting backgrounds as well as significant experience in community and economic development enables us to strategically underwrite, structure and close these complex financings on behalf of our clients.

Generally, all of our fees are contingent upon our client receiving CDFI Program financing or subsidy, as applicable.

Upon engagement, we promptly provide our clients with the following:

• our CDFI Program Financing Intake Form;
• a flowchart illustrating the structure of the financing based on available, prospective and alternative sources of the capital stack;
• a budget (including supporting assumptions and calculations) projecting sources and uses of funds during the applicable compliance period thereafter;
• our strategy to secure all financing participants and subsidy providers; and
• a proposed timeline through targeted closing date of the CDFI program financing.

During our engagement, we will:

• determine which CDFI Program applies;
• draft and/or review applications to the Community Development Financial Institutions Fund, which is a division of the U.S. Treasury Department;
• if applicable, identify successful “first-tier” applicants, which have a service area or focus consistent with that of the “second-tier” applicant;
• as applicable, underwrite the financing to determine the best economic terms available, including principal amount, fixed or variable rates, term of interest-only payments, maturity dates, financial ratios, security and collateral requirements, and other nontraditional and flexible terms;
• identify other sources of financing;
• identify, profile and solicit investors and lenders;
• structure the overall financing;
• draft a detailed executive summary of the project and/or operations of the profit or nonprofit client (including detailed analysis, calculations, and supporting materials to support satisfaction of each legal requirement and each underwriting requirement);
• complete all CDFI Program applications, and other sources of financing or subsidy applications or intake forms;
• assemble due diligence materials and provide to targeted investors and lenders;
• review and negotiate letters of interest and/or commitment letters provided by investors and lenders;
• schedule and participate on conference calls addressing any questions or comments provided by investors and lenders;
• provide all other reasonable and customary services with respect to each of the foregoing;
• manage the closing and funding;
• provide ongoing asset management, compliance and reporting services; and
• provide such other services as otherwise provided pursuant to our Consulting Agreement.