Treasury Guarantees $100 Million in CDFI Bond Funding
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced today the approval of a $100 million guarantee under the fiscal year 2021 round of the Community Development Financial Institutions (CDFI) Bond Guarantee Program. The guarantee will be issued to Bank of America CDFI Funding Corporation on behalf of Self-Help Ventures Fund (Self-Help). Nearly $1.8 billion has now been guaranteed since the inception of the CDFI Bond Guarantee Program, which provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities.
“The CDFI Bond Guarantee Program was created over 10 years ago to respond to a critical market need for long-term low-cost capital to spur economic growth and jump start community revitalization,” said CDFI Fund Director Jodie Harris. “That need has never been greater than now for low- income communities across our nation as they try to recover from the disproportionate impact of the pandemic and rebuild after numerous natural disasters. The CDFI Bond Guarantee Program is a proven and valuable tool to help these distressed communities get back on their feet.”
Self-Help, which is headquartered in Durham, North Carolina, will use the bond loan to finance commercial real estate, rental housing, charter schools, not-for-profit organizations, and healthcare in low income communities in North Carolina, California, Illinois, Florida, and Washington, DC.
Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program provides low cost capital that enables CDFIs to execute large scale community development projects. Under the program, Qualified Issuers (CDFIs or their designees) apply to the CDFI Fund for authorization to issue guaranteed bonds worth a minimum of $100 million. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to invest in distressed communities. For more information on the CDFI Bond Guarantee Program, visit the CDFI Fund website at www.cdfifund.gov/bond.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $5.1 billion to CDFIs, community development organizations, and financial institutions through the Bank Enterprise Award Program, the Capital Magnet Fund, the Community Development Financial Institutions Program, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $66 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and closed guaranteed bonds for nearly $1.8 billion through the CDFI Bond Guarantee Program.
To learn more about the CDFI Fund and its programs, please visit the CDFI Fund’s website at www.cdfifund.gov.