Community Development Financial Institutions Bond Guarantee Program
Program Funding
Annual program obligations reported to SAM.gov.
Funded Projects
Examples of what this program has supported.
Program Objective
To support community development lending and investment by providing a source of long-term capital to certified Community Development Financial Institutions (CDFIs) for economic and community development in low-income communities and underserved rural areas.
Eligibility
Eligible Applicants
- Nonprofit Organization
The Act defines Eligible CDFIs and authorizes the Community Development Financial Institutions Fund (CDFI Fund) to determine which entities may serve as Qualified Issuers.
How to Apply
Award Procedure
The CDFI Fund reviews applications and authorizes the provision of Guarantees based on an established merit-based review process set forth in the CDFI Bond Guarantee Program regulations, NOGA, and application materials.
Decision Timeline
- Approval: > 180 Days
Program details & compliance
Description
The CDFI BGP makes debt available to CDFIs from the Federal Financing Bank. The loans provide long-term capital to CDFIs, to provide new and substantial investment in distressed communities.
Mission Categories
Primary: Economic Development
Other categories:
Construction, Renewal and Operations
Use of Funds
Allowed Uses
Economic Development, Community Development (includes Federal surplus property)
Through the CDFI Bond Guarantee Program, the U.S. Department of the Treasury will provide a 100 percent guarantee on the principal and interest of Bonds issued by Qualified Issuers. No guarantee amount may be less than $100,000,000, provided the total of all such guarantees in any one fiscal year may not exceed $500,000,000 (subject to appropriations). By legislative design, the CDFI Bond Guarantee Program is a zero-subsidy credit program. In accordance with Federal credit policy, the Federal Financing Bank will purchase Bonds issued by Qualified Issuers. The maximum maturity of the bonds is 29.5 years. Qualified Issuers as “pass-through” entities (not as obligors) will lend the Bond proceeds to Eligible CDFIs. The loans to Eligible CDFIs must be used for Eligible Community or Economic Development Purposes. Bond and Bond Loan rates and terms will vary.
Required Documentation
Eligible CDFIs must be certified by the CDFI Fund. This program is excluded from coverage under 2 C.F.R. Part 200, Subpart E - Cost Principles.
Reporting & Compliance
Applicable 2 CFR 200 Subparts
- Subpart B — General Provisions
- Subpart C — Pre-Federal Award Requirements
- Subpart D — Post-Federal Award Requirements
- Subpart F — Audit Requirements