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CDFI Bond Guarantee Program - Outreach Session PowerPoint Now Available!
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March 11, 2013

The CDFI Fund is pleased to have met a critical milestone in the implementation of the CDFI Bond Guarantee Program: the release of the interim rule in the Federal Register on February 5, 2013. Comments are welcomed and are due on April 8, 2013.

The CDFI Bond Guarantee Program is poised to transform low-income rural and urban communities by:

  • Providing Eligible CDFIs with access to long-term capital: Bonds potentially have up to a 30-year maturity;
  • Providing Eligible CDFIs with attractive financing: Bonds are likely to be associated with below-market interest rates;
  • Encouraging market innovation within the community development finance sector: Through the interim rule, Eligible CDFIs are provided with the flexibility to develop new financial tools and products to spur community and economic development within their target markets;
  • Increasing investments for services that will significantly improve the lives in underserved areas: Eligible Purposes of Bond Proceeds include financing small businesses, senior facilities, daycare centers, and multifamily housing developments; and
  • Operating at no cost to the taxpayer: By legislative design, the CDFI Bond Guarantee Program requires no subsidy.

We are taking steps to fully inform the CDFI industry about this exciting new initiative. One of our first steps was to conduct intensive 8-hour information sessions in Dallas, Texas (February 12, 2013), San Francisco, California (February 14, 2013), and Washington, D.C. (February 22 and February 26, 2013).

To ensure that the industry has complete and accurate information about the CDFI Bond Guarantee Program, today we are posting the PowerPoint presentation used during those information sessions. The presentation can be found on the CDFI Fundís website.

The CDFI Fund hopes the information provided in the presentation will be useful to Qualified Issuer and Guarantee Applicants once the program is fully implemented. The 85-page document includes:

  1. An overview of the CDFI Bond Guarantee Programís Interim Rule and financial structure;
  2. Key financial structure terms, requirements and timing, and risk assessments with respect to a Bond Issuance;
  3. Key terms with respect to repayment and relending; and
  4. A brief introduction to the programís Secondary Loan Requirements.

Over the next several weeks, the CDFI Fund plans to:

  1. Post full transcripts from each of the 8-hour sessions held throughout the United States in February;
  2. Issue FAQs that will provide thoughtful responses and clarifying points to many of your programmatic questions; and
  3. Conduct webisodes that will dive deeper into many of the more complex components of the program, e.g., mechanics of the Risk-Share Pool and Relending Fund.

Pending Congressional authority to guarantee Bonds in FY 2013, the CDFI Fund will conduct a series of in-depth workshops in Spring 2013 to further explain the requirements of the Qualified Issuer and Guarantee Applications, including key inputs to the Capital Distribution Plan. Once finalized, dates and locations of the application workshops will be announced by the CDFI Fund and posted on its website.

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