CDFI Impact Blog

 

 

CDFI Bond Guarantee Program Reaches $1 Billion Milestonehttps://www.cdfifund.gov/impact/Lists/Posts/ViewPost.aspx?ID=71CDFI Bond Guarantee Program Reaches $1 Billion Milestone<div class="ExternalClass317857BFED5342F98358ACF2497749F0"><p>More than $1 billion has now been disbursed through the Community Development Financial Institutions Fund’s (CDFI Fund’s) CDFI Bond Guarantee Program (BG Program) to support community revitalization activities in distressed and underserved communities across the nation.</p><p>Established by the <a href="https://www.congress.gov/111/plaws/publ240/PLAW-111publ240.pdf" target="_blank">Small Business Jobs Act of 2010 (P.L. 111-240), </a>the BG Program provides long-term, low-cost capital to spur economic growth in low-income communities—at no cost to taxpayers. Through the BG Program, the Secretary of the Treasury provides a 100% guarantee of bonds issued by Qualified Issuers. The Qualified Issuers use the bond proceeds to finance loans to Eligible CDFIs, which then use the funds to make loans in underserved areas.</p><p>Since the inception of the BG Program, the Treasury Department has guaranteed more than $1.5 billion in bonds. Eligible CDFIs have up to five years to deploy committed funds. Of the $1.5 billion guaranteed to date, participating CDFIs have now invested over $1 billion in a broad array of <a href="/Documents/BGP%20Impact%20Chart%20082619.pdf" target="_blank">projects</a> in low-income urban, rural, and Native Communities. </p><p>The unique nature of the capital accessed by CDFIs in the BG Program—which is long-term and low-rate debt—means they have flexibility to finance a variety of innovative and impactful community development initiatives, such as the preservation of <a href="/impact/Pages/BlogDetail.aspx?BlogID=69" target="_blank">affordable housing</a>, financing for rural <a href="/impact/Pages/BlogDetail.aspx?BlogID=37" target="_blank">manufacturing</a> facilities, as well as providing access to key <a href="/impact/Pages/BlogDetail.aspx?BlogID=28" target="_blank">community services</a>. The experience gained by CDFIs that have participated in the BG Program has even led some CDFIs to <a href="/impact/Pages/BlogDetail.aspx?BlogID=60" target="_blank">access debt capital through publically-rated issuances</a>.</p><p>The CDFI Fund continues building on the milestones that have already been reached in the BG Program. Recently, the types of community revitalization activities that can be supported through the Program were expanded. </p><p>New building construction is now an eligible use of the BG Program. Previously, the proceeds of a bond could only be used to support the renovation or expansion of existing structures. This change will allow participating CDFIs to support a much broader scope of construction activities in distressed and underserved areas. In addition, charter school loans that have a U.S. Department of Education credit enhancement are now eligible to be pledged to the BG Program. Additional information and material can be found on the <a href="/programs-training/Programs/cdfi-bond/Pages/default.aspx" target="_blank">BG Program webpage</a> under <a href="/programs-training/Programs/cdfi-bond/Pages/compliance-step.aspx#step5" target="_blank">Step 5: Compliance Resource and Reporting</a>. </p><p>The CDFI Fund anticipates announcing the FY 2019 BG Program guarantees later this fall and looks forward to regularly reporting on how CDFIs are deploying this important source of long-term capital for investment and lending in distressed and underserved communities.</p><p><i>Jodie Harris is the CDFI Fund Director</i></p> </div>Jodie Harris2019-09-06T15:00:00ZPrograms and Initiatives71GP0|#e5ca169a-3210-4374-8024-08bc93cb9c65;L0|#0e5ca169a-3210-4374-8024-08bc93cb9c65|CDFI Bond Guarantee Program;GTSet|#52f34ab0-6f81-4fe6-b393-2715c7089532
Want to apply for a CDFI Fund Award? Not yet a Certified CDFI? Don’t Wait to Submit a CDFI Certification Application!https://www.cdfifund.gov/impact/Lists/Posts/ViewPost.aspx?ID=72Want to apply for a CDFI Fund Award? Not yet a Certified CDFI? Don’t Wait to Submit a CDFI Certification Application!<div class="ExternalClassE4FB68F1ED994BD58130DA5D04335F60"><p> <i>90-day Review Timeline for CDFI Certification Applications Can Affect Program Eligibility</i></p><p>Certification as a Community Development Financial Institution (CDFI) is the gateway to accessing community development finance assistance offered by the Community Development Financial Institutions Fund (CDFI Fund). It determines an organization’s eligibility to apply for assistance through the CDFI Program and Native American CDFI Assistance Program (NACA Program), the CDFI Bond Guarantee Program (BG Program), and the Capital Magnet Fund <a href="/impact/Lists/Posts/(CMF)">(CMF)</a>. Certification as a CDFI also conveys eligibility to be a certified Community Development Entity (CDE) under the New Markets Tax Credit Program <a href="/impact/Lists/Posts/(NMTC%20Program)">(NMTC Program)</a>. And, finally, an organization’s status as a certified CDFI can impact the amount of assistance it can be awarded through the Bank Enterprise Award Program (BEA Program).</p><p>Last fall, the CDFI Fund <a href="/news-events/news/Pages/news-detail.aspx?NewsID=326&Category=Updates" target="_blank">migrated</a> the CDFI Certification Application into its Awards Management Information System (AMIS). This transition has allowed the CDFI Fund to streamline and expedite the review of CDFI Certification Applications. However, this is not an instantaneous process. Applicants for CDFI Certification should be aware that reviewing, evaluating, and then providing a determination on applications for certification can take up to 90 days from when a <b>completed</b> application is received by the CDFI Fund.</p><p>Certification applications are currently accepted on a rolling basis. However, for organizations contemplating becoming a certified CDFI in order to apply for a CDFI Fund program award, it’s very important to keep the 90-day timeline in mind. Several of the CDFI Fund programs identified above require organizations to be certified as a CDFI at the time an application round <a href="#opens">opens</a>.</p><p>Missing the certification deadlines specified in a CDFI Fund program Notice of Funds Availability (NOFA), Notice of Guarantee Availability (NOGA), or Notice of Allocation Authority (NOAA) will nullify an organization’s ability to apply for assistance. In order to prevent this from happening, the CDFI Fund urges those organizations thinking about applying for certification to do so with the applicable program’s funding application timeline in mind.</p><p>Many organizations miss the opportunity to apply for funding assistance because they either don’t apply for CDFI Certification far enough in advance or they submit an incomplete certification application that is subsequently rejected. Organizations interested in applying for certification should take advantage of the following resources developed by the CDFI Fund’s Office of Certification Compliance Monitoring and Evaluation (CCME):</p><ul><li><p>Information and guidance material on the CDFI Certification Application process, available on the <a href="/programs-training/certification/cdfi/Pages/default.aspx" target="_blank">CDFI Certification webpage </a>under the ‘How to Apply’ section by clicking on <a href="/programs-training/certification/cdfi/Pages/apply-step.aspx#step1" target="_blank">Step 1: Apply</a>.</p></li><li><p>Monthly CDFI Certification Conference Calls that provide a forum for potential CDFI Certification Applicants, certified CDFIs, and other CDFI certification stakeholders to ask questions and discuss the certification process. Information on accessing these monthly conference calls can be found on the <a href="/programs-training/certification/cdfi/Pages/default.aspx" target="_blank">CDFI Certification webpage</a>.</p></li><li><p>The CCME Help Desk, which answers questions related to CDFI or CDE Certification, as well as CDFI Fund assistance award compliance requirements. Contact the Help Desk via phone at (202) 653-0421 or email at <a href="mailto:ccme@cdfi.treas.gov" target="_blank">ccme@cdfi.treas.gov</a>. AMIS users can also submit service requests through their AMIS account.</p></li></ul><p> <i>Tanya McInnis is the Certification, Compliance Monitoring and Evaluation Manager</i></p><hr /> <footer> <ol><li id="(CMF)"><i>Non-profit organizations with a principal purpose of developing or managing affordable housing are also eligible to apply for a CMF award.</i></li><li id="(NMTC Program)"><i>See <a href="/programs-training/certification/cde/Pages/apply-step.aspx#step1" target="_blank">CDE Certification Step 1: Application Process</a></i></li><li id="opens"> <i>The BG Program, Capital Magnet Fund, CDFI Program, and NACA Program require an organization to be certified as a CDFI at the time of publication of the Notice of Guarantee Availability (NOGA) or Notice of Funds Availability (NOFA). However, certification as a CDFI is not required to apply for a Technical Assistance (TA) award through the CDFI Program or NACA Program.</i></li><p> </p></ol> </footer> </div>Tanya McInnis2019-09-10T13:00:00ZPrograms and Initiatives72GP0|#c8a5d5bc-32cc-47a9-88a8-702f1f974786;L0|#0c8a5d5bc-32cc-47a9-88a8-702f1f974786|CDFI Certification;GTSet|#52f34ab0-6f81-4fe6-b393-2715c7089532
New Markets Tax Credits Assist Victims of Domestic Violencehttps://www.cdfifund.gov/impact/Lists/Posts/ViewPost.aspx?ID=73New Markets Tax Credits Assist Victims of Domestic Violence<div class="ExternalClass3FFA2762FC764552B1FD5E971827A8F8"><p>Tarrant County, located in north central Texas, is an urban county with a population of approximately 1.8 million people. Fort Worth serves as the county seat. According to the 2017 Annual Report of the Tarrant County Criminal District Attorney, one in three women in the county will experience intimate partner violence (IPV) at some point in her lifetime--almost 10 percent higher than the national average in 2016.<br></p><p><a href="/Documents/NMTC%20Assists%20Victims%20of%20Domestic%20Violence%209-19-19.pdf" target="_blank">To read the full story, click here.</a><br></p><br></div>2019-09-24T16:00:00ZLocal Impact73GP0|#368ed6d6-d6bb-4a27-ad10-a1a0a87661d8;L0|#0368ed6d6-d6bb-4a27-ad10-a1a0a87661d8|New Markets Tax Credit;GTSet|#52f34ab0-6f81-4fe6-b393-2715c7089532;GP0|#e8a79c04-18c5-4610-9e9f-7671200e553c;L0|#0e8a79c04-18c5-4610-9e9f-7671200e553c|Texas