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Treasury Announces $325 Million in Community Development Bonds for Financing in Low-Income Areas Nationwidehttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=92Treasury Announces $325 Million in Community Development Bonds for Financing in Low-Income Areas Nationwide<p> <em>Inaugural Round of CDFI Bond Guarantee Program Opens Doors to Long-Term Capital for Community Development Investments at No Cost to Taxpayers </em> </p><p> <strong>Washington, DC</strong>– The U.S. Department of the Treasury announced today that it has approved term sheets for $325 million in bonds with maturities up to 29.5 years that, when issued, will be guaranteed by Treasury for community and economic development financing through the fiscal year (FY) 2013 round of the CDFI Bond Guarantee Program. As the administrator of the CDFI Bond Guarantee Program, the Community Development Financial Institutions Fund (CDFI Fund) will commence final bond closings and issuance of guarantees during the next FY quarter. The CDFI Fund selected three Qualified Issuers to issue the bonds and, upon the final closing of the guarantees, to make bond loans to Eligible Community Development Financial Institutions (Eligible CDFIs) for investments in low-income and distressed communities across the country. The FY 2013 round is the inaugural round of the CDFI Bond Guarantee Program. </p><p> “The CDFI Bond Guarantee Program is now set to supply a significant new source of capital for small businesses, housing, charter schools, health centers and other economic development activities in some of the most distressed parts of America,” said Don Graves, Treasury’s Deputy Assistant Secretary for Small Business, Community Development and Housing Policy. “These bonds will allow CDFIs to scale their positive impact and bring opportunity to more communities.” </p><p> The four Eligible CDFIs that will receive financing through the inaugural round of the CDFI Bond Guarantee Program are Clearinghouse CDFI, Enterprise Community Loan Fund, Inc., The Community Development Trust, LP and Local Initiatives Support Corporation. Each of the four Eligible CDFIs has a proven track record and a national footprint in community development financing. Collectively, these organizations have a solid history of delivering innovative financial products that stimulate job growth among low-income people and are effective at catalyzing new capital to increase the accessibility of small business loans, quality affordable housing, and community facilities. </p><p> The three organizations chosen to issue the bonds as the Qualified Issuers are The Community Reinvestment Fund, Opportunity Finance Network, and TriSail Funding Corporation. </p><p> Unlike other CDFI Fund programs, the CDFI Bond Guarantee Program does not offer monetary awards or tax credit allocations; instead, it is a federal credit program, and bond proceeds are debt instruments that must be repaid. The program was designed to function at no cost to taxpayers. Authorized uses of the bond loans include a variety of Eligible Purposes, such as supporting commercial facilities that promote revitalization and community stability; community facilities; the provision of basic financial services; senior living and healthcare facilities for uninsured or underinsured people; businesses that provide jobs for low-income people or are owned by low-income people; and other community or economic development activity in low-income or underserved urban and rural areas. </p><p> “I am immensely proud to be able to announce these initial results of the first round of the CDFI Bond Guarantee Program, a program that will for the first time provide significant access to long-term financing to CDFIs,” said CDFI Fund Director Donna J. Gambrell. “Through its many programs, the CDFI Fund provides support to CDFIs at all stages of their growth and development and, by bringing this exciting new program to the industry, we are able to dramatically increase the scale of vital investments in low-income and distressed communities across the nation.” </p><p> <strong>2013 CDFI Bond Guarantee Program Qualified Issuers</strong> </p><p> The Community Reinvestment Fund, Inc. (CRF) is a certified CDFI based in Minneapolis, Minnesota. Founded in 1988, CRF has been responsible for issuing over 50 structured financial instruments and delivering $1.5 billion in loans nationwide. CRF will serve as the Qualified Issuer for The Community Development Trust, LP, the Eligible CDFI. The Community Development Trust, LP is a certified CDFI that provides financing for the preservation of multi-family affordable housing properties throughout the country. </p><p> TriSail Funding Corporation is a wholly owned subsidiary of Bank of America, N.A., which is based in Charlotte, North Carolina. Bank of America has served as a strong partner with the community development industry, providing capital to various types of CDFIs, community development venture capital funds, CDFI banks, CDFI credit unions, and CDFI intermediaries. TriSail Funding Corporation will serve as the Qualified Issuer for two Eligible CDFIs: Enterprise Community Loan Fund, Inc. and Local Initiatives Support Corporation. Enterprise Community Loan Fund is a certified CDFI established in 1983 that provides affordable housing, small business, and gap financing to low-income communities. Local Initiatives Support Corporation is a certified CDFI established in 1979 that promotes comprehensive and sustainable revitalization of economically distressed communities across the country. </p><p> Opportunity Finance Network, a certified CDFI based in Philadelphia, PA, is a 27-year old membership organization that supports the growth of the CDFI industry. Through 2011, its membership network of CDFIs had originated more than $30 billion in financing to urban, rural, and Native communities. OFN will serve as the Qualified Issuer for Clearinghouse CDFI, as Eligible CDFI. Clearinghouse CDFI is a certified CDFI established in 1996 that offers loan products to non-profits, small businesses, and community service organizations for low-income individuals and communities throughout California and Nevada. </p><p> <strong>About the CDFI Fund</strong> </p><p class="body"> Since its creation in 1994, the CDFI Fund has awarded over $1.8 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the Bank Enterprise Award Program, the Capital Magnet Fund, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $36.5 billion in tax credit authority to Community Development Entities through the New Markets Tax Credit Program. Learn more about the CDFI Fund and its programs at <a href="http://cdfifund.gov/">www.cdfifund.gov</a>. </p><p> <strong>About the CDFI Bond Guarantee Program</strong> </p><p> The CDFI Bond Guarantee Program was enacted through the Small Business Jobs Act of 2010. The program provides Eligible CDFIs with access to long-term capital by providing guarantees of bonds. With long-term credit at below-market interest rates, the CDFI Bond Guarantee Program is a groundbreaking effort to accelerate community economic growth and development. Bonds will be 100 percent guaranteed by the U.S. Treasury, including principal, interest, and call premiums. The Federal Financing Bank will be the sole purchaser of bonds issued under the CDFI Bond Guarantee Program. For more information please visit <a href="http://cdfifund.gov/bond"><span class="ms-rteBackColor-4">www.cdfifund.gov/bond</span></a><span class="ms-rteBackColor-4">. </span></p>2013-09-30T04:00:00ZPress Releases92
Treasury Awards Over $172 Million To Organizations Serving Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=91Treasury Awards Over $172 Million To Organizations Serving Low-Income Communities<p> <em> 2013 CDFI Program Awards Will Support Community Development Financial Institutions Nationwide </em> </p> <p> <strong>Washington, DC</strong> – The U.S. Department of Treasury’s Community Development Financial Institutions Fund (CDFI Fund) awarded 191 organizations Financial Assistance and Technical Assistance awards totaling over $172 million today. This amount also includes 10 awards totaling more than $22 million through the Healthy Food Financing Initiative. </p><p> The awards, part of the fiscal year (FY) 2013 Community Development Financial Institutions Program (CDFI Program) round, will enable Community Development Financial Institutions (CDFIs) across the country to increase their lending and investments in low-income and economically distressed communities. </p><p> “By providing affordable credit and capital, CDFIs play a unique role in creating jobs, generating economic growth and revitalizing neighborhoods in America’s low-income and economically-distressed communities,” said Treasury Deputy Assistant Secretary Don Graves. “Building on nearly two decades of Treasury support for CDFIs, the awards announced today will allow these financial institutions to better meet the investment and lending needs of the communities they serve.” </p><p> The FY 2013 CDFI Program awardees represent a diverse group of credit unions, depository institutions, loan funds, and venture capital funds that collectively received $150,289,499 in Financial Assistance and Technical Assistance awards. The 148 Financial Assistance awardees will increase lending and diversify their product offerings in their target markets, and the 43 Technical Assistance awardees will increase their internal capacity to become a CDFI and better serve their communities. </p><p> “The fiscal year 2013 round of the CDFI Program provides more awards than any other round in the CDFI Fund’s history,” said CDFI Fund Director Donna J. Gambrell. “By expanding the reach and impact of this program to more organizations, the CDFI Fund is supporting more economic development efforts than ever before to bring new life to struggling communities.” </p><p> In addition to the Financial Assistance and Technical Assistance awards, for the past several years the CDFI Program has administered the Healthy Food Financing Initiative. The awardees under this initiative will expand their lending to healthy food investments to combat food deserts. Eligible uses cover a range of interventions such as grocery stores, mobile food retailers, farmers markets, cooperatives, corner stores, and bodegas. Ten CDFIs received $22.3 million in funding under the initiative in FY 2013. </p><p> Additional information about the FY 2013 round of the CDFI Program, including the full award list and key highlights, can be found below and on the CDFI Fund’s website at <a href="http://cdfifund.gov/cdfi">www.cdfifund.gov/cdfi</a>. </p><p> <strong>2013 CDFI Program Award Resources</strong><br> Award Book: <a href="/Documents/CDFIAWARDS_book_92313.pdf" target="_blank">Learn key facts and statistics about the full group of awardees</a><br> Award List: <a href="/Documents/CDFIAWARDS_LIST_2013.pdf" target="_blank">Alphabetical by Organization</a> <br> Award List: <a href="/Documents/2013%20CDFI%20HFFI%20List%20Alph%20by%20State%20and%20City.pdf" target="_blank">Alphabetical by State</a> <br> Searchable Award Database:<a href="http://cdfifund.gov/awards"> View the profiles of individual awardees </a> </p><p> <strong>About the CDFI Fund</strong><br> Since its creation in 1994, the CDFI Fund has awarded over $1.8 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the Bank Enterprise Awards Program, the Capital Magnet Fund, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $36.5 billion in tax credit authority to Community Development Entities through the New Markets Tax Credit Program. Learn more about the CDFI Fund and its programs at <a href="http://cdfifund.gov/">www.cdfifund.gov</a>. </p><p> <strong>About the CDFI Program</strong><br> Through the CDFI Program’s Financial Assistance and Technical Assistance awards, the CDFI Fund invests in and builds the capacity of for-profit and non-profit community based lending organizations known as Community Development Financial Institutions, or CDFIs. These organizations, certified as CDFIs by the U.S. Treasury Department, serve rural and urban low-income people and communities across the nation that lack adequate access to affordable financial products and services. Awards are granted through an annual competitive application process. Learn more about the CDFI Program at <a href="/programs-training/certification/cdfi">www.cdfifund.gov/cdfi</a>. </p>2013-09-24T04:00:00ZPress Releases91
Treasury Announces $12.4 Million in Assistance to Native Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=90Treasury Announces $12.4 Million in Assistance to Native Communities<p> <strong>Washington, DC</strong> – Native American, Alaska Native, and Native Hawaiian communities (Native Communities) throughout the United States will receive much-needed economic and community development assistance as a result of the $12.4 million in Native American CDFI Assistance Program (NACA Program) awards announced today. </p><p> Thirty-five organizations serving Native Communities received awards from the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) under the fiscal year (FY) 2013 round of the NACA Program. The awardees all aim to increase lending and financial services in Native Communities, stimulating economic development in some of the most distressed and low-income parts of the country. </p><p> “The Native American CDFI Assistance Program is providing critically needed funds for distressed Native and tribal areas, many of which lack traditional banking services,” said Don Graves, Treasury Deputy Assistant Secretary for Small Business, Community Development and Housing Policy. “This latest round of awards will expand the capacity of native financial institutions to develop innovative economic development solutions for the businesses and individuals in their communities.” </p><p> The awardees, all certified Native Community Development Financial Institutions (Native CDFIs) or organizations looking to become or create Native CDFIs, will receive a collective total of $12,451,015 in Financial Assistance and Technical Assistance awards. Eighteen Native CDFIs will receive Financial Assistance awards, which are primarily used for financing capital. Seventeen organizations will receive Technical Assistance grants, which are usually used to acquire products or services, staff training, professional services, or other support. </p><p> “The FY 2013 NACA Program awards will lead to increased loans for small businesses, affordable housing, and community facilities in Native Communities, in addition to basic financial services that are essential to building household wealth and stability,” said CDFI Fund Director Donna J. Gambrell. “As the award-making arm of the CDFI Fund’s Native Initiatives, the NACA Program has consistently supported the unique organizations that are doing such vital work in these communities.” </p><p> The majority of the target markets served by the awardees are rural, although seven organizations primarily serve minor urban areas. The organizations are headquartered in fifteen different states across the country. Full information about the FY 2013 NACA Program awardees can be found in the CDFI Fund’s Searchable Award Database at <a href="http://cdfifund.gov/awards">www.cdfifund.go/awards</a>. </p><p> The FY 2013 NACA Program Awards announcement comes at a time when the CDFI Fund’s Native Initiatives is in the middle of studying the current availability of access to capital and credit in Native Communities. The “Access to Capital and Credit in Native Communities” study will draw on focus groups, tribal consultations, and independent research to establish the current reality of capital and credit availability in Native areas. The results of the study will be used to inform the CDFI Fund’s future approach to the training, technical assistance, and awards that it provides through the Native Initiatives. </p><p> Learn more about the “Access to Capital and Credit in Native Communities” study at <a href="http://cdfifund.gov/nativestudy"><span class="ms-rteBackColor-4">www.cdfifund.gov/nativestudy</span></a><span class="ms-rteBackColor-4">.</span> Additional information about the FY 2013 round of the NACA Program, including key highlights and the full award list, can be found below and a<span class="ms-rteBackColor-4">t </span><a href="http://cdfifund.gov/native"><span class="ms-rteBackColor-4">www.cdfifund.gov/native</span></a><span class="ms-rteBackColor-4">.</span> </p><p> <strong>2013 NACA Program Award Resources </strong> </p><p> Award Book: <a href="/Documents/2013%20NACA%20Award%20Book.pdf" target="_blank">Learn key facts and statistics about the full group of awardees</a><br> Award List: <a href="/Documents/2013%20NACA%20List%20Alpha%20by%20Org.pdf" target="_blank">Alphabetical by Organization</a> <br> Award List: <a href="/Documents/2013%20NACA%20List%20Alpha%20by%20State%20091713.pdf" target="_blank">Alphabetical by State</a> <br> Searchable Award Database:<a href="http://cdfifund.gov/awards"><span class="ms-rteBackColor-4"> View the profiles of individual awardees </span></a> </p><p> <strong>About the CDFI Fund</strong> </p><p> Since its creation in 1994, the CDFI Fund has awarded over $1.7 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the Bank Enterprise Awards Program, the Capital Magnet Fund, the Financial Education and Counseling Pilot Program, and the Native American CDFI Assistance Program. In addition, the CDFI Fund has allocated $36.5 billion in tax credit authority to Community Development Entities through the New Markets Tax Credit Program. Learn more about the CDFI Fund and its programs at <a href="http://cdfifund.gov/">www.cdfifund.gov</a>. </p><p> <strong>About the Native Initiatives</strong> </p> <p> The CDFI Fund's Native Initiatives work to increase access to credit, capital, and financial services in communities by creating and expanding CDFIs primarily serving Native Communities. This is achieved through two principle initiatives: 1) a funding program – the NACA Program – targeted to increasing the number and capacity of existing or new Native CDFIs, and 2) a complementary series of training programs that seek to foster the development of new Native CDFIs, strengthen the operational capacity of existing Native CDFIs, and guide Native CDFIs in the creation of important financial education and asset building programs for their communities. Learn more about the Native Initiatives at <a href="http://cdfifund.gov/native"><span class="ms-rteBackColor-4">www.cdfifund.gov/native</span></a><span class="ms-rteBackColor-4">. </span></p>2013-09-19T04:00:00ZPress Releases90

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