The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced today that it has selected Stonehenge Community Development, LLC (Stonehenge) as a Qualified Issuer for the CDFI Bond Guarantee Program. If the Department of the Treasury approves a Guarantee Application submitted by Stonehenge, Stonehenge would be approved to issue bonds, guaranteed by the Secretary of the Treasury, and make bond loans to Eligible Community Development Financial Institutions (Eligible CDFIs) for investments in low-income and distressed communities across the country. Stonehenge joins four other Qualified Issuers that have been approved by the CDFI Fund: Wisconsin Housing and Economic Development Authority, Community Reinvestment Fund, Opportunity Finance Network, and Bank of America CDFI Funding Corporation, a wholly owned subsidiary of Bank of America, N.A.
The U.S. Congress authorized the Secretary of the Treasury to guarantee up to $750 million in bonds through the CDFI Bond Guarantee Program in fiscal year (FY) 2014. The CDFI Fund, the administrator of the CDFI Bond Guarantee Program, published the program's FY 2014 Notice of Guarantee Availability in the Federal Register on May 13, 2014. Qualified Issuer Applications are due on June 23, 2014, and Guarantee Applications are due on June 30, 2014. More information about the CDFI Bond Guarantee Program, and the FY 2014 application, may be found on the CDFI Fund's website at www.cdfifund.gov/bond.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded over $1.9 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 $40 billion in tax credit authority to Community Development Entities through the New Markets Tax Credit Program, and has approved the term sheets and the execution of agreements to guarantee $325 million in bonds through the CDFI Bond Guarantee Program. Learn more about the CDFI Fund and its programs at www.cdfifund.gov.
About the CDFI Bond Guarantee Program
The CDFI Bond Guarantee Program was authorized through the Small Business Jobs Act of 2010. The program provides Eligible CDFIs with access to long-term capital by providing guarantees of bonds issued by Qualified Issuers. With long-term credit currently at below-market interest rates, the CDFI Bond Guarantee Program is a groundbreaking effort to accelerate community economic growth and development. Bonds, including principal, interest and call premiums, will be 100 percent guaranteed by the Secretary of the Treasury. The Federal Financing Bank will be the sole purchaser of bonds issued under the CDFI Bond Guarantee Program. For more information, please visit www.cdfifund.gov/bond.
About Stonehenge Community Development
Stonehenge's primary mission is to invest capital in low- income communities. To execute its investment strategy, Stonehenge actively participates in federal and state economic and development programs, and works closely with community leaders and organizations to deploy capital in projects that maximize community revitalization and economic impact. Stonehenge predominately invests in businesses and community service non-profits throughout the United States that are located in highly distressed census tracts and have a significant positive impact to local minority communities. Stonehenge has made investments in enterprises in a broad array of job-creating industries located in economically distressed areas, including manufacturing, health care, and education. As a Qualified Issuer, Stonehenge seeks to expand its community development investment platform by working with established CDFIs to support the deployment of capital into businesses and non-profits in underserved communities.
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