Washington, DC-the U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced today that two bonds, totaling $265 million, were issued on behalf of four CDFIs in fiscal year (FY) 2016. A total of $1.11 billion has been guaranteed since the inception of the CDFI Bond Guarantee Program, which provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities.
"Reaching the $1 billion mark in program commitments demonstrates how valuable the CDFI Bond Guarantee Program has become to communities in need of access to long-term capital," said CDFI Fund Director Annie Donovan. "CDFIs are proving to be adept at utilizing this important financing tool."
The FY 2016 program participants include:
Community Reinvestment Fund, USA issued a $165 million bond on behalf of three Eligible CDFIs:
Capital Impact Partners, headquartered in Arlington, VA, received a $40 million bond loan to finance licensed senior living and long-term care facilities, commercial real estate, rental housing, healthcare facilities, and charter schools.
Low Income Investment Fund, headquartered in San Francisco, CA, received a $50 million bond loan to finance daycare centers, licensed senior living and long term care facilities, commercial real estate, rental housing, healthcare facilities, and charter schools.
The Reinvestment Fund, headquartered in Philadelphia, PA, received a $75 million bond loan to finance small businesses, daycare centers, commercial real estate, rental housing, and healthcare facilities.
Bank of America issued a $100 million bond on behalf of Self-Help Ventures Fund. Self-Help Ventures Fund is headquartered in Durham, NC, and will use the bond loan to finance commercial real estate and charter schools.
Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program responds to a critical market need-low-cost capital to spur economic growth and jump start community revitalization. Under the program, Qualified Issuers (CDFIs or their designees) apply to the CDFI Fund for authorization to issue bonds worth a minimum of $100 million in total. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to reignite the economies of distressed communities.
The program enables CDFIs to execute large-scale projects, including the development of commercial real estate, housing units, charter schools, daycare or healthcare centers, and rural infrastructure projects.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $2.2 billion to CDFIs, community development organizations, and financial institutions through the CDFI Program, the NACA Program, the Bank Enterprise Award Program, the Capital Magnet Fund, and the Financial Education and Counseling Pilot Program. In addition, the CDFI Fund has allocated $43.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, and $1.1 billion has been guaranteed in bonds through the CDFI Bond Guarantee Program.
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