Since Inception, Over $1.5 Billion Guaranteed for Projects in Low-Income Communities
Washington, DC U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced today the issuance of a $150 million guarantee under the Community Development Financial Institutions (CDFI) Bond Guarantee Program. The guarantee was issued to the Community Reinvestment Fund, USA (CRF) on behalf of Clearinghouse Community Development Financial Institution (Clearinghouse) which is headquartered in Lake Forest, California.
To date, over $1.51 billion has been guaranteed since the inception of the program, which provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native communities.
"With six rounds of bond issuances now under our belt, we are seeing the significant impact the CDFI Bond Guarantee Program is having in communities across the country," said CDFI Fund Director Annie Donovan. "From community facilities on Native lands, to housing for people with disabilities, to financing small businesses in both big cities and small towns across America this program is creating real impact in places where it is needed most."
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 guaranteed bonds worth a minimum of $100 million. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to invest in distressed communities.
The program enables CDFIs to execute large-scale projects, including the development of commercial real estate, housing units, charter schools, small businesses, daycare or healthcare centers, and rural infrastructure projects, among other asset classes.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $2.3 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program, the Native American CDFI Assistance Program, and the BEA Program. In addition, the CDFI Fund has allocated $54 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, guaranteed $1.512 billion in bonds through the CDFI Bond Guarantee Program, and awarded more than $291 million through the Capital Magnet Fund.
To learn more about the CDFI Fund and its programs, please view the Fact Sheet or visit the CDFI Fund's website at www.cdfifund.gov
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