What is the CDFI bond Guarantee Program?
Through the CDFI Bond Guarantee Program, qualified entities (CDFIs or their designees) will issue bonds that are guaranteed by the Federal government and use the bond proceeds to extend credit to the broader CDFI industry for community development purposes or to refinance certain existing obligations.
How does the CDFI Fund work?
By building the capacity of a nationwide network of CDFIs, the CDFI Fund works to empower low-income and underserved people and communities to enter the financial mainstream. Certified CDFIs are eligible to apply for awards through a variety of programs offered by the CDFI Fund.
How big is the CDFI Fund?
$3.9 billion invested in America’s disadvantaged communities since 1994. Since its inception in 1994, the CDFI Fund awarded $61 billion in tax credit allocation authority through the New Markets Tax Credit Program, and guaranteed more than $1.7 billion in bonds through the CDFI Bond Guarantee Program. $173 billion.
What is a bond program?
Bond loans comprise one such program. A state or local government may decide to sell mortgage revenue bonds to raise money for programs that subsidize the cost of buying a home. Because they’re partially backed by mortgages, bond loans are also known as mortgage revenue bond loans.
Is CDFI a loan or grant?
While the CDFI Fund does not make loans directly to individuals—nor does it directly finance specific projects—the CDFI Fund does provide financing to CDFIs throughout the country that, in turn, provide financing to individuals like yourself.
Are all CDFIs nonprofits?
CDFIs are more diverse that you think The default image of a CDFI is a nonprofit, unregulated loan fund. In fact, half of the 1,100 certified CDFIs are not nonprofit, unregulated loan funds. Almost 30% are credit unions and about 20% are for-profit banks, bank holding companies, or venture capital funds.
How do I become a CDFI bank?
An organization must meet seven criteria to be certified as a CDFI:
- Be a legal entity,
- Be a financing entity,
- Primarily serve one or more target markets,
- Have a primary mission of promoting community development,
- Provide development services in conjunction with its financing activities,
Who is the largest CDFI?
Founded in 1984, Boston Community Capital (BCC) is one of the most innovative and successful community development financial institutions in the nation. To date, it has lent more than $1 billion and leveraged $6 billion in additional investment.
How many CDFIs are there in the UK?
50 CDFIs
There are currently around 50 CDFIs operating across the UK.
What is a CDFI bond guarantee?
The bonds provide CDFIs with access to substantial capital that is then used to reignite the economies of some of our nation’s most distressed communities. Unlike other CDFI Fund programs, the CDFI Bond Guarantee Program does not offer grants, but is instead a federal credit subsidy program, designed to function at no cost to taxpayers.
What is the CDFI Fund?
The vision of the Community Development Financial Institutions Fund (the CDFI Fund) is to economically empower America’s underserved and distressed communities.
What is the community development financial institutions fund?
The Community Development Financial Institutions Fund (CDFI Fund) plays an important role in generating economic growth and opportunity in some of our nation’s most distressed communities.
What is a CDFI qualified issuer?
The Qualified Issuer sells the government-backed bonds to the Federal Financing Bank (FFB)—a government corporation that ensures the efficient use of federal financing—and bond proceeds are used to extend credit to CDFIs for community development purposes. The Qualified Issuer thus acts as a “go between” financier to the broader CDFI community.