WASHINGTON (6/13/13)--The Community Development Financial Institutions (CDFI) Fund this week announced a pair of new initiatives: The first-ever round of the CDFI Bond Guarantee Program and a capacity-building training series to support CDFIs that are Minority Depository Institutions (MDIs).
Applications for the CDFI Bond Guarantee Program are now being accepted for the first time. The program, which was finalized this year, will back notes or bonds of up to 30-years duration issued by CDFIs with full guarantees from the U.S. Treasury Department, the fund's parent entity. The bond program will support CDFI lending and investment by providing a source of long-term, patient capital to CDFIs, according to the CDFI Fund.
A total of $500 million will be made available to CDFIs through this program.
The secretary of the Treasury may guarantee up to five bonds this year, and each bond will be for a minimum of $100 million. Multiple eligible CDFIs may pool together in a single $100 million-minimum bond issuance provided that each eligible CDFI participates at a minimum of $10 million, the CDFI Fund said in a release.
CDFIs may use bond funds for:
Community development and financial empowerment will also be addressed by the CDFI Fund's MDI capacity building series. The series will address the "unique challenges facing CDFI MDIs, and will build their capacity to provide community development and financial services to their target markets," through a series of customized training sessions and workshops, the CDFI Fund said.
Scheduled topics in this training and technical assistance program include:
For more, use the link to the CDFI Fund website.