WASHINGTON (1/7/16)--Credit unions certified as Community Development Financial Institutions (CDFI) can now apply for the U.S. Treasury’s CDFI Fund 2016 bond guarantee program.
CDFIs have been recognized by the Treasury as specialized institutions that serve low-income communities. Through certification, CDFIs can apply for grants and other awards.
As of Nov. 30, 2015, 265 credit unions were part of the 968 CDFIs nationwide.
The CDFI Bond Guarantee Program issues bonds guaranteed by the federal government. They can be used to extend capital for community development financing and for long-term community investments.
Authorized uses of the loans financed through bond proceeds include: supporting commercial facilities that promote revitalization, community stability and job creation/retention; housing that is principally affordable to low-income people; businesses that provide jobs for low-income people or are owned by low-income people; and community or economic development in low-income and underserved rural areas.
In fiscal year 2016, the secretary of the Treasury may guarantee bond issues having a minimum size of $100 million each, up to an aggregate total of $750 million. Multiple CDFIs may pool together in a single $100 million bond issuance provided that each eligible CDFI participates at a minimum of $10 million.
CDFI certification applications must be submitted by Feb. 12, and bond guarantee program applications must be received by March 18. Application materials are available on the CDFI Fund’s website.