WASHINGTON (4/10/15)--The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) opened the fiscal year 2015 application period for the CDFI Bond Guarantee Program Thursday.
For FY 2015, the secretary of the Treasury may guarantee bond issues ranging from 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.
Through the guarantee program, selected certified CDFIs will issue bonds, backed by the federal government, and use the bond proceeds to extend capital for community development financing and for long-term community investments.
Authorized uses of the loans financed through bond proceeds include support for:
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.
New this application round, the CDFI Fund will review guarantee applications submitted by qualified issuers that propose to use alternative financing structures.
Guarantee applications must be submitted before midnight on June 12.
The CDFI Fund is offering a two-day application workshop for potential applicants regarding the FY 2015 Qualified Issuer and Guarantee Application requirements. It is on April 30 and May in Washington, D.C., at the CDFI Fund's office at 1801 L Street NW.