Fixed-rate, long-term, and low-cost capital for CDFIs

The U.S. Treasury’s CDFI Bond Guarantee Program gives eligible CDFIs access to fixed-rate, long-term and low-cost capital. CRF helps community lenders access the program so they can invest in a range of qualified community revitalization projects. The program has been recognized as one of the most unique financing tools available to support the growth of community development.

Unlike other CDFI Fund programs that offer direct loans, grants, or allocations, the BGP is an innovative federal credit program, designed to function at no cost to taxpayers, that offers credit worthy CDFIs access to long-term, enterprise capital with fixed rates through the sale of federally guaranteed bonds purchased by the Federal Financing Bank. These CDFIs, in turn, can draw down long-term, fixed-rate debt under BGP to support long-term, fixed-rate Secondary Loans to businesses and developers in distressed communities.

The Community Development Financial Institutions (CDFI) Bond Guarantee Program was enacted through the Small Business Jobs Act of 2010 and will inject new and substantial capital into our nation’s most distressed communities. Through the Bond Guarantee Program, eligible CDFIs have access to fixed rate, long-term and low-cost capital. Loans can be used to finance eligible community and economic development purposes, such as small businesses, charter schools, health care facilities, affordable housing and much more. 

Total CRF issuance are greater than $1 billion since 2014. CRF is authorized to submit Guarantee Applications, on behalf of eligible CDFIs, to issue bonds that are worth a minimum of $100 million in aggregate and 100 percent guaranteed by the Department of Treasury. The bonds are purchased by the Federal Financing Bank (FFB).

office building at sunset

Eligible CDFIs must meet the following criteria:

Maintain a Certified CDFI designation in good standing with the U.S. Department of Treasury.

Critical access thresholds to program: Minimum 3–5-year historical track record of lending in defined Asset Classes, strong tangible net worth and profitability. BGP also considers delinquency ratio trends, leverage and robustness of lending policies and procedures.

Requisite management and tangible evidence of LIC support through its priorities, partnerships, and loan products and services.

The United States Department of Treasury CDFI Fund Bond Guarantee Program make all final credit decisions to extend dollars to an Eligible CDFI.

Learn more about the Bond Guarantee Program through the CDFI Fund

Ready to Chat?

Connect with an innovative, financial institution to deliver on your needs. We’re here for you.