Bond Guarantee Program
Providing CDFIs access to fixed rate, long-term capital
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.
CRF is one of three active qualified issuers structuring bonds on behalf of the CDFI industry. We are the only qualified issuer to have issued bonds in all six consecutive rounds. Total issuance equals $840 million 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).
Eligible CDFIs must meet the following criteria:
- Must be a Certified Community Development Financial Institution in good standing with the U.S. Department of Treasury Designation
- Creditworthiness of program is driven by unrestricted net asset ratio, profitability, delinquency and overall leverage position
- Funds may be utilized to finance, refinance or acquire assets across 12 classes and must maintain a first lien position in collateral.