The U.S. Department of the Treasury's Community Development Financial Institutions Fund (CDFI Fund) has announced a significant milestone in its Bond Guarantee Program, with three guarantees amounting to $498 million. This marks the largest issuance in the program's history, which aims to provide long-term, fixed-rate capital for projects in low-income communities across urban, rural, and Native areas.
Since its inception in 2010, nearly $3 billion has been guaranteed through this initiative. "Community Development Financial Institutions play an essential role to help businesses and organizations get off the ground and expand all over the country," stated U.S. Secretary of the Treasury Janet L. Yellen. She emphasized that this historic announcement would enhance access to capital for projects that expand housing supply, grow small businesses, and ensure access to healthcare and childcare.
Under the fiscal year 2024 program round, Opportunity Finance Network will issue $173 million in bonds on behalf of seven Eligible CDFIs for various purposes including housing and commercial real estate development. The Renaissance Community Loan Fund will receive a $20 million bond loan focused on owner-occupied homes in Mississippi and Alabama. Greater Minnesota Housing Fund is set to receive $25 million for rental housing projects within Minnesota.
Additionally, several other organizations are poised to benefit from this program: Community Loan Fund New Jersey with a $33 million bond loan; Florida Community Loan Fund with a $30 million allocation; Homewise receiving $15 million; Community First Fund with $20 million; Nonprofit Finance Fund securing $30 million; and Community Reinvestment Fund issuing a total of $325 million on behalf of other entities like The Reinvestment Fund ($100 million) and IFF ($75 million).
The CDFI Bond Guarantee Program was established by the Small Business Jobs Act of 2010 to address market needs for low-cost, long-term capital aimed at economic growth and community revitalization. As of July 31, 2024, more than $1.7 billion in bond proceeds had been disbursed across 32 states and the District of Columbia.
