On Wednesday, the Federal Home Loan Bank of Indianapolis announced it has facilitated more than $26 million in loans across Indiana and Michigan to facilitate housing and community development.
The loans were provided through community development financial institutions across both states. FHLBank said it made the transactions possible through a $5.9 million grant allocation to its CDFI Rate Buydown Advance program.
“The CDFI Rate Buydown Advance program facilitated new lending pipelines in underbanked communities,” Jon Griffin, SVP, Chief Business Development Officer of FHLBank Indianapolis said. “FHLBank Indianapolis is proud to offer the solutions our community financial institutions need to fulfill their missions and support community lending.”
Officials with the bank said the CDFIs are mission-driven lenders who have provided credit and financial service to communities traditionally underserved by mainstream financial institutions, including rural, urban and Native American communities. Through the CDFI Rate Buydown Advance program, participating lending institutions can create a new lending pipeline to address the housing and community development needs in those states.
FHLBank Indianapolis launched the CDFI Rate. Buydown Advance program in 2024 with an initial $5 million grant allocation. The rate buydown program allows CDFO members of the bank to borrow directly from FHLBank while encouraging other member financial institutions to lend to no-depository CDFIs, regardless of Bank membership.
“The CDFI Rate Buydown Program opened doors for Northern Initiatives to build meaningful relationships with three new financial institutions,” Elissa Sangalli, CEO, Northern Initiatives, one of the member banks participating in the CDFI Rate Buyback program. “It’s a powerful example of how collaboration in the financial system can amplify impact where it matters most.”