The U.S. Department of the Treasury’s Community Development Financial Institutions (CDFI) Fund recently agreed to issue three guarantees worth $498 million under the CDFI Bond Guarantee Program.
This marks the largest issuance in the program’s history.
The program provides long-term, fixed-rate capital for projects in low-income urban, rural, and Native American communities. Funding allows CDFIs to complete large-scale projects.
Projects include charter schools, commercial real estate, daycare or health care centers, the development of housing, and rural infrastructure projects.
“Community Development Financial Institutions play an essential role to help businesses and organizations get off the ground and expand all over the country,” U.S. Secretary of the Treasury Janet L. Yellen said. “Today’s historic announcement will increase their access to capital to help realize projects that expand housing supply, grow small businesses, and ensure access to health care and child care.”
Under the fiscal year 2024 program round, guarantees were issued on behalf of 10 eligible CDFIs.
Seven CDFIs were collectively issued $173 million in bonds and two other CDFIs were issued $175 million in bonds.
Funding will be used for commercial real estate, day care centers, rental or owner-occupied housing, small businesses, and nonprofit organizations.
Since the program began in 2010, nearly $3 billion has been guaranteed.