Up to $750 Million in Bond Guarantee Authority Available
The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) today opened the fiscal year (FY) 2015 application period for the CDFI Bond Guarantee Program. Application materials are available on the CDFI Fund’s website in anticipation of the publication of the Notice of Guarantee Authority (NOGA) in the Federal Register later this week. The NOGA makes up to $750 million in bond guarantee authority available to eligible Community Development Financial Institutions (CDFIs) in FY 2015.
Through the CDFI Bond Guarantee Program, selected certified CDFIs or their designees will issue bonds that are guaranteed by the Federal government and use the bond proceeds to extend capital for community development financing and for long-term community investments. Authorized uses of the loans financed through bond proceeds may include a variety of financial activities, such as supporting commercial facilities that promote revitalization, community stability, and job creation/retention; housing that is principally affordable to low-income people; businesses that provide jobs for low-income people or are owned by low-income people; and community or economic development in low-income and underserved rural areas.
For FY 2015, the Secretary of the Treasury may guarantee bond issues having a minimum size of $100 million each, up to an aggregate total of $750 million. Multiple CDFIs may pool together in a single $100 million bond issuance provided that each eligible CDFI participates at a minimum of $10 million.
New this application round, the CDFI Fund will review Guarantee Applications submitted by Qualified Issuers that propose to use alternative financing structures. The FY 2015 NOGA describes how an Affiliate of a Controlling CDFI may apply for CDFI certification for the sole purpose of participating as an Eligible CDFI in the CDFI Bond Guarantee Program. The NOGA describes each CDFI certification criterion and how it applies to the Affiliate/Controlling CDFI proposal.
Please reference the NOGA and application instructions for detailed information regarding the following application deadlines for consideration for FY 2015 bond guarantee authority.
- CDFI Certification Applications must be submitted through myCDFIFund by 11:59 p.m. EDT on May 22, 2015.
- Qualified Issuer Applications must be submitted through myCDFIFund by 11:59 p.m. EDT on June 5, 2015.
- Guarantee Applications must be submitted through myCDFIFund by 11:59 p.m. EDT on June 12, 2015.
- The last day the CDFI Fund will accept questions regarding the FY 2015 application period for the CDFI Bond Guarantee Program is June 10, 2015 at 11:59 p.m. EDT. All questions must be submitted electronically to the program office: firstname.lastname@example.org.
Qualified Issuer Applications and Guarantee Applications received in FY 2014 that were neither withdrawn nor declined in FY 2014 will be considered under FY 2015 authority.
In addition to being available through myCDFIFund, the FY 2015 NOGA and application materials are available via the CDFI Fund’s website, www.cdfifund.gov/bond.
The CDFI Fund will conduct a two-day application workshop for potential applicants regarding the FY 2015 Qualified Issuer and Guarantee Application requirements. Specifically, the workshop will include an in-depth discussion of the financial structure of the program, including:
- Roles of the Qualified Issuer, Program Administrator, and Servicer;
- Certification, capitalization, and structuring requirements of the Alternative Financing Structure;
- Capital Distribution Plan requirements;
- Eligible CDFI and Secondary Loan Requirements;
- Costs of the CDFI Bond Guarantee Program;
- Review processes for the Qualified Issuer and Guarantee Applications;
- Reporting; and
- Compliance-related activities.
Attendees will have the opportunity to ask CDFI Fund staff questions and receive clarification about the topics discussed during each module.
The two-day application workshop will be held on April 30 and May 1, 2015 in Washington, DC, at the CDFI Fund’s office at 1801 L Street NW.
As the workshop is held in a secure federal building, registration is required. There is no registration fee; however, due to limited space, registration will be honored on a first come, first served basis. Up to 100 potential applicants may attend. The CDFI Fund will release information on how to register for the workshop on April 13, 2015.
For interested parties unable to attend the in-person application workshop, the presentation materials will be posted to the CDFI Fund’s website, www.cdfifund.gov/bond.
Inquiries regarding legal documents related to the CDFI Bond Guarantee Program should be directed to the CDFI Fund’s Office of Legal Counsel via email at email@example.com.