The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) today opened the fiscal year (FY) 2018 application period for the CDFI Bond Guarantee Program. A total of up to $500 million in bond guarantee authority is available to eligible Community Development Financial Institutions (CDFIs) in FY 2018, pending Congressional authorization.
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 proceeds to extend capital for community development financing and 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.
Bond issues have a minimum size of $100 million each, up to an aggregate total of $500 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.
In response to concerns raised by the CDFI industry, the FY 2018 round of the CDFI Bond Guarantee Program is opening earlier this year in order to better space the application periods of the CDFI Fund’s various programs throughout the year. This will also allow more time for the closing process.
Application Materials
In anticipation of the publication of the Notice of Guarantee Availability (NOGA) in the Federal Register tomorrow, application materials are available on the CDFI Fund’s website at www.cdfifund.gov/bond under the How To Apply section by clicking Step 2: Apply. Application materials are also available through the CDFI Fund’s Award Management Information System (AMIS).
Please note that there have been no significant changes to the application materials, aside from changing deadlines, since the FY 2017 round.
Deadlines
Please reference the NOGA and application instructions for detailed information regarding the following application deadlines for consideration for FY 2018 bond guarantee authority.
- CDFI Certification Applications must be submitted through AMIS by 11:59 p.m. EST on November 30, 2017.
- Qualified Issuer Applications must be submitted through AMIS by 11:59 p.m. EST on January 9, 2018.
- Guarantee Applications must be submitted through AMIS by 11:59 p.m. EST on January 23, 2018.
- The last day the CDFI Fund will accept questions regarding the FY 2018 application period for the CDFI Bond Guarantee Program is January 16, 2018, at 11:59 p.m. EST. All questions must be submitted electronically to the program office at bgp@cdfi.treas.gov.
Qualified Issuer Applications and Guarantee Applications received in FY 2017 that were neither withdrawn nor declined in FY 2017 will be considered under the FY 2018 authority.
Learn About Applying to the CDFI Bond Guarantee Program
Also available on the CDFI Fund’s website are prerecorded presentations on the CDFI Bond Guarantee Program. These presentations can be found on the CDFI Bond Guarantee webpage at www.cdfifund.gov/bond under the How To Apply section by clicking Step 2: Apply.
In December 2017, the CDFI Fund will conduct two one-hour conference calls to answer application questions. No presentations will be given during the calls; only questions from potential applicants will be addressed. The CDFI Fund will announce the dates and times of these conference calls in the coming weeks.
Questions
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 legal@cdfi.treas.gov.
For more information about the CDFI Bond Guarantee Program, please visit www.cdfifund.gov/bond, or email the CDFI Fund’s Help Desk at bgp@cdfi.treas.gov.