May 13, 2014

CDFI Guarantee Bond Program invites CUs

May 14, 2014 – The Community Development Financial Institutions Bond Guarantee Program is accepting applications from qualifying credit unions, with up to $750 million in bond guarantee authority available in financial year 2014.

The deadline for guarantee applications is June 30, and applications must be submitted through the website myCDFIFund. The program is funded by the Treasury Department through the Small Business Jobs Act.

Any credit union with NCUA's low-income designation is eligible for Treasury's CDFI designation. Information on how to become certified in order to apply for the bond guarantee program is available on the program's website.

"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 within the broader CDFI industry for community development financing and for long-term community investments," the program's announcement said. "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."

The bond proceeds may go to various community-oriented projects, such as low-income housing, businesses giving jobs to low-income workers, or commercial facilities promoting community revitalization and stability.