Last week the CDFI Fund released the long-awaited Notice of Guarantee Availability (NOGA) and application documents for the inaugural round of the CDFI Bond Guarantee Program. Applications for the program will be accepted through 11:59 PM EDT on Wednesday, July 17, 2013.
The CDFI Bond Guarantee Program was first enacted through the Small Business Jobs Act of 2010; the program is currently authorized through fiscal year (FY) 2014. In February of 2013, the CDFI Fund published the CDFI Bond Guarantee Program’s Interim Rule in the Federal Register. The CDFI Fund received more than 30 individual comment letters from the CDFI industry during the 60-day comment period that concluded April 5, 2013. Comment letters received by the CDFI Fund can be viewed here.
Through the CDFI Fund Bond Guarantee Program, 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 NOGA makes up to $500 million in bond guarantee authority available to eligible CDFIs in FY 2013. The Secretary of the Treasury may guarantee up to five bonds in FY 2013, each at a minimum of $100 million, with a total of up to $500 million in bonds guaranteed. Multiple eligible CDFIs may pool together in a single $100 million minimum bond issuance provided that each eligible CDFI participates at a minimum of $10 million.
If your CDFI is interested in participating in the program, the CDFI Fund will be holding two in-person workshops this week June 18 – 19 and June 20 – 21 in Washington, DC. For those who are unable to attend in-person, the CDFI Fund will be broadcasting the second session on June 20 – 21, 2013 via a webcast and will make presentation materials available on the CDFI Fund’s website. Interested parties can register for the webcast here.
The CDFI Bond Program is an exciting step forward for the entire CDFI community and FUND Consulting is eager to learn more about the program’s implementation during this week’s webcast. We look forward to the program delivering on its promise of providing CDFIs with a new source of long-term and patient capital that will enable them to increase their impact and better serve the low-income and underserved communities in which they work.
Any questions regarding the CDFI Bond Guarantee Program may be directed to the CDFI Fund by e-mail to email@example.com or by phone to (202) 653-0421.