Today, the U.S. Department of Treasury's Community Development Financial Institutions Fund (CDFI Fund) announced the participants of the fiscal year (FY) 2016 CDFI Bond Guarantee Program (BGP). Two bonds totaling $265 million were issued to four community development financial institutions (CDFIs) this year. We would like to congratulate the participants, all who are OFN Members.
Community Reinvestment Fund, USA issued a $165 million bond on behalf of three OFN Members:
- Capital Impact Partners
- Low Income Investment Fund (LIIF)
- Reinvestment Fund
Bank of America issued a $100 million bond on behalf of one OFN Member:
- Self-Help Ventures Fund
The BGP-financed projects are often long-term in nature, and well suited for long term affordable debt capital. Some of these projects can include commercial real estate development, charter schools, housing units, daycare or health care centers, and municipal infrastructure. Additionally, CDFIs who receive BGP financing can loan to other community development borrowers or refinance existing loans, allowing existing capital to be used for additional community impact.
Designed as a zero cost federal program—operating at no cost to taxpayers—the BGP enables participating CDFIs to expand and deepen their work towards economic growth and opportunity.
Click here to view the CDFI Fund press release.