CDFI Fund Issues Interim Rules for Bond Guaranty Program

The CDFI Fund recently published Interim Rules in the implementation of the CDFI Bond Guarantee Program authorized under the Small Business Jobs Act of 2010. Under the CDFI Fund Bond Guaranty Program, the CDFI Fund may issue federally guaranteed bonds to eligible Community Development Financial Institutions (CDFIs). These CDFIs will use the bond proceeds to make loans for community development in economically underserved areas. The CDFI Fund plans to issue its first bond guarantee this year. Under the Bond Guaranty Program, the CDFI Fund is authorized to issue up to 10 bonds per year, each at a minimum of $100 million, with a total of up to $1 billion in bonds guaranteed per year. The goal of the CDFI Bond Guarantee Program is to provide low cost capitals to CDFIs which will be used to provide financing to economically underserved areas.

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