The CDFI Bond Guarantee Program provides CDFIs access to a significant source of capital by providing guarantees of bonds issued by qualified bond issuers, the BGP injects new and substantial capital into our nation's most distressed communities and is a groundbreaking effort to accelerate community economic revitalization.

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Through the BGP Qualified Issuers issue bonds that are 100% guaranteed by the federal government and use the bond proceeds to extend credit to the broader CDFI industry for community development purposes or to refinance certain existing obligation. CTC is working with the Community Reinvestment Fund as its designated Qualified Issuer. The Qualified Issuer applies to the CDFI Fund for authorization to issue bonds worth a minimum of $100 million. The CDFI Fund provides a 100% guarantee on these bonds. The Qualified Issuer then sells the government-backed bonds to the Federal Financing Bank (FFB)—a government corporation that ensures efficient financing of federal obligations. Each bond has a fixed rate and maximum maturity of 30 years. The Qualified Issuer must use the proceeds from the bond sale to extend credit to other CDFIs. As a result, Qualified Issuers serve as a “go-between” financier to the broader CDFI industry. CDFIs have the opportunity to borrow capital from Qualified Issuers for long-term, large-scale community investments. Such projects may include the development of small businesses, commercial real estate, housing units, shelters, charter schools, day care or health care centers, and municipal infrastructure. In addition to these projects, Eligible CDFIs may use the capital to extend credit to other community development borrowers—or Secondary Borrowers—or refinance existing loans at below-market interest rates.