The CDFI Bond Guarantee Program (BGP) offers a transformative opportunity for certified CDFIs to access long-term, low-cost capital at scale. By leveraging the federal guarantee, CDFIs can break through capital market barriers and finance larger, more impactful projects in underserved communities.

How the BGP Enhances Capital Access

The BGP provides 30-year, fully amortizing loans backed by the U.S. Treasury. These guarantees enable CDFIs to borrow at favorable interest rates, with terms rarely available through traditional financing sources.

Here’s how the program expands capital market access:

• Lower Interest Rates – The federal guarantee allows CDFIs to tap bond markets at investment-grade pricing.

• Long-Term Stability – The extended repayment term improves cash flow planning and lowers annual debt service burdens.

• Scalable Capital – CDFIs can secure amounts large enough to fund regional or multi-site development strategies.

Strategic Use of the BGP

Organizations can use the BGP to fund affordable housing, charter schools, health clinics, and commercial facilities. The program’s scale makes it ideal for infrastructure-heavy projects that require large capital commitments with long timelines.

By opening doors to the bond market, the BGP capital market access opportunity gives mission-driven lenders the tools to compete with conventional capital providers—without compromising their community goals.

Building a Capital Future

As the financial landscape grows more complex, the BGP stands out as a reliable, strategic path to growth. For CDFIs ready to scale, the Bond Guarantee Program is a powerful bridge to the broader capital markets.

1. What is the main advantage of the BGP for CDFIs?

The BGP gives CDFIs access to long-term, low-cost debt backed by the U.S. Treasury, allowing them to secure funds on terms similar to investment-grade borrowers.

2. What can BGP proceeds be used for?

CDFIs can use BGP proceeds to finance affordable housing, charter schools, health centers, commercial real estate, or community facilities—projects with large-scale capital needs.

3. Is the BGP only for large organizations?

While the BGP is designed for scale, smaller or mid-sized CDFIs can participate by partnering with eligible Qualified Issuers or as part of a pooled transaction.

4. How does the BGP help with long-term planning?

With 30-year amortizing loans, the BGP reduces annual debt obligations and provides financial predictability for multi-phase or long-duration projects.

5. Where can I find more information about applying?

You can explore detailed resources and support for BGP capital market access to understand eligibility, structuring, and application guidance.