The CDFI Bond Guarantee Program Improvement Act was passed with overwhelming bipartisan support, will now go to Senate for consideration

Press Release

Last night, the House of Representatives passed U.S. Representative Emanuel Cleaver, II's (D-MO) CDFI Bond Guarantee Program Improvement Act under suspension of the rules, which requires a two-thirds majority, rather than a simple majority, of the whole House to pass legislation. Rep. Cleaver's bipartisan CDFI Bond Guarantee Program Improvement Act would stimulate greater economic development in underserved communities across the country by reauthorizing the CDFI Bond Guarantee Program for four years and implementing reforms that ensure smaller Community Development Financial Institutions (CDFIs) can access the program, giving additional financing and capital for more community development projects in the most economically distressed areas of the country.

"In the 21st century economy, access to capital and financial services is critical to the economic development and overall health of communities across the country. Unfortunately, the lack of access to affordable financing has led to unacceptable disparities in the economic well-being of rural, minority, and other underserved communities that are critical to the growth of our nation's economy," said Congressman Cleaver. "I'm thankful that my colleagues in the House of Representatives once again passed my CDFI Bond Guarantee Program Improvement Act--this time with a two-thirds majority--to extend the CDFI Bond Guarantee Program and ensure it can continue to positively benefit underserved communities throughout Missouri and around the nation."

The CDFI Bond Guarantee Program was created in 2010 to provide long-term capital to CDFIs across the country at no expense to American taxpayers. While the program's authorization lapsed in 2014, it has been extended on a year-by-year basis through annual appropriations legislation. As required by law, CDFIs borrowers must have a loan size of at least $100 million to participate in the program--which allows for only relatively large and often complex multi-party applications.

The CDFI Bond Guarantee Program Improvement Act would reauthorize the CDFI Bond Guarantee Program for another four years and lower the minimum loan threshold to $25 million, giving more and smaller CDFIs greater opportunity to access the benefits of the program, which will then help to stimulate additional community development in rural, urban, and Tribal communities around the country.

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