Capital Plus Financial closes $125 million Treasury bond
The bond is the largest in a record-setting year for the CDFI bond fund
DALLAS – Capital Plus Financial, a community development financial institution, certified B Corp and wholly owned subsidiary of Crossroads Impact Corp, closed a $125 million bond from the United States Treasury Department’s CDFI Bond Guarantee Program – the largest bond allocation issued by the program in 2022.
The bond is one of three guarantees totaling $355 million, the highest amount the fund has approved in any year, that the U.S. Treasury agreed to issue under the fiscal year 2022 round of the program, which injects new and substantial capital into the nation’s most distressed communities.
“We are proud to have earned the largest bond allocation in the country this year and are grateful to the U.S. Treasury for the faith they are placing in our team. This award reinforces the mission-driven work of CPF and will strengthen our ability to assist qualified homebuyers with the opportunity to own affordable homes. In partnership with Crossroads’ ESG lending platform, this also will enhance our work to support minority-owned small businesses and to ensure that underrepresented populations have equal opportunities in the banking system,” said Thiru Vignarajah, CEO of Capital Plus Financial.
After the program’s thorough due diligence, Capital Plus Financial was named a bond recipient of the highly selective and competitive program, which will allow CPF the ability to better serve its borrowers by providing long-term, fixed-rate cost of debt capital. Capital Plus Financial is one of only five CDFIs nationwide selected.
The U.S. Treasury Department issues the bond for which the qualified issuer sells the bonds to the Federal Financing Bank. The bond allows CPF to expand its work and refinance existing debt in the portfolio, reducing the interest rate and duration risk of its existing portfolio by properly match funding its assets.
Established by the Small Business Jobs Act of 2010, the CDFI Bond Guarantee Program responds to a critical market need – capital to spur economic growth and jump start community revitalization. Under the program, qualified issuers (CDFIs or their designees) apply to the CDFI Fund for authorization to issue guaranteed bonds worth a minimum of $100 million in total. The bonds provide CDFIs with access to substantial long-term, fixed-rate capital to reignite the economies of distressed communities.
The program enables CDFIs to execute large-scale projects, including the development of commercial real estate, housing units, charter schools, daycare and health care centers, and rural infrastructure projects, among other asset classes. A total of more than $2.18 billion has been guaranteed since the inception of the CDFI Bond Guarantee Program, which provides long-term, fixed-rate capital for projects in low-income urban, rural and Native communities.
About Capital Plus Financial
Certified by the U.S. Treasury as a CDFI, Capital Plus Financial believes minority-owned small businesses and people of color are entitled to equal opportunities in the banking system and is committed to breaking down barriers in communities that have been disenfranchised, underserved, underbanked, and underfunded. Capital Plus is the wholly owned subsidiary of Crossroads Impact Corporation (OTCQX: CRSS), a holding company focused on investing in businesses that promote economic vitality and community development.
About Crossroads Impact Corp
Crossroads Impact Corp (OTCQX: CRSS) Crossroads Impact Corp’s mission is to promote economic vitality through community development and equitable access to capital; harnessing the power for good to tackle systemic issues within underserved communities. Building on our history of serving minority individuals and small businesses through environmental and responsible social lending, we look to be the leader in providing innovative and sustainable lending solutions.
About the CDFI Fund
Since its creation in 1994, the CDFI Fund has awarded more than $5.5 billion to CDFIs, community development organizations, and financial institutions through: the Bank Enterprise Award Program; the Capital Magnet Fund; the CDFI Rapid Response Program; the Community Development Financial Institutions Program, including the Healthy Food Financing Initiative; the Economic Mobility Corps; the Financial Education and Counseling Pilot Program; the Native American CDFI Assistance Program; and the Small Dollar Loan Program. In addition, the CDFI Fund has allocated $66 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program and closed guaranteed bonds for more than $2.1 billion through the CDFI Bond Guarantee Program.
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