S. 1880: CDFI Bond Guarantee Program Improvement Act of 2025

This bill, known as the CDFI Bond Guarantee Program Improvement Act of 2025, aims to amend the Community Development Banking and Financial Institutions Act of 1994, primarily focusing on reauthorizing and enhancing the CDFI Bond Guarantee Program. The following outlines the main provisions of the bill:

Purpose

The bill seeks to provide community development financial institutions (CDFIs) with improved access to long-term capital. It recognizes the importance of the bond guarantee program in promoting economic opportunities and community development in underserved and distressed areas in the United States.

Key Amendments

• Bond Guarantee Amounts: The bill raises the minimum guarantee amount to $25 million for bonds or notes issued for community or economic development purposes. The total amount of guarantees in any fiscal year is capped at $1 billion.
• Extended Authorization: The bill changes the expiration date of the program from September 30, 2014, to four years after the enactment date of this legislation, thus extending the lifespan of the program.
• Clerical Update: It includes a clerical amendment to update the table of contents related to the program in the regulatory improvement act.

Reporting Requirements

The Secretary of the Treasury is required to report to Congress on the effectiveness of the CDFI bond guarantee program within one year and again within three years after the enactment of the bill. These reports will assess how well the program meets its goals and its overall impact on community development.

Overall Impact

The revisions proposed in this bill aim to better equip CDFIs to support and invest in projects that benefit low-income and disadvantaged communities, thereby addressing economic disparities and advancing community well-being across various regions in the U.S.

Relevant Companies

None found