New Brunswick, NJ (September 30) – New Jersey Community Capital (NJCC) announced today that is has closed a $28 million bond as part of the United States Treasury Department’s CDFI Bond Guarantee Program. NJCC is one of seven Community Development Financial Institutions (CDFIs) that have closed on a multi-party bond totaling $127 million, the largest group of bond participants in a single bond issue to date. This bond is part of a landmark round with $327 million in bonds issued, marking the third year of the program designed to provide CDFIs with the long-term, reliable capital they need to spur development in low-income and under-resourced communities. Opportunity Finance Network (OFN) was the Qualified Issuer.
For the first time ever, this seven-party $127 million bond is extending the reach of the CDFI Bond Guarantee Program beyond the largest CDFIs. NJCC and the other participants in this bond have the capacity to put long term, fixed rate, affordable capital to work across a broad geography, serving more under-resourced communities than ever before. Along with NJCC, the participants in the multi-party bond include:
Chicago Community Loan Fund (Chicago), $28 million
Citizens Potawatomi Community Development Corporation (Oklahoma), $16 million
Bridgeway Capital (Pittsburgh, PA), $15 million
Community Ventures (Lexington, KY), $15 million
FAHE (Berea, KY), $15 million
Kentucky Highlands (London, KY), $10 million
“This investment will allow us to continue to finance transformative projects in areas of the state in which they are needed most, allowing distressed communities to not only to stabilize but to thrive,” said Wayne T. Meyer, President of NJCC. “We are thrilled to receive this tremendous support.”
“OFN is proud to have issued this multi-party bond for our Member CDFIs to catalyze critical economic development in underserved areas throughout our country. This bond is a testament to the financial strength of our Member CDFIs, and a reflection of their effectiveness in providing access to responsible and affordable capital where it is needed most,” said OFN Chief Operating Officer Cathy Dolan. “Through this $127 million, multi-party bond, OFN Members like NJCC can reach further into tough markets to make a real difference.”
Enacted as part of the Small Business Jobs Act, the CDFI Bond Guarantee Program is an innovative federal credit program designed to function at zero cost to taxpayers. It provides eligible CDFIs access to long-term, fixed rate, affordable capital to encourage economic growth and development.
To learn more about how OFN connects CDFIs to critical financing, visit ofn.org. For more information on how the US Treasury Department’s CDFI Fund provides new access to capital to under-resourced communities, visit cdfifund.gov.
About New Jersey Community Capital (NJCC)
NJCC is a nonprofit community development financial institution (CDFI) that transforms at-risk communities through strategic investments of capital and knowledge. NJCC invests in affordable housing, community facilities, and economic development ventures that strengthen neighborhoods, improve education, and increase jobs, ultimately providing greater opportunities for low-income populations. Since inception, NJCC has facilitated the investment of over $500 million into 800 high-impact projects across the state, supporting the creation and preservation of 12,900 education seats, 8,200 housing units, 6,100 early care slots, and 6,100 jobs. For more information, please visit www.newjerseycommunitycapital.org.