- April 26, 2024
- Bulletin No: 2024-14
Bank to Offer New $35 Million Low-Rate CDFI Loan Program that Supports Housing and Economic Development
The Federal Home Loan Bank of Dallas (Bank) will offer a groundbreaking loan program to assist Community Development Financial Institution (CDFI) members in supporting underserved, rural and low- to moderate-income communities and populations in Arkansas, Louisiana, Mississippi, New Mexico and Texas.
The new $35 million loan fund, Community Advancement Through New Opportunities & Partnerships Yielding Results (CANOPY) Fund, will provide low-cost, unsecured loans for a term of up to 10 years.
Who is eligible to borrow?
- Any nondepository CDFI institution that is an unrestricted member with the Bank
What are the benefits of CANOPY Fund borrowing?
- Special rates that are below U.S. Treasury benchmark rates
- Fixed-rate, fixed-term with interest payable quarterly and principal due at maturity
- Terms up to 10 years with the potential for five one-year renewal options
- No prepayment penalties
Eligible uses for CANOPY Fund borrowings include the following:
- Provide affordable housing
- Empower community economic development
CANOPY Fund borrowers will enter into loan agreements with the Bank that define the terms of the borrowing arrangement. There will be periodic reporting and fund usage certification requirements for CANOPY Fund borrowers.
The CANOPY Fund, which is a pilot, is expected to be available in June 2024 after an introductory webinar is scheduled. Please watch our events page for an announcement and link to register. View the Bank’s website to learn more about our pilot programs.
Please contact Community Investment at 800.362.2944 with questions.
President and Chief Executive Officer
Sincerely,
Sanjay K. Bhasin
President and Chief Executive Officer