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Federal Register / Vol. 86, No. 41 / Thursday, March 4, 2021 / Notices having a minimum Guarantee of $100
million each, and up to an aggregate total of $500 million.
C. Program summary. The purpose of the CDFI Bond Guarantee Program is to support CDFI lending by providing Guarantees for Bonds issued for Eligible Community or Economic Development Purposes, as authorized by section 1134
and 1703 of the Act. The Secretary, as the Guarantor of the Bonds, will provide a 100% Guarantee for the repayment of the Verifiable Losses of Principal, Interest, and Call Premium of Bonds issued by Qualified Issuers. Qualified Issuers, approved by the CDFI Fund, will issue Bonds that will be purchased by the Federal Financing Bank. The Qualified Issuer will use 100% of Bond Proceeds to provide Bond Loans to Eligible CDFIs, which will use Bond Loan proceeds for Eligible Community and Economic Development Purposes, including providing Secondary Loans to Secondary Borrowers in accordance with the Secondary Loan Requirements.
Secondary Loans may support lending in the following asset classes: CDFI-toCDFI, CDFI to Financing Entity, Charter Schools, Commercial real estate, Daycare centers, Healthcare facilities, Rental housing, Rural infrastructure, Owner-occupied homes, Licensed senior living and long-term care facilities, Small business, and Not-forProfit organizations, as these terms are defined in the Secondary Loan Requirements, which can be found on the CDFI Funds website at www.cdfifund.gov/bond.
D. Review Guarantee Applications, in general.
1. Qualified Issuer Applications submitted with Guarantee Applications will have priority for review over Qualified Issuer Applications submitted without Guarantee Applications. With the exception of the aforementioned prioritized review, all Qualified Issuer Applications and Guarantee Applications will be reviewed by the CDFI Fund on an ongoing basis, in the order in which they are received, or by such other criteria that the CDFI Fund may establish in its sole discretion.
2. Guarantee Applications that are incomplete or require the CDFI Fund to request additional or clarifying information may delay the ability of the CDFI Fund to move the Guarantee Application to the next phase of review.
Submitting an incomplete Guarantee Application earlier than other applicants does not ensure first approval.
3. Qualified Issuer Applications and Guarantee Applications that were received in FY 2020 and that were neither withdrawn nor declined in FY

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2020 will be considered under FY 2021
authority.
4. Pursuant to the Regulations at 12
CFR 1808.504c, the Guarantor may limit the number of Guarantees issued per year or the number of Guarantee Applications accepted to ensure that a sufficient examination of Guarantee Applications is conducted.
E. Additional reference documents. In addition to this NOGA, the CDFI Fund encourages interested parties to review the following documents, which have been posted on the CDFI Bond Guarantee Program page of the CDFI
Funds website at http
www.cdfifund.gov/bond.
1. Guarantee Program Regulations.
The regulations that govern the CDFI
Bond Guarantee Program were published on February 5, 2013 78 FR
8296; 12 CFR part 1808 the Regulations, and provide the regulatory requirements and parameters for CDFI
Bond Guarantee Program implementation and administration including general provisions, eligibility, eligible activities, applications for Guarantee and Qualified Issuer, evaluation and selection, terms and conditions of the Guarantee, Bonds, Bond Loans, and Secondary Loans.
2. Application materials. Details regarding Qualified Issuer Application and Guarantee Application content requirements are found in this NOGA
and the respective application materials.
Interested parties should review the template Bond Documents and Bond Loan documents that will be used in connection with each Guarantee. The template documents are posted on the CDFI Funds website for review. Such documents include, among others:
a. The Secondary Loan Requirements, which contain the minimum required criteria in addition to the Eligible CDFIs underwriting criteria for a loan to be accepted as a Secondary Loan or Other Pledged Loan. The Secondary Loan Requirements include the General Requirements and the Underwriting Review Checklist;
b. The Agreement to Guarantee, which describes the roles and responsibilities of the Qualified Issuer, will be signed by the Qualified Issuer and the Guarantor, and will include term sheets as exhibits that will be signed by each individual Eligible CDFI;
c. The Term Sheets, which describe the material terms and conditions of the Bond Loan from the Qualified Issuer to the Eligible CDFI. The CDFI Fund website includes template term sheets for the general recourse structure GRS, the Alternative Financial Structure AFS, and for the CDFI to Financing
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Entity Asset Class utilizing pooled tertiary loans;
d. The Bond Trust Indenture, which describes the responsibilities of the Master Servicer/Trustee in overseeing the Trust Estate and the servicing of the Bonds, which will be entered into by the Qualified Issuer and the Master Servicer/Trustee;
e. The Bond Loan Agreement, which describes the terms and conditions of Bond Loans, and will be entered into by the Qualified Issuer and each Eligible CDFI that receives a Bond Loan;
f. The Bond Purchase Agreement, which describes the terms and conditions under which the Bond Purchaser will purchase the Bonds issued by the Qualified Issuer, and will be signed by the Bond Purchaser, the Qualified Issuer, the Guarantor and the CDFI Fund; and g. The Future Advance Promissory Bond, which will be signed by the Qualified Issuer as its promise to repay the Bond Purchaser. The template documents may be updated periodically, as needed, and will be tailored, as appropriate, to the terms and conditions of a particular Bond, Bond Loan, and Guarantee. Additionally, the CDFI Fund may impose terms and conditions that address risks unique to the Eligible CDFIs business model and target market, which may include items such as concentration risk of a specific Eligible CDFI, geography or Secondary Borrower. The Bond Documents and the Bond Loan documents reflect the terms and conditions of the CDFI Bond Guarantee Program and will not be substantially revised or negotiated prior to execution.
F. Frequently Asked Questions. The CDFI Fund may periodically post on its website responses to questions that are asked by parties interested in applying to the CDFI Bond Guarantee Program.
G. Designated Bonding Authority. The CDFI Fund has determined that, for purposes of this NOGA, it will not solicit applications from entities seeking to serve as a Qualified Issuer in the role of the Designated Bonding Authority, pursuant to 12 CFR 1808.201, in FY
2021.
H. Noncompetitive process. The CDFI
Bond Guarantee Program is a noncompetitive program through which Qualified Issuer Applications and Guarantee Applications will undergo a merit-based evaluation meaning, applications will not be scored against each other in a competitive manner in which higher ranked applicants are favored over lower ranked applicants.
I. Relationship to other CDFI Fund programs.

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