BGOV Bill Summary: H.R. 7733, Community Development Bonds

A program offering bond guarantees to support community lenders would be reauthorized and expanded by H.R. 7733.

Community development financial institutions (CDFIs) provide services in low-income communities such as mortgage financing, funding for small and startup businesses, underwriting for community facilities, and technical assistance.

The CDFI Bond Guarantee Program provides a federal guarantee on bonds issued by qualified institutions, which use the proceeds from bond sales to extend credit to other CDFIs for community development projects. The program has guaranteed about $1.7 billion in bonds, allowing CDFIs to deploy about $1.3 billion in loans for community development, according to ...