COVID Response
Ready to help rebuild our communities?
Given the rapidly changing economic climate, we are seeking compelling and well-purposed guarantees to be utilized during the rebuilding of our economy.
The types of guarantees, guarantee users and terms we are currently seeking:
- Acknowledge that mission alignment is imperative. CIGP has a deliberate focus on racial, gender and economic equity at the intermediary and/or end user level.
- Guarantees are made at the enterprise/fund level, not on individual projects. However, guarantees can apply to a “pool” of loans or loans made under a specific lending program.
- Commit to a $1 million guarantee minimum
- Pay at least a 1-2% annual fee on the total guarantee amount committed
- Start deploying guarantees within one year of guarantee closing; fully deploy guarantees by the end of three years.
- Guarantee terms range from 5-12 years.
- Willingness to take a first loss position of at least 5%.
- Demonstrate either a 5 to 1 direct leverage or 10 to 1 indirect leverage.
- Lending sector must be in affordable housing (single or multi-family), small business, climate or a combination of aforementioned sectors.
- All U.S. geographies considered: Preference given to CA, CO, DE, FL, GA, MD, NC, NM, TX, VA, and Seattle.
- Organizational audited financials.
- Reviewed CIGP Program and Underwriting Guidelines.
- Strong desire to “crowd in” private capital.
Ready to dive right in?
Learn more about how joining the Community Investment Guarantee Pool can create more impactful lending.
Resources
February 20, 2020
The Hidden Power of Guarantees in Community Development Finance
Next city examines the potential for financial guarantees to be leveraged as tools for impact in underserved communities.