Lake Forest-Based Firm Receives $100M Bond from U.S. Treasury

A Lake Forest-based firm announced today it has received a $100 million bond from the U.S. Treasury Department that will be used to finance community development projects in California and Nevada.

Clearinghouse Community Development Financial Institution and Opportunity Finance Network last month received the first bond issued through the U.S. Treasury Department’s CDFI Bond Guarantee Program. The for-profit intends to use the money to finance development projects in under-served neighborhoods, including 96 units of affordable housing, an early childhood education center and a community-based nonprofit.

The federal government’s program aims to offer access to long-term capital for new development.

“Access to long-term, fixed-rate capital is a game changer for Clearinghouse CDFI and potentially the CDFI industry as a whole,” said Clearinghouse CDFI President and CEO Douglas Bystry.”Not only do our borrowers benefit from longer term loans; fixed-rate capital will have a profound impact over the long-term in low-income and distressed communities where it’s needed most.”

--City News Service