CDFI Rate Buydown Advance

Available Now!

The Federal Home Loan Bank of Indianapolis recently launched a new program designed to assist community development financial institutions in supporting housing and economic development in underserved communities. CDFI Rate Buydown Advances serve as a low-cost source of capital for non-depository CDFIs headquartered in our district of Indiana and Michigan.

CDFI Rate Buydown Advances allow non-depository CDFI member institutions to borrow directly from the Bank while also encouraging other member financial institutions to lend to non-depository CDFIs, regardless of Bank membership. As access to low-cost capital is vital for CDFIs to continue lending in underserved markets, this product is designed to build partnerships between non-depository CDFIs and traditional financial institutions and to further assist CDFIs with additional access to low-cost capital. The CDFI Rate Buydown Advance program will create new lending pipelines to address the housing and community development needs of our district.

This program launched on October 9, 2024, with a $5 million allocation. Subsidies are capped at $500,000 per member. Funds are available on a first-come, first-served basis until exhausted or notice is given. Eligible participants must be members in good standing with FHLBank Indianapolis. Non-depository CDFIs must either be a member of FHLBank Indianapolis or be headquartered in Indiana or Michigan without membership to another FHLBank. Members must complete an application and certification. Standard capacity requirements apply, and standard activity stock requirements apply to any borrowing associated with the program.

Resources and Informational Materials

FHLBank Indianapolis staff recently hosted a training webinar to review program guidelines and requirements. Access the PowerPoint slides and webinar recording through the links.

Applications are available now through MemberLink.