CDFI Rate Buydown Advance

Expanding access to low-cost capital

The Federal Home Loan Bank of Indianapolis launched a program 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 created new lending pipelines that will address the housing and community development needs of our district.

This program launched on October 9, 2024, with a $5 million allocation. Funds were made available on a first-come, first-served basis with a $500,000 per-member subsidy cap. Standard capacity requirements apply, and standard activity stock requirements apply to any borrowing associated with the program.

Resources and Informational Materials

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

Applications are available through MemberLink.