S. 1880 — CDFI Bond Guarantee Program Improvement Act of 2025

This section states the sense of Congress that the authority to guarantee bonds under the CDFI Bond Guarantee Program (12 U.S.C. 4713a) provides community development financial institutions with a sustainable source of long-term capital and furthers the mission of the Community Development Financial Institutions Fund (12 U.S.C. 4703(a)) to increase economic opportunity and promote community development investments for underserved populations and distressed communities in the United States.

This section amends the Community Development Financial Institutions (CDFI) Bond Guarantee Program—under which the Treasury Secretary guarantees repayment of bonds or notes issued by qualified issuers to finance loans to certified CDFIs for community or economic development activities (i.e., in low-income or underserved areas, including rural communities)—by (1) striking from subsection (c)(2) the phrase requiring multiplication by the outstanding principal balance of issued notes or bonds; (2) revising subsection (e)(2) to prohibit guarantees of less than $25 million while capping total guarantees at $1 billion per fiscal year; and (3) extending the program's sunset date to four years after enactment of the CDFI Bond Guarantee Program Improvement Act of 2025 (from September 30, 2014). The section also makes a clerical amendment to the table of contents.

This section directs the Secretary of the Treasury to submit reports to the Senate Committee on Banking, Housing, and Urban Affairs and the House Committee on Financial Services, not later than one year and three years after enactment, respectively, assessing the effectiveness of the CDFI Bond Guarantee Program under 12 U.S.C. 4713a (i.e., a program providing federal guarantees for bonds and notes issued to finance loans to certified community development financial institutions for community or economic development in low-income or underserved areas).