CANOPY Program
- About the Program
- Resources
Canopy Program
Low-Cost Unsecured Loans for Community Development Financial Institutions
|
How It Works
The CANOPY Fund provides low-cost, unsecured loans for a term of up to 10 years. CANOPY Fund borrowers will enter into loan agreements with the Bank that define the terms of the borrowing arrangement. There will be periodic reporting and fund usage certification requirements for CANOPY Fund borrowers.
The CANOPY Fund is expected to be available in June 2024 after an introductory webinar is scheduled.
Applications for CANOPY funding must be submitted by an eligible FHLB Dallas member financial institution. FHLB Dallas does not provide funds directly to consumers.
Who is eligible to borrow?
- Any nondepository CDFI institution that is an unrestricted member with the Bank
What are the benefits of CANOPY Fund borrowing?
- Special rates that are below U.S. Treasury benchmark rates
- Fixed-rate, fixed-term with interest payable quarterly and principal due at maturity
- Terms up to 10 years with the potential for five one-year renewal options
- No prepayment penalties
Eligible uses for CANOPY Fund borrowings include the following:
- Provide affordable housing
- Empower community economic development
Benefits For Your Financial Institution
Increase CDFI capacity to support community economic development.
Promote growth of economic opportunities and affordable housing in underserved, rural and low- to moderate-income communities.
2024 CANOPY Webinar
General
Funding
- $6.5 million
- 20 percent of the CANOPY Fund total fund amount, or
- 15 percent of the CDFI member’s unrestricted net assets
- Less than 120 percent of Area Median Income (AMI)
- A significant proportion at or below 80 percent of AMI or areas targeted for redevelopment by local, state, tribal or Federal government (including Opportunity Zones), by providing or supporting one or more of the following activities:
- Housing
- Economic development
- Community services
- Permanent jobs; or
- Area revitalization or stabilization
Application Process
- CDFI members complete and submit proposals
- FHLB Dallas reviews and approves proposals
- Execute agreements, deliver closing documents and subsequently receive funds
- Overseen by a Board of Directors with experience in the sector
- Five or more consecutive years of audited financials
- Positive net assets for the past three years
- Able to satisfy financial reporting and compliance requirements
Loan Specifics
- $6.5 million
- 20 percent of the CANOPY Fund total fund amount, or
- 15 percent of the CDFI Member’s unrestricted net assets
Repayment (for loans)
- An annual attestation statement that it is still maintaining CDFI certification
- Within 210 days after end of each fiscal year, annual compliance certificate which includes audited financial statement
- Within 45 days after the end of each quarter, quarterly compliance certificate which includes unaudited financials
- Within 45 days after the end of each six month period, semi-annual progress report on use of CANOPY loan proceeds
- Within 90 days after anniversary of the first disbursement (and second disbursement, if applicable), certificate of compliance with CANOPY Deployment Ratio