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Canopy Program

Low-Cost Unsecured Loans for Community Development Financial Institutions

Program Overview

One of FHLB Dallas’ newest pilot programs is the Community Advancement Through New Opportunities & Partnerships Yielding Results (CANOPY) Fund. This $35 million loan fund is another tool to assist Community Development Financial Institution (CDFI) members in supporting underserved rural and low- to moderate-income communities and populations in the FHLB Dallas District.

Funds Available as of June 6, 2024: $35,000,000 

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

The materials below provide more detailed information regarding the CANOPY program.


What is the CANOPY Fund?
What is the CANOPY Fund? A: The CANOPY (Community Advancement through New Opportunities & Partnerships Yielding Results) Fund is a revolving loan fund to provide non-depository, Community Development Financial Institution (CDFI) members with longer-term, unsecured loans to support their affordable housing and economic development lending programs within the FHLB Dallas District.
What is the primary goal of the CANOPY Fund?
To support affordable housing and economic development lending programs within the FHLB Dallas District (Arkansas, Louisiana, Mississippi, New Mexico and Texas).
Who is eligible to apply for funding through the CANOPY Fund/Who can participate in the program?
Non-depository CDFIs who are either currently unrestricted members of FHLB Dallas, or who become members while CANOPY funds are available.


How much funding is available?
CANOPY will initially be funded with $35 million.
Are there any limits to how much a CDFI may borrow?
Yes. The maximum amount a CDFI may borrow is the least of
  • $6.5 million
  • 20 percent of the CANOPY Fund total fund amount, or
  • 15 percent of the CDFI member’s unrestricted net assets
What are the eligible uses of the CANOPY Fund loan proceeds/What can the funds be used for?
Funds disbursed to members through the CANOPY Fund must be used to primarily benefit households having a targeted income level:
  • 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
What are the CANOPY Fund loan terms (interest rates, repayment periods)?
The interest rate to be offered is expected to be below the 10-year Treasury yield, and the rate will be set by July 1, 2024. The interest rate will be included in the loan agreement.  Interest is payable quarterly and principal is due at maturity.

Application Process

When can I apply?
FHLB Dallas plans to begin accepting loan applications for the CANOPY Fund in June 2024 after the webinar scheduled on June 6, 2024. The initial application round will close on July 12 ,2024. Future application opportunities may be announced based on fund availability.
What is the application process?
The process for applying to receive funds includes the following steps:
  1. CDFI members complete and submit proposals
  2. FHLB Dallas reviews and approves proposals
  3. Execute agreements, deliver closing documents and subsequently receive funds
Are there any fees associated with applying for or receiving a loan from the CANOPY Fund?
How are applications reviewed and selected for funding?
The applicant will be evaluated based on its mission and creditworthiness.
What documentation do I need to provide to secure Fund participation?
Documentation of the following CDFI criteria is important in FHLB Dallas’ decision on whether to approve a member’s application:
  • 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
What is the timeline for the application review process?
Formal Proposal submission deadline is July 12, 2024. FHLB Dallas’ review of Formal Proposal submissions is expected to be between July 15 and September 30, 2024.

Loan Specifics

‚ÄčIs there a minimum or maximum loan amount?
Yes. The minimum is $0.5 million, and the maximum amount is the least of
  • $6.5 million
  • 20 percent of the CANOPY Fund total fund amount, or
  • 15 percent of the CDFI Member’s unrestricted net assets
What kind of collateral is required (if any) for the loan?
None. This is an unsecured loan.
When my loan is approved how will I get the proceeds?
You can take the approved loan proceeds in up to two installments. The dates to receive CANOPY loan disbursements will be requested by the CDFI.

Repayment (for loans)

What are the repayment terms for loans from the CANOPY Fund?
Interest is payable quarterly on the first business day of the third month of each quarter (March, June, September and December). Principal is due at maturity.
What happens if I can't repay the loan?
This program depends upon the CANOPY loans being repaid by members in order for funds to be redeployed for the betterment of the community.  Therefore, your repayment is necessary for the viability of the program.  From a borrower’s point of view, further access to borrowings may be impaired if CANOPY loans are not repaid or if interest payments are not made on time.
How do I make repayments?
FHLB Dallas will deduct the quarterly interest payments from the member’s DDA account.
Are there any additional costs or fees associated with the funding?
Are the loans prepayable? Is there any prepayment penalty?
Loans are prepayable, and prepayment made in full is permitted upon 14 days’ notice by Borrower to Bank without prepayment penalty.
What are the reporting requirements during the life of the loan?
During the life of the loan, the Borrower needs to report the below items:
  • 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

Additional Resources

Are there workshops or training sessions to help applicants?
Yes. The webinar is set for June 6, 2024, at 9:30 a.m.. A recording of the webinar will be made available to CDFI members that are unable to attend.
How can I stay informed about program updates and changes?
You may contact FHLB Dallas at 800.362.2944 for any program update or change or visit
How is the CANOPY Fund managed?
It is managed by the FHLB Dallas Community Investment Department. Loans are made with the available fund to the qualified and approved CDFI applicants.
Can the CANOPY Fund run out of money?
It can. There is a possible scenario in which members’ CANOPY applications may exceed funds available in the program.
How does the CANOPY Fund differ from other types of funding?
The loan taken from the CANOPY Fund is unsecured, compared to FHLB advances which are secured loans.
Does the program offer any technical assistance to loan recipients?
What if I have further questions about the program? Where can I find more information?
Please contact FHLB Dallas at 800.362.2944 for any further questions. More information can be found on the Pilot Transparency page at