CDFI Advance Frequently Asked Questions

The CDFI Advance program will provide members with 0% interest rate on Classic Advances for one to 10 years. Members can use the subsidized advances to provide enterprise-level loans with an interest rate capped at 3% to certified non-depository CDFIs to support the development of affordable housing, job creation/small business growth, and the expansion of community facilities in distressed communities throughout New England. Certified non-depository CDFIs must use the funding in accordance with an eligible activity in their target market as defined by the Community Development Financial Institutions Fund.

The application portal opens on March 3, 2025, and closes December 15, 2025, at 3:00 p.m. Members may request CDFI Advances on a per-CDFI basis and may submit multiple requests for multiple CDFIs subject to program caps on total advances. Funds will be allocated on a first-come, first-served basis, and the program will not maintain a waiting list. Applications may only be submitted if sufficient funding is available to match the applicant’s request. The funding release is March 17, 2025, at 9:00 a.m.

Upon application approval, the member must draw down CDFI Advances within 60 days. The CDFI must use the funds within 180 days of receiving funds from the member for an eligible activity and provide documentation of loan activity and beneficiary data, which will be submitted to FHLBank Boston. All disbursed advances must be used to fund eligible loans by the recipient CDFI.

Members will be subject to the Bank’s standard prepayment fee in the event they choose to prepay the CDFI Advance. However, fees for prepaid CDFI Advances will be net of any unamortized subsidy on the advance.

The program will provide members with a vehicle to lend to CDFIs at the enterprise level to support the development of affordable housing, job creation/business growth, and the expansion of community facilities in distressed communities throughout New England.

Loans must be provided to certified non-depository CDFIs that demonstrate that the funding disbursed serves at least one eligible Target Market (either an Investment Area or a Targeted Population as defined by the federal Community Development Financial Institutions Fund). In addition, the CDFI receiving the funds must direct 100% of the advance to one or more arm’s-length, on-balance sheet Financial Products or financial Services (if applicable), to one or more eligible Target Market components (i.e., an investment Area (IA), Low Income Targeted Population (LITP), or Other Targeted Population (OTP)).

Loan funds must provide direct lending or investment in the form of affordable home mortgages, affordable housing development loan or investments, home improvement loans, small business loans or investments, or commercial real estate development loans or investments to residents or businesses that meet one or more Target Market components.

Members must apply using the Community Lending portal to access advances up to the applicable caps on a first-come, first- served basis. The funds must be match funded to non-depository CDFIs located in New England. As noted above, the member spread will be capped at 300 basis points. Awards will be advance based and advance subsidy will be calculated and reserved at time of application. The final disbursed advance in the program year may be reduced based on the interest rate at time of disbursement and the subsidy set aside at application.

CDFI Advances are subject to a tiered cap for members and CDFIs. Members may reserve funds on a first-come, first-served basis, per-CDFI basis. A single funding release will occur on March 17, 2025. Any subsidy remaining from approved awards will be returned to the subsidy pool to support additional CDFI Advances. A member may reserve up to $1 million in CDFI Advances beginning March 17, 2025. The annual CDFI Advance cap per member will increase to $2 million on May 12 at 9:00 a.m. and the per-member cap will be eliminated on July 14 at 9:00 a.m.

A CDFI may access up to $1 million in CDFI Advances from a participating member beginning March 17, 2025. The annual CDFI Advance cap per CDFI will increase to $2 million on May 12, and the cap will be eliminated on July 14.

In addition, to facilitate regional distribution, CDFI subsidy of $2 million will be reserved for Massachusetts, $1 million for Connecticut, and $500,000 each for Maine, New Hampshire, Rhode Island, and Vermont beginning March 17, 2025. Any unused funds in the state reservation on May 12 will be allocated to the general funding pool. A minimum CDFI Advance of $100,000 per CDFI is required. Program caps and minimums are based on advances. There is no subsidy minimum or maximum per member or CDFI except as limited by the subsidy available.

Members must submit individual application(s) on behalf of eligible non-depository CDFIs by logging in to FHLBank Boston’s Community Lending portal. New online users can easily create an account at this site. Please note that new account access approval may take up to 48 hours. Applications will be reviewed by FHLBank Boston within three business days. Members will have 60 days to draw down funds from approved applications. Members must call the Member Funding Desk at 1-800-357-3452 to request CDFI Advance disbursement(s).

As noted above, the CDFI (through the lending member) must provide documentation of loan activity and beneficiary data to FHLBank Boston within 180 days of disbursement. All disbursed advance funds must be used to fund eligible loans by the recipient CDFI. Eligibility requirements are noted on this page.

A member’s spread on CDFI Advances cannot exceed 300 basis points.

No. CDFI Advances must be match funded to the eligible CDFI as enterprise-level funding for the approved term.

Member applications are reviewed and approved based on the extent to which they satisfy program eligibility and interest spread requirements. Members will receive a notification of approval or a request for additional information within three business days of applying.

Applications are considered on a first-come, first-served basis in this round. The subsidy represents the present value of FHLBank Boston’s cost to fund the 0% rate CDFI Advance. CDFI Advances may be requested through multiple CDFI requests, provided that the aggregate advances allocated to a member does not exceed the current member advance cap or CDFI cap for the funding round. Multiple awards to one CDFI cannot be combined into one advance to the member.

At the time of disbursement, member advances that have been reserved must be recalculated against the current CDA Extra Classic Advance. If the subsidy set aside at application is insufficient at time of disbursement the member can elect to change the principle of the term.

Yes. Members are required to submit two types of reports.

First, the member must confirm and document the pass through of CDFI Advance funds to the eligible CDFI within 30 days of disbursement. This includes a copy of the promissory note confirming funding pass-through, maximum member spread, and the term.

Second, within 180 days of disbursement, the CDFI receiving the funds must provide a listing of loan activity and beneficiary data for loans made with CDFI funding to the member, who will provide this loan listing to FHLBank Boston. All disbursed program funds must be used to fund eligible loans by the recipient CDFI. Eligibility requirements are noted on this page. As part of this submission, members will complete a short, one-time online report describing how the funds were used.