U.S. Bank and Enterprise Community Partners (Enterprise) today announced the issuance of an innovative bond designed for targeted and measurable racial equity results. Issued by Enterprise Community Loan Fund, Enterprise’s Community Development Financial Institution (CDFI), the $30 million bond will help provide loans to Black, Indigenous and people of color housing developers under Enterprise’s Equitable Path Forward initiative.
This is the first CDFI-issued racial equity bond. The designation of this social bond as a racial equity bond provides for targeted investments in underserved communities of color. CDFIs have rigorous standards about eligibility and reporting when it comes to how funds are used, and this bond will require additional project-level vendor requirements and thorough impact reporting data for investors.
