U.S. Treasury Department – Community Development Financial Institutions Bond Guarantee Program
The Community Development Financial Institutions Bond Guarantee Program (CDFIBG), a division of the U.S. Treasury Department, selected Value Recovery Holding to serve as technology service provider for implementation of back-end information management systems call the Portfolio Analysis and Performance Reporting System (PAPRS). VRH has worked closely and cooperatively with the CDFIBG to develop the PAPRS system. The objective of PAPRS is to provide a holistic information management platform and the essential back-end components in a manner that is consistent with the Bond Guarantee Program’s business objectives. PAPRS supports the Portfolio Management and Loan Management (PMLM) division of the Bond Guarantee Program.
The CDFIBG was enacted through the Small Business Jobs Act of 2010 on September 27, 2010. The legislation directs the Treasury Department to guarantee the full amount of notes or bonds issued to support Community Development Financial Institutions (CDFIs) that make investments for eligible community or economic development purposes. The bonds or notes will support CDFI lending and investment by providing a source of long-term, patient capital to CDFIs. Treasury may guarantee up to 10 bonds per year, each at a minimum of $100 million. Per Statute, the total of all bonds cannot exceed $1 billion per year
The PAPRS system, built by VRH not only links directly to reports provided by the Master Servicer, but also will be linked directly to a front end data entry portal in which borrowers will directly enter data. This front end system is also being built by VRH.
The PAPRS system was based off another loan management system built by VRH for the Department of Energy’s Loan Program’s Office (LPO). This system known as Quicksilver provides similar functionality and is currently in use managing a $40 billion portfolio of assets for the LPO.
Authorized uses of the loans financed may include a variety of financial activities, such as:
- Supporting commercial facilities that promote revitalization
- Community stability
- Job creation/retention
- Community facilities
- Basic financial services
- Housing that is principally affordable to low-income people
- Businesses that provide jobs for low-income people or are owned by low-income people
- Community or economic development in low-income or underserved rural areas.