[Federal Register Volume 63, Number 54 (Friday, March 20, 1998)]
[Notices]
[Pages 13729-13732]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-7153]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
[No. 982-0154]
Notice of Funds Availability (NOFA) Inviting Applications for the
Community Development Financial Institutions Program--Technical
Assistance Component
AGENCY: Community Development Financial Institutions Fund, Department
of the Treasury.
ACTION: Notice of Funds Availability (NOFA) inviting applications.
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SUMMARY: The Community Development Banking and Financial Institutions
Act of 1994 (12 U.S.C. 4701 et seq.) (hereafter referred to as the
``Act'') authorizes the Community Development Financial Institutions
Fund (hereafter referred to as ``the Fund'') to select and provide
assistance to eligible applicants under the Community Development
Financial Institutions (``CDFI'') Program. Such assistance may include
financial assistance and technical assistance. Technical assistance
(``TA'') may be used for activities that enhance the capacity of both
CDFIs and entities proposing to become CDFIs, such as the training of
management and other personnel, the development of programs, loan or
investment products, improving financial management and internal
operations, enhancing a CDFI's community impact, or other activities
deemed appropriate by the Fund. Since the advent of the CDFI Program,
the Fund has issued NOFAs inviting applications for both TA and
financial assistance. However, the Fund recognizes that a key
ingredient to enhancing the CDFI industry is the provision of TA, and
the Fund has decided to expand the tools that it utilizes to increase
the availability of TA to CDFIs. Specifically, the Fund is issuing this
NOFA for a TA only component of the CDFI Program to better address the
unmet capacity needs of CDFIs and entities proposing to become CDFIs.
This NOFA is intended to award grants to eligible applicants that have
demonstrated capacity needs and have significant potential for
increasing their community development impact relative to the
[[Page 13730]]
amount of TA provided. This NOFA provides guidance on the contents of
the necessary application materials and program requirements. Subject
to funding availability, the Fund intends to award up to $5 million in
appropriated funds pursuant to this NOFA. The Fund reserves the right
to award in excess of $5 million in appropriated funds pursuant to this
NOFA provided that the funds are available and the Fund deems it
appropriate.
DATES: The original and three copies of the application may be
submitted at any time following March 20, 1998. The deadline for
receipt of the original and three copies of an application is 6 p.m.
EDT on May 29, 1998. Applications received after that date and time
will not be accepted and will be returned to the sender. Applications
sent electronically or by facsimile will not be accepted.
ADDRESSES: Applications shall be sent to: Awards Manager, the Community
Development Financial Institutions Fund, U.S. Department of the
Treasury, 601 13th St. NW., Suite 200 South, Washington, D.C. 20005.
FOR FURTHER INFORMATION CONTACT: The Technical Assistance Program
Manager, Community Development Financial Institutions Fund, U.S.
Department of the Treasury, 601 13th St. NW., Suite 200 South,
Washington, D.C. 20005, (202) 622-8662. (This is not a toll-free
number.) If you have any questions about this NOFA or the application
packet, you may call or write to the Technical Assistance Program
Manager at the above telephone number or address, or you may send
questions by facsimile to (202) 622-7754. To request an application
packet, please send by facsimile to (202) 622-7754 a written request
which includes the name of the requester, organization, mailing
address, telephone number, facsimile number, and name of the program
for which an application is being requested.
SUPPLEMENTARY INFORMATION:
I. Background
Credit and investment capital are essential ingredients in creating
and retaining jobs, developing affordable housing, starting or
expanding businesses, revitalizing neighborhoods, and empowering
people. As a key urban and rural policy initiative, the Fund's CDFI
Program facilitates the creation of a national network of financial
institutions that are specifically dedicated to community development.
CDFIs make loans, investments and provide development services to
economically distressed investment areas and disadvantaged targeted
populations. In order to facilitate the development of a national
network of CDFIs, the Fund is seeking to support the efforts of such
entities to build their organizational capacity to make loans and
investments and provide development services. In order to use the TA
funds strategically, it is the Fund's intention to target such funds to
CDFIs and entities proposing to become CDFIs that have demonstrated
capacity needs and possess significant potential for increasing their
community development impact with the assistance of a limited amount of
TA. The anticipated maximum award per applicant under this NOFA is
$50,000. However, the Fund, in its sole discretion, reserves the right
to award amounts in excess of $50,000 if an applicant demonstrates to
the satisfaction of the Fund the need for such additional amounts and
the added potential community development impact resulting from such
additional amounts.
Elsewhere in this issue of the Federal Register, the Fund is
publishing an NOFA for financial assistance and TA under the CDFI
Program core component. That separate NOFA is a continuation of the
approach used in the first two rounds of the CDFI Program. In the
separate core component NOFA, the Fund is making available up to $40
million in appropriated funds. Applicants under that core component
NOFA may apply for both financial assistance and TA, and such
applicants for TA are not limited to $50,000 in TA funds. However, all
applications for financial assistance, TA or both under the core
component will be evaluated separate and apart from the applications
under this TA component. Moreover, the application requirements and the
selection criteria under the core component NOFA differ from those
contained in this TA component NOFA, because the TA component NOFA is
singularly focused on providing TA to enhance the capacity of CDFIs and
entities proposing to become CDFIs. Interested applicants are
encouraged to apply for TA under one NOFA or the other; however,
applicants are not prohibited from applying for TA under both NOFAs.
II. Eligibility
The Act and the interim rule governing the CDFI Program (12 CFR
part 1805), which was published in the Federal Register on April 4,
1997 (62 FR 16444), specify the requirements that each applicant must
meet to be eligible to apply for TA. Specifically, an entity at the
time it submits its application must meet or propose to meet the CDFI
certification requirements under Sec. 1805.200. In general, a CDFI must
have a primary mission of promoting community development, provide
lending or investments, serve an investment area or a targeted
population, provide development services, maintain community
accountability, and be a nongovernment entity. At the time an entity
submits its application, the entity must be duly organized and validly
existing under the laws of the jurisdiction in which it is incorporated
or otherwise established, and is (or within 30 days will be) authorized
to do business in any jurisdiction in which it proposes to undertake
activities specified in its application. The details regarding these
requirements and other program requirements are described in the
interim rule and the application packet.
III. Form of Assistance
An applicant under this NOFA may only submit an application for a
TA grant.
IV. Application Packet
Section 1805.701 provides that unless otherwise specified in an
applicable NOFA, each application must contain the information
specified in the application packet, including the items described in
Secs. 1805.701(a)-(j). For purposes of this NOFA, the Fund is specially
tailoring the collection of information requirements. Specifically,
applicants are only required to submit the information required by the
TA component application packet. The TA component application packet
requires the submission of the following information:
(a) Applicant Information. The applicant's name, address and name
and telephone number of the applicant's authorized representative and
contact person.
(b) Award Request. The dollar amount of the TA grant requested by
the applicant.
(c) Eligibility Verification. If the Fund has not certified an
applicant as a CDFI and an applicant does not have an application for
certification pending with the Fund, the applicant shall provide
information necessary to establish that it is, or will be, a CDFI. An
applicant shall demonstrate whether it meets the CDFI eligibility
requirements by providing the information described in
Secs. 1805.701(b)(1)-(8). If an applicant is currently certified by the
Fund as a CDFI, it may submit a copy of the Fund's letter of
certification and the Certification of Material Changes form
[[Page 13731]]
contained within the application in lieu of the information described
in Secs. 1805.701(b)(1)-(8). However, an applicant should include in
its application for a TA grant information that it believes is
otherwise relevant to the Fund's evaluation of the application under
the criteria set forth in this NOFA. An entity that proposes to become
a CDFI is eligible to apply for a TA grant if the Fund determines that
such entity's application materials provide a realistic course of
action to ensure that it will meet the requirements described in
Secs. 1805.200(b)-(h) within two years of entering into an Assistance
Agreement with the Fund.
(d) Comprehensive Business Plan. An applicant shall submit an
abbreviated five-year Comprehensive Business Plan that addresses the
items described in this paragraph (d). The Comprehensive Business Plan
should, to the maximum extent practicable, be limited to ten pages or
less (applicants may provide attachments, including supplemental
documents, as appropriate, on items referenced in the Comprehensive
Business Plan).
(1) Management capacity. An applicant shall provide a narrative
description of its current management capacity, including detailed
information on the background and capacity of the applicant's
management team, key personnel and governing board members as
appropriate.
(2) Track Record and Historical Financial Performance. An applicant
shall provide information on its historical and current financial
condition, including a copy of audited financial statements, financial
statements that have been reviewed by a certified public accountant, or
financial statements that have been reviewed by the applicant's
Appropriate Federal Banking Agency for the last three completed fiscal
years, and the most recent internal financial statements since the
beginning of the applicant's current fiscal year. The applicant shall
also provide information on its loans and Development Investments for
the three most recent fiscal years, including information on the total
number and dollar amount of such loans and Development Investments
during each fiscal year during this time frame. If an applicant has
been in operation for less than three years, the applicant shall
describe such activities for each fiscal year since inception. The
applicant shall provide information necessary to assess trends in its
financial and operating performance (e.g., portfolio delinquencies,
defaults and charge-offs).
(3) Market Analysis and Strategy. An applicant shall provide an
analysis of its target markets, including a description of the needs of
the Investment Area(s) and Targeted Population(s), as applicable. An
applicant shall also describe its five-year strategy for meeting the
demand for loans or Development Investments generated by the needs of
its target market(s) through its products and services. The strategy
description may include plans for growth of lending volume and lending
products, expansion of Development Services, staffing and management
appropriate to meet such growth and growth of the operating budget.
Projected changes in overall capital structure (asset and liability
composition) may also be described. The narrative discussion may be
supplemented with quantitative projections.
(4) Coordination Strategy. An applicant shall describe:
(i) Its plan to coordinate use of assistance from the Fund with
existing Federal, State, local, and tribal government assistance
programs and private sector resources;
(ii) How its proposed activities are consistent with existing
economic, community, and housing development plans adopted for an
Investment Area(s) or Targeted Population(s); and
(iii) How it will coordinate with community organizations,
financial institutions, and Community Partners (if applicable) which
will provide loans, equity investments, secondary markets, or other
services to an Investment Area(s) or a Targeted Population(s).
(5) Funding Sources. An applicant shall provide information:
(i) On its current and projected sources of capital and other
financial support. Such projections should relate to and be consistent
with the strategy description provided under paragraph (3); and
(ii) To demonstrate that it has a plan for achieving or maintaining
financial viability within the five-year period. Such information shall
demonstrate that the applicant will not be dependent upon future awards
of assistance from the Fund for its continued viability.
(6) Community Partnership. In the case of an applicant submitting
an application with a Community Partner, the applicant shall include in
its application the information described in Sec. 1805.701(d)(12).
(e) Technical Assistance Proposal. An applicant shall provide a
Technical Assistance Proposal (``TAP'') that includes information on
the TA needed to enhance the capacity of the organization to carry out
its Comprehensive Business Plan. Such information shall include the
items described in this paragraph (e). The TAP should, to the maximum
extent practicable, be limited to ten pages or less (applicants may
provide attachments, including supplemental documents, as appropriate,
on items referenced in the TAP). An applicant shall provide:
(1) An evaluation of its capacity needs (this may be a self-
evaluation);
(2) A detailed description of the type(s) of TA needed to meet the
identified capacity needs;
(3) A detailed description of the strategy for obtaining such TA,
including its proposed providers of TA and their qualifications. If an
applicant cannot identify specific providers of TA in its application,
it shall identify the requisite qualifications that it will seek for
such TA providers;
(4) An estimate of the cost to obtain the TA for each year that
will include use of TA funds. This cost estimate shall include expense
projections for each of the specific activities to be funded with TA
funds; and
(5) A projection of the benefits expected to be created within its
Investment Area(s) or Targeted Population(s) with the enhanced capacity
resulting from the TA.
(f) Conflict of Interest. An applicant shall submit a copy of its
conflict of interest policies that are consistent with the requirements
of Sec. 1805.906.
(g) Lobbying Disclosure Act of 1995. An applicant shall identify
whether or not the Internal Revenue Service (IRS) has recognized it as
exempt from Federal income tax under section 501(c)(4) of the Internal
Revenue Code.
(h) Miscellaneous. An applicant shall indicate and describe the
circumstances underlying any back taxes due to the IRS, any delinquent
debts owed to Federal, State or local governments, and whether it has
ever filed for bankruptcy.
(i) Environmental Information. An applicant shall review and
complete the Environmental Review Form contained within the
application.
(j) Applicant Certification. An applicant and Community Partner (if
applicable) shall review and complete the assurances and certifications
form contained in Appendix A of the application.
(k) Previous Awardees. In the case of an applicant that has
previously received assistance under the CDFI Program, the applicant
shall demonstrate that it:
(1) Has substantially met its performance goals and other
requirements described in its previous Assistance Agreement(s); and
[[Page 13732]]
(2) Will expand its operations into a new Investment Area(s), serve
a new Targeted Population(s), offer more products or services, or
increase the volume of its activities.
(l) Previous History. In the case of an applicant with a prior
history of serving Investment Area(s) or Targeted Population(s), the
applicant shall demonstrate that it:
(1) Has a record of success in serving Investment Area(s) or
Targeted Population(s); and
(2) Will expand its operations into a new Investment Area(s), serve
a new Targeted Population(s), offer more products or services, or
increase the volume of its activities.
V. Evaluation and Selection
In evaluating and selecting applicants, the Fund will utilize the
evaluation criteria found in Sec. 1805.802(b), except that the Fund
will not consider the evaluation criteria relating to matching funds in
Secs. 1805.802(b)(2)(i), (ii), and (iv). Under the Act, the Fund has
express authority to consider evaluation criteria in addition to those
set forth in 12 U.S.C. Sec. 4706 and Sec. 1805.802(b). The Fund also
has broad discretion in evaluating the relative importance of each such
criterion. For purposes of this TA component NOFA, the Fund is adding
as a new evaluation criterion the extent of the applicant's
demonstrated capacity needs. In selecting applicants for TA grant
awards, the Fund will accord predominant weight to the following two
evaluation criteria:
(a) The extent of the applicant's demonstrated capacity needs; and
(b) The extent and nature of the potential community development
impact that will be achieved by the Fund's TA, relative to the amount
of the TA to be provided.
The Fund will continue to evaluate applications using the remaining
applicable criteria set forth in Sec. 1805.802(b); however, such
evaluation criteria will be of secondary importance to the two criteria
set forth above.
In assessing the extent of a demonstrated capacity need, the Fund
will consider the extent of funding previously awarded by the Fund to
the applicant. While previous awardees are eligible to apply pursuant
to this NOFA, given the focus on applicants with demonstrated unmet
capacity building needs, it is the current expectation of the Fund that
a substantial majority of the funds awarded pursuant to this NOFA will
be to applicants that are not previous awardees. On the other hand,
success in a previous funding round will not prevent an applicant from
receiving a TA grant under this NOFA provided that such a grant is
consistent with the Act and the interim rule governing the CDFI Program
(12 CFR part 1805).
The Fund has sole discretion in the selection of applications for
assistance. The anticipated maximum award per applicant under this NOFA
is $50,000. However, the Fund, in its sole discretion, reserves the
right to award amounts in excess of $50,000 if appropriate.
Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, 4717,
4718; 12 CFR part 1805.
Dated: March 16, 1998.
Ellen Lazar,
Director, Community Development Financial Institutions Fund.
[FR Doc. 98-7153 Filed 3-19-98; 8:45 am]
BILLING CODE 4810-70-P
