[Federal Register Volume 62, Number 45 (Friday, March 7, 1997)]
[Notices]
[Pages 10679-10680]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-5677]
Federal Register / Vol. 62, No. 45 / Friday, March 7, 1997 /
Notices
[[Page 10679]]
DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Notice of Funds Availability (NOFA) Inviting Applications for the
Bank Enterprise Awards (BEA) Program
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.) authorizes the Community
Development Financial Institutions Fund (hereafter referred to as ``the
Fund'') to provide a reward to insured depository institutions for the
purpose of promoting investments in or other support to Community
Development Financial Institutions (``CDFIs'') and facilitating
increased lending and provision of financial and other services in
economically distressed communities. Insured depository institutions
and CDFIs are defined terms in an interim rule (12 CFR part 1806)
published elsewhere in this issue of the Federal Register. The Fund
reserves the right to award funds under this Notice up to the maximum
amount authorized by law. As of the date of this Notice and subject to
funding availability, the Fund intends to award up to $16.25 million in
Bank Enterprise Award (BEA) Program funds. The Fund reserves the right
to award in excess of $16.25 million if it deems it appropriate. The
BEA Program shall be subject to the revised interim rule. The revised
interim rule establishes the Program requirements.
DATES: Applications may be submitted at any time after March 7, 1997.
The deadline for receipt of an application is 6 p.m. Eastern Standard
Time on Friday, April 25, 1997. Applications received after that date
and time will not be accepted and will be returned to the sender. Any
entity seeking certification as a Community Development Financial
Institution (as defined in 12 CFR 1805.200) for the purposes of 12 CFR
part 1806 are strongly encouraged to submit the materials described in
12 CFR 1805.701(b) by Friday, April 25, 1997. If such an entity fails
to submit such materials by this deadline, the Fund cannot guarantee
that it will have sufficient time to complete a certification review
for the purposes of the current funding round of the BEA Program. In
addition, with respect to all requests for certification, the Fund
reserves the right to request clarifying or technical information after
reviewing materials submitted as described in 12 CFR 1805.701(b). If
the entity seeking certification does not respond to such requests in a
timely manner, the Fund cannot guarantee that it will have sufficient
time to complete a certification review for the purposes of the current
funding round of the BEA program.
ADDRESSES: Applications must be sent to: The Community Development
Financial Institutions Fund, U.S. Department of the Treasury, 1500
Pennsylvania Avenue, NW., Washington DC 20220. Applications sent by FAX
will not be accepted.
FOR FURTHER INFORMATION CONTACT: The Community Development Financial
Institutions Fund, U.S. Department of the Treasury, 1500 Pennsylvania
Avenue, NW., Washington DC 20220, (202) 622-8662. (This is not a toll
free number.) To request an application packet, please send by
facsimile a written request to (202) 622-2599. Such request must
include the name of the requester, organization, mailing address, phone
number, and facsimile number. Questions about the BEA regulation, this
Notice and the application can also be sent by facsimile to (202) 622-
2599. (Please note that this facsimile number has been established for
the purpose of accepting application requests and questions.)
SUPPLEMENTARY INFORMATION:
I. Background
As part of a national strategy to facilitate revitalization and
increased availability of credit and investment capital in distressed
communities, the Community Development Banking and Financial
Institutions Act of 1994 authorizes a portion of funds appropriated to
the Fund to be made available for distribution through the BEA Program.
The BEA Program is largely based on the Bank Enterprise Act of 1991
although Congress significantly amended the program to facilitate
greater coordination with other activities of the Fund. The BEA Program
and the Community Development Financial Institutions Program (12 CFR
part 1805) are intended to be complementary initiatives that support a
wide range of community development activities and facilitate
partnerships between traditional lenders and CDFIs. This Notice invites
applications from insured depository institutions for the purpose of
promoting community development activities and revitalization.
II. Eligibility
The Act specifies that eligible applicants must be insured
depository institutions as defined under section (3)(c)(2) of the
Federal Deposit Insurance Act.
III. Designation Factors
The revised interim rule published separately in this issue of the
Federal Register (12 CFR part 1806) describes the process for selecting
applicants to receive assistance and for determining award amounts. The
rating and selection process will give priority to applicants in the
following order: Equity Investments in CDFIs in Distressed Communities,
Equity Investment in CDFIs not serving Distressed Communities, CDFI
Support Activities, and Development and Services Activities (as such
activities are defined in the revised interim rule). Assistance amounts
will be calculated based on increases in Qualified Activities that
occur during a 6-month Assessment Period in excess of activities that
occurred during a 6-month Baseline Period. In general, estimated award
amounts for applicants making equity investments in CDFIs will be equal
to 15 percent of the anticipated increase in such activities. An
applicant may choose to accept less than the maximum amount of
assistance in order to increase the ranking of its application.
Estimated award amounts for CDFI applicants for carrying out CDFI
Support Activities will be equal to 33 percent of the anticipated
increase in such activities. Estimated award amounts for non-CDFI
applicants for carrying out CDFI Support Activities will be equal to 11
percent of the anticipated increase in such activities. The revised
interim rule establishes the ranking and selection process. For an
applicant pursuing Development and Service Activities, a multi-step
procedure is outlined in the interim rule that will be used to
calculate the estimated award amount. In general, if an applicant is a
CDFI, such estimated award amount will be equal to 15 percent of the
total score calculated in the multi-step procedure. If an applicant is
not a CDFI, such estimated award amount will be equal to 5 percent of
the total score calculated in the multi-step procedure. In ranking and
funding such applicants, the Fund will take into consideration the
total score, the asset size of the applicant, and other relevant
factors. The Fund, in its sole discretion, may adjust the estimated
award amount that an applicant may receive prior to the end of the
Assessment Period. The Fund may, in its sole discretion,
[[Page 10680]]
establish any limitations on the maximum amount that may be awarded to
an applicant. The Fund reserves the right to limit the amount of an
award to any Awardee if deemed appropriate.
IV. Baseline Period and Assessment Period Dates
As part of its application, an applicant shall report the Qualified
Activities that it actually carried out during a 6-month Baseline
Period. Such Baseline Period will begin on January 1, 1996, and end on
June 30, 1996. An applicant shall also project the Qualified Activities
that it expects to carry out during a 6-month Assessment Period. Such
Assessment Period will begin on March 1, 1997, and end on August 31,
1997. Applicants selected to participate in the program during the
Assessment Period will be required to report the Qualified Activities
that it actually carried out during the Assessment Period. Applicants
will be required to submit their end of the Assessment Period report by
Monday, September 8, 1997. If applicants do not have final activity
numbers for the month ending August 31, 1997, by the reporting
deadline, they may submit an estimate for the month of August with
actual activity data for the months of March through July 1997. In such
a circumstance, the applicant must submit its actual activities for the
month of August 1997, not later than September 15, 1997. The Fund will
evaluate the performance of applicants in carrying out projected
activities to determine actual award amounts. Because the Fund had not
certified any organizations as CDFIs during the Baseline Period for
this funding round, the Fund will consider all Applicants that propose
to engage in CDFI Related Activities to have engaged in no such
activities during the Baseline Period for the purpose of calculating
awards.
V. Other Matters
(a) Paperwork Reduction Act. For details on the information
collection requirements of the rule and this Notice, the reader should
refer to the interim rule (12 CFR part 1806) published elsewhere in
this issue of the Federal Register.
(b) Environmental Impact. Pursuant to Treasury Directive 75-02, the
Department of the Treasury has determined that implementation of the
BEA Program under the interim rule is categorically excluded from the
National Environmental Policy Act of 1969 (42 U.S.C. 4332) and does not
require environmental review. The determination is available to public
inspection between 9:30 a.m. and 4:30 p.m. weekdays at the office of
the Fund.
Authority: 12 U.S.C. 4703, 4717; Chapter X, Pub. L. 104-19, 108
Stat. 237; 12 CFR 1806.206(a).
Dated: March 4, 1997.
Kirsten S. Moy,
Director, Community Development Financial Institutions Fund.
[FR Doc. 97-5677 Filed 3-6-97; 8:45 am]
BILLING CODE 4810-70-P
