[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