[Federal Register Volume 62, Number 234 (Friday, December 5, 1997)]
[Notices]
[Pages 64448-64449]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 97-31451]



  Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / 
Notices  

[[Page 64448]]



DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funds Availability (NOFA) Inviting Applications for the 
Bank Enterprise Award (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 incentives 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. This interim 
rule implements the Bank Enterprise Award (BEA) Program. The Fund 
reserves the right to award funds under this NOFA up to the maximum 
amount authorized by law. As of the date of this NOFA and subject to 
funding availability, the Fund intends to make available up to $25 
million in BEA Program funds. The Fund reserves the right to award in 
excess of $25 million if it deems it appropriate.

DATES: Applications may be submitted at any time after December 5, 
1997. The deadline for receipt of an application is 6 p.m. Eastern 
Standard Time on February 12, 1998. Applications received after that 
date and time will not be accepted and will be returned to the sender. 
Any entity seeking certification as a CDFI (as described in 12 CFR 
1805.200) for the purposes of 12 CFR part 1806 are strongly encouraged 
to submit the Application Form for Certification, the contents of which 
are described in 12 CFR 1805.701(b) (1) through (8), by February 12, 
1998. If an entity fails to submit such Application 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) (1) through (8). 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 shall be sent to: The Community Development 
Financial Institutions Fund, U.S. Department of the Treasury, 601 13th 
Street, NW, Washington DC 20005. Applications sent by fax will not be 
accepted.

FOR FURTHER INFORMATION CONTACT: The Community Development Financial 
Institutions Fund, U.S. Department of the Treasury, 601 13th Street, 
NW, Washington DC 20005, (202) 622-8662. (This is not a toll free 
number.)

SUPPLEMENTARY INFORMATION:

I. Background

    As part of a national strategy to facilitate revitalization and 
increase the availability of credit and investment capital in 
distressed communities, the Community Development Banking and Financial 
Institutions Act of 1994 (Act) 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 NOFA 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 in 12 U.S.C. 1813(c)(2).

III. Designation of Distressed Community

    In accordance with 12 CFR 1806.200(d), in the case of applicants 
carrying out Qualified Activities requiring the designation of a 
Distressed Community (as defined in 12 CFR 1806.103(r)), the Fund will 
provide prospective Applicants with data and other information to help 
identify areas eligible to be Distressed Communities. The Fund is 
requiring all applicants to contact the BEA Help Desk at (202) 622-8662 
to obtain such necessary data and information.

IV. 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 priority of categories: Equity Investments in CDFIs serving 
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 projected 
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 
projected 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 projected 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 within each category, the Fund will apply 
criteria contained in the revised interim rule. 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, establish any

[[Page 64449]]

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.

V. 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, 1997, and end on 
June 30, 1997. 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 January 1, 1998, and end on June 30, 
1998. Applicants selected to participate in the Program during the 
Assessment Period will be required to submit to the Fund a Final Report 
of Qualified Activities actually carried out during the Assessment 
Period. The deadline for receipt of the Final Report is 6 p.m. Eastern 
Standard Time on July 31, 1998. The Fund will evaluate the performance 
of applicants in carrying out projected activities to determine actual 
award amounts.

    Authority: 12 U.S.C. 4703, 4703 note; 12 U.S.C. 1834a; 12 CFR 
part 1806.
Maurice A. Jones,
Acting Deputy Director, Community Development Financial Institutions 
Fund.
[FR Doc. 97-31451 Filed 12-4-97; 8:45 am]
BILLING CODE 4810-70-P