[Federal Register Volume 63, Number 169 (Tuesday, September 1, 1998)]
[Notices]
[Pages 46514-46515]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-22865]
[[Page 46513]]
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Part II
Department of the Treasury
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Community Development Financial Institutions Fund
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Notice of Funds Availability (NOFA) Inviting Applications for the Bank
Enterprise Award (BEA) Program; Notice
Federal Register / Vol. 63, No. 169 / Tuesday, September 1, 1998 /
Notices
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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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CATALOG OF FEDERAL DOMESTIC ASSISTANCE: 21.021.
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 purposes 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 in the December 5, 1997 issue of the Federal Register,
implementing and governing 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, the Fund
intends to make available up to $25 million in BEA Program funds,
subject to the availability of appropriated funds. The Fund reserves
the right to award in excess of $25 million if it deems it appropriate,
subject to the availability of appropriated funds. In connection with
this NOFA the Fund is conducting workshops to disseminate information
to organizations contemplating applying and other organizations
interested in learning about the BEA Program. The schedule for the
workshops is published elsewhere in this issue of the Federal Register.
DATES: Applications may be submitted at any time after September 1,
1998. The deadline for receipt of an application is 6 p.m. Eastern
Standard Time on Tuesday, November 24, 1998. Applications received in
the offices of the Fund 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 is 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 Tuesday, November 24, 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: Awards Manager, Community
Development Financial Institutions Fund, U.S. Department of the
Treasury, 601 13th Street, NW., Suite 200 South, Washington, DC 20005.
Applications sent by fax or electronic transfer will not be accepted.
FOR FURTHER INFORMATION CONTACT: All questions regarding this NOFA, the
Application package, or program requirements should be directed to the
Community Development Financial Institutions Fund, U.S. Department of
the Treasury, 601 13th Street, NW., Washington, DC 20005, by telephone
at (202) 622-8662, or by facsimile at (202) 622-7754. These are not
toll free numbers. If you are requesting an application package, please
allow at least two weeks for delivery.
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 requires
all applicants to contact the BEA Help Desk at (202) 622-8662 to obtain
such necessary data and information.
IV. Designation Factors
The interim rule published in the December 5, 1997, 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 Investments in CDFIs not serving
Distressed Communities, CDFI Support Activities, and Development and
Services Activities (as such activities are defined in the 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 interim rule establishes the ranking and selection process. For
an
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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 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 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 the Fund deems 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, 1998, and end on
June 30, 1998. 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, 1999, and end on June 30,
1999. Applicants selected to participate in the Program during the
Assessment Period will be required to submit to the Fund a Final Report
(Part II of the Application) of Qualified Activities actually carried
out during the Assessment Period. The deadline for receipt of the Final
Report is 6 p.m. Eastern Daylight Time on July 27, 1999. Final Reports
received in the offices of the Fund after that date and time will not
be accepted and will be returned to the sender. The Fund will evaluate
the performance of applicants in carrying out projected activities to
determine actual award amounts.
Authority: 12 U.S.C. 1834a, 4703, 4703 note, 4713; 12 CFR part
1806.
Dated: August 20, 1998.
Ellen Lazar,
Director, Community Development Financial Institutions Fund.
[FR Doc. 98-22865 Filed 8-31-98; 8:45 am]
BILLING CODE 4810-70-P