[Federal Register Volume 68, Number 233 (Thursday, December 4, 2003)]
[Notices]
[Pages 67906-67908]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-30174]



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Part III





Department of the Treasury





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Community Development Financial Institutions Fund



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CDFI Fund Native American Initiative; Notice of Funds Availability 
(NOFA) Inviting Applications for the Native American CDFI Assistance 
Program; Notices

  Federal Register / Vol. 68, No. 233 / Thursday, December 4, 2003 / 
Notices  

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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


CDFI Fund Native American Initiative

AGENCY: Community Development Financial Institutions Fund, Department 
of the Treasury.

ACTION: Preamble for the CDFI Fund's Native American Initiative, which 
includes: The Native American CDFI Assistance (NACA) Program; the 
Native American Technical Assistance (NATA) Component (part of the 
Technical Assistance Component) of the CDFI Program; and the Native 
American CDFI Development (NACD) Program.

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SUMMARY:

I. Legislative Background

    The Community Development Banking and Financial Institutions Act of 
1994 (12 U.S.C. 4701 et seq.) (the ``Act'') authorizes the Community 
Development Financial Institutions Fund (the ``Fund'') of the U.S. 
Department of the Treasury to promote economic revitalization and 
community development through investment in and assistance to Fund-
certified community development financial institutions (``CDFIs'') 
through the CDFI Program. The Consolidated Appropriations Resolution, 
2003 (Pub. L. 108-7) authorizes the Fund to provide financial 
assistance (``FA'') and technical assistance (``TA'') to benefit Native 
American, Alaska Native and Native Hawaiian communities (hereafter 
referred to as ``Native American Communities''), with such benefit 
being provided primarily through qualified community development lender 
organizations with experience and expertise in community development 
banking and lending in Indian country, Native American organizations, 
Tribes and tribal organizations and other suitable providers.

II. The CDFI Fund's Overall Strategic Objectives

    Credit and investment capital are essential ingredients for 
developing affordable housing, starting or expanding businesses, 
meeting unmet market needs, and stimulating economic growth. Access to 
financial services is critical to helping bring more Americans into the 
economic mainstream. The Fund's programs are designed to address the 
unique capitalization and/or technical capacity needs of CDFIs and 
other community development entities so that they may better meet the 
needs of their particular target markets through loans, investments, 
financial services and other related activities. This strategy builds 
strong institutions that make loans and investments and provide 
financial services in markets (including economically distressed 
investment areas and disadvantaged targeted populations) whose needs 
for loans, investments, and financial services have not been fully met 
by traditional financial institutions.

III. The CDFI Fund's Native American Initiative

    Pursuant to the Act, in 2001, the Fund completed and published the 
Native American Lending Study (``the Study''), which identifies 
significant barriers to lending and investment in Native American 
Communities throughout the country and strategies for overcoming those 
barriers. One of the barriers identified by the Study is the fact that 
there are few CDFIs and other financial institutions that serve Native 
American Communities. Since CDFIs are important tools for developing 
self-sustaining economies in many underserved communities, the Fund 
seeks to assist Native American Communities to create CDFIs as well as 
to strengthen CDFIs already serving those communities.
    The Fund seeks to accomplish these goals through its Native 
American Initiative. The primary objective of the Native American 
Initiative is to increase the market coverage and capacity of Native 
American CDFIs throughout the country. While the Fund also is 
undertaking other activities, such as its comprehensive training 
program, to further strengthen Native American CDFIs, the Native 
American Initiative principally comprises three facets:
    (1) Native American CDFI Assistance (NACA) Program: Through the 
NACA Program, the Fund provides (i) FA and/or TA awards to Native 
American CDFIs and entities that can be certified as Native American 
CDFIs at time of award; and (ii) TA awards to entities that propose to 
become Native American CDFIs within two years and ``Sponsoring 
Entities'' (e.g., Native American organizations, Tribes, Tribal 
organizations) that propose to create separate legal entities that will 
become Native American CDFIs within two years. A NOFA covering two 
annual funding rounds for the NACA Program is published in this issue 
of the Federal Register, subject to funding availability and Fiscal 
Year 2004 and Fiscal Year 2005 appropriations. Interested parties may 
obtain additional and detailed information on the NACA Program, 
including application materials, through the Fund's website at 
www.cdfifund.gov. Summary information on the NACA Program is provided 
in the chart, below.
    (2) Native American Technical Assistance (NATA) Component (part of 
the Technical Assistance Component of the CDFI Program): Through the 
NATA Component, the Fund provides capacity-building TA grants to Native 
American CDFIs, entities that can be certified as Native American CDFIs 
at time of award, and entities that propose to become Native American 
CDFIs within two years. The FY 2003 and 2004 NOFA for the NATA 
Component/Technical Assistance Component was published in the February 
4, 2003 issue of the Federal Register (68 FR 5735). The Fund is 
accepting applications on a rolling basis (subject to funding 
availability) through May 31, 2004. Interested parties may obtain 
additional and detailed information on the NATA Component, including 
application materials, through the Fund's website at www.cdfifund.gov. 
Summary information on the NATA Component is provided in the chart, 
below.
    (3) Native American Community Development (NACD) Program: Through 
the NACD Program, the Fund provides TA grants to Sponsoring Entities to 
facilitate the creation of separate legal entities that will become 
Native American CDFIs within two years. The FY 2003 and 2004 NOFA for 
the NACD Program was published in the February 4, 2003 issue of the 
Federal Register (68 FR 5731). The Fund is accepting applications on a 
rolling basis (subject to funding availability) through May 31, 2004. 
Interested parties may obtain additional and detailed information on 
the NACD Program, including application materials, through the Fund's 
website at www.cdfifund.gov. Summary information on the NACD Program is 
provided in the chart, below.

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                                       Purpose; types and
       Component or program          amounts of assistance       Eligible applicants      Application deadlines
                                           available
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Native American CDFI Assistance    FA awards (grants, loans,  FA/TA awards............  Applications will be
 Program.                           equity investments,       Type 1: certified Native   accepted and evaluated
                                    secondary capital          American CDFIs or         in two rounds: Round 1:
                                    accounts, deposits,        certifiable Native        application deadline is
                                    credit union shares) to    American CDFIs (i.e.,     March 15, 2004; Round
                                    support financing needs,   entities that can be      2: application deadline
                                    and/or TA grants to        certified as Native       is January 30, 2005
                                    build capacity to serve    American CDFIs at time    (subject to FY 2004
                                    target markets,            of award).                funding availability).
                                    including operating       TA awards only..........
                                    grants; up to $500,000    Type 2: emerging Native
                                    per award.                 American CDFIs (i.e.,
                                   Eligible Uses of TA         entities that propose
                                    Funds: technology          to become Native
                                    acquisition, training,     American CDFIs withing
                                    consulting services,       two years of receiving
                                    staff salary for certain   the award); and.
                                    purposes, and operating   Type 3: Sponsoring
                                    funds.                     Entities (e.g., Native
                                                               American organizations,
                                                               Tribes and Tribal
                                                               organizations) that
                                                               propose to create an
                                                               entity that will become
                                                               a Native American CDFI
                                                               within two years of
                                                               receiving the award.
                                                              Ineligible Applicants:
                                                               Firms that provide
                                                               training or TA in
                                                               community developments
                                                               finance (such
                                                               organizations are
                                                               eligible to apply
                                                               through NACD).
NATA Component...................  TA grants to build         Certified Native          Applications will be
                                    capacity to serve target   American CDFIs,           accepted and elevated
                                    markets; up to $100,000    certifiable Native        on a first-come, first
                                    per award.                 American CDFIs (i.e.,     reviewed basis,
                                   Eligible Uses of TA         entities that can be      beginning February 4,
                                    Funds: technology          certified as Native       2003 through May 31,
                                    acquisition, training,     American CDFIs at time    2003 (subject to FY
                                    consulting services,       of award), emerging       2004 funding
                                    staff salary for certain   Native American CDFIs     availability).
                                    purposes.                  (i.e., entities that
                                   Ineligible Uses of TA       propose to become
                                    Funds: operating funds.    Native American CDFIs
                                                               within two years of
                                                               receiving the award).
                                                              Ineligible Applicants:
                                                               Sponsoring Entities (as
                                                               described under NACD
                                                               below), and entities
                                                               that the Fund has
                                                               previously selected to
                                                               receive over $250,000
                                                               in TA or FA (in
                                                               aggregate).
NACD Program.....................  TA grants to build         Sponsoring Entities that
                                    capacity to create         will not themselves
                                    Native American CDFIs;     become Native American
                                    up to $100,000 per award.  CDFIs but instead plan
                                   The applying entity must    to create separate
                                    use the TA award to        Native American CDFIs.
                                    assist in the             Such entities include
                                    establishment of a         (a) Category I: Tribes,
                                    separately incorporated,   Tribal entities and
                                    new Native American CDFI.  nonprofit organizations
                                   Eligible Uses of TA         that primarily serve
                                    Funds: technology          Native American, Alaska
                                    acquisition, training,     Native and/or Native
                                    consulting services,       Hawaiian populations;
                                    staff salary for certain   and (b) Category II:
                                    purposes.                  firms that provide
                                   Ineligible Use of TA        training or TA in
                                    Funds: operating funds.    community development
                                                               finance or that
                                                               specialize in economic
                                                               development in Native
                                                               American, Alaska Native
                                                               and/or Native Hawaiian
                                                               communities, and other
                                                               suitable providers,
                                                               including CDC,
                                                               certified CDFIs, or
                                                               organizations with
                                                               experience and
                                                               expertise in banking
                                                               and lending in Native
                                                               American, Alaska Native
                                                               and/or Native Hawaiian
                                                               communities.
                                                              Ineligible Applicants:
                                                               certified Native
                                                               American CDFIs,
                                                               certifiable Native
                                                               American CDFIs (i.e.,
                                                               entities that can be
                                                               certified as Native
                                                               American CDFIs at time
                                                               of award, emerging
                                                               Native American CDFIs
                                                               (i.e., entities that
                                                               propose to become
                                                               Native American CDFIs
                                                               within two years of
                                                               receiving the award).
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    In addition to the Native American Initiative, described above, the 
Fund administers the New Markets Tax Credit (``NMTC'') Program, the 
Financial Assistance Component and the Technical Assistance Component 
of the CDFI Program, and the Bank Enterprise Award Program. Interested 
parties are encouraged to learn more about these programs, and how to 
apply, through the Fund's website at www.cdfifund.gov.
    A Native American CDFI may apply for a FA award through either the 
FA Component or the NACA Program. While an applicant may receive only 
one FA award through either the FA Component or the NACA Program, an 
applicant, its subsidiaries or affiliates may apply for and receive: 
(i) A tax credit allocation through the NMTC Program; (ii) a TA award 
through the CDFI Program; (iii) an award through the NACD Program; or 
(iv) an award through the BEA Program, subject to certain restrictions 
described in the BEA Program regulations.
    Catalog of Federal Domestic Assistance: 21.020

    Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, 4717; 12 
CFR part 1805, Pub. L. 107-73, Pub. L. 108-7.

    Dated: November 21, 2003.
Tony T. Brown,
Director, Community Development Financial Institutions Fund.
[FR Doc. 03-30174 Filed 12-3-03; 8:45 am]
BILLING CODE 4810-70-P