[Federal Register Volume 79, Number 79 (Thursday, April 24, 2014)]
[Notices]
[Pages 22842-22849]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09312]


-----------------------------------------------------------------------

DEPARTMENT OF THE TREASURY


Community Development Financial Institutions Fund

    Funding Opportunity Title: Notice of Funding Availability (NOFA) 
inviting Applications for the FY 2014 Funding Round of the Bank 
Enterprise Award (BEA) Program.
    Announcement Type: Announcement of funding opportunity.
    Catalog of Federal Domestic Assistance (CFDA) Number: 21.021.
    Dates: Applications for the FY 2014 funding round of the BEA 
Program must be received by June 2, 2014. Applications must meet all 
eligibility and other requirements and deadlines, as applicable, set 
forth in this NOFA. Applications received after June 2, 2014 will be 
rejected.
    Executive Summary: This NOFA is issued in connection with the FY 
2014 funding round of the BEA Program. The BEA Program is administered 
by the Community Development Financial Institutions (CDFI) Fund, 
Department of the Treasury. The BEA Program encourages Insured 
Depository Institutions to increase their levels of loans, investments, 
services, technical assistance within Distressed Communities, and 
financial assistance to CDFIs through equity investments, equity-like 
loans, grants, stock purchases, loans, deposits, and other forms of 
financial and technical assistance, during a specified period.

I. Funding Opportunity Description

A. Baseline Period and Assessment Period Dates

    A BEA Program Award is based on an Applicant's increases in 
Qualified Activities from the Baseline Period to the Assessment Period. 
For the FY 2014 funding round, the Baseline Period is calendar year 
2012 (January 1, 2012 through December 31, 2012), and the Assessment 
Period is calendar year 2013 (January 1, 2013 through December 31, 
2013). If Qualified Activities in a specific category result in a 
decrease in activity from the Baseline Period to the Assessment Period, 
there is no need to report the activity.

B. Program Regulations

    The regulations governing the BEA Program can be found at 12 CFR 
part 1806 (the Interim Rule). The Interim Rule provides guidance on 
evaluation criteria and other requirements of the BEA Program. The CDFI 
Fund encourages interested parties and Applicants to review the Interim 
Rule. Detailed BEA Program requirements are also found in the 
Application related to this NOFA. Each capitalized term in this NOFA is 
more fully defined either in the Interim Rule or the Application.

C. Qualified Activities

    Qualified Activities are defined in the Interim Rule to include 
CDFI Related Activities, Distressed Community Financing Activities, and 
Service Activities (12 CFR 1806.103). CDFI Related Activities (12 CFR 
1806.103(q)) include Equity Investments, Equity-Like Loans, and CDFI 
Support Activities. Distressed Community Financing Activities (12 CFR 
1806.103(u)) include Affordable Housing Loans, Affordable Housing 
Development Loans and related Project Investments; Education Loans; 
Commercial Real Estate Loans and related Project Investments; Home 
Improvement Loans; and Small Business Loans and related Project 
Investments. Service Activities (12 CFR 1806.103(nn)) include Deposit 
Liabilities, Financial Services, Community Services, Targeted Financial 
Services, and Targeted Retail Savings/Investment Products.
    When calculating BEA Program Award amounts, the CDFI Fund will only 
consider the amount of Qualified Activity that has been fully 
disbursed, or in the case of partially disbursed Qualified Activities, 
will only consider the amount that an Applicant reasonably expects to 
disburse for a Qualified Activity within 12 months from the end of the 
Assessment Period. Subject to the requirements outlined in Section VII. 
B.1. of this NOFA, in the case of Commercial Real Estate Loans and 
related Project Investments, the total principal amount of the 
transaction must be $10 million or less to be considered a Qualified 
Activity. Notwithstanding the foregoing, the CDFI Fund, in its sole 
discretion, may consider transactions with a total principal value of 
over $10 million, subject to review.
    Activities funded with prior BEA Program Award dollars, or funded 
to satisfy requirements of a BEA Program Award Agreement from a prior 
Award shall not constitute a Qualified Activity for the purposes of 
calculating or receiving an Award.

D. Designation of Distressed Community

    Each CDFI Partner that is the recipient of CDFI Support Activities 
from an Applicant must designate a Distressed Community. CDFI Partners 
that receive Equity Investments are not required to designate 
Distressed Communities.
    Applicants applying for a BEA Program Award for carrying out 
Distressed Community Financing Activities or Service Activities must 
verify that addresses of both Baseline and Assessment Period activities 
are in Distressed Communities when completing their Application.
    Please note that a Distressed Community as defined by the BEA 
Program is not necessarily the same as

[[Page 22843]]

an Investment Area as defined by the CDFI Program or a Low-Income 
Community as defined by the New Markets Tax Credit (NMTC) Program.
1. Definition of Distressed Community
    A Distressed Community must meet certain minimum geographic area 
and distress requirements, which are defined in the Interim Rule at 12 
CFR 1806.103(t) and more fully described in 12 CFR 1806.200. Applicants 
should use the CDFI Fund's Information Mapping System (CIMS3) to 
determine whether a Baseline Period activity or Assessment Period 
activity is located in a qualifying Distressed Community.
2. Designation of a Distressed Community by a CDFI Partner
    A CDFI Partner (as appropriate) shall designate an area as a 
Distressed Community by:
    (a) Selecting Geographic Units which individually meet the minimum 
area eligibility requirements; or
    (b) selecting two or more Geographic Units which, in the aggregate, 
meet the minimum area eligibility requirements set forth in paragraph 
(1) of this section.
    A CDFI Partner designates a Distressed Community by submitting a 
map of the Distressed Community as described in the BEA Program 
Application. CDFI Partners must use CIMS3 to designate Distressed 
Communities. CIMS3 is accessed through myCDFIFund and contains step-by-
step instructions on how to create and save the aforementioned map of 
the Distressed Community. myCDFIFund is an electronic interface that is 
accessed through the CDFI Fund's Web site (www.cdfifund.gov). 
Instructions for registering with myCDFIFund are available on the CDFI 
Fund's Web site. If you have any questions or problems with 
registering, please contact the CDFI Fund IT HelpDesk by telephone at 
(202) 653-0300, or by email to [email protected].
3. Designation of a Distressed Community by a BEA Applicant
    A BEA Applicant shall designate an area as a Distressed Community 
by:
    (a) Selecting the Geographic Unit where the BEA Qualified Activity 
occurred, which individually meets the minimum area eligibility 
requirements; or
    (b) selecting the Geographic Unit where the BEA Qualified Activity 
occurred, plus one or more Geographic Units directly contiguous to 
where the BEA Qualified Activity occurred which, in the aggregate, meet 
the minimum area eligibility requirements set forth in paragraph (1) of 
this section.

II. Award Information

A. CDFI Applicants

    No CDFI Applicant may receive a FY 2014 BEA Program Award if it 
has: (1) An application pending for assistance under the FY 2014 round 
of the Community Development Financial Institutions Program (CDFI 
Program); (2) Been awarded assistance from the CDFI Fund under the CDFI 
Program within the 12-month period prior to the date the CDFI Fund 
selects the Applicant to receive a FY 2014 BEA Program Award; or (3) 
Ever received assistance under the CDFI Program for the same activities 
for which it is seeking a FY 2014 BEA Program Award. Please note that 
Applicants may apply for both a CDFI Program Award and a BEA Program 
Award in FY 2014; however, receiving a FY 2014 CDFI Program award 
removes an Applicant from eligibility for a FY 2014 BEA Program Award.

B. Award Amounts

    The CDFI Fund expects that it may award approximately $18 million 
in FY 2014 BEA Program Awards, in appropriated funds under this NOFA. 
The CDFI Fund reserves the right to award in excess of said funds under 
this NOFA, provided that the appropriated funds are available. The CDFI 
Fund reserves the right to impose a maximum Award amount; however under 
no circumstances will an Award be higher than $2 million for any 
Awardee. The CDFI Fund also reserves the right to impose a minimum 
Award amount due to availability of funds. Further, the CDFI Fund 
reserves the right to fund, in whole or in part, any, all, or none of 
the Applications submitted in response to this NOFA. The CDFI Fund 
reserves the right to reallocate funds from the amount that is 
anticipated to be available under this NOFA to other CDFI Fund 
programs, or reallocate remaining funds to a future BEA Program funding 
round, if the CDFI Fund determines that the number of Awards made under 
this NOFA is fewer than projected.

C. Types of Awards

    BEA Program Awards are made in the form of grants.

D. Award Agreement

    Each Awardee under this NOFA must sign an Award Agreement prior to 
disbursement by the CDFI Fund of the Award proceeds. The Award 
Agreement contains the terms and conditions of the Award. For further 
information, see Section VIII of this NOFA.

III. Eligibility

A. Eligible Applicants

    Eligible Applicants for the BEA Program must be Insured Depository 
Institutions, as defined in Section 3 of the Federal Deposit Insurance 
Act 12 U.S.C. 1813(c)(2). An Applicant must be FDIC-insured as of 
December 31, 2013 for the FY 2014 funding round to be eligible for 
consideration for a BEA Program Award under this NOFA. The depository 
institution holding company of an Insured Depository Institution may 
not apply on behalf of an Insured Depository Institution. Applications 
received from depository institution holding companies will be 
disqualified. For the purposes of this NOFA, an eligible CDFI Applicant 
is an Insured Depository Institution that was certified as a CDFI as of 
the end of the applicable Assessment Period and maintains its status as 
a certified CDFI at the time BEA Program Awards are announced under 
this NOFA.
    The CDFI Fund will conduct a debarment check and will not consider 
an Application submitted by an Applicant, if the Applicant is 
delinquent on any federal debt.
1. Prior Awardees
    Applicants must be aware that success in a prior round of any of 
the CDFI Fund's programs is not indicative of success under this NOFA. 
For purposes of this section, the CDFI Fund will consider an Affiliate 
to be any entity that Controls (as such term is defined in paragraph 
(e) below) the Applicant, is Controlled by the Applicant or is under 
common Control with the Applicant (as determined by the CDFI Fund) and 
any entity otherwise identified as an affiliate by the Applicant in its 
Application under this NOFA. Prior BEA Program Awardees and prior 
Awardees of other CDFI Fund programs are eligible to apply under this 
NOFA, except as follows:
    (a) Pending resolution of noncompliance: If an Applicant that is a 
prior Awardee or Allocatee under any CDFI Fund program: (i) Has 
submitted reports to the CDFI Fund that demonstrate noncompliance with 
a previous assistance agreement, award agreement, allocation agreement, 
bond loan agreement, or agreement to guarantee and (ii) the CDFI Fund 
has yet to make a final determination as to whether the entity is in 
default of its previous agreement, the CDFI Fund will consider the 
Applicant's Application under this NOFA pending full resolution, in the 
sole determination of the CDFI Fund, of the noncompliance.

[[Page 22844]]

    (b) Default status: The CDFI Fund will not consider an Application 
submitted by an Applicant that is a prior CDFI Fund Awardee or 
Allocatee under any CDFI Fund program if, as of the applicable 
Application deadline of this NOFA, the CDFI Fund has made a final 
determination that such Applicant is in default of a previously 
executed assistance agreement, award agreement, allocation agreement, 
bond loan agreement, or agreement to guarantee. Such entities will be 
ineligible to apply for an Award pursuant to this NOFA so long as the 
Applicant's prior award or allocation remains in default status or such 
other time period as specified by the CDFI Fund in writing.
    (c) Undisbursed funds: For the purposes of this section, the term 
``undisbursed funds'' is defined as: (i) In the case of prior BEA 
Program Award(s), any balance of Award funds equal to or greater than 
five percent of the total prior BEA Program Award(s) that remains 
undisbursed more than three years after the end of the calendar year in 
which the CDFI Fund signed an Award Agreement with the Awardee, or (ii) 
in the case of prior CDFI Program or other CDFI Fund program award(s), 
any balance of award funds equal to or greater than five percent of the 
total prior award(s) that remains undisbursed more than two years after 
the end of the calendar year in which the CDFI Fund signed the 
applicable assistance agreement with the Awardee.
    The term ``undisbursed funds'' does not include (i) tax credit 
allocation authority allocated through the New Markets Tax Credit 
Program; (ii) any award funds for which the CDFI Fund received a full 
and complete disbursement request from the awardee as of the 
Application deadline of this NOFA; or (iii) any award funds for an 
award that has been terminated, expired, rescinded, or deobligated by 
the CDFI Fund.
    The CDFI Fund will not consider an Application submitted by an 
Applicant that is a prior CDFI Fund Awardee under any CDFI Fund program 
if the Applicant has a balance of undisbursed funds under said prior 
award(s), as of the Application deadline of this NOFA. Further, an 
entity is not eligible to apply for an Award pursuant to this NOFA if 
an Affiliate of the Applicant is a prior CDFI Fund awardee under any 
CDFI Fund program, and has a balance of undisbursed funds under said 
prior Award(s), as of the Application deadline of this NOFA. In the 
case where an Affiliate of the Applicant is a prior CDFI Fund awardee 
under any CDFI Fund program, and has a balance of undisbursed funds 
under said prior award(s), as of the Application deadline of this NOFA, 
the CDFI Fund will include the combined awards of the Applicant and 
such Affiliates when calculating the amount of undisbursed funds.
    (d) Control: For purposes of this NOFA, the term ``Control'' means: 
(1) Ownership, control, or power to vote 25 percent or more of the 
outstanding shares of any class of voting securities as defined in 12 
CFR 1805.104(mm) of any legal entity, directly or indirectly or acting 
through one or more other persons; (2) control in any manner over the 
election of a majority of the directors, trustees, or general partners 
(or individuals exercising similar functions) of any legal entity; or 
(3) the power to exercise, directly or indirectly, a controlling 
influence over the management, credit, or investment decisions, or 
policies of any legal entity.
    (e) Contact the CDFI Fund: Accordingly, Applicants that are prior 
Awardees and/or Allocatees under any CDFI Fund program are advised to: 
(i) Comply with requirements specified in an assistance agreement, 
award agreement, allocation agreement, bond loan agreement, or 
agreement to guarantee and (ii) contact the CDFI Fund to ensure that 
all necessary actions are underway for the disbursement of any 
outstanding balance of a prior award(s). An Applicant that is unsure 
about the disbursement status of any prior award should contact the 
CDFI Fund by sending an email to [email protected]. All 
outstanding reports and compliance questions should be directed to the 
Certification, Compliance Monitoring, and Evaluation helpdesk by email 
at [email protected] or by telephone at (202) 653-0421. The CDFI Fund 
will respond to Applicants' reporting, compliance, or disbursement 
questions between the hours of 9:00 a.m. and 5:00 p.m. ET, starting on 
the date of the publication of this NOFA through May 29, 2014. The CDFI 
Fund will not respond to Applicants' reporting, compliance, or 
disbursement telephone calls or email inquiries that are received after 
5:00 p.m. ET on May 29, 2014 until after the Application deadline. The 
CDFI Fund will respond to technical issues related to myCDFIFund 
Accounts through 5:00 p.m. ET on June 4, 2014.
2. Cost Sharing and Matching Fund Requirements
    Not applicable.

IV. Application and Submission Information

A. Application Content Requirements

    Detailed Application content requirements are found in the 
Application related to this NOFA. Applicants must submit all materials 
described in and required by the Application by the applicable 
deadlines. Additional information, including instructions relating to 
the submission of the Application via Grants.gov, and the submission of 
the FY 2014 BEA Signature Page and supporting documentation via 
myCDFIFund, is set forth in further detail in the Application.
    Please note that, pursuant to OMB guidance (68 FR 38402), each 
Applicant must provide, as part of its Application submission, a Dun 
and Bradstreet Data Universal Numbering System (DUNS) number and a 
current Employer Identification Number (EIN). Applicants should allow 
sufficient time for the IRS and/or Dun and Bradstreet to respond to 
inquiries and/or requests for identification numbers. EINs and DUNS 
numbers must match the information in the Applicant's System for Award 
Management (SAM) account and in myCDFIFund. An active SAM account is 
required to submit Applications via Grants.gov. Neither the SAM 
account, EIN, nor the DUNS number can be that of the depository 
institution holding company of the Applicant. An Application that does 
not include an EIN or DUNS number is incomplete and cannot be 
transmitted to the CDFI Fund. The preceding sentences do not limit the 
CDFI Fund's ability to contact an Applicant for the purpose of 
confirming or clarifying information regarding a DUNS number or EIN. 
Once an Application is submitted, the Applicant will not be allowed to 
change any element of the Application.
    As set forth in further detail in the Application, any Qualified 
Activity missing the required documentation will be disqualified. 
Applicants will not be allowed to submit missing documentation for 
Qualified Activities after the Application deadline.

B. Form of Application Submission

    Applicants must submit Applications under this NOFA via Grants.gov 
with certain required documentation via myCDFIFund according to the 
instructions in the Application. Applications sent by mail, facsimile 
or email will not be accepted. In order to submit an Application via 
Grants.gov, Applicants must complete a multi-step registration process. 
This includes registration at www.sam.gov. Applicants

[[Page 22845]]

are advised to make sure their SAM account is active and valid well in 
advance of submitting an Application via Grants.gov and to allow ample 
time to complete the entire registration and submission process prior 
to the application deadline of June 2, 2014.
    myCDFIFund Accounts: All Applicants and CDFI Partners must complete 
a FY 2014 BEA Signature Page in myCDFIFund. All Applicants and CDFI 
Partners must register User and Organization accounts in myCDFIFund, 
the CDFI Fund's Internet-based interface, by the applicable Application 
deadline. Failure to register and complete a FY 2014 BEA Signature Page 
in myCDFIFund could result in the CDFI Fund being unable to accept the 
Application. As myCDFIFund is the CDFI Fund's primary means of 
communication with Applicants and awardees, institutions must make sure 
that they update their contact information in their myCDFIFund 
accounts. For more information on myCDFIFund, please see the 
``Frequently Asked Questions'' link posted at https://www.cdfifund.gov/myCDFI/Help/Help.asp.
    Qualified Activity documentation and other attachments as specified 
in the applicable BEA Program Application must be submitted 
electronically via the BEA Signature Page interface in myCDFIFund. 
Detailed instructions regarding submission of Qualified Activity 
documentation is provided in the Application instructions. 
Applications, attachments, and Qualified Activity documentation 
delivered by hard copy to the CDFI Fund's Washington, DC office will be 
rejected.

C. Application Deadlines

    The deadline for receipt of Applications via Grants.gov for the FY 
2014 funding round is 11:59 p.m. ET on June 2, 2014. The deadline for 
the submission of the FY 2014 BEA Signature Page via myCDFIFund for the 
FY 2014 funding round is 5:00 p.m. ET on June 4, 2014. The deadline for 
receipt of electronically submitted Qualified Activity documentation in 
myCDFIFund is 5:00 p.m. ET, June 4, 2014. Applications and other 
required documents and other attachments received after the deadline on 
the applicable date will be rejected. Please note that the document 
submission deadlines in this NOFA and the funding Application are 
strictly enforced. The CDFI Fund will not grant exceptions or waivers 
for late submissions.

D. Paperwork Reduction Act

    Under the Paperwork Reduction Act (44 U.S.C. chapter 35), an agency 
may not conduct or sponsor a collection of information, and an 
individual is not required to respond to a collection of information, 
unless it displays a valid OMB control number. Pursuant to the 
Paperwork Reduction Act, the BEA Program funding Application has been 
assigned the following control number: 1559-0005.

V. Intergovernmental Review

    Not Applicable.

VI. Funding Restrictions

    Not Applicable.

VII. Application Review Information

A. CDFI Related Activities

    CDFI Related Activities include Equity Investments, Equity-Like 
Loans, and CDFI Support Activities provided to eligible CDFI Partners. 
In addition to regulatory requirements, this NOFA provides the 
following:
1. Eligible CDFI Partner
    CDFI Partner is defined as a CDFI that has been provided assistance 
in the form of CDFI Related Activities by an Applicant (12 CFR 
1806.103(p)). For the purposes of this NOFA, an eligible CDFI Partner 
is an entity that has been certified as a CDFI as of the end of the 
applicable Assessment Period and is Integrally Involved in a Distressed 
Community.
2. Integrally Involved
    Integrally Involved is defined as having provided: (i) At least 10 
percent of financial transactions or dollars transacted (e.g., loans or 
equity investments as defined in 12 CFR 1805.104(t)), or 10 percent of 
Development Service activities (as defined in 12 CFR 1805.104(s)), in 
one or more Distressed Communities identified by the Applicant or the 
CDFI Partner, as applicable, in each of the three calendar years 
preceding the date of the applicable NOFA,(ii) having transacted at 
least 25 percent of financial transactions (e.g., loans or equity 
investments) in one or more Distressed Communities in at least one of 
the three calendar years preceding the date of the applicable NOFA, or 
(iii) demonstrated that it has attained at least 10 percent of market 
share for a particular product in one or more Distressed Communities 
(such as at least 10 percent of home mortgages originated in one or 
more Distressed Communities) in at least one of the three calendar 
years preceding the date of the applicable NOFA.
3. Limitations on Eligible Qualified Activities Provided to Certain 
CDFI Partners
    A CDFI Applicant cannot receive credit for any financial assistance 
or Qualified Activities provided to a CDFI Partner that is also an 
FDIC-insured depository institution or depository institution holding 
company.
4. Certificates of Deposit
    Section 1806.103(r) of the Interim Rule states that any certificate 
of deposit (CD) placed by an Applicant or its Subsidiary in a CDFI 
Partner that is a bank, thrift, or credit union must be: (i) Uninsured 
and committed for at least three years; or (ii) insured, committed for 
a term of at least three years, and provided at an interest rate that 
is materially below market rates, in the determination of the CDFI 
Fund.
    (a) For purposes of this NOFA, ``materially below market interest 
rate'' is defined as an annual percentage rate that does not exceed 100 
percent of yields on Treasury securities at constant maturity as 
interpolated by Treasury from the daily yield curve and available on 
the Treasury Web site at www.treas.gov/offices/domestic-finance/debt-management/interest-rate/yield.shtml. For example, for a three-year CD, 
Applicants should use the three-year rate U.S. Government securities, 
Treasury Yield Curve Rate posted for that business day. The Treasury 
updates the Web site daily at approximately 5:30 p.m. ET. CDs placed 
prior to that time may use the rate posted for the previous business 
day. The annual percentage rate on a CD should be compounded quarterly, 
semi-annually, or annually. If a variable interest rate is used, the CD 
must also have an interest rate that is materially below the market 
interest rate over the life of the CD, in the determination of the CDFI 
Fund. (b) For purposes of this NOFA, a deposit placed by an Applicant 
directly with a CDFI Partner that participates in a deposit network or 
service may be treated as eligible under this NOFA if it otherwise 
meets the criteria for deposits in 1806.103(r) and the CDFI Partner 
retains the full amount of the initial deposit or an amount equivalent 
to the full amount of the initial deposit through a deposit network 
exchange transaction.
5. Equity Investment
    An Equity Investment means financial assistance in the form of a 
grant, a stock purchase, a purchase of a partnership interest, a 
purchase of a limited liability

[[Page 22846]]

company membership interest, or any other investment deemed to be an 
Equity Investment by the CDFI Fund provided by an Applicant or its 
Subsidiary to a CDFI Partner that meets the criteria set forth in the 
applicable NOFA.
6. Equity-Like Loan
    An Equity-Like Loan is a loan provided by an Applicant or its 
Subsidiary to a CDFI Partner, and made on such terms that it has 
characteristics of an Equity Investment, as such characteristics may be 
specified by the CDFI Fund (12 CFR 1806.103(z)). For purposes of this 
NOFA, an Equity-Like Loan must meet the following characteristics:
    (a) At the end of the initial term, the loan must have a definite 
rolling maturity date that is automatically extended on an annual basis 
if the CDFI borrower continues to be financially sound and carry out a 
community development mission;
    (b) Periodic payments of interest and/or principal may only be made 
out of the CDFI borrower's available cash flow after satisfying all 
other obligations;
    (c) Failure to pay principal or interest (except at maturity) will 
not automatically result in a default of the loan agreement; and
    (d) The loan must be subordinated to all other debt except for 
other Equity-Like Loans. Notwithstanding the foregoing, the CDFI Fund 
reserves the right to determine, in its sole discretion and on a case-
by-case basis, whether an instrument meets the above-stated 
characteristics of an Equity-Like Loan.
7. CDFI Support Activity
    A CDFI Support Activity is defined as assistance provided by an 
Applicant or its Subsidiary to a CDFI Partner, in the form of a loan, 
technical assistance, or deposits.
8. CDFI Program Matching Funds
    Equity Investments, Equity-Like Loans, and CDFI Support Activities 
(except technical assistance) provided by a BEA Applicant to a CDFI and 
used by the CDFI for matching funds under the CDFI Program are eligible 
as a Qualified Activity under the CDFI Related Activity category.

B. Distressed Community Financing Activities and Service Activities

    Distressed Community Financing Activities include Affordable 
Housing Loans, Affordable Housing Development Loans and related Project 
Investments, Education Loans, Commercial Real Estate Loans and related 
Project Investments, Home Improvement Loans, and Small Business Loans 
and related Project Investments (12 CFR 1806.103(u)). In addition to 
the regulatory requirements, this NOFA provides the following 
additional requirements:
1. Commercial Real Estate Loans and Related Project Investments
    For purposes of this NOFA, eligible Commercial Real Estate Loans 
(12 CFR 1806.103(l)) and related Project Investments (12 CFR 
1806.103(ll)) are generally limited to transactions with a total 
principal value of $10 million or less. Notwithstanding the foregoing, 
the CDFI Fund, in its sole discretion, may consider transactions with a 
total principal value of over $10 million, subject to review. For such 
transactions, Applicants must provide a separate narrative, or other 
information, to demonstrate that the proposed project offers, or 
significantly enhances the quality of, a facility or service not 
currently provided to the Distressed Community.
2. Reporting Certain Financial Services
    The CDFI Fund will value the administrative cost of providing 
certain Financial Services using the following per unit values:
    (a) $100.00 per account for Targeted Financial Services;
    (b) $50.00 per account for checking and savings accounts that do 
not meet the definition of Targeted Financial Services;
    (c) $5.00 per check cashing transaction;
    (d) $25,000 per new ATM installed at a location in a Distressed 
Community;
    (e) $2,500 per ATM operated at a location in a Distressed 
Community;
    (f) $250,000 per new retail bank branch office opened in a 
Distressed Community; and
    (g) In the case of Applicants engaging in Financial Services 
activities not described above, the CDFI Fund will determine the unit 
value of such services.
    (i) When reporting the opening of a new retail bank branch office, 
the Applicant must certify that it has not operated a retail branch in 
the same Distressed Community in which the new retail branch office is 
being opened in the past three years, and that such new branch will 
remain in operation for at least the next five years.
    (ii) Financial Service Activities must be provided by the Applicant 
to Low- and Moderate-Income Residents. An Applicant may determine the 
number of Low- and Moderate-Income individuals who are recipients of 
Financial Services by either: (i) Collecting income data on its 
Financial Services customers, or (ii) certifying that the Applicant 
reasonably believes that such customers are Low- and Moderate-Income 
individuals and providing a brief analytical narrative with information 
describing how the Applicant made this determination. Citations must be 
provided for external sources. In addition, if external sources are 
referenced in the narrative, the Applicant must explain how it reached 
the conclusion that the cited references are directly related to the 
Low-and Moderate-Income residents to whom it is claiming to have 
provided the Financial Services.
    (iii) When reporting changes in the dollar amount of deposit 
accounts, only calculate the net change in the total dollar amount of 
eligible Deposit Liabilities between the Baseline Period and the 
Assessment Period. Do not report each individual deposit. If the net 
change between the Baseline Period and Assessment Period is a negative 
dollar amount, then a negative dollar amount may be recorded for 
Deposit Liabilities only. Instructions for determining the net change 
is available in the Supplemental Guidance to the FY 2014 BEA Program 
Application.

C. Priority Factors

    Priority Factors are the numeric values assigned to individual 
types of activity within: (i) The Distressed Community Financing, and 
(ii) Services categories of Qualified Activities. For the purposes of 
this NOFA, Priority Factors will be based on the Applicant's asset size 
as of the end of the Assessment Period (December 31, 2013) as reported 
by the Applicant in the Application. Asset size classes (i.e., small 
institutions, intermediate-small institutions, and large institutions) 
will correspond to the Community Reinvestment Act (CRA) asset size 
classes set by the three Federal bank regulatory agencies and that were 
effective as of the end of the Assessment Period. The Priority Factor 
works by multiplying the change in a Qualified Activity by the assigned 
Priority Factor to achieve a ``weighted value.'' This weighted value of 
the change would be multiplied by the applicable Award percentage to 
yield the Award amount for that particular activity. For purposes of 
this NOFA, the CDFI Fund is establishing Priority Factors based on 
Applicant asset size to be applied to all activity within the 
Distressed Community Financing Activities and Service Activities 
categories only, as follows:

[[Page 22847]]



------------------------------------------------------------------------
                                                                Priority
                CRA Asset size classification                    factor
------------------------------------------------------------------------
Small institutions (assets of less than $300 million as of 12/       5.0
 31/2013)....................................................
Intermediate--small institutions (assets of at least $300            3.0
 million but less than $1.202 billion as of 12/31/2013)......
Large institutions (assets of $1.202 billion or greater as of        1.0
 12/31/2013).................................................
------------------------------------------------------------------------

D. Certain Limitations on Qualified Activities:

1. Low-Income Housing Tax Credits
    Financial assistance provided by an Applicant for which the 
Applicant receives benefits through Low-Income Housing Tax Credits, 
authorized pursuant to Section 42 of the Internal Revenue Code, as 
amended (26 U.S.C. 42), shall not constitute an Equity Investment, 
Project Investment, or other Qualified Activity, for the purposes of 
calculating or receiving a Bank Enterprise Award.
2. New Markets Tax Credits
    Financial assistance provided by an Applicant for which the 
Applicant receives benefits as an investor in a Community Development 
Entity that has received an allocation of New Markets Tax Credits, 
authorized pursuant to Section 45D of the Internal Revenue Code, as 
amended (26 U.S.C. 45D), shall not constitute an Equity Investment, 
Project Investment, or other Qualified Activity, for the purposes of 
calculating or receiving a Bank Enterprise Award. Leverage loans used 
in New Markets Tax Credit structured transactions that meet the 
requirements outlined in the applicable NOFA are considered Distressed 
Community Financing Activities.
3. Loan Renewals and Refinances
    Financial assistance provided by an Applicant shall not constitute 
a Qualified Activity, as defined in this part, for the purposes of 
calculating or receiving a Bank Enterprise Award if such financial 
assistance consists of a loan to a borrower that has matured and is 
then renewed by the Applicant, or consists of a loan to a borrower that 
is retired or restructured using the proceeds of a new commitment by 
the Applicant. Payoff of a separate third party obligation will only be 
considered a Qualified Activity if the payoff of a transaction is part 
of the sale of property or business to an unaffiliated party to the 
borrower. Applicants should include a narrative statement to describe 
any such transactions. Otherwise the transaction will be disqualified.
4. Prior BEA Program Awards
    Qualified Activities funded with prior funding round BEA Program 
Award dollars or funded to satisfy requirements of the BEA Program 
Award Agreement shall not constitute a Qualified Activity for the 
purposes of calculating or receiving a BEA Program Award.
5. Prior CDFI Program Awards
    No CDFI Applicant may receive a BEA Program Award for activities 
funded by a CDFI Program Award.

E. Award Percentages, Award Amounts, Selection Process

    The Interim Rule describes the process for selecting Applicants to 
receive a BEA Program Award and determining Award amounts. Applicants 
will calculate and request an estimated Award amount in accordance with 
a multi-step procedure that is outlined in the Interim Rule (at 12 CFR 
1806.202). As outlined in the Interim Rule at 12 CFR 1806.203, the CDFI 
Fund will determine actual Award amounts based on the availability of 
funds, increases in Qualified Activities from the Baseline Period to 
the Assessment Period, and each Applicant's priority ranking. In 
calculating the increase in Qualified Activities, the CDFI Fund will 
determine the eligibility of each transaction for which an Applicant 
has applied for a Bank Enterprise Award. In some cases, the actual 
Award amount calculated by the CDFI Fund may not be the same as the 
estimated Award amount requested by the Applicant.
    The CDFI Fund may take into consideration the views of the 
appropriate Federal bank regulatory agency, as defined in Section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813(q)). The CDFI Fund 
will not approve a BEA Program Award to an Insured Depository 
Institution Applicant if at the time of application submission and 
during the application review process the appropriate Federal bank 
regulatory agency indicates a composite rating of ``5'' during its most 
recent examination, performed in accordance with the Uniform Financial 
Institutions Rating System . Furthermore, the CDFI Fund will not 
approve a BEA Program Award for the following reasons if at the time of 
application: (i) The Applicant and/or its Affiliates most recent 
overall CRA assessment rating is below ``Satisfactory'', (ii) the 
Applicant received a going concern opinion on its most recent audit, or 
(iii) the Applicant received a Prompt Corrective Action directive from 
its regulator. Applicants and Federal bank regulators may be contacted 
by the CDFI Fund to provide additional information related to Federal 
bank regulatory or CRA information. The CDFI Fund may choose not to 
approve a BEA Program Award to an Insured Depository Institution 
Applicant if this information indicates that the Applicant is unable to 
responsibly manage, re-invest, and/or report on a BEA Program Award 
during the performance period.
    In the CDFI Related Activities category (except for an Equity 
Investment or Equity-Like Loan), for CDFI Applicants, such estimated 
Award amount will be equal to 18 percent of the increase in Qualified 
Activity for the category. If an Applicant is not a CDFI Applicant, 
such estimated Award amount will be equal to 6 percent of the increase 
in Qualified Activity for the category. Notwithstanding the foregoing, 
for a CDFI Applicant and for an Applicant that is not a CDFI Applicant, 
the Award percentage applicable to an Equity Investment, Equity-Like 
Loan, or Grant in a CDFI shall be 15 percent of the increase in 
Qualified Activity for the category. For the Distressed Community 
Financing Activities and Service Activities categories, for a CDFI 
Applicant, such estimated Award amount will be equal to 9 percent of 
the weighted value of the increase in Qualified Activity for the 
category. If an Applicant is not a CDFI Applicant, such estimated Award 
amount will be equal to 3 percent of the weighted value of the increase 
in Qualified Activity for the category.
    If the amount of funds available during the funding round is 
insufficient for all estimated Award amounts, Awardees will be selected 
based on the process described in the Interim Rule at 12 CFR 
1806.203(b). This process gives funding priority to Applicants that 
undertake activities in the following order: (i) CDFI Related 
Activities, (ii) Distressed Community Financing Activities, and (iii) 
Service Activities, as described in the Interim Rule at 12 CFR 
1806.203(c) .
    Within each category, CDFI Applicants will be ranked first 
according to the ratio of the actual Award amount calculated by the 
CDFI Fund for the category to the total assets of the Applicant, 
followed by Applicants that are not CDFI Applicants according to the 
ratio of the actual Award amount calculated by the CDFI Fund for the 
category to the total assets of the Applicant.
    The CDFI Fund, in its sole discretion: (i) May adjust the estimated 
Award amount that an Applicant may receive,

[[Page 22848]]

(ii) may establish a maximum amount that may be awarded to an 
Applicant, and (iii) reserves the right to limit the amount of an Award 
to any Applicant if the CDFI Fund deems it appropriate.
    For purposes of calculating Award disbursement amounts, the CDFI 
Fund will treat Qualified Activities with a total principal amount less 
than or equal to $250,000 as fully disbursed. For all other Qualified 
Activities, Awardees will have 12 months from the end of the Assessment 
Period to make disbursements and 18 months from the end of the 
Assessment Period to submit to the CDFI Fund disbursement requests for 
the corresponding portion of their Awards, after which the CDFI Fund 
will rescind and deobligate any outstanding Award balance and said 
outstanding Award balance will no longer be available to the Awardee.
    The CDFI Fund reserves the right to contact the Applicant to 
confirm or clarify information. If contacted, the Applicant must 
respond within the CDFI Fund's time parameters or run the risk of being 
rejected.
    The CDFI Fund reserves the right to change its eligibility and 
evaluation criteria and procedures. If those changes materially affect 
the CDFI Fund's Award decisions, the CDFI Fund will provide information 
regarding the changes through the CDFI Fund's Web site.
    There is no right to appeal the CDFI Fund's Award decisions. The 
CDFI Fund's Award decisions are final. The CDFI Fund will not discuss 
the specifics of an Applicant's BEA Program Application or provide 
reasons why an Applicant did not receive a BEA Program Award. The CDFI 
Fund will only respond to general questions regarding the FY 2014 
Application and Award decision process until 30 days after the award 
announcement date.

VIII. Award Administration Information

A. Notice of Award and Award Agreement

    The CDFI Fund will signify its selection of an Applicant as an 
Awardee by delivering a Notice of Award and Award Agreement to the 
Applicant. The Notice of Award and Award Agreement will contain the 
general terms and conditions underlying the CDFI Fund's provision of an 
Award. The Awardee will receive a copy of the Notice of Award and Award 
Agreement. The Awardee must execute the Award Agreement and return it 
to the CDFI Fund. Each Awardee must also ensure that complete and 
accurate banking information is reflected in its System for Award 
Management (SAM) account on www.sam.gov.
    The CDFI Fund reserves the right, in its sole discretion, to 
rescind the Award, the Notice of Award, and the Award Agreement if the 
Awardee fails to return the Award Agreement signed by the Authorized 
Representative of the Awardee or any other requested documentation by 
the deadline set by the CDFI Fund.
    By executing an Award Agreement, the Awardee agrees that, if the 
CDFI Fund becomes aware of any information (including administrative 
errors) prior to the Effective Date of the Award Agreement that either 
adversely affects the Awardee's eligibility for an Award, or adversely 
affects the CDFI Fund's evaluation of the Awardee's Application, or 
indicates fraud or mismanagement on the part of the Awardee, the CDFI 
Fund may, in its discretion and without advance notice to the Awardee, 
terminate the Award Agreement or take other actions as it deems 
appropriate.
    1. Failure to meet reporting requirements: If an Applicant, or its 
Affiliate, is a prior CDFI Fund Awardee or Allocatee under any CDFI 
Fund program and is not current on the reporting requirements set forth 
in the previously executed assistance, award, allocation, bond loan 
agreement(s), or agreement to guaranty. as of the date of the Notice of 
Award, the CDFI Fund reserves the right, in its sole discretion, to 
delay entering into an Award Agreement and/or to delay making a 
disbursement of Award proceeds, until said prior Awardee or Allocatee 
is current on the reporting requirements in the previously executed 
assistance, award, allocation, bond loan agreement(s), or agreement to 
guaranty. Please note that automated systems employed by the CDFI Fund 
for receipt of reports submitted electronically typically acknowledge 
only a report's receipt; such acknowledgment does not warrant that the 
report received was complete and therefore met reporting requirements. 
If said prior Awardee or Allocatee is unable to meet this requirement 
within the timeframe set by the CDFI Fund, the CDFI Fund reserves the 
right, in its sole discretion, to terminate and rescind the Notice of 
Award and the Award made under this NOFA.
2. Pending Resolution of Noncompliance
    If, at any time prior to entering into an Award Agreement under 
this NOFA, an Applicant that is a prior CDFI Fund Awardee or Allocatee 
under any CDFI Fund program (i) has submitted reports to the CDFI Fund 
that demonstrate noncompliance with a previous assistance, award, or 
allocation agreement, but (ii) the CDFI Fund has yet to make a final 
determination regarding whether or not the entity is in default of its 
previous assistance, award, allocation, bond loan agreement, or 
agreement to guaranty, the CDFI Fund reserves the right, in its sole 
discretion, to delay entering into an Award Agreement and/or to delay 
making a disbursement of Award proceeds, pending full resolution, in 
the sole determination of the CDFI Fund, of the noncompliance. If said 
prior Awardee or Allocatee is unable to meet this requirement, in the 
sole determination of the CDFI Fund, the CDFI Fund reserves the right, 
in its sole discretion, to terminate and rescind the Notice of Award 
and the Award made under this NOFA.
    3. Default status: If prior to entering into an Award Agreement 
under this NOFA, (i) the CDFI Fund has made a final determination that 
an Applicant that is a prior CDFI Fund Awardee or Allocatee under any 
CDFI Fund program whose award or allocation terminated in default of 
such prior agreement; (ii) the CDFI Fund has provided written 
notification of such determination to such organization; and (iii) the 
anticipated date for entering into the Award Agreement under this NOFA 
is within a period of time specified in such notification throughout 
which any new award, allocation, assistance, bond loan agreement(s), or 
agreement to guaranty is prohibited, the CDFI Fund reserves the right, 
in its sole discretion, to terminate and rescind the Award Agreement 
and the award made under this NOFA.

B. Award Agreement

    After the CDFI Fund selects an Awardee, unless an exception 
detailed in this NOFA applies, the CDFI Fund and the Awardee will enter 
into an Award Agreement. The Award Agreement will set forth certain 
required terms and conditions of the Award, which will include, but not 
be limited to: (i) The amount of the Award, (ii) the type of the Award, 
(iii) the approved uses of the Award, (iv) performance goals and 
measures, and (v) reporting requirements for all Awardees. Award 
Agreements under this NOFA generally will have one-year performance 
periods. The Award Agreement shall provide that an Awardee shall: (i) 
Carry out its Qualified Activities in accordance with applicable law, 
the approved Application, and all other applicable

[[Page 22849]]

requirements; (ii) not receive any monies until the CDFI Fund has 
determined that the Awardee has fulfilled all applicable requirements; 
and (iii) use an amount equivalent to the BEA Award amount for BEA 
Qualified Activities.

C. Administrative and National Policy Requirements

    Not applicable.

D. Reporting and Accounting

    1. The CDFI Fund will require each Awardee that receives an Award 
over $50,000 through this NOFA to account for the use of the Award. 
This will require Awardees to establish administrative and accounting 
controls, subject to applicable OMB Circulars. The CDFI Fund will 
collect information from each such Awardee on its use of the Award at 
least once following the Award and more often if deemed appropriate by 
the CDFI Fund in its sole discretion. The CDFI Fund will provide 
guidance to Awardees outlining the format and content of the 
information to be provided, outlining and describing how the funds were 
used.

IX. Agency Contacts

    The CDFI Fund will respond to questions and provide support 
concerning this NOFA and the funding Application between the hours of 
9:00 a.m. and 5:00 p.m. ET, starting on the date of the publication of 
this NOFA through May 29, 2014 for the FY 2014 funding round. The CDFI 
Fund will not respond to Applicants' reporting, compliance, or 
disbursement telephone calls or email inquiries that are received after 
5:00 p.m. ET on May 29, 2014 until after the Application deadline. The 
CDFI Fund will respond to technical issues related to myCDFIFund 
accounts through 5:00 p.m. ET on June 4, 2014.
    Applications and other information regarding the CDFI Fund and its 
programs may be downloaded and printed from the CDFI Fund's Web site at 
www.cdfifund.gov. The CDFI Fund will post responses to questions of 
general applicability regarding the BEA Program on its Web site.

A. Information Technology Support

    Technical support can be obtained by calling (202) 653-0300 or by 
email to [email protected]. People who have visual or mobility 
impairments that prevent them from creating a Distressed Community map 
using the CDFI Fund's Web site should call (202) 653-0300 for 
assistance. These are not toll free numbers.

B. Application Support

    If you have any questions about the programmatic or administrative 
requirements of this NOFA, contact the CDFI Fund's BEA Program office 
by email at [email protected], by telephone at (202) 653-0421, by 
facsimile at (202) 508-0089, or by mail at CDFI Fund, 1500 Pennsylvania 
Avenue NW., Washington, DC 20220. The number provided is not toll free.

C. Certification, Compliance Monitoring and Evaluation (CCME) Support

    If you have any questions regarding the certification and 
compliance requirements of this NOFA, including questions regarding 
performance on prior Awards, contact the CDFI Fund's CCME Unit by email 
at [email protected] or by telephone at (202) 653-0423. The number 
provided is not toll free.

D. Communication With the CDFI Fund

    The CDFI Fund will use its myCDFIFund Internet interface to 
communicate with Applicants and Awardees under this NOFA. Awardees must 
use myCDFIFund to submit required reports. The CDFI Fund will notify 
Awardees by email using the addresses maintained in each Awardee's 
myCDFIFund account. Therefore, an Awardee and any Subsidiaries, 
signatories, and Affiliates must maintain accurate contact information 
(including contact person and authorized representative, email 
addresses, fax numbers, phone numbers, and office addresses) in their 
myCDFIFund account(s). For more information about myCDFIFund, please 
see the Help documents posted at https://www.cdfifund.gov/myCDFI/Help/Help.asp.

    Authority:  12 U.S.C. 1834a, 4703, 4703 note, 4713; 12 CFR part 
1806.

    Dated: April 17, 2014.
Dennis Nolan,
Deputy Director, Community Development Financial Institutions Fund.
[FR Doc. 2014-09312 Filed 4-23-14; 8:45 am]
BILLING CODE 4810-70-P