[Federal Register Volume 87, Number 186 (Tuesday, September 27, 2022)]
[Notices]
[Pages 58639-58644]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-20732]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Information Collection and Request for Public Comment

ACTION: Notice and request for public comment.

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SUMMARY: The U.S. Department of the Treasury, as part of a continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other federal agencies to take this opportunity to comment 
on proposed and/or continuing information collections, as required by 
the Paperwork Reduction Act (PRA) of 1995. Currently, the Community 
Development Financial Institutions Fund (CDFI Fund), U.S. Department of 
the Treasury, is soliciting comments concerning the Bank Enterprise 
Award Program (BEA Program) Application (Application). The Application 
is an online form submitted through the CDFI Fund's Awards Management 
Information System (AMIS).

DATES: Written comments must be received on or before November 28, 2022 
to be assured of consideration.

ADDRESSES:  Submit your comments via email to Tanya McInnis, Program 
Manager for the Depository Institutions Initiatives, CDFI Fund at 
[email protected].

FOR FURTHER INFORMATION CONTACT:  Tanya McInnis, BEA Program, Program 
Manager, CDFI Fund, U.S. Department of the Treasury, 1500 Pennsylvania 
Avenue NW, Washington, DC 20220, (202) 653-0421 (not a toll-free 
number). Other information regarding the CDFI Fund and its programs may 
be obtained on the CDFI Fund website at https://www.cdfifund.gov. The 
BEA Program Application Template, which presents the questions that 
will comprise the online Application, may be obtained from the BEA 
Program page of the CDFI Fund website at https://www.cdfifund.gov/bea.

SUPPLEMENTARY INFORMATION: 
    Title: BEA Program Application.
    OMB Number: 1559-0005.
    Abstract: The purpose of the Bank Enterprise Award Program (BEA 
Program) is to provide an incentive to

[[Page 58640]]

Federal Deposit Insurance Corporation-insured (FDIC-insured) depository 
institutions to increase their lending, investment, and financial 
services to residents and businesses located in economically distressed 
communities, and provide assistance to Community Development Financial 
Institutions (CDFIs) through grants, stock purchases, loans, deposits, 
and other forms of financial and technical assistance. The CDFI Fund 
will make awards through the BEA Program to FDIC-insured depository 
institutions, based upon such institutions' demonstrated increase of 
qualified activities, as reported in the Application. The Application 
will solicit information concerning: applicants' eligibility to 
participate in the BEA Program; the increase in total dollar value of 
applicants' qualified activities; impact of qualified activities; and 
appropriate supporting documentation. The questions that the 
Application contains, and the information generated thereby, will 
enable the CDFI Fund to evaluate applicants' activities and determine 
the extent of applicants' eligibility for BEA Program Awards.
    Current Actions: Extension without change of currently approved 
collection.
    Type of Review: Regular.
    Affected Public: Businesses or other for-profit institutions, non-
profit entities, and State, local and Tribal entities participating in 
CDFI Fund programs.
    Estimated Number of Respondents: 180.
    Frequency of Response: Annually.
    Estimated Total Number of Annual Responses: 180.
    Estimated Annual Time per Respondent including optional questions: 
60 hours.
    Estimated Total Annual Burden Hours: 10,800.
    Request for Comments: Comments submitted in response to this Notice 
will be summarized and/or included in the request for Office of 
Management and Budget approval. All comments will become a matter of 
public record and may be published on the CDFI Fund website at https://www.cdfifund.gov.
    The CDFI Fund is seeking: (a) specific input on the BEA Program 
Application; and (b) general input on other BEA Program-related topics 
and considerations. Commentators should ensure that their comments are 
clearly labeled in order to distinguish those related to: (a) the BEA 
Program Application or, (b) other BEA Program related topics and 
considerations. The Application may be obtained on BEA Program page of 
the CDFI Fund's website at https://www.cdfifund.gov/programs-training/Programs/bank_enterprise_award/Pages/apply-step.aspx#step1.
    Commentators are encouraged to consider, at a minimum, the 
following topics:

A. BEA Program Application

    Comments concerning the Application are invited on: (a) whether the 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility, and clarity of the information to be collected; (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of technology; and (e) estimates 
of capital or start-up costs and costs of operation, maintenance, and 
purchase of services required to provide information.
    In addition, the CDFI Fund requests comments in response to the 
following general questions about the BEA Program Application:
    1. Is the data and information that is proposed to be collected by 
the BEA Program Application necessary and appropriate for the CDFI Fund 
to consider for the purpose of making award decisions?
    2. In general, does the data and information requested in the BEA 
Program Application allow an applicant to demonstrate its lending, 
investment and service activities in BEA Program Distressed Communities 
or to CDFIs?
    3. Are certain data fields, questions or tables redundant or 
unnecessary?
    4. Should any data fields, questions or tables be added to ensure 
collection of relevant information?
    5. Are there any data fields, questions or tables that are 
particularly difficult or burdensome to answer? If so, please be 
specific as to which questions or tables and describe why they are 
difficult or burdensome.
    6. The CDFI Fund considers the safety and soundness of BEA Program 
Applicants in making award decisions. Currently, through Memorandums of 
Understanding with federal regulators, the CDFI Fund obtains safety and 
soundness information directly from the Federal Reserve Board, Federal 
Deposit Insurance Corporation and the Office of the Comptroller of the 
Currency. The CDFI Fund is considering requiring Applicants to report 
on their safety and soundness by requesting that they provide 
information on their most recent independent audit, their most recent 
Community Reinvestment Act (CRA) Rating, and information on any 
enforcement actions. The collection of this information from Applicants 
would be used to consider an Applicant's eligibility before the CDFI 
Fund receives information from federal regulators.
    a. How much of a burden will the collection of this information be 
for Applicants?
    b. Are there any reasons that the CDFI Fund should not request this 
information from Applicants? If yes, please describe.
    c. Is there anything else the CDFI Fund should consider? If yes, 
please describe.
    7. The CDFI Fund is considering adding the following text entry 
fields in order to improve the quality of impact data collected in the 
BEA Program Application. This information will allow the CDFI Fund to 
standardize and effectively report quantitative and qualitative social 
impacts of program related investments.
    Business Description: Applicants will be required to provide a 
brief description of the entity or business that received the loan or 
investments. For example, for Commercial Loans and Investments, if an 
Applicant provided a commercial real estate loan to a widget 
manufacturing business so that it could purchase a warehouse in a 
distressed community, the Applicant would describe the business, using 
this text entry field as `Commercial Real Estate Loan to Widget 
Manufacturing Business for Warehouse Purchase.' If implemented, there 
will be character limits and the CDFI Fund will provide additional 
examples.

----------------------------------------------------------------------------------------------------------------
                                                                     Current impact
            Activity type                   Abbreviation           reporting guidance      Proposed enhancement
----------------------------------------------------------------------------------------------------------------
Affordable Housing Development Loans  AHD                       Total number of          Picklist: Single
 and Project Investments.                                        affordable units         Family; Multi-Family.
                                                                 developed or
                                                                 rehabilitated as part
                                                                 of the transaction.

[[Page 58641]]

 
Commercial Real Estate Loans and      CRE                       Total number of          Picklist--Acquisition;
 Project Investments.                                            commercial real estate   Development;
                                                                 properties acquired,     Rehabilitation.
                                                                 developed or
                                                                 rehabilitated.
Small Business Loans and Project      SBL                       Total number of full-    Picklist--Working
 Investments.                                                    time equivalent jobs     Capital; Business
                                                                 created or maintained    Expansion; Business
                                                                 by borrower.             Startup; Fixed
                                                                                          Capital; Equipment;
                                                                                          Other.
Financial Services..................  FS                        Number of accounts       Picklist--Accounts
                                                                 opened, checks cashed,   Opened; Checks Cashed;
                                                                 etc.                     New Branch, New ATM,
                                                                                          Other.
Targeted Financial Services.........  TFS                       Number of accounts       Picklist--Accounts
                                                                 opened, checks cashed,   Opened; Checks Cashed;
                                                                 etc.                     Other.
Targeted Savings Products...........  TSP                       Number of products       Text box--Describe the
                                                                 developed, sold or       Product Type.
                                                                 opened.
Community Services..................  CS                        Number of individuals    Text box--Describe the
                                                                 who received the         Type of Community
                                                                 identified service.      Services Provided.
----------------------------------------------------------------------------------------------------------------

    Impact: A further description of the impact of the loan, investment 
or service activity would be required. This will help to contextualize 
the numerical impact data currently collected. Currently, Applicants 
are only required to provide numerical impact information for certain 
activity types. This new text entry field would add a picklist or text 
entry box which would depend on the activity type. Refer to the table 
below for examples of impact as it relates to specific BEA Qualified 
Activities.
    Impact Reporting Enhancements:
    a. Will reporting this information significantly increase the 
number of hours spent completing the BEA Program Application?
    b. Are there any reasons that the CDFI Fund should not collect this 
information? If yes, what are they?
    c. Is there any additional information or data that demonstrates 
the impact of program related investments that the CDFI Fund should 
consider? If yes, list and describe them.
    8. The CDFI Fund is considering adding the following fields to 
collect basic information on the affordability of financial products 
reported to the CDFI Fund in the BEA Program Application for award 
consideration. This data will be used to perform future analyses to 
better understand the affordability of program related lending and may 
inform future policy considerations. For BEA Qualified Activities that 
are loans, Applicants will be asked to provide:
    Interest Rate, Interest Type, and Term: Applicants will input the 
interest rate, select the interest type as either `Fixed' or 
`Variable,' and provide the Term as the number of months. These fields 
will provide important insight into the pricing and terms offered to 
borrowers that receive loans from BEA Program Applicants.
    Origination Fees and Points: Applicants will input this numerically 
as basis points. This field will help the CDFI Fund to better 
understand the overall cost of loans made by BEA Program Applicants.
    a. How much of a burden will the collection of this information be 
for Applicants?
    b. Are there any reasons that the CDFI Fund should not collect this 
information? If yes, what are they?
    For all BEA Qualified Activities:
    c. Is there any additional information or data that demonstrates 
the affordability of program related loans or investments that the CDFI 
Fund should consider? If yes, list and describe them.

B. Other BEA Program-Related Topics and Considerations

    Commentators should clearly distinguish their comments related to 
this section when providing their responses.

1. BEA Program Categories, Subcategories and Qualified Activities 
Definitions

    The BEA Program defines the Qualified Activities, Categories and 
Subcategories in the BEA Program Interim Rule dated August 10, 2016 (12 
CFR 1806). These definitions are also provided below:

------------------------------------------------------------------------
    Category, subcategory,
   activity type, and other             Interim rule definition
        related terms
------------------------------------------------------------------------
CDFI Related Activities......  Means Equity Investments, Equity-Like
                                Loans, and CDFI Support Activities.
Equity Investment............  Means financial assistance provided by an
                                Applicant or its Subsidiary to a CDFI,
                                which CDFI meets such criteria as set
                                forth in the applicable NOFA, in the
                                form of a grant, a stock purchase, a
                                purchase of a partnership interest, a
                                purchase of a limited liability company
                                membership interest, or any other
                                investment deemed to be an Equity
                                Investment by the CDFI Fund.
Equity-Like Loan.............  Means a loan provided by an Applicant or
                                its Subsidiary to a CDFI, and made on
                                such terms that it has characteristics
                                of an Equity Investment that meets such
                                criteria as set forth in the applicable
                                NOFA.
CDFI Support Activity........  Means assistance provided by an Applicant
                                or its Subsidiary to a CDFI that meets
                                criteria set forth by the CDFI Fund in
                                the applicable NOFA and that is
                                Integrally Involved in a Distressed
                                Community, in the form of the
                                origination of a loan, Technical
                                Assistance, or deposits, as further
                                specified in the applicable NOFA.
Distressed Community           Means: (1) Consumer Loans; or (2)
 Financing Activities.          Commercial Loans and Investments.
Consumer Loans...............  Means the following lending activity
                                types: Affordable Housing Loans;
                                Education Loans; Home Improvement Loans;
                                and Small Dollar Consumer Loans.

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Affordable Housing Loan......  Means origination of a loan to finance
                                the purchase or improvement of the
                                borrower's primary residence, and that
                                is secured by such property, where such
                                borrower is an Eligible Resident who
                                meets Low- and Moderate-Income
                                requirements. Affordable Housing Loan
                                may also refer to second (or otherwise
                                subordinated) liens or ``soft second''
                                mortgages and other similar types of
                                down payment assistance loans, but may
                                not necessarily be secured by such
                                property originated for the purpose of
                                facilitating the purchase or improvement
                                of the borrower's primary residence,
                                where such borrower is an Eligible
                                Resident who meets Low- and Moderate-
                                Income requirements.
Education Loan...............  Means an advance of funds to a student
                                who is an Eligible Resident who meets
                                Low- and Moderate-Income requirements
                                for the purpose of financing a college
                                or vocational education.
Home Improvement Loan........  Means an advance of funds, either
                                unsecured or secured by a one-to-four
                                family residential property, the
                                proceeds of which are used to improve
                                the borrower's primary residence, where
                                such borrower is an Eligible Resident
                                who meets Low- and Moderate-Income
                                requirements.
Small Dollar Consumer Loan...  Means affordable consumer lending
                                products that serve as available
                                alternatives in the marketplace for
                                individuals who are Eligible Residents
                                who meet Low- and Moderate-Income
                                requirements and meet criteria further
                                specified in the applicable NOFA.
Commercial Loans and           Means the following lending types:
 Investments.                   Affordable Housing Development Loans and
                                related Project Investments; Small
                                Business Loans and related Project
                                Investments, and Commercial Real Estate
                                Loans and related Project Investments.
Affordable Housing             Means origination of a loan to finance
 Development Loan.              the acquisition, construction, and/or
                                development of single- or multifamily
                                residential real property, where at
                                least 60% of the units in such property
                                are affordable, as may be defined in the
                                applicable NOFA, to Eligible Residents
                                who meet Low- and Moderate-Income
                                requirements.
Small Business Loan..........  Means an origination of a loan used for
                                commercial or industrial activities
                                (other than an Affordable Housing Loan,
                                Affordable Housing Development Loan,
                                Commercial Real Estate Loan, Home
                                Improvement Loan) to a business or farm
                                that meets the size eligibility
                                standards of the Small Business
                                Administration's Development Company or
                                Small Business Investment Company
                                programs (13 CFR 121.301) and is located
                                in a Distressed Community.
Commercial Real Estate Loan..  Means an origination of a loan (other
                                than an Affordable Housing Development
                                Loan or Affordable Housing Loan) that is
                                secured by real estate and used to
                                finance the acquisition or
                                rehabilitation of a building in a
                                Distressed Community, or the
                                acquisition, construction and or
                                development of property in a Distressed
                                Community, used for commercial purposes.
Service Activities...........  Means the following activities: Deposit
                                Liabilities; Financial Services;
                                Community Services; Targeted Financial
                                Services; and Targeted Retail Savings/
                                Investment Products.
Deposit Liabilities..........  Means time or savings deposits or demand
                                deposits. Any such deposit must be
                                accepted from Eligible Residents at the
                                offices of the Applicant or of the
                                Subsidiary of the Applicant and located
                                in the Distressed Community. Deposit
                                Liabilities may only include deposits
                                held by individuals in transaction
                                accounts (e.g., demand deposits,
                                negotiable order of withdrawal accounts,
                                automated transfer service accounts, and
                                telephone or preauthorized transfer
                                accounts) or non-transaction accounts
                                (e.g., money market deposit accounts,
                                other savings deposits, and all time
                                deposits), as defined by the Appropriate
                                Federal Banking Agency.
Financial Services...........  Means check cashing, providing money
                                orders and certified checks, automated
                                teller machines (ATM), safe deposit
                                boxes, new branches, and other
                                comparable services as may be specified
                                by the CDFI Fund in the applicable NOFA,
                                that are provided by the Applicant to
                                Eligible Residents or enterprises that
                                are Integrally Involved in the
                                Distressed Community.
Community Services...........  Means the following forms of assistance
                                provided by officers, employees or
                                agents (contractual or otherwise) of the
                                Applicant:
                               (1) Provision of Technical Assistance and
                                financial education to Eligible
                                Residents regarding managing their
                                personal finances;
                                  (2) Provision of Technical Assistance
                                   and consulting services to newly
                                   formed small businesses and nonprofit
                                   organizations located in the
                                   Distressed Community;
                                  (3) Provision of Technical Assistance
                                   and financial education to, or
                                   servicing the loans of, homeowners
                                   who are Eligible Residents and meet
                                   Low- and Moderate-Income
                                   requirements; and
                                  (4) Other services provided to
                                   Eligible Residents who meet Low- and
                                   Moderate-Income requirements or
                                   enterprises that are Integrally
                                   Involved in a Distressed Community,
                                   as deemed appropriate by the CDFI
                                   Fund, and other comparable services
                                   as may be specified by the CDFI Fund
                                   in the applicable NOFA.
Other Related Terms:
Targeted Financial Services..  Means ETAs, IDAs, and such other banking
                                products targeted to Eligible Residents,
                                as may be specified by the CDFI Fund in
                                the applicable NOFA.
Targeted Retail Savings/       Means certificates of deposit, mutual
 Investment Products.           funds, life insurance, and other similar
                                savings or investment vehicles targeted
                                to Eligible Residents, as may be
                                specified by the CDFI Fund in the
                                applicable NOFA.

[[Page 58643]]

 
Electronic Transfer Account    Means an account that meets the following
 (ETA) \1\.                     requirements, and with respect to which
                                the Applicant has satisfied the
                                requirements: (1) Be an individually
                                owned account at a Federally insured
                                financial institution; (2) Be available
                                to any individual who receives a Federal
                                benefit, wage, salary, or retirement
                                payment; (3) Accept electronic Federal
                                benefit, wage, salary, and retirement
                                payments and such other deposits as a
                                financial institution agrees to permit;
                                (4) Be subject to a maximum price of
                                $3.00 per month; (5) Have a minimum of
                                four cash withdrawals and four balance
                                inquiries per month, to be included in
                                the monthly fee, through: (i) The
                                financial institution's proprietary (on-
                                us) automated teller machines (ATMs);
                                (ii) Over-the-counter transactions at
                                the main office or a branch of the
                                financial institution; or (iii) Any
                                combination of on-us ATM access and over-
                                the-counter access at the option of the
                                financial institution; (6) Provide the
                                same consumer protections that are
                                available to other account holders at
                                the financial institution, including,
                                for accounts that provide electronic
                                access, Regulation E (12 CFR part 205)
                                protections regarding disclosure,
                                limitations on liability, procedures for
                                reporting lost or stolen cards, and
                                procedures for error resolution; (7) For
                                financial institutions that are members
                                of an on-line point-of-sale (POS)
                                network, allow on-line POS purchases,
                                cash withdrawals, and cash back with
                                purchases at no additional charge by the
                                financial institution offering the ETA;
                                (8) Require no minimum balance, except
                                as required by Federal or State law; (9)
                                At the option of the financial
                                institution, be either an interest-
                                bearing or a non-interest-bearing
                                account; and (10) Provide a monthly
                                statement.
Individual Development         Means a special savings account that
 Account (or IDA) \2\.          matches the deposits of Eligible
                                Residents who meet Low- and Moderate-
                                Income requirements individuals and that
                                enables such individuals to save money
                                for a particular financial goal
                                including, but not limited to, and as
                                determined by the CDFI Fund: buying a
                                home, paying for post-secondary
                                education, or starting or expanding a
                                small business.
Technical Assistance \3\.....  Means the provision of consulting
                                services, resources, training, and other
                                nonmonetary support relating to an
                                organization, individual, or operation
                                of a trade or business, as may be
                                specified by the CDFI Fund in the
                                applicable NOFA.
------------------------------------------------------------------------
\1\ Included in the definition of Targeted Financial Securities.
\2\ Ibid.
\3\ Included in the definitions of: CDFI Support Activity and Community
  Services.

a. New Qualified Activities
    (1) Are there any loan, investment or service activities not 
currently considered BEA Program Qualified Activities that the CDFI 
Fund should consider adding? If so, indicate what the activity is, 
describe it, and explain why the CDFI Fund should consider it. Also, 
describe the benefits of the activity to CDFIs, residents or businesses 
in Distressed Communities.
    (2) The CDFI Fund does not currently have a specific Qualified 
Activity type for working capital or equipment loans. These types of 
loans are typically reported as Small Business Loans if the borrower 
meets the size eligibility standards. Should the CDFI Fund consider 
introducing a new Qualified Activity type specifically for working 
capital or equipment loans for businesses located in Distressed 
Communities that do not meet the criteria for a Small Business Loans? 
Please explain why or why not.
    (3) The CDFI Fund does not currently have specific guidance for 
reverse mortgages. A reverse mortgage is a mortgage loan available to 
homeowners 62 years of age and older, usually secured over a 
residential property that enables the borrower to access the 
unencumbered value of the property. Should the CDFI Fund consider 
introducing reverse mortgages as a new Qualified Activity type or 
consider revising the definition of Affordable Housing Loan to include 
reverse mortgages? Please explain why or why not.
b. Existing Qualified Activities
    (1) Are there any loans, investments, or service activities that 
are currently considered BEA Program Qualified Activities for which the 
CDFI Fund should consider updates to the definition? If so, indicate 
the Qualified Activity and explain why the CDFI Fund should consider 
revising the definition.
    (2) Are there any loans, investments, or service activities that 
are currently considered BEA Program Qualified Activities that the CDFI 
Fund should consider eliminating? If so, indicate the Qualified 
Activity and explain why the CDFI Fund should consider eliminating it.
    (3) For Small Business Loans, which are Qualified Activities in the 
Commercial Loans and Investments sub-category of the Distressed 
Community Financing Activities category, the CDFI Fund instructs 
Applicants to use the size eligibility standards adopted by the U.S. 
Small Business Administration's Development Company or Small Business 
Investment Company programs (13 CFR 121.01) for determining whether a 
loan to a borrower is eligible to be reported as this Qualified 
Activity. Is there any other criteria the CDFI Fund should consider for 
determining whether a loan to a borrower is eligible to be reported as 
a Small Business Loan? If yes, please describe the criteria and explain 
why the CDFI Fund should consider it.
    (4) The CDFI Fund currently values the administrative cost of 
providing certain Financial Services using the following per unit 
values:
    $100.00 per account for Targeted Financial Services, including safe 
transaction accounts, youth transaction accounts, Electronic Transfer 
Accounts and Individual Development Accounts; $50.00 per account for 
checking and savings accounts that do not meet the definition of 
Targeted Financial Services; $5.00 per check cashing transaction; 
$50,000 per new ATM installed at a location in a Distressed Community; 
and $500,000 per new retail bank branch office opened in a Distressed 
Community, including school-based bank branches approved by the 
Applicant's Federal bank regulator.
    Should the CDFI Fund consider updates to the valuation of these 
administrative costs? If so, indicate the Financial Service, suggested 
value, and explain why the CDFI Fund should consider revising the 
value.

2. Award Selection Process

    Section 1806.404 (b), (c), and (d) of the Interim Rule describes 
the award selection process if insufficient funds are available to 
cover estimated awards for which Applicants are eligible, priority of 
awards, and calculating

[[Page 58644]]

actual award amounts. Applicants are ranked based on whether the 
Applicant is a CDFI or a non-CDFI, and prioritized in each category of 
BEA Qualified Activities. Currently, one overall maximum award amount 
has been determined for an Applicant's single BEA Program award, 
despite the number of categories the Applicant is eligible to receive 
an award for. Award selections within each BEA category are based on an 
Applicant's relative ranking within each such category, subject to the 
availability of funds and any established maximum dollar amount of 
total awards that may be awarded for the Distressed Community Financing 
Activities category of Qualified Activities, as determined by the CDFI 
Fund.
a. Award Amount
    (1) Should the CDFI Fund consider awarding eligible applicants who 
successfully demonstrate increases in more than one BEA category a 
higher single BEA Program award amount than Applicants who demonstrate 
an increase in only one BEA category, if both are eligible for the 
maximum award amount? If yes, explain what should be considered in 
determining the proportion of the increased award amount. If no, 
explain why not.
    (2) Should the CDFI Fund establish a minimum dollar amount and/or a 
maximum dollar amount that may be awarded for the CDFI Related 
Activities category? Explain why or why not.
    (3) Should the CDFI Fund establish a maximum dollar amount that may 
be awarded for Distressed Community Financing Activities category? 
Explain why or why not.
    (4) Should the CDFI Fund establish a maximum dollar amount that may 
be awarded for the Service Activities category? Explain why or why not.
    (5) Should the CDFI Fund determine actual award amounts by a method 
other than the existing formulaic award calculation? If yes, please 
describe the method and note what benefits are offered to Applicants, 
residents and businesses in Distressed Communities, and/or U.S. 
taxpayers by implementing this method. Also, indicate if/how the method 
addresses the following factors noted in Section 1834a(h)(1)(C) of the 
BEA Statute: degree of difficulty in carrying out activities, community 
impact, degree of innovative methods for meeting community needs, 
leverage of qualified activity amounts, total asset size of the 
Applicant, new entrance to providing services in a Distressed 
Community, need for subsidy, and extent of distress in a community.
b. Award Calculation
    The estimated BEA Program award calculation is the year-over-year 
increase in Qualified Activities from the Baseline to the Assessment 
Period prioritized based on CDFI certification status and CRA asset 
size, and multiplied by an award percentage based on the Category, Sub-
category and Qualified Activity type.
    (1) Is there any additional criteria that the CDFI Fund should 
consider in the estimated BEA Program award calculation?

3. Cap on Qualified Activity Amount

    Current policy states that the value of a Qualified Activity for 
purposes of determining a BEA Program Award shall not exceed $10 
million in the case of Commercial Real Estate Loans or any CDFI Related 
Activities (i.e., the total principal amount of the transaction must be 
$10 million or less to be considered a Qualified Activity). However, 
the CDFI Fund may consider transactions with a total principal value of 
over $10 million on a case by case basis. In such cases, Applicants 
must attach a Community Benefit Statement, which is a narrative 
statement that describes the community benefit of transactions over $10 
million for the CDFI Fund's consideration.
    a. What information should the Applicant provide to aid the CDFI 
Fund in assessing the community benefit of transactions over $10 
million?

4. Integral Involvement

    The Interim Rule defines CDFI Support Activity as assistance 
provided by an Applicant or its Subsidiary to a Certified CDFI that 
meets the Integral Involvement criteria set forth by the CDFI Fund in 
the applicable NOFA. Commenters should note that Integral Involvement 
is a statutory program requirement.
    The most recent BEA Program NOFA defines Integrally Involved as:
    Scenario I: Having provided at least 10% of the number of its 
financial transactions or dollars transacted (e.g., loans or equity 
investments) in one or more Distressed Communities in each of the three 
calendar years preceding the date of the applicable NOFA; or 10% of the 
number of its Development Service Activities (as defined in 12 CFR 
1805.104) or value of the administrative cost of providing such 
services in one or more Distressed Communities in each of the three 
calendar years preceding the date of the applicable NOFA;
    Scenario II: Transacted at least 25% of the number of its financial 
transactions or dollars transacted (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 transacted 
at least 25% of the number of its Development Service Activities or 
value of the administrative cost of providing such services in one or 
more Distressed Communities in at least one of the three calendar years 
preceding the date of the applicable NOFA;
    Scenario III: Demonstrating that it has attained at least 10% of 
market share for a particular product in one or more Distressed 
Communities in at least one of the three calendar years preceding the 
date of the applicable NOFA;
    Scenario IV: At least 25% of the CDFI Partner's physical locations 
(e.g., offices or branches) are located in one or more Distressed 
Communities where it provided financial transactions or Development 
Service Activities during the one calendar year preceding the date of 
the NOFA.
    a. Should the current definition of Integrally Involved be revised 
or replaced? If yes, how should the CDFI Fund revise the Integrally 
Involved definition or what should the CDFI Fund replace the term with?
    b. Are there any other factors the CDFI Fund should consider when 
determining an updated definition of Integrally Involved? If yes, what 
are they?
    Authority: 12 U.S.C. 1834a, 4703, 4713, 4717; 12 CFR part 1806.

Jodie L. Harris,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2022-20732 Filed 9-26-22; 8:45 am]
BILLING CODE 4810-70-P