[Federal Register Volume 87, Number 191 (Tuesday, October 4, 2022)]
[Notices]
[Pages 60236-60239]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-21524]


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DEPARTMENT OF THE TREASURY


Notice and Request for Information--Opportunities and Challenges 
in Federal Community Investment Programs

AGENCY: Department of the Treasury (Treasury), Small Business 
Administration (SBA), Department of Commerce (Commerce), Department of 
Transportation (DOT), Department of Housing and Urban Development 
(HUD), and Department of Agriculture (USDA), (collectively, the 
Agencies).

ACTION: Request for Information.

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SUMMARY: The Interagency Community Investment Committee (ICIC) is 
focused on the operations and execution of federal programs that 
facilitate the flow of capital and the provision of financial resources 
into historically underserved communities, including communities of 
color, rural communities, and Tribal nations. The ICIC is composed of 
representatives from the Department of the Treasury (Treasury), Small 
Business Administration (SBA), Department of Commerce (Commerce), 
Department of Transportation (DOT), Department of Housing and Urban 
Development (HUD), and Department of Agriculture (USDA), (collectively, 
the Agencies). The Agencies invite the public to comment on how the 
ICIC can promote economic conditions and systems that reduce racial 
disparities and produce stronger economic outcomes for all communities. 
Responses may be used to inform ICIC's future actions to improve the 
operations and delivery of federal community investment programs 
through stronger federal collaboration.

DATES: Responses must be received by December 5, 2022 to be assured of 
consideration.

ADDRESSES: Please submit comments electronically through the Federal 
eRulemaking Portal: https://www.regulations.gov. All comments should be 
captioned with ``Community Investment Request for Information 
Comments.'' Please include your name, organization affiliation, 
address, email address, and telephone number in your comment. Where 
appropriate, a comment should include a short executive summary. In 
general,

[[Page 60237]]

comments received will be posted on http://www.regulations.gov without 
change, including any business or personal information provided. 
Comments received, including attachments and other supporting 
materials, will be part of the public record and subject to public 
disclosure. Do not enclose any information in your comment or 
supporting materials that you consider confidential or inappropriate 
for public disclosure.

FOR FURTHER INFORMATION CONTACT: Please contact Viraj Parikh, Phone 
Number: 202-923-5161, or [email protected]. Further 
information may be obtained from the Treasury website detailing the 
initiative.

SUPPLEMENTARY INFORMATION: 
    Purpose: This Request for Information (RFI) offers the public the 
opportunity to provide information on effective approaches for 
supporting access to affordable capital and financial services in 
historically underserved communities, including communities of color, 
rural communities, and Tribal communities. Specifically, the ICIC \1\ 
would like to understand (1) examples of successful projects that have 
blended different sources of public, private and philanthropic capital 
that may have been more difficult to accomplish or realize the full 
impact because of federal program requirements; and (2) how agencies 
can, to the extent feasible under the requirements governing the 
deployment of federal funds, support financial intermediaries that 
serve these communities such as Community Development Financial 
Institutions (CDFIs), Minority Depository Institutions (MDIs), credit 
unions, and other community financial institutions.\2\
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    \1\ Treasury is providing administrative support to the ICIC.
    \2\ For the purposes of this RFI, community financial 
institutions are intended to mean community development financial 
institutions (CDFIs), minority depository institutions (MDIs), 
community banks and credit unions as well as any other mission 
focused lender or investor that provides capital in low-to-moderate 
income communities and historically underserved populations.
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    Background: The Biden-Harris Administration is deploying trillions 
of dollars of public-sector investment authorized through programs 
under the American Rescue Plan Act of 2021 (ARP), Bipartisan 
Infrastructure Law (BIL), Consolidated Appropriations Act, 2021, the 
bipartisan CHIPS and Science Act (CHIPS) and the Inflation Reduction 
Act (IRA). These transformational investments present an opportunity to 
implement federal service delivery solutions that will support 
catalytic growth in historically underserved communities and address 
racial and geographic economic disparities.
    The Agencies implement multiple community investment programs with 
the aim of investing in communities, businesses, neighborhoods, and 
households that are underserved with respect to access to affordable 
capital and financial services, and that experience economic 
disparities that limit their financial stability and economic mobility. 
Today, agencies have an opportunity to assess, within community 
investment programs' statutory frameworks, how best to facilitate 
constructive alignment and flexibility to incentivize private sector 
investment leveraging this historic opportunity for catalytic growth. 
In addition, both research and practice over the past decade have 
informed our understanding of how to most effectively advance economic 
mobility among underserved populations, recognizing that needs and best 
practices may vary based on population, local economic circumstances, 
Tribal history, and other key factors. There is an opportunity to 
integrate these lessons in a consistent manner across federal programs, 
as well as offer a framework to guide private sector resources toward 
areas of historic underinvestment.
    How to Comment: This RFI is only for information and planning 
purposes and should not be construed as an obligation on the part of 
the Agencies. We ask respondents to address the Key Questions listed 
below. You do not need to address every question and should focus on 
those where you have views or relevant expertise. Please clearly 
indicate which questions you are addressing in your response. You may 
provide detailed responses and examples. All comments received, 
including attachments and other supporting materials, are part of the 
public record and subject to public disclosure. You should only submit 
information that you wish to make publicly available.
    The ICIC is focused on four key areas of substantive focus to 
promote economic conditions that reduce racial disparities and produce 
stronger economic outcomes for all communities:
    (1) Strengthening the capacity of community financial institutions 
such as CDFIs, MDIs, Revolving Loan Funds (RLFs), community banks and 
credit unions as well as any other mission-focused lender or investor 
that provides capital in low- to moderate-income communities and to 
historically underserved populations;
    (2) Starting and scaling small businesses among historically 
underserved communities, especially minority entrepreneurship;
    (3) Broadening financial inclusion and provision of financial 
services among historically underserved communities; and
    (4) Investing in community facilities and infrastructure to improve 
access to assets and resources that bolster economic mobility and 
generate community wealth.
    To assist with responding to RFI questions, a brief but non-
exhaustive list of agency programs within the key areas of substantive 
focus are listed at the end of this RFI.

Key Questions

    1. Please describe examples of best practices and lessons learned 
from community investment projects that have layered a mix of public, 
private, and/or philanthropic capital. How could these projects have 
been more impactful or more cost effective to implement? In responding 
to this question, examples may address any of the four substantive 
areas of focus described in this RFI: (1) strengthening the capacity of 
community financial institutions; (2) supporting small businesses and 
entrepreneurship; (3) improving financial health and inclusion; and (4) 
investing in community facilities and infrastructure. In addition, a 
non-exhaustive list of example programs is provided in the appendix of 
this RFI as a reference.
    2. From the examples provided in response to question 1, what 
specific changes could agencies consider to facilitate the layering of 
federal funds to attract greater private follow-on funding, as they 
implement new community investment programs and contemplate 
modifications to others?
    3. As agencies are implementing new programs under recent CHIPS and 
IRA legislation, how can they best incorporate these lessons to 
streamline design and delivery, as well as ensure historically 
underserved communities benefit from federal funds?
    4. Community financial institutions play a critical role in 
providing safe, affordable capital and financial services to 
historically underserved communities. How can federal agency 
coordination help build the capacity of these organizations to serve 
their communities?
    5. What specific changes to federal credit or securitization 
programs could facilitate additional private investment in community 
financial institutions, and what are the most important existing 
limitations of these programs that may prohibit additional scale that 
could be achieved?

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    6. How can the Agencies incentivize or structure data collection 
and reporting to promote increased private sector and philanthropic 
investment in community financial institutions?
    7. How can further alignment of and coordination between federal 
agencies in the four areas of substantive focus result in stronger 
outcomes with regards to reducing racial economic disparities, 
improving financial security and economic mobility, and generating 
broadly shared economic opportunity?
    8. What data should the Agencies consider collecting to better 
understand and report the impact of community investments in reducing 
racial, gender, and geographic, or other economic disparities?
    9. How can the Agencies collaborate on providing technical 
assistance, opportunities for peer-to-peer learning, and other non-
financial resources to support the deployment of capital or 
implementation of community-serving projects in historically 
underserved communities?
    10. Please describe best-in-class examples of how federal technical 
assistance has been best implemented through public-private 
partnerships.

Jessica Milano,
Chief Program Officer, Office of Recovery Programs.

Appendix

I. Strengthen Community Financial Institutions

    Programs that support CDFIs, MDIs, credit unions, and community 
banks with assets less than $1 billion:

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Commerce..........................  EDA Build to Scale, EDA Revolving
                                     Loan Funds.
DOT...............................  Thriving Communities,* Reconnecting
                                     Communities.
HUD...............................  Federal Housing Administration,
                                     Ginnie Mae, Section 108, HOME
                                     Investment Partnership, Housing
                                     Trust Fund.
Treasury..........................  Emergency Capital Investment Fund
                                     (ECIP), CDFI Fund, State Small
                                     Business Credit Initiative (SSBCI).
SBA...............................  Community Advantage, Microloan
                                     programs, 7(a) Loan Program, 504
                                     Loan Program, Program for
                                     Investment in Micro-Entrepreneurs
                                     (PRIME) grants.
USDA..............................  RD B&I loan program, RD Community
                                     Facilities Program, Intermediary
                                     Relending Program, Rural Business
                                     Development Grants, Rural
                                     Microentrepreneur Assistance
                                     Program.
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II. Increase Small Business Creation, Growth, and Profitability

    Programs that support small business access to capital (debt & 
equity), technical assistance for entrepreneurs, contracting:

------------------------------------------------------------------------
 
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Commerce..........................  Minority Business Development Agency
                                     (MBDA) programs:
                                        SSBCI Technical
                                        Assistance Program.
                                        National Business Center
                                        Network Program.
                                        Specialty Centers.
                                        American Indian, Alaska
                                        Native, and Native Hawaiian
                                        Projects.
                                        Enterprising Women of
                                        Color Program.
                                        Entrepreneurship
                                        Education for Formerly
                                        Incarcerated Persons Pilot.
                                        Minority Colleges and
                                        University Pilot.
                                        MBE Equity Multiplier
                                        Project.
                                        Inner City Innovation
                                        Hub Pilot.
                                       EDA Build to Scale, EDA Revolving
                                        Loan Funds.
DOT...............................  Railroad Rehabilitation and
                                     Improvement Financing (RRIF),
                                     Transportation Infrastructure
                                     Finance and Innovation Act (TIFIA),
                                     Small Business Transportation
                                     Resource Centers.*
HUD...............................  Community Development Block Grant,
                                     Section 3.
Treasury..........................  ECIP, CDFI Fund, SSBCI.
SBA...............................  All programs.
USDA..............................  Rural Microentrepreneur Assistance
                                     Program, Rural Business Development
                                     Grant * RD B&I loan program, RD
                                     Community Facilities Program,
                                     Intermediary Relending Program.
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III. Improve Financial Health and Inclusion

    Programs that support the creation of high-quality jobs and 
access to consumer credit, payments, and savings products:

------------------------------------------------------------------------
 
------------------------------------------------------------------------
Commerce..........................  EDA Good Jobs Challenge, EDA Build
                                     Back Better Regional Challenge,
                                     MBDA Access to Capital: Innovative
                                     Finance Pilot.
DOT...............................  N/A.
HUD...............................  Housing Counseling, Community
                                     Development Block Grant, Section 3,
                                     Asset Building Programs (e.g.,
                                     Family Self-Sufficient, Resident
                                     Opportunities and Self-
                                     Sufficiency).
Treasury..........................  State and Local Fiscal Recovery
                                     Fund, Emergency Rental Assistance
                                     Program, ECIP, CDFI Fund.
SBA...............................  All programs.
USDA..............................  Rural Innovation Stronger Economy,
                                     Rural Economic Development Loan and
                                     Grant.
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IV. Expand Community Infrastructure

    Programs that support the preservation or development of 
affordable housing, community facilities, public transportation, and 
high-quality broadband:

------------------------------------------------------------------------
 
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Commerce..........................  EDA Build Back Better Regional
                                     Challenge.
                                    NTIA Technical Assistance and
                                     Infrastructure programs, including:
                                        Connecting Minority
                                        Communities Program.
                                        Broadband Infrastructure
                                        Program.
                                        Tribal Broadband
                                        Connectivity Program.
                                        Broadband Equity,
                                        Access, and Deployment Program
                                        (BEAD).
                                        Middle Mile Broadband
                                        Infrastructure Grant Program.
                                        State Digital Equity
                                        Planning Grant Program.
                                        Digital Equity
                                        Competitive Grant Program.
DOT...............................  TIFIA, RRIF, Private Activity Bonds,
                                     Thriving Communities,* Reconnecting
                                     Communities, Regional
                                     Infrastructure Accelerators,* Safe
                                     Streets for All, Asset Concession-
                                     Innovative Financing Grant,* Rural-
                                     Tribal Technical Assistance Grant,*
                                     Capital Investment Grants (other
                                     public transport programs), FTA
                                     Pilot Program.
HUD...............................  Section 108, Community Development
                                     Block Grant, HOME Investment
                                     Partnership, Project-Based Rental
                                     Assistance, Project Based Vouchers,
                                     FHA Mortgage Insurance, Housing
                                     Trust Fund, Choice Neighborhoods.
Treasury..........................  State and Local Fiscal Recovery
                                     Fund, Capital Projects Fund,
                                     Homeowners Assistance Fund, Low-
                                     Income Housing Tax Credit.
SBA...............................  504 Loan Program, Contracting
                                     Assistance Programs.
USDA..............................  RD Community Facilities Programs,
                                     Rural Community Development
                                     Initiative Grants, Section 502
                                     loans, Section 504 loans and
                                     grants, Mutual Self Help Grants,
                                     Housing Preservation Grants, Rural
                                     Rental Housing and Farm Labor
                                     Housing Loans and Grants, Rental
                                     Assistance, Rural Development
                                     ReConnect and Community Connect
                                     Programs. Rural Development Water
                                     Emergency Community Water
                                     Assistance Grants, Water
                                     Infrastructure Grants for Rural and
                                     Native Alaskan Villages, Rural
                                     Decentralized Water Systems Grant
                                     Program, Individual Water &
                                     Wastewater Grants in Colonia Areas,
                                     Water & Waste Disposal Grants to
                                     Alleviate Health Risks on Tribal
                                     Lands and Colonias, Water & Waste
                                     Disposal Loans & Grants, Solid
                                     Waste Management Grants.
------------------------------------------------------------------------
* Technical Assistance Program.

[FR Doc. 2022-21524 Filed 10-3-22; 8:45 am]
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