[Federal Register Volume 88, Number 61 (Thursday, March 30, 2023)]
[Notices]
[Pages 19168-19172]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2023-06584]
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NATIONAL CREDIT UNION ADMINISTRATION
Community Development Revolving Loan Fund Access for Credit
Unions
ACTION: Notice of funding opportunity.
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Funding Opportunity Title: Community Development Revolving Loan
Fund (CDRLF) Grants.
Catalog of Federal Domestic Assistance (CFDA) Number: 44.002.
SUMMARY: The National Credit Union Administration (NCUA) is issuing
this Notice of Funding Opportunity (NOFO) to announce the availability
of technical assistance grants (awards) for low-income designated
(LICUs) and Minority Depository Institution (MDIs) credit unions
through the CDRLF. The CDRLF provides financial support in the form of
loans and technical assistance grants that help credit unions support
the communities in which they operate. All grant awards made under this
NOFO are subject to funds availability and are at the NCUA's
discretion.
Table of Contents
A. Program Description
B. Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration
G. Federal Awarding Agency
H. Grant Terms and Conditions
A. Program Description
The purpose of the Community Development Revolving Loan Fund
(CDRLF) is to assist LICUs and MDIs in providing basic financial
services to their members and to stimulate economic activities in their
communities. Through the CDRLF, the NCUA provides financial support in
the form of technical assistance grants to eligible credit unions to
modernize, build capacity, and extend outreach into underserved
communities.
The NCUA will consider requests for various funding initiatives.
More detailed information about the purpose of each initiative, amount
of funds available, funding priorities, permissible uses of funds,
funding limits, deadlines, and other pertinent details will be defined
in the Grant Round Guidelines. In addition, the NCUA may periodically
publish information regarding the CDRLF in Letters to Credit Unions,
press releases, and/or on the agency website, NCUA.gov.
1. Funding Initiatives
The funding initiatives available during 2023 include:
i. Training;
ii. Digital Services and Cybersecurity;
iii. Consumer Financial Protection;
iv. MDI Capacity Building;
v. Underserved Outreach;
vi. Impact Through Innovation; and
vii. Small Credit Union Partnership.
2. Authority and Regulations
i. Authority: 12 U.S.C. 1772c-1, 1756, 1757(5)(D), and (7)(I),
1766, 1782, 1784, 1785 and 1786; and Consolidated Appropriations Act,
2023, Public Law 117-328, Div. E, title V.
ii. Regulations: The regulation governing the CDRLF is found at 12
CFR part 705. In general, this regulation governs the CDRLF, and sets
forth the program requirements. Additional regulations related to the
low-income designation are found at 12 CFR 701.34 and 741.204. For the
purposes of this NOFO, an ``Applicant'' is a Participating Credit Union
that submits a complete application to the NCUA under the CDRLF. The
NCUA encourages Applicants to review the regulations, this NOFO, the
Grant Round Guidelines, and other program materials for a complete
understanding of the program.\1\
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\1\ Some provisions of NCUA's regulation governing the CDRLF,
part 705, conflict with the Consolidated Appropriations Act, 2023.
The NCUA considers the Consolidated Appropriations Act, 2023 to
supersede part 705.
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B. Award Information
Approximately $3.5 million in awards will be available through this
NOFO. The NCUA reserves the right to: (i) award more or less than the
amounts cited above; (ii) fund, in whole or in part, any, all, or none
of the applications submitted in response to this NOFO; and (iii)
reallocate funds available under this NOFO to other programs,
particularly if the NCUA finds that the number of awards made under
this NOFO is fewer than projected. General information about the
purpose of each funding initiative and the maximum award amount is
provided below. Additional initiative information will be detailed in
the 2023 Community Development Revolving Loan Fund Grant Round
Application Guidelines found on the NCUA's website.
1. Purpose of Funding Initiatives
i. Training: The training initiative aims to strengthen credit
union management's leadership skills and promote succession planning.
Credit unions will be able to use funds to develop a management
succession plan, enroll an employee in advanced training courses to
enhance leadership skills or operational knowledge of credit unions. To
direct grant funds to credit unions with the greatest need for
resources, credit unions with assets in excess of $100 million are not
eligible for funding under this initiative.
ii. Digital Services and Cybersecurity: This initiative is intended
to increase access to safe and secure digital financial products and
services. Activities include cybersecurity training for board members
and employees, procurement of software and hardware required for
cybersecurity upgrades, contracts for external security services,
business continuity, development or implementation of an incident
response plan, vulnerability scans, or IT auditing and testing. To
direct grant funds to credit unions with the greatest need for
resources, credit unions with assets in excess of $250 million are not
eligible for funding under this initiative.
iii. Consumer Financial Protection: The purpose of this initiative
is to ensure credit unions have the resources and expertise to protect
credit union members and consumers, raise awareness of potential
frauds, and facilitate access to fair and affordable financial
services. Many credit unions do not have the expertise to ensure
consumer financial protection. Under this initiative, credit unions can
obtain the resources, such as consultants, to train staff on consumer
financial protection laws and regulations. There is no asset cap for
this initiative.
iv. MDI Capacity Building: The purpose of funding initiatives for
MDIs is to support and help preserve these institutions in furtherance
of section 308 of the Financial Institutions Reform, Recovery, and
Enforcement Act of 1989. MDI credit unions are often challenged to fund
training for staff and volunteers or invest in technological upgrades,
growth, and expansion. The MDI Capacity Building initiative will
provide larger awards to MDIs for comprehensive capacity building
activities, including activities allowable under other initiatives.
This initiative allows MDI credit unions to undertake the many
activities required to grow and meet the unique needs of their members.
Only credit unions that have self-certified as Minority Depository
Institutions as of the date of their grant application are eligible for
funding under this initiative.
v. Underserved Outreach: The Underserved Outreach initiative will
help credit unions implement innovative outreach strategies to help
close the wealth gap in underserved communities and for minority,
veteran, and immigrant populations through new or expanded outreach
efforts, financial education programs, and financial products and
services.
vi. Impact Through Innovation: The NCUA's priority for the CDRLF is
to support the growth of credit unions and make a positive impact on
communities that are financially underserved. Providing greater support
will require
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larger awards and longer performance periods. The Impact Through
Innovation initiative will encourage credit unions to meet challenges
affecting underserved communities, targeting banking deserts,
affordable housing, credit invisibles, and fintechs in new ways. The
initiative will be open to credit unions with assets of $250 million or
greater. The Impact Through Innovation initiative will be a multi-year
award implemented as a continuation grant. Awardees will have three
years to complete their projects, broken into three 12-month
performance periods. Credit unions are eligible to receive awards up to
$300,000 throughout the performance period but will only receive
obligations up to $100,000 in 2023. Subsequent obligations are
dependent on successful project performance and the availability of
future congressional appropriations.
vii. Small Credit Union Partnership: Awards will be made to a group
of small credit unions, those under $100 million in assets, to pool
resources to help achieve growth objectives, including updating core
processors, implementing new banking features, or similar goals. One
credit union will serve as the leader of a group of at least four small
credit unions. These credit unions should demonstrate a shared need,
such as a similar membership or operational need. The Small Credit
Union Partnership initiative will be a multi-year award implemented as
a continuation grant. Awardees will have three years to complete their
projects, broken into three 12-month performance periods. Credit unions
are eligible to receive awards up to $150,000 throughout the
performance period but will only receive obligations up to $50,000 in
2023. Subsequent obligations are dependent on successful project
performance and the availability of future congressional
appropriations.
2. Maximum Award Amount
The maximum amount for a CDRLF award is determined by the funding
initiative. There is no minimum amount for CDRLF awards. The maximum
award amount for each funding initiative is provided below.
i. Training--$5,000
ii. Digital Services and Cybersecurity--$10,000
iii. Consumer Financial Protection--$10,000
iv. MDI Capacity Building--$50,000
v. Underserved Outreach--$50,000
The Impact through Innovation and Small Credit Union Partnership
initiatives will be awarded as continuation grants. Applicants will
apply for funding to cover three years of project costs, up to $300,000
for the Impact Through Innovation initiative and $150,000 for the Small
Credit Union Partnership Initiative. If approved, the credit union will
only be awarded funds to cover the first twelve-month performance
period of the project, up to the following amounts:
vi. Impact Through Innovation--$100,000
vii. Small Credit Union Partnership--$50,000
Upon successful completion of the first performance period, and
pending the future availability of congressional funds, the NCUA will
award funds to cover costs associated with the second twelve-month
performance period of the project. See the 2023 Community Development
Revolving Loan Fund Pilot Grant Application Guidelines referenced above
for additional details.
C. Eligibility Information
1. Eligible Applicants
This NOFO is open to credit unions that meet the eligibility
requirements defined in 12 CFR part 705, except as provided in
paragraph (ii) below.
i. Non-Federally Insured Applicants: Each Applicant that is a non-
federally insured, state-chartered credit union must submit additional
application materials. These additional materials are more fully
described in 12 CFR 705.7(b)(3) and in the application.
a. Non-federally insured, state-chartered credit unions must agree
to be examined by the NCUA. The specific terms and covenants pertaining
to this condition will be provided in the award agreement of the
Participating Credit Union.
ii. Minority Depository Institution: Credit unions not designated
as low-income can participate in the CDRLF if designated as a Minority
Depository Institution.
2. Employer Identification Number
Each application must include a valid and current Employer
Identification Number (EIN) issued by the U.S. Internal Revenue Service
(IRS). The NCUA will not consider an application that does not include
a valid and current EIN. Such an application will be deemed incomplete
and will be declined. Information on how to obtain an EIN may be found
on the IRS's website.
3. System for Award Management
All Applicants are required by federal law to have an active
registration with the federal government's System for Award Management
(SAM) prior to applying for funding. SAM is a web-based, government-
wide application that collects, validates, stores, and disseminates
business information about the Federal Government's trading partners in
support of the contract awards, grants, and electronic payment
processes. An active SAM account status and unique entity identifier
(UEI) number are required to apply for a CDRLF grant. Credit unions
receive a UEI upon registration in SAM. Once registered, credit unions
must recertify and maintain an active status annually. There is no
charge for the SAM registration and recertification process. SAM users
can register or recertify their account by following the instructions
for registration. The NCUA will not consider an applicant that does not
have an active SAM status.
4. Other Eligibility Requirements
i. Financial Viability: Applicants must meet the underwriting
standards established by the NCUA, including those pertaining to
financial viability, as set forth in the application and defined in 12
CFR 705.7(b) and Sec. 705.7(c).
ii. Compliance with Past Agreements: In evaluating funding requests
under this NOFO, the NCUA will consider an Applicant's record of
compliance with past agreements. The NCUA, in its sole discretion, will
determine whether to consider an application from an Applicant with a
past record of noncompliance, including any deobligation of funds
(removal of unused awards).
a. If an Applicant is in default of a previously executed agreement
with the NCUA, the NCUA will not consider an application for funding
under this NOFO.
b. If an Applicant is a prior Participating Credit Union under the
CDRLF and has unused awards as of the date of application, the NCUA may
request a narrative from the Applicant that addresses the reason for
its record of noncompliance. The NCUA, in its sole discretion, will
determine whether the reason is sufficient to proceed with the review
of the application.
D. Application and Submission Information
1. Application
Under this NOFO, all applications must be submitted online in the
NCUA's web-based application system, CyberGrants, to be considered.
Applications must be submitted online at https://www.cybergrants.com/ncua/applications. The application and related documents are also
located on the NCUA's website at https://
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www.ncua.gov/services/Pages/resources-expansion/grants-loans.aspx.
2. Minimum Application Content
A complete application will consist of similar components for each
funding initiative. At a minimum, each initiative requires a narrative
that describes the Applicant's proposed use of the CDRLF award. The
NCUA may waive this requirement for funding initiatives with a defined
list of allowable project activities. The NCUA will identify the
funding initiatives that do not require a narrative response in the
grant round guidelines. Other application contents that are specific to
a particular funding initiative will be defined in the grant round
guidelines found on the NCUA's website.
3. Submission Dates and Times
The NCUA will accept applications beginning May 1, 2023, at 9:00
a.m. eastern time (ET). Applications must be submitted by June 30,
2023, at 11:59 p.m. ET. Late applications will not be considered.
E. Application Review Information
1. Eligibility and Completeness Review
The NCUA will review each application to determine whether it is
complete and that the Applicant meets the eligibility requirements
described in the regulations, the Grant Round Guidelines, and in this
NOFO. An incomplete application or one that does not meet the
eligibility requirements may be declined without further consideration.
2. Evaluation Criteria
Each funding initiative, due to its structure and impact, may have
different evaluation criteria assigned. The evaluation criteria for
each funding initiative are fully described in the Grant Round
Guidelines.
3. Application Review
The purpose of the application review is to determine whether an
application satisfies the criteria for the applicable funding
initiative. The NCUA will evaluate each application for adherence to
the grant round guidelines. The NCUA may contact the Applicant during
its review to clarify or confirm information in the application. The
Applicant must respond within the time specified by the NCUA or the
NCUA, in its sole discretion, may decline the application without
further consideration.
4. Scoring and Funding Decision
The NCUA uses a scoring system that establishes a ranking position
for each application. The applications will be ranked according to the
scoring criteria set forth for each funding initiative in the Grant
Round Guidelines.
F. Federal Award Administration
1. NCUA Award Notice
The NCUA will notify each Applicant of its funding decision by
email. In addition, the NCUA will announce the successful applications
through a press release that includes a list of the Awardees.
Applicants that are approved for funding will also receive instructions
on how to proceed with the post-award activities.
2. Administrative and National Policy Requirements
i. Award Agreement: The specific terms and conditions will be
established in the award agreement each Participating Credit Union must
sign prior to formally accepting an award. Each Participating Credit
Union under this NOFO must enter into an agreement with the NCUA before
the NCUA will disburse the award funds. The agreement includes the
terms and conditions of funding, including but not limited to the (i)
award amount, (ii) grant award details, (iii) accounting treatment,
(iv) signature pages, and (v) reporting requirements.
ii. Failure to Sign Agreement: The NCUA, in its sole discretion,
may rescind an award if the Applicant fails to sign and return the
agreement or any other requested documentation, within the time
specified by the NCUA.
3. Payment Process
Awardees will be responsible for the timely completion of all post-
award activities. This includes, but it is not limited to, signing the
award agreement and completing a payment request for the awarded funds.
The payment requirements vary by funding initiative and are detailed in
the application and post-award guidelines.
The payment request may require, all or a combination of, the
following items: (i) certification of expenses; (ii) project related
documentation; (iii) a summary of project accomplishments and outcomes;
or (iv) a certification form signed by a credit union official (such as
CEO, manager, or Board Chairperson) authorized to request the payment
and make the certifications. The NCUA, in its sole discretion, may
modify these requirements. Additional payment request requirements will
be described in the post-award guidelines.
G. Federal Awarding Agency
1. Methods of Contact
Further information can be found at https://www.ncua.gov/services/Pages/resources-expansion/grants-loans.aspx. For questions related to
the CDRLF, email the NCUA's Office of Credit Union Resources and
Expansion at [email protected].
2. Information Technology Support
People who have visual or mobility impairments that prevent them
from using the NCUA's website should call (703) 518-6610 for guidance
(this is not a toll-free number).
H. Grant Terms and Conditions
1. Every applicant must certify it meets and agrees to the
following terms and conditions, prior to submitting an application:
i. Applicant is a low-income-designated credit union, as defined in
section 701.34 of the NCUA's Rules and Regulations and/or a designated
Minority Depository Institution credit union.
ii. Applicant shall comply with United States Office of Management
and Budget, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards.
iii. Applicants are required to have an audit conducted if they
hold $750,000 or more in Federal awards during a fiscal year.
Applicants that hold less than $750,000 in Federal awards are exempt
from this requirement.
For example, if a credit union uses a $250,000 loan from the NCUA's
CDRLF and a $500,000 grant from the Community Development Financial
Institutions (CDFI) Fund, totaling $750,000 in Federal awards during
the same fiscal year, then the credit union must have an audit
conducted.
iv. Applicant is responsible for the efficient and effective
administration of the Federal Award through application of sound
management practices. Applicant assumes the responsibility for
administering Federal Funds in a manner consistent with underlying
agreements, program objectives, and the term and conditions of the
Federal Award.
v. No employee, contractor, consultant, or vendor has participated
substantially for this grant-funded activity, nor otherwise benefited
directly or indirectly from the grant, who, to its knowledge (assuming
reasonable diligence), has a ``covered relationship'' with an NCUA
employee who presently holds a position that would enable him or her to
influence a pending or future grant award, or a
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payment of permitted expenses thereunder.
vi. An employee, contractor, consultant, or vendor of the Applicant
would have such a ``covered relationship'' if he or she were either:
(1) a member of the household of an NCUA employee who presently holds a
position that would enable him or her to influence a pending or future
grant award, or a payment thereunder; or (2) a relative of such an NCUA
employee with whom he or she has a close personal relationship. 5 CFR
2635.502(b)(1)(ii).
vii. Applicant must disclose in writing to the NCUA any potential
conflict of interest in accordance with applicable Federal awarding
agency policy.
viii. Per 2 C.F.R 200.113, Applicant must disclose all violations
of Federal criminal law involving fraud, bribery, or gratuity
violations potentially affecting the award.
ix. The Applicant conducts its activities such that no person is
excluded from participation in, is denied the benefits of, or is
subject to discrimination on the basis of race, color, national origin,
sex (including pregnancy, sexual orientation, or gender identity), age,
or disability in the distribution of services and/or benefits provided
under this grant program. The credit union agrees to provide evidence
of its compliance as required by the NCUA. Furthermore, credit unions
should ensure compliance with Title VI of the Civil Rights Act of 1964.
x. If a credit union enters into commitments for a project before
the grant decision is made, the credit union will be obligated to pay
project expenses from its own funds should the grant not be approved;
if the grant is approved, the credit union may request payment for
expenses incurred as of the publication date of the notice of funding
opportunity associated with this funding round.
xi. Requests to reallocate or change approved project(s) and/or
request an extension to the deadline must be submitted in writing prior
to the original deadline and approved by the NCUA prior to Applicant
incurring expenses.
xii. The Applicant is aware that the NCUA will correspond with the
credit union regarding this application by email, utilizing the email
address provided in this application.
xiii. Applicant hereby acknowledges that the NCUA reserves full
discretion to deny payment under this grant in the event the NCUA
determines the Applicant is, or previously was, either in breach of any
condition or limitation in the grant guidelines or in breach of the
`covered relationship' restriction set forth above.
xiv. Information included in Outcome Summary or Success Stories is
considered by the NCUA to be Research Data and is governed by 2 CFR
200.315 and may be made publicly available.
xv. Applicant is aware that any false, fictitious, or fraudulent
information or the omission of any material fact may subject Applicant
to criminal, civil or administrative penalties for fraud, false
statements, false claims, or otherwise. (U.S. Code Title 18, section
1001 and Title 31, sections 3729-3730, and 3801-3812).
xvi. Applicant is aware recipients and subrecipients are prohibited
from obligating or expending loan or grant funds to procure or obtain
equipment, services, or systems that use covered telecommunications
equipment or services as a substantial or essential component of any
system or as critical technology as part of any system in accordance
with Public Law 115-232, section 889 and 2 CFR 200.216.
xvii. Applicants receiving payment in advance must maintain both
written procedures that minimize the time elapsing between the transfer
of funds and disbursement by the non-Federal entity, and financial
management systems that meet the standards for fund control and
accountability.
By the National Credit Union Administration Board.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2023-06584 Filed 3-29-23; 8:45 am]
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