Notice of Funds Availability (NOFA) Inviting Applications for the Fiscal Year (FY) 2019 Funding Round of the Bank Enterprise Award Program (BEA Program)
| Citation | 84 FR 18635 |
| Record Number | 2019-08787 |
| Published date | 01 May 2019 |
| Section | Notices |
| Court | Community Development Financial Institutions Fund,Treasury Department |
Federal Register, Volume 84 Issue 84 (Wednesday, May 1, 2019)
[Federal Register Volume 84, Number 84 (Wednesday, May 1, 2019)]
[Notices]
[Pages 18635-18648]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-08787]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Notice of Funds Availability (NOFA) Inviting Applications for the
Fiscal Year (FY) 2019 Funding Round of the Bank Enterprise Award
Program (BEA Program)
Announcement Type: Announcement of funding opportunity.
Funding Opportunity Number: CDFI-2019-BEA.
Catalog Of Federal Domestic Assistance (CFDA) Number: 21.021.
Dates:
Table 1--FY 2019 BEA Program Funding Round--Key Dates for Applicants
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Description Deadline Time (eastern time--ET) Contact information
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Grant Application Package/SF-424 May 29, 2019 11:59 p.m. ET.............. Contact Grants.gov at 800-
Mandatory (Application for Federal 518-4726 or
Assistance) Submission Method: [email protected].
Electronically via Grants.gov.
Last day to register a user and June 17, 2019 5:00 p.m. ET............... CDFI Fund IT Helpdesk: 202-
organization in AMIS. 653-0422 or IT Award
Management Information
System (AMIS) Service
Request.\1\
Last day to enter, edit or delete BEA June 17, 2019 5:00 p.m. ET............... CDFI Fund IT Helpdesk: 202-
transactions, and verify addresses/ 653-0422 or IT AMIS Service
census tracts in AMIS. Request.\2\
Last day to contact BEA Program Staff June 17, 2019 5:00 p.m. ET............... CDFI Fund BEA Helpdesk: 202-
re: BEA Program Application 653-0421 or BEA AMIS
materials. Service Request.\3\
Last day to contact Certification, June 17, 2019 5:00 p.m. ET............... CCME Helpdesk: 202-653-0423
Compliance Monitoring and Evaluation or Compliance and Reporting
(CCME) staff. AMIS Service Request.\4\
Last day to contact IT Help Desk re. June 19, 2019 5:00 p.m. ET............... CDFI Fund IT Helpdesk: 202-
AMIS support and submission of the 653-0422 or IT AMIS Service
FY 2019 BEA Program Electronic Request.\5\
Application in AMIS.
FY 2019 BEA Program Electronic June 19, 2019 5:00 pm ET................. CDFI Fund IT Helpdesk: 202-
Application Submission Method: 653-0422 or IT AMIS Service
Electronically via AMIS. Request.\6\
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Executive Summary: This NOFA is issued in connection with the
fiscal year
[[Page 18636]]
(FY) 2019 funding round of the Bank Enterprise Award Program (BEA
Program). The BEA Program is administered by the U.S. Department of the
Treasury's Community Development Financial Institutions Fund (CDFI
Fund). Through the BEA Program, the CDFI Fund awards formula-based
grants to depository institutions that are insured by the Federal
Deposit Insurance Corporation (FDIC) for increasing their levels of
loans, investments, Service Activities, and technical assistance to
residents and businesses in the most economically Distressed
Communities, and financial assistance and technical assistance to
certified Community Development Financial Institutions (CDFIs) through
equity investments, equity-like loans, grants, stock purchases, loans,
deposits, and other forms of assistance, during a specified period.
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\1\ For Information Technology support, the preferred method of
contact is to submit a Service Request (SR) within AMIS. For the SR,
select ``Technical Issues'' from the Program drop down menu.
\2\ Ibid.
\3\ For questions regarding completion of the BEA Application
materials, the preferred electronic method of contact with the BEA
Program Office is to submit a Service Request (SR) within AMIS. For
the SR, select ``BEA Application'' from the Program drop down menu
of the Service Request.
\4\ For Compliance and Reporting related questions, the
preferred electronic method of contact is to submit a Service
Request (SR) within AMIS. For the SR, select ``Compliance &
Reporting'' from the Program drop down menu of the Service Request.
\5\ For Information Technology support, the preferred method of
contact is to submit a Service Request (SR) within AMIS. For the SR,
select ``Technical Issues'' from the Program drop down menu of the
Service Request.
\6\ Ibid.
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I. Program Description
A. History: The CDFI Fund was established by the Riegle Community
Development and Regulatory Improvement Act of 1994 to promote economic
revitalization and community development through investment in and
assistance to CDFIs. Since its creation in 1994, the CDFI Fund has
awarded more than $3.3 billion to CDFIs, community development
organizations, and financial institutions through the BEA Program; the
Capital Magnet Fund Program (CMF Program), the Community Development
Financial Institutions Program (CDFI Program), and the Native American
CDFI Assistance Program (NACA Program). In addition, the CDFI Fund has
allocated $54 billion in tax credit allocation authority to Community
Development Entities through the New Markets Tax Credit Program (NMTC
Program), and guaranteed bonds in the total amount of $1.5 billion
through the CDFI Bond Guarantee Program.
The BEA Program complements the community development activities of
banks and thrifts (collectively referred to as banks for purposes of
this NOFA) by providing financial incentives to expand investments in
CDFIs and to increase lending, investment, and Service Activities
within Distressed Communities. Providing monetary awards to banks for
increasing their community development activities leverages the CDFI
Fund's dollars and puts more capital to work in Distressed Communities
throughout the nation.
B. Authorizing Statutes and Regulations: The BEA Program was
authorized by the Bank Enterprise Award Act of 1991, as amended. The
regulations governing the BEA Program can be found at 12 CFR part 1806
(the Interim Rule). The Interim Rule provides the evaluation criteria
and other requirements of the BEA Program. Detailed BEA Program
requirements are also found in the application materials associated
with this NOFA (the Application). The CDFI Fund encourages interested
parties and Applicants to review the authorizing statute, Interim Rule,
this NOFA, the Application, and the Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Requirements) for a complete understanding of the
Program. Capitalized terms in this NOFA are defined in the authorizing
statute, the Interim Rule, this NOFA, the Application, or the Uniform
Requirements. Details regarding Application content requirements are
found in the Application and related materials. Application materials
can be found on Grants.gov and the CDFI Fund's website at
www.cdfifund.gov/bea.
C. Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (2 CFR 200): The Uniform Administrative
Requirements codify financial, administrative, procurement, and program
management standards that Federal award-making agencies and Recipients
must follow. When evaluating award applications, awarding agencies must
evaluate the risks to the program posed by each applicant, and each
applicant's merits and eligibility. These requirements are designed to
ensure that applicants for Federal assistance receive a fair and
consistent review prior to an award decision. This review will assess
items such as the Applicant's financial stability, quality of
management systems, history of performance, and audit findings. In
addition, the Uniform Requirements include guidance on audit
requirements and other award requirements with which Recipients must
comply.
D. Priorities: Through the BEA Program, the CDFI Fund specifies the
following priorities:
1. Estimated Award Amounts: The award percentage used to derive the
estimated award amount for Applicants that are CDFIs is three times
greater than the award percentage used to derive the estimated award
amount for Applicants that are not CDFIs;
2. Priority Factors: Priority Factors will be assigned based on an
Applicant's asset size, as described in Section V.A.14 of this NOFA
(Application Review Information: Priority Factors); and
3. Priority of Awards: The CDFI Fund will rank Applicants in each
category of Qualified Activity according to the priorities described in
Section V.A.16. of this NOFA (Application Review Information: Award
Percentages, Award Amounts, Application Review Process, Selection
Process, Programmatic Financial Risk, and Application Rejection), and
specifically parts V.B.2: Selection Process, V.B.3: Programmatic and
Financial Risk, and V.B.4: Persistent Poverty Counties.
E. Baseline Period and Assessment Period Dates: A BEA Program Award
is based on an Applicant's increase in Qualified Activities from the
Baseline Period to the Assessment Period, as reported on an individual
transaction basis in the Application. For the FY 2019 funding round,
the Baseline Period is calendar year 2017 (January 1, 2017 through
December 31, 2017), and the Assessment Period is calendar year 2018
(January 1, 2018 through December 31, 2018).
F. Funding Limitations: 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 also reserves the right to
reallocate funds from the amount that is available through this NOFA to
other CDFI Fund programs, or to reallocate remaining funds to a future
BEA Program funding round, particularly if the CDFI Fund determines
that the number of awards made through this NOFA is fewer than
projected.
G. Persistent Poverty Counties: Pursuant to the Consolidated
Appropriations Act, 2019 (Pub. L. Number 116-6), Congress mandated that
at least ten percent of the CDFI Fund's appropriations be directed to
counties that meet the criteria for ``Persistent Poverty'' designation.
Persistent Poverty Counties (PPCs) are defined as any county that has
had 20 percent or more of its population living in poverty over the
past 30 years, as measured by the 1990 and 2000 decennial censuses, and
the most recent series of 5-year data available from the American
Community Survey from the Census Bureau and published by the CDFI Fund
at: https://www.cdfifund.gov/Documents/PPC%20updated%20Oct.2017.xlsx.
The tabular BEA Program Eligibility Data, which is located on the CDFI
Fund's website, indicates whether a census tract also meets
``Persistent
[[Page 18637]]
Poverty County'' (PPC) criteria. The tabular BEA Program Eligibility
Data can be located by clicking on ``Research and Data'', scrolling to
``Program Eligibility Guidance'' and selecting ``BEA Program Updated
2011-2015 ACS Data'', or by going to the following hyperlink: https://www.cdfifund.gov/Documents/BEA%20ACS_2015_V12.xlsx. Applicants that
apply under this NOFA will be required to indicate the minimum and
maximum percentage of the BEA Program Award that the Applicant will
commit to investing in PPCs.
II. Federal Award Information
A. Funding Availability: The CDFI Fund expects to award up to $25
million for the FY 2019 BEA Program Awards round 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 minimum or maximum award amount;
however, under no circumstances will an award be higher than $1 million
for any Recipient.
B. Types of Awards: BEA Program Awards are made in the form of
grants.
C. Anticipated Start Date and Period of Performance: The CDFI Fund
anticipates the period of performance for the FY 2019 funding round
will begin in the fall of calendar year 2019. Specifically, the period
of performance begins on the Federal Award Date and will conclude at
least one (1) full year after the Federal Award Date as further
specified in the BEA Program Award Agreement (Award Agreement), during
which the Recipient must meet the performance goals set forth in the
Award Agreement.
D. Eligible Activities: Eligible Activities for the BEA Program are
referred to as Qualified Activities and 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) means CDFI Equity and
CDFI Support Activities. CDFI Equity consists of Equity Investments,
Equity-Like Loans, and Grants. CDFI Support Activities includes Loans,
Deposits and Technical Assistance.
Distressed Community Financing Activities (12 CFR 1806.103) means
Consumer Loans and Commercial Loans and Investments. Consumer Loans
include Affordable Housing Loans; Education Loans; Home Improvement
Loans; and Small Dollar Consumer Loans. Commercial Loans and
Investments includes Affordable Housing Development Loans and related
Project Investments; Commercial Real Estate Loans and related Project
Investments; and Small Business Loans and related Project Investments.
Service Activities (12 CFR 1806.103) 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 a Qualified Activity that has been fully
disbursed or, in the case of a partially disbursed Qualified Activity,
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 VI.
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.
An activity funded with prior BEA Program Award dollars, or funded
to satisfy requirements of an Award Agreement from a prior BEA Program
award or an agreement under any CDFI Fund program, shall not constitute
a Qualified Activity for the purposes of calculating or receiving an
award.
E. Distressed Community: A Distressed Community must meet certain
minimum geographic area and eligibility requirements, which are defined
in the Interim Rule at 12 CFR 1806.103 and more fully described in 12
CFR 1806.401. Applicants should use the CDFI Fund's Information Mapping
System (CIMS Mapping Tool) to determine whether a Baseline Period
activity or Assessment Period activity is located in a qualified
Distressed Community. The CIMS Mapping Tool can be accessed through
AMIS or the CDFI Fund's website at https://www.cdfifund.gov/Pages/mapping-system.aspx. The CIMS Mapping Tool contains a step-by-step
training manual on how to use the tool. In addition, further
instructions to determine whether an activity is located in a qualified
BEA Distressed Community can be located at: https://www.cdfifund.gov/programs-training/Programs/bank_enterprise_award/Pages/apply-step.aspx#, Step1 when selecting the BEA Program Application CIMS3
Instructions document in the ``Application Materials'' section of the
BEA web page on the CDFI Fund's website. If you have any questions or
problems with accessing the CIMS Mapping Tool, please contact the CDFI
Fund IT Help Desk by telephone at (202) 653-0300, or by IT AMIS Service
Request.
Please note that a Distressed Community as defined by the BEA
Program is not the same as an Investment Area as defined by the CDFI
Program, a Low-Income Community as defined by the NMTC Program, or an
Area of Economic Distress as defined by the CMF Program.
1. Designation of Distressed Community by a CDFI Partner: CDFI
Partners that receive CDFI Support Activities in the form of loans,
technical assistance or deposits from an Applicant must be integrally
involved in a Distressed Community. Applicants must provide evidence
that each CDFI Partner that is the recipient of CDFI Support Activities
is integrally involved in a Distressed Community, as noted in the
Application. CDFI Partners that receive Equity Investments, Equity-Like
Loans or grants are not required to demonstrate Integral Involvement.
Additional information on Integral Involvement can be found in Section
V. of this NOFA.
2. Distressed Community Determination by a BEA Applicant:
Applicants applying for a BEA Program Award for performing Distressed
Community Financing Activities or Service Activities must verify that
addresses of both Baseline Period and Assessment Period activities are
in Distressed Communities when completing their Application.
A BEA Applicant shall determine an area is a Distressed Community
by:
a. Selecting a census tract where the Qualified Activity occurred
that meets the minimum area and eligibility requirements; or
b. selecting the census tract where the Qualified Activity
occurred, plus one or more census tracts directly contiguous to where
the Qualified Activity occurred that when considered in the aggregate,
meet the minimum area and eligibility requirements set forth in this
section.
F. Award Agreement: Each Recipient under this NOFA must
electronically sign an Award Agreement via AMIS prior to payment of the
award proceeds by the CDFI Fund. The Award Agreement contains the terms
and conditions of the award. For further information, see Section VI.
of this NOFA.
G. Use of Award: It is the policy of the CDFI Fund that BEA Program
Awards may not be used by Recipients to
[[Page 18638]]
recover overhead or Indirect Costs. The Recipient may use up to fifteen
percent (15%) of the total BEA Program award amount on Qualified
Activities as Direct Administrative Expenses. ``Direct Administrative
Expenses'' shall mean Direct Costs, as described in section 2 CFR
200.413 of the Uniform Requirements, which are incurred by the
Recipient to carry out the Qualified Activities. Such costs must be
able to be specifically identified with the Qualified Activities and
not also recovered as Indirect Costs. ``Indirect Costs'' means costs or
expenses defined in accordance with section 2 CFR 200.56 of the Uniform
Requirements. In addition, the Recipient must comply, as applicable,
with the Buy American Act of 1933, 41 U.S.C. 8301-8303, with respect to
any Direct Costs.
III. Eligibility Information
A. Eligible Applicants: For the purposes of this NOFA, the
following table sets forth the eligibility criteria to receive a BEA
Program award from the CDFI Fund.
Table 2--Eligibility Requirements for Applicants
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Criteria Description
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Eligible Applicants.......... 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.
Eligible Applicants for the BEA
Program must be Insured Depository
Institutions, as defined in the Interim
Rule.
For the FY 2019 funding round,
an Applicant must have been FDIC-insured
as of the first day of the Baseline
Period, January 1, 2017, and maintain
its FDIC-insured status at the time of
Application 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.
CDFI Applicant............... For the FY 2019 funding round,
an eligible certified-CDFI Applicant is
an Insured Depository Institution that
was certified as a CDFI as of December
31, 2018 and that maintains its status
as a certified CDFI at the time BEA
Program Awards are announced under this
NOFA. No CDFI Applicant may receive a FY
2019 BEA Program Award if it has: (1) An
application pending for assistance under
the FY 2019 round of the CDFI Program;
(2) been included on the list of award
Recipients under the CDFI Program award
announcement within the 12-month period
prior to the Federal Award Date of the
FY 2019 BEA Program Award Agreement; (3)
been awarded assistance from the CDFI
Fund under the CDFI Program within the
12-month period prior to the Federal
Award Date of the FY 2019 BEA Program
Award Agreement issued by the CDFI
Program; or (4) ever received assistance
under the CDFI Program for the same
activities for which it is seeking a FY
2019 BEA Program Award. Please note that
Applicants may apply for both a CDFI
Program award and a BEA Program Award in
FY 2019; however, receiving a FY 2019 or
FY 2018 CDFI Program award removes an
Applicant from eligibility for a FY 2019
BEA Program Award.
If an Applicant's CDFI
certification application was submitted
to the CDFI Fund as of February 28,
2019, and was ultimately approved by the
CDFI Fund by June 15, 2019, then the
Applicant's CDFI status is considered
``certified'' for purposes of the FY
2019 BEA Program application.
Debarment/Do Not Pay The CDFI Fund will conduct a
Verification. debarment check and will not consider an
Application submitted by an Applicant
(or affiliate of an Applicant) if the
Applicant is delinquent on any Federal
debt.
The Do Not Pay Business Center
was developed to support Federal
agencies in their efforts to reduce the
number of improper payments made through
programs funded by the Federal
government. The Do Not Pay Business
Center provides delinquency information
to the CDFI Fund to assist with the
debarment check.
------------------------------------------------------------------------
B. Prior Award Recipients: The previous success of an Applicant in
any of the CDFI Fund's programs will not be considered under this NOFA.
Prior BEA Program Award Recipients and prior award recipients of other
CDFI Fund programs are eligible to apply under this NOFA, except as
noted in the following table:
Table 3--Eligibility Requirements for Applicants Which Are Prior
Recipients
------------------------------------------------------------------------
Criteria Description
------------------------------------------------------------------------
Pending resolution of If an Applicant (or affiliate of
noncompliance. an Applicant) that is a prior recipient
or allocatee under any CDFI Fund
program: (i) Has demonstrated it has
been in 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 noncompliance with or
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.
Default or Noncompliance The CDFI Fund will not consider
status. an Application submitted by an Applicant
(or Affiliate of such Applicant) that
has a previously executed assistance
agreement, award agreement, bond loan
agreement, or agreement to guarantee or
allocation agreement if, as of the date
of the Application, (i) the CDFI Fund
has made a determination that such
entity is noncompliant with or in
default of such previously executed
agreement, and (ii) the CDFI Fund has
provided written notification that such
entity is ineligible to apply for or
receive any future CDFI Fund awards or
allocations. Such entities will be
ineligible to submit an Application for
such time period as specified by the
CDFI Fund in writing.
------------------------------------------------------------------------
C. Contact the CDFI Fund: Accordingly, Applicants that are prior
recipients and/or allocatees under any CDFI Fund program are advised to
comply with requirements specified in an assistance agreement, award
[[Page 18639]]
agreement, allocation agreement, bond loan agreement, or agreement to
guarantee. All outstanding reports and compliance questions should be
directed to the Certification, Compliance Monitoring and Evaluation
helpdesk by submitting a BEA Compliance and Reporting AMIS Service
Request or by telephone at (202) 653-0423. 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. The CDFI Fund will not respond to Applicants'
reporting, compliance, or disbursement telephone calls or electronic
inquiries that are received after 5:00 p.m. ET on June 17, 2019, until
after the Application deadline. The CDFI Fund will respond to technical
issues related to AMIS Accounts through 5:00 p.m. ET on June 19, 2019,
via an IT AMIS Service Request, email at [email protected], or by
telephone at (202) 653-0422.
D. Cost sharing or matching fund requirements: Not applicable.
IV. Application and Submission Information
A. Address To Request an Application Package: Application materials
can be found on Grants.gov and the CDFI Fund's website at
www.cdfifund.gov/bea. Applicants may request a paper version of any
Application material by contacting the CDFI Fund Help Desk at
[email protected].
B. Content and Form of Application Submission: All Application
materials must be prepared using the English language and calculations
must be made in U.S. dollars. Applicants must submit all materials
described in and required by the Application by the applicable
deadlines. Detailed Application content requirements including
instructions related to the submission of the Grant Application Package
in Grants.gov and the FY 2019 BEA Program Application in AMIS, the CDFI
Fund's web-based portal, are provided in detail in the Application
Instructions. Once an Application is submitted, the Applicant will not
be allowed to change any element of the Application. The CDFI Fund
reserves the right to request and review other pertinent or public
information that has not been specifically requested in this NOFA or
the Application.
C. Application Submission: The CDFI Fund has a two-step submission
process for BEA Applications that requires the submission of required
application information on two separate deadlines and in two separate
and distinct systems, Grants.gov and the CDFI Fund's AMIS. The first
step is the submission of the Grant Application, which consists solely
of the Office of Management and Budget Standard Form-424 Mandatory (SF-
424 Mandatory) Application for Federal Assistance, in Grants.gov. The
second step is to submit an FY 2019 BEA Program Application in AMIS.
D. Grants.gov: Applicants must be registered with Grants.gov to
submit the Grants Application Package. The Grants Application Package
consists of one item, the SF-424 Mandatory. In order to register with
Grants.gov, Applicants must have a DUNS number and have an active
registration with SAM.gov. The CDFI Fund strongly encourages Applicants
to start the Grants.gov registration process as soon as possible (refer
to the following link: https://www.grants.gov/web/grants/register.html)
as it may take several weeks to complete. Applicants that have
previously registered with Grants.gov must verify that their
registration is current and active. Applicants should contact
Grants.gov directly with questions related to the registration or
submission process as the CDFI Fund does not administer or maintain
this system.
Applicants are required to submit a Grant Application Package in
Grants.gov and have it validated by the Grants.gov submission deadline
of May 29, 2019. The Grant Application Package is validated by
Grants.gov after the Applicant's initial submission and it may take
Grants.gov up to 48 hours to complete the validation process.
Therefore, the CDFI Fund encourages Applicants to submit the Grant
Application Package as early as possible. This will help to ensure that
the Grant Application Package is validated before the Grants.gov
submission deadline and provide time for Applicants to contact
Grants.gov directly to resolve any submission issues since the CDFI
Fund does not administer or maintain that system. For more information
about Grants.gov, please visit https://www.grants.gov and see Table 8
for Grants.gov contact information.
The CDFI Fund can only electronically retrieve validated Grant
Application Packages from Grants.gov and therefore only considers the
submission of the Grant Application Package to be successful when it
has been validated by Grants.gov before the submission deadline. It is
the Applicant's sole responsibility to ensure that its Grant
Application Package is submitted and validated by Grants.gov before the
submission deadline. Applicants that do not successfully submit their
Grant Application Package and have it validated by the Grants.gov
submission deadline will not be able to submit a FY 2019 BEA Program
Application in AMIS. The CDFI Fund will electronically retrieve
validated Grant Application Packages from Grants.gov on a daily basis.
Applicants are advised that it will take up to 48 hours from when the
CDFI Fund retrieves the validated Grant Application Package for it to
be available in AMIS to associate with a FY 2019 BEA Program
Application.
Once the CDFI Fund has retrieved the validated Grant Application
Package from Grants.gov and made it available in AMIS, Applicants must
associate it with their Application. Applicants can begin working on
their FY 2019 BEA Program Application in AMIS at any time, however,
they will not be able to submit the application until the validated
Grant Application Package is associated, by the Applicant, with the
application.
Applicants are advised that the CDFI Fund will not notify them when
the validated Grant Application Package has been retrieved from
Grants.gov or when it is available in AMIS. It is the Applicant's
responsibility to ensure that the validated SF-424 Mandatory is
associated with its FY 2019 BEA Application in AMIS. Applicants will
not be able to submit their FY 2019 BEA Program Application without
completing this step.
Applicants are advised that the lookup function in the FY 2019 BEA
Application in AMIS, uses the DUNS number reported on the validated
Grant Application Package to match it with the correct AMIS
Organization account. Therefore, Applicants must make sure the DUNS
number included in the Grant Application Package submitted in
Grants.gov matches the DUNS number in their AMIS Organization account.
If, for example, the DUNS number does not match because the Applicant
inadvertently used the DUNS number of their Bank Holding Company on the
Grant Application Package in Grants.gov and is attempting to associate
with AMIS Organization account of their FDIC-Insured Bank subsidiary,
the lookup function will not return any results and the Applicant will
not be able to submit the FY 2019 BEA Application.
Applicants are also highly encouraged to provide EIN, Authorized
Representative and/or Contact Person information on the Grant
Application Package that matches the information included in AMIS
Organization account.
E. Dun & Bradstreet Universal Numbering System (DUNS): Pursuant to
the Uniform Administrative
[[Page 18640]]
Requirements, each Applicant must provide, as part of its Application
submission, a Dun and Bradstreet Universal Numbering System (DUNS)
number. Applicants without a DUNS number will not be able to submit a
Grant Application Package in Grants.gov. Applicants should allow
sufficient time for Dun & Bradstreet to respond to inquiries and/or
requests for DUNS numbers.
F. System for Award Management (SAM): An active SAM account is
required to submit the required Grant Application Package in
Grants.gov. Any entity applying for Federal grants or other forms of
Federal financial assistance through Grants.gov must be registered in
SAM in order to submit its Grant Application Package in Grants.gov or
FY 2019 BEA Program Application in AMIS. When accessing SAM.gov, users
will be asked to create a login.gov user account (if they don't already
have one). Going forward, users will use their login.gov username and
password every time when logging in to SAM.gov. Applicants must have
established an active SAM.gov account no later than 30 days after the
release of this NOFA. The SAM registration process can take three weeks
or longer to complete so Applicants are strongly encouraged to begin
the registration process upon release of this NOFA in order to avoid
potential application submission problems. Applicants that have
previously completed the SAM registration process must verify that
their SAM accounts are current and active. Applicants are advised to
complete the SAM.gov process at least 48 hours in advance of the Grants
Application Package deadline. Applicants are required to maintain a
current and active SAM account at all times during which it has an
active Federal award or an Application under consideration for an award
by a Federal awarding agency.
An original, signed notarized letter identifying the authorized
Entity Administrator for the entity associated with the DUNS number is
required by SAM and must be mailed to the Federal Service Desk. This
requirement is applicable to new entities registering in SAM, as well
as existing entities with registrations being updated or renewed in
SAM. Additional information on the notarized letter process can be
located at: https://www.gsa.gov/about-us/organization/federal-acquisition-service/office-of-systems-management/integrated-award-environment-iae/sam-update-updated-july-11-2018.
The CDFI Fund will not consider any Applicant that fails to
properly register or activate its SAM account and, as a result, is
unable to submit its Grant Application Package in Grants.gov, or FY
2019 BEA Program Application in AMIS by the respective deadlines.
Applicants must contact SAM directly with questions related to SAM
registration or account changes as the CDFI Fund does not administer or
maintain this system. For more information about SAM, please visit
https://www.sam.gov or call 866-606-8220.
G. AMIS: All Applicants must complete an FY 2019 BEA Program
Application in AMIS, the CDFI Fund's web-based portal. All Applicants
must register User and Organization accounts in AMIS by June 17, 2019.
In addition, all BEA transactions must be finalized in AMIS by June 17,
2019; this includes address/census tract verification. No transactions
can be added, edited, or deleted after this deadline. Failure to
register and complete a FY 2019 BEA Program Application in AMIS in
accordance with the deadlines noted in Table 1: FY 2019 BEA Program
Funding Round--Key Dates for Applicants will result in the CDFI Fund
being unable to accept the Application. As AMIS is the CDFI Fund's
primary means of communication with Applicants and Recipients,
institutions must make sure that they update their contact information
in their AMIS accounts. In addition, the Applicant should ensure that
the institution information (name, EIN, DUNS number, Authorized
Representative, contact information, etc.) on the Grant Application
Package submitted as part of the Grant Application Package in
Grants.gov matches the information in AMIS. EINs and DUNS numbers in
the Applicant's SAM account must match those listed in AMIS. For more
information on AMIS, please see the information available through the
AMIS Home page at https://amis.cdfifund.gov. Qualified Activity
documentation and other attachments as specified in the applicable BEA
Program Application must also be submitted electronically via AMIS.
Detailed instructions regarding submission of Qualified Activity
documentation is provided in the Application Instructions and AMIS
Training Manual for the BEA Program Application. Applicants will not be
allowed to submit missing Qualified Activity documentation after the
BEA Transactions deadline and any Qualified Activity missing the
required documentation will be disqualified. Qualified Activity
documentation delivered by hard copy to the CDFI Fund's Washington, DC
office address will be rejected, unless the Applicant previously
requested a paper version of the Application as described in Section
IV.A.
H. Submission Dates and Times: The following table provides the
critical deadlines for the FY 2019 BEA Funding Round. Applications and
any other required documents or attachments received after the
applicable deadline will be rejected. The document submission deadlines
stated in this NOFA and the Application are strictly enforced. The CDFI
Fund will not grant exceptions or waivers for late submissions except
where the submission delay was a direct result of a Federal government
administrative or technological error.
Table 4--Critical Deadlines for FY 2019 BEA Funding Round
------------------------------------------------------------------------
Description Deadline Time (eastern time)
------------------------------------------------------------------------
Grant Application Package/SF-424 May 29, 2019 11:59 p.m. ET.
Mandatory, Submission Method:
Electronically via Grants.gov.
FY 2019 BEA Program Application, June 19, 2019 5:00 pm ET.
Submission Method:
Electronically via AMIS.
------------------------------------------------------------------------
1. Confirmation of Application Submission: Applicants may verify
that their Grant Application Package was successfully submitted and
validated in Grants.gov and that their FY 2019 BEA Program Application
was successfully submitted in AMIS. Applicants should note that the
Grant Application Package consists solely of the SF-424 Mandatory and
has a different deadline than the FY 2019 BEA Program Application.
These deadlines are provided above in Table 4. FY 2019 BEA Program
Funding Round Critical Deadlines for Applicants. If the Grant
Application Package is not successfully submitted and subsequently
validated by Grants.gov by the deadline, the CDFI Fund will not review
the FY 2019 BEA Program Application or any of the application related
material submitted in AMIS and
[[Page 18641]]
the Application will be deemed ineligible.
a. Grants.gov Submission Information: In order to determine whether
the Grant Application Package was submitted properly, each Applicant
should: (1) Receive two separate emails from Grants.gov, and (2)
perform an independent step in Grants.gov to determine whether the
Grant Application was validated. Each Applicant will receive the first
email from Grants.gov immediately after the Grant Application Package
is submitted confirming that the submission has entered the Grants.gov
system. This email will contain a tracking number. Within 48 hours, the
Applicant will receive a second email which will indicate if the
submitted Grant Application Package was successfully validated or
rejected with errors. However, Applicants should not rely on the second
email notification from Grants.gov to confirm that the Grant
Application Package was validated. Instead, Applicants should then
perform an independent step in Grants.gov to determine if the Grant
Application Package status shows as ``Validated'' by clicking on the
``Applicants'' menu, followed by clicking ``Track my Application,'' and
then entering the tracking number provided in the first email. The
Grant Application Package cannot be retrieved by the CDFI Fund until it
has been validated by Grants.gov.
b. AMIS Submission Information: AMIS is the web-based portal where
Applicants will directly enter their application information and add
supporting documentation, when applicable. The CDFI Fund strongly
encourages the Applicant to allow sufficient time to confirm the
Application content, review the material submitted, and remedy any
issues prior to the BEA Transactions deadline. Only the Authorized
Representative or an Application Point of Contact can submit the FY
2019 BEA Program Application in AMIS on the Application deadline.
Applicants will not receive an email confirming that their FY 2019
BEA Program Application was successfully submitted in AMIS. Instead,
Applicants should check their AMIS account to ensure that the status of
the FY 2019 BEA Program Application shows ``Under Review''. Step-by-
step instructions for submitting an FY 2019 BEA Program Application in
AMIS are provided in the Application Instructions, Supplemental
Guidance, and AMIS Training Manual for the BEA Program Electronic
Application.
2. Multiple Application Submissions: If an Applicant submits
multiple versions of its Grant Application Package in Grants.gov, the
Applicant can only associate one with its FY 2019 BEA Program
Application in AMIS.
Applicants can only submit one FY 2019 BEA Program Application in
AMIS. Upon submission, the Application will be locked and cannot be
resubmitted, edited, or modified in any way. The CDFI Fund will not
unlock a submitted Application or allow multiple Application
submissions.
3. Late Submission: The CDFI Fund will not accept an SF-424
Mandatory in Grants.gov or an FY 2019 BEA Program Application in AMIS
if it is not signed by an Authorized Representative or submitted after
the respective deadlines. In either case, the CDFI Fund will not review
any material submitted, and the Application will be deemed ineligible,
except where the submission delay was a direct result of a Federal
government administrative or technological error. This exception
includes any errors associated with Grants.gov, SAM.gov, AMIS or any
other applicable government system. Please note that this exception
does not apply to errors arising from obtaining a DUNS number from Dun
& Bradstreet, which is not a government entity. An Applicant unable to
make timely submission of its Application due to any errors in the
process of obtaining a DUNS number will not be allowed to submit its
Application after the Application deadline has passed. In such case,
the Applicant must submit their request for acceptance of a late
Application submission to the BEA Program Office via an AMIS Service
Request with documentation that clearly demonstrates the error by no
later than two business days after the applicable Application deadline
for Grants.gov or AMIS. The CDFI Fund will not respond to a request for
acceptance of late Application submissions after that time period. The
AMIS Service Request must be directed to the BEA Program with a subject
line of ``FY 2019 BEA Late Application Submission Request.''
I. Funding Restrictions: BEA Program Awards are limited by the
following:
1. The Recipient shall use BEA Program Award funds only for the
eligible activities described in Section II. D. of this NOFA and its
Award Agreement.
2. The Recipient may not distribute BEA Program Award funds to an
affiliate, Subsidiary, or any other entity, without the CDFI Fund's
prior written approval.
3. BEA Program Award funds shall only be disbursed to the
Recipient.
4. The CDFI Fund, in its sole discretion, may disburse BEA Program
Award funds in amounts, or under terms and conditions, which are
different from those requested by an Applicant.
J. Other Submission Requirements: None.
V. Application Review Information
A. Criteria: If the Applicant submitted a complete and eligible
Application, the CDFI Fund will conduct a substantive review in
accordance with the criteria and procedures described in the
Regulations, this NOFA, the Application guidance, and the Uniform
Requirements. The CDFI Fund reserves the right to contact the Applicant
by telephone, email, or mail for the sole purpose of clarifying or
confirming Application information. If contacted, the Applicant must
respond within the time period communicated by the CDFI Fund or run the
risk that its Application will be rejected.
1. CDFI Related Activities: CDFI Related Activities include Equity
Investments, Equity-Like Loans, and CDFI Support Activities provided to
eligible CDFI Partners.
2. Eligible CDFI Partner: CDFI Partner is defined as a certified
CDFI that has been provided assistance in the form of CDFI Related
Activities by an unaffiliated Applicant (12 CFR 1806.103). For the
purposes of this NOFA, an eligible CDFI Partner must have been
certified as a CDFI as of the date that the BEA Applicant made its
investment or provided support, and be Integrally Involved in a
Distressed Community (if the BEA Applicant provided CDFI Support
Activities to the CDFI Partner).
3. Integrally Involved: Integrally Involved is defined at 12 CFR
1806.103. For purposes of this NOFA, in order for an Applicant to
report CDFI Support Activities in its Application, the CDFI Partner
which received the support must be deemed to be Integrally Involved by
demonstrating it has: (i) Provided at least 10 percent of the number of
its financial transactions or dollars transacted (e.g., loans or Equity
Investments), or 10 percent 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 identified by the CDFI Partner, in each of the
three calendar years preceding the date of this NOFA; (ii) transacted
at least 25 percent 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 this
[[Page 18642]]
NOFA, or 25 percent 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
identified by the CDFI Partner, in at least one of the three calendar
years preceding the date of this NOFA; (iii) demonstrated that it has
attained at least 10 percent of market share for a particular financial
product in one or more Distressed Communities (such as home mortgages
originated in one or more Distressed Communities) in at least one of
the three calendar years preceding the date of this NOFA; or (iv) at
least 25 percent 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.
4. 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.
5. Certificates of Deposit: Section 1806.103 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 the
yields on Treasury securities at constant maturity as interpolated by
Treasury from the daily yield curve and available on the Treasury
website 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
website 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 daily, 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 12 CFR.1806.103 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.
6. Equity Investment: An Equity Investment means financial
assistance provided by an Applicant or its Subsidiary to a CDFI, which
CDFI meets such criteria as set forth in this 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.
7. Equity-Like Loan: An Equity-Like Loan is 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, as such characteristics
may be specified by the CDFI Fund (12 CFR 1806.103). 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.
8. CDFI Support Activity: A CDFI Support Activity is defined as
assistance provided by an Applicant or its Subsidiary to a CDFI that is
Integrally Involved in a Distressed Community, in the form of a loan,
Technical Assistance, or deposits.
9. 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.
10. Commercial Loans and Investments: Commercial Loans and
Investments is a sub-category of Distressed Community Financing
Activities and is defined as the following lending activity types:
Affordable Housing Development Loans and related Project Investments;
Commercial Real Estate Loans and related Project Investments; and Small
Business Loans and related Project Investments.
11. Consumer Loans: Consumer Loans is a sub-category of Distressed
Community Financing Activities and is defined as the following lending
activity types: Affordable Housing Loans; Education Loans; Home
Improvement Loans; and Small Dollar Consumer Loans.
12. Distressed Community Financing Activities and Service
Activities: Distressed Community Financing Activities comply with
consumer protection laws and are defined as (1) Consumer Loans; or (2)
Commercial Loans and Investments. In addition to the requirements set
forth in the Interim Rule, this NOFA provides the following additional
requirements:
a. Affordable Housing Development Loans and Related Project
Investments: For purposes of this NOFA, eligible Affordable Housing
Development Loans and related Project Investments do not include
housing for students, or school dormitories. In addition, for such
transactions, Applicants will be required to provide supporting
documentation that demonstrates that at least 60 percent of the units
in the property financed are or will be sold or rented to Eligible
Residents who meet Low-and-Moderate-income requirements, as noted in
the Application instructions.
b. Commercial Real Estate Loans and related Project Investments:
For purposes of this NOFA, eligible Commercial Real Estate Loans (12
CFR 1806.103) and related Project Investments 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
[[Page 18643]]
currently provided to the Distressed Community.
c. Small Dollar Consumer Loan: For purposes of this NOFA, eligible
Small Dollar Consumer Loans are affordable loans that serve as
available alternatives to the marketplace for individuals who are
Eligible Residents with a total principal value of no less than $500
and no greater than $5,000 and have a term of ninety (90) days or more.
d. Distressed Community Financing Activities--Transactions Less
Than $250,000: For purposes of this NOFA, Applicants are expected to
maintain records for any transaction submitted as part of the FY 2019
BEA Program Application, including supporting documentation for
transactions in the Distressed Community Financing Activity category of
less than $250,000. The CDFI Fund reserves the right to request
supporting documentation from an Applicant during its Application
Review process for a Distressed Community Financing Activities
transaction less than $250,000.
e. Low- and Moderate-Income residents: For the purposes of this
NOFA, Low-Income means borrower income that does not exceed 80 percent
of the area median income, and Moderate-Income means borrower income
may be 81 percent to no more than 120 percent of the area median
income, according to the U.S. Census Bureau data.
13. 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 including
safe transaction accounts, youth transaction accounts, Electronic
Transfer Accounts and Individual Development Accounts;
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. $50,000 per new ATM installed at a location in a Distressed
Community;
e. $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;
f. In the case of Applicants engaging in Financial Services
activities not described above, the CDFI Fund will determine the unit
value of such services;
g. When reporting the opening of a new retail bank branch office,
the Applicant must certify that such new branch is intended to remain
in operation for at least the next five years;
h. Financial Service Activities must be provided by the Applicant
to Eligible Residents or enterprises that are located in a Distressed
Community. An Applicant may determine the number of Eligible Residents
who are recipients of Financial Services by either: (i) Collecting the
addresses of its Financial Services customers, or (ii) certifying that
the Applicant reasonably believes that such customers are Eligible
Residents or enterprises located in a Distressed Community 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 Eligible
Residents or enterprises to whom it is claiming to have provided the
Financial Services; and
i. 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 FY 2019 BEA Program Application in AMIS.
14. Priority Factors: Priority Factors are the numeric values
assigned to individual types of activity within: (i) The Distressed
Community Financing Activities, and (ii) Services Activities 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, 2018) 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 types within the
Distressed Community Financing Activities and Service Activities
categories only, as follows:
Table 5--CRA Asset Size Classification
------------------------------------------------------------------------
Priority
factor
------------------------------------------------------------------------
Small institutions (assets of less than $321 million as 5.0
of 12/31/2018).........................................
Intermediate--small institutions (assets of at least 3.0
$321 million but less than $1.284 billion as of 12/31/
2018)..................................................
Large institutions (assets of $1.284 billion or greater 1.0
as of 12/31/2018)......................................
------------------------------------------------------------------------
15. Certain Limitations on Qualified Activities:
a. 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 BEA Program Award.
b. 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 BEA Program Award. Leverage
loans used in New Markets Tax Credit structured transactions that meet
the requirements outlined in this NOFA are considered Distressed
Community Financing Activities. The application materials will provide
further guidance on requirements for BEA transactions which were
leverage loans used in a New Markets Tax Credit structured transaction.
c. 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 BEA Program
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
[[Page 18644]]
a loan to a borrower that is retired or restructured using the proceeds
of a new commitment by the Applicant.
d. Certain Business Types: Financial assistance provided by an
Applicant shall not constitute a Qualified Activity, as defined in this
part, for the purposes of financing the following business types: adult
entertainment providers, golf courses, race tracks, gambling
facilities, country clubs, facilities offering massage services, hot
tub facilities, suntan facilities, or stores where the principal
business is the sale of alcoholic beverages for consumption off
premises.
e. 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.
f. Prior CDFI Fund Awards: No Applicant may receive a BEA Program
Award for the same activities funded by another CDFI Fund program or
Federal program.
16. Award Percentages, Award Amounts, Application Review Process,
Selection Process, Programmatic and Financial Risk, and Application
Rejection: The Interim Rule and this NOFA describe the process for
selecting Applicants to receive a BEA Program Award and determining
Award amounts.
a. Award percentages: In the CDFI Related Activities subcategory of
CDFI Equity, for all Applicants, the estimated award amount will be
equal to 18 percent of the increase in Qualified Activities reported in
this subcategory.
In the CDFI Related Activities subcategory of CDFI Support
Activities, for a certified CDFI Applicant, the estimated award amount
will be equal to 18 percent of the increase in Qualified Activities in
this subcategory. If an Applicant is not a certified CDFI, the
estimated award amount will be equal to 6 percent of the increase in
Qualified Activities in this subcategory.
In Distressed Community Financing Activities' subcategory of
Consumer Lending, the estimated award amount for certified CDFI
Applicants will be 18 percent of the weighted value of the increase in
Qualified Activities in this subcategory. If an Applicant is not a
certified CDFI Applicant, the estimated award amount will be equal to 6
percent of the weighted value of the increase in Qualified Activities
in this subcategory.
In the Distressed Community Financing Activities subcategory of
Commercial Lending and Investments, for a certified CDFI Applicant, the
estimated award amount will be equal to 9 percent of the weighted value
of the increase in Qualified Activities in this subcategory. If an
Applicant is not a certified CDFI, the estimated award amount will be
equal to 3 percent of the weighted value of the increase in Qualified
Activity in this subcategory.
In the Service Activities category, for a certified CDFI Applicant,
the 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 certified CDFI, the estimated award amount will be
equal to 3 percent of the weighted value of the increase in Qualified
Activity for the category.
b. Award Amounts: An Applicant's estimated award amount will be
calculated according to the procedure outlined in the Interim Rule (at
12 CFR 1806.403). As outlined in the Interim Rule at 12 CFR 1806.404,
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 the priority ranking of
each Applicant.
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 BEA Program 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.
For purposes of calculating award payment 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, Recipients will have 12 months from the end of the
Assessment Period to make disbursements and 15 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 de-obligate any outstanding award balance and
said outstanding award balance will no longer be available to the
Recipient.
B. Review and Selection Process:
1. Application Review Process: All Applications will be initially
evaluated by external non-Federal reviewers. Reviewers are selected
based on their experience in understanding various financial
transactions, reading and interpreting financial documentation, strong
written communication skills, and strong mathematical skills. Reviewers
must complete the CDFI Fund's conflict of interest process and be
approved by the CDFI Fund.
2. Selection Process: If the amount of funds available during the
funding round is insufficient for all estimated Award amounts,
Recipients will be selected based on the process described in the
Interim Rule at 12 CFR 1806.404. 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
1806.404(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.
Selections within each priority category will be based on the
Applicants' relative rankings 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.
The CDFI Fund, in its sole discretion: (i) May adjust the estimated
award amount that an Applicant may receive; (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.
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 the Application may
be 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 website.
3. Programmatic and Financial Risk: The CDFI Fund will consider
safety and soundness information from the appropriate Federal bank
regulatory agency as defined in Section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813(q)). If the appropriate Federal bank
regulatory agency identifies safety and soundness concerns, the CDFI
Fund will assess whether the concerns cause or will cause the Applicant
to be incapable of completing the activities for which funding has been
requested. The CDFI
[[Page 18645]]
Fund will not approve a BEA Program Award under any circumstances for
an Applicant if the appropriate Federal bank regulatory agency
indicates that the Applicant received a composite rating of ``5'' on
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
an Applicant that has:
a. a CRA assessment rating of below ``Satisfactory'' on its most
recent examination; (ii.) a financial audit with: a going concern
paragraph, an adverse opinion, a disclaimer of opinion, or a withdrawal
of an opinion on its most recent audit; (iii.) a Prompt Corrective
Action directive from its regulator that was active at the time the
Applicant submitted its Application to the CDFI Fund or becomes active
during the CDFI Fund's evaluation of the Application; or (iv.) a
Material Concern conveyed from its regulator to the CDFI Fund during
the CDFI Fund's evaluation of the Application.
Applicants and/or their appropriate Federal bank regulator agency
may be contacted by the CDFI Fund to provide additional information
related to Federal bank regulatory or CRA information. The CDFI Fund
will consider this information and may choose to not approve a BEA
Program Award for an Applicant if the information indicates that the
Applicant may be unable to responsibly manage, re-invest, and/or report
on a BEA Program Award during the period of performance.
4. Persistent Poverty Counties: Should the CDFI Fund determine,
upon analysis of the initial pool of BEA Program Award Recipients, that
it has not achieved the 10 percent PPC requirement mandated by
Congress, Award preference will be given to Applicants that committed
to deploying a minimum of 10 percent of their FY 2019 BEA Program Award
in PPCs. Applicants may be required to deploy more than the minimum
commitment percentage, but the percentage required should not exceed
the maximum commitment percentage provided in the Application.
Applicants that committed to serving PPCs and are selected to receive a
FY 2019 BEA Program award, will have their PPC commitment incorporated
into their Award Agreement as a Performance Goal which will be subject
to compliance and reporting requirements. No applicant, however, will
be disqualified from consideration for not making a PPC commitment in
its BEA Program Application.
5. Application Rejection: The CDFI Fund reserves the right to
reject an Application if information (including administrative error)
comes to the CDFI Fund's attention that either: Adversely affects an
Applicant's eligibility for an award; adversely affects the CDFI Fund's
evaluation or scoring of an Application; or indicates fraud or
mismanagement on the Applicant's part. If the CDFI Fund determines any
portion of the Application is incorrect in a material respect, the CDFI
Fund reserves the right, in its sole discretion, to reject the
Application.
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 FY 2019 BEA Program Application or
provide reasons why an Applicant was not selected to receive a BEA
Program Award. The CDFI Fund will only respond to general questions
regarding the FY 2019 BEA Program Application and award decision
process until 30 days after the award announcement date.
C. Anticipated Announcement and Federal Award Dates: The CDFI Fund
anticipates making its FY 2019 BEA Program award announcement in the
fall of 2019. The Federal Award Date shall be the date that the CDFI
Fund executes the Award Agreement.
VI. Federal Award Administration Information
A. Federal Award Notices: The CDFI Fund will notify an Applicant of
its selection as a Recipient by delivering a notification or letter.
The Award Agreement will contain the general terms and conditions
governing the CDFI Fund's provision of an Award. The Award Recipient
will receive a copy of the Award Agreement via AMIS. The Recipient is
required to sign the Award Agreement via an electronic signature in
AMIS. The CDFI Fund will subsequently execute the Award Agreement. Each
Recipient must also ensure that complete and accurate banking
information is reflected in its SAM account at www.sam.gov in order to
receive its award payment.
B. Administrative and National Policy Requirements: If, prior to
entering into an Award Agreement, information (including an
administrative error) comes to the CDFI Fund's attention that adversely
affects: The Recipient's eligibility for an award; the CDFI Fund's
evaluation of the Application; the Recipient's compliance with any
requirement listed in the Uniform Requirements; or indicates fraud or
mismanagement on the Recipient's part, the CDFI Fund may, in its
discretion and without advance notice to the Recipient, terminate the
award or take other actions as it deems appropriate.
If the Recipient's certification status as a CDFI changes, the CDFI
Fund reserves the right, in its sole discretion, to re-calculate the
award, and modify the Award Agreement based on the Recipient's non-CDFI
status.
By executing an Award Agreement, the Recipient agrees that, if the
CDFI Fund becomes aware of any information (including an administrative
error) prior to the effective date of the Award Agreement that either
adversely affects the Recipient's eligibility for an award, or
adversely affects the CDFI Fund's evaluation of the Recipient's
Application, or indicates fraud or mismanagement on the part of the
Recipient, the CDFI Fund may, in its discretion and without advance
notice to the Recipient, terminate the Award Agreement or take other
actions as it deems appropriate.
The CDFI Fund reserves the right, in its sole discretion, to
rescind an award if the Recipient fails to return the Award Agreement,
signed by the authorized representative of the Recipient, and/or
provide the CDFI Fund with any other requested documentation, within
the CDFI Fund's deadlines.
In addition, the CDFI Fund reserves the right, in its sole
discretion, to terminate and rescind the Award Agreement and the award
made under this NOFA for any criteria described in the following table:
Table 6--Criteria That May Result in Award Termination Prior to the
Execution of an Award Agreement
------------------------------------------------------------------------
Criteria Description
------------------------------------------------------------------------
Failure to maintain FDIC- If prior to entering into an
insured status. Award Agreement under this NOFA, the
Recipient does not maintain its FDIC-
insured status, the CDFI Fund will
terminate and rescind the Award
Agreement and the award made under this
NOFA.
[[Page 18646]]
Failure to meet reporting If an Applicant is a prior CDFI
requirements. Fund Recipient 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 guarantee,
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 Recipient or allocatee
is current on the reporting requirements
in the previously executed assistance,
award, allocation, bond loan
agreement(s), or agreement to guarantee.
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 Recipient 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 award made
under this NOFA.
Pending resolution of If, at any time prior to
noncompliance. entering into an Award Agreement under
this NOFA, an Applicant (or affiliate of
an Applicant) that is a prior CDFI Fund
Recipient or allocatee under any CDFI
Fund program: (i) Has demonstrated it
has been in noncompliance with a
previous assistance, award, allocation
agreement, bond loan agreement, or
agreement to guarantee, but (ii) the
CDFI Fund has yet to make a final
determination regarding whether or not
the entity is in noncompliance with or
default of its previous assistance,
award, allocation, bond loan agreement,
or agreement to guarantee, 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 Recipient 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 award made
under this NOFA.
Default or Noncompliance If prior to entering into an
status. Award Agreement under this NOFA: (i) The
CDFI Fund has made a final determination
that an Applicant (or an affiliate of an
Applicant) that is a prior CDFI Fund
Recipient or allocatee under any CDFI
Fund program whose award or allocation
terminated in default or noncompliance
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 guarantee
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.
Compliance with Federal civil If prior to entering into an
rights requirements. Award Agreement under this NOFA, the
Recipient receives a final
determination, made within the last
three years, in any proceeding
instituted against the Recipient in, by,
or before any court, governmental, or
administrative body or agency, declaring
that the Recipient has violated the
following laws: Title VI of the Civil
Rights Act of 1964, as amended (42
U.S.C.Sec. 2000d); Section 504 of the
Rehabilitation Act of 1973 (29 U.S.C.
Sec. 794); the Age Discrimination Act
of 1975, (42 U.S.C. Sec. 6101-6107),
and Executive Order 13166, Improving
Access to Services for Persons with
Limited English Proficiency, the CDFI
Fund will terminate and rescind the
Award Agreement and the award made under
this NOFA.
Do Not Pay................... The Do Not Pay Business Center
was developed to support Federal
agencies in their efforts to reduce the
number of improper payments made through
programs funded by the Federal
government.
The CDFI Fund reserves the
right, in its sole discretion, to
rescind an award if the Recipient (or
affiliate of a Recipient) is identified
as ineligible to be a Recipient per the
Do Not Pay database.
Safety and Soundness......... If it is determined the
Recipient is or will be incapable of
meeting its award obligations, the CDFI
Fund will deem the Recipient to be
ineligible or require it to improve
safety and soundness conditions prior to
entering into an Award Agreement.
------------------------------------------------------------------------
C. Award Agreement: After the CDFI Fund selects a Recipient, unless
an exception detailed in this NOFA applies, the CDFI Fund and the
Recipient 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 approved uses of the award; (iii) the performance goals and
measures; (iv) the period of performance; and (v) the reporting
requirements. The Award Agreement shall provide that a Recipient shall:
(i) carry out its Qualified Activities in accordance with applicable
law, the approved Application, and all other applicable requirements;
(ii) not receive any disbursement of award dollars until the CDFI Fund
has determined that the Recipient has fulfilled all applicable
requirements; and (iii) use the BEA Program Award amount for Qualified
Activities. Recipients which committed to serving PPCs will have their
PPC commitment incorporated into their Award Agreement as a performance
goal which will be subject to compliance and reporting requirements.
D. Reporting: Through this NOFA, the CDFI Fund will require each
Recipient to account for and report to the CDFI Fund on the use of the
award. This will require Recipients to establish administrative
controls, subject to applicable OMB Circulars. The CDFI Fund will
collect information from each such Recipient 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 Recipients outlining the format and content of the
information required to be provided to describe how the funds were
used.
The CDFI Fund may collect information from each Recipient
including, but not limited to, an Annual Report with the following
components:
[[Page 18647]]
Table 7--Reporting Requirements
------------------------------------------------------------------------
Criteria Description
------------------------------------------------------------------------
Financial Statement Audit Recipients must submit the FSA report to
Report (FSA report). the CDFI Fund via AMIS.
Use of BEA Program Award Recipients must submit the Use of Award
Report--for all Recipients. report to the CDFI Fund via AMIS.
Use of BEA Program Award The CDFI Fund will require each Recipient
Report--Funds Deployed in with Persistent Poverty County
Persistent Poverty Counties. commitments to report data for Award
funds deployed in persistent poverty
counties and maintain proper supporting
documentation and records which are
subject to review by the CDFI Fund.
Explanation of Noncompliance If the Recipient fails to meet a
(as applicable) or successor Performance Goal or reporting
report. requirement, it must submit the
Explanation of Noncompliance via AMIS.
------------------------------------------------------------------------
Each Recipient is responsible for the timely and complete
submission of the reporting requirements. The CDFI Fund reserves the
right to contact the Recipient to request additional information and
documentation. The CDFI Fund may consider financial information filed
with Federal regulators during its compliance review. The CDFI Fund
will use such information to monitor each Recipient's compliance with
the requirements in the Award Agreement and to assess the impact of the
BEA Program. The CDFI Fund reserves the right, in its sole discretion,
to modify these reporting requirements if it determines it to be
appropriate and necessary; however, such reporting requirements will be
modified only after notice has been provided to Recipients.
E. Financial Management and Accounting: The CDFI Fund will require
Recipients to maintain financial management and accounting systems that
comply with Federal statutes, regulations, and the terms and conditions
of the award. These systems must be sufficient to permit the
preparation of reports required by general and program specific terms
and conditions, including the tracing of funds to a level of
expenditures adequate to establish that such funds have been used
according to the Federal statutes, regulations, and the terms and
conditions of the award.
Each of the Qualified Activities categories will be ineligible for
indirect costs and an associated indirect cost rate. The cost
principles used by Recipients must be consistent with Federal cost
principles and support the accumulation of costs as required by the
principles, and must provide for adequate documentation to support
costs charged to the BEA Program Award. In addition, the CDFI Fund will
require Recipients to: maintain effective internal controls; comply
with applicable statutes, regulations, and the Award Agreement;
evaluate and monitor compliance; take action when not in compliance;
and safeguard personally identifiable information.
VII. Federal Awarding Agency Contacts
A. Questions Related to Application and Prior Recipient Reporting,
Compliance and Disbursements: The CDFI Fund will respond to questions
concerning this NOFA, the Application and reporting, compliance, or
disbursements between the hours of 9:00 a.m. and 5:00 p.m. Eastern
Time, starting on the date that this NOFA is published through the date
listed in Table 1. The CDFI Fund will post responses to frequently
asked questions in a separate document on its website. Other
information regarding the CDFI Fund and its programs may be obtained
from the CDFI Fund's website at https://www.cdfifund.gov.
The following table lists contact information for the CDFI Fund,
Grants.gov and SAM:
Table 8--Contact Information
------------------------------------------------------------------------
Telephone
Type of question number (not Electronic contact
toll free) method
------------------------------------------------------------------------
BEA Program....................... 202-653-0421 BEA AMIS Service
Request.
Certification, Compliance 202-653-0423 BEA Compliance and
Monitoring, and Evaluation. Reporting AMIS
Service Request.
AMIS--IT Help Desk................ 202-653-0422 IT AMIS Service
Request.
Grants.gov Help Desk.............. 800-518-4726 [email protected].
SAM.gov (Federal Service Desk).... 866-606-8220 Web form via https://www.fsd.gov/fsd-gov/login.do.
------------------------------------------------------------------------
B. Information Technology Support: People who have visual or
mobility impairments that prevent them from using the CDFI Fund's
website should call (202) 653-0422 for assistance (this is not a toll
free number).
C. Communication with the CDFI Fund: The CDFI Fund will use its
AMIS internet interface to communicate with Applicants and Recipients
under this NOFA. Recipients must use AMIS to submit required reports.
The CDFI Fund will notify Recipients by email using the addresses
maintained in each Recipient's AMIS account. Therefore, a Recipient 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 AMIS account(s).
D. Civil Rights and Diversity: Any person who is eligible to
receive benefits or services from CDFI Fund or Recipients under any of
its programs is entitled to those benefits or services without being
subject to prohibited discrimination. The Department of the Treasury's
Office of Civil Rights and Diversity enforces various Federal statutes
and regulations that prohibit discrimination in financially assisted
and conducted programs and activities of the CDFI Fund. If a person
believes that s/he has been subjected to discrimination and/or reprisal
because of membership in a protected group, s/he may file a complaint
with:
[[Page 18648]]
Associate Chief Human Capital Officer, Office of Civil Rights, and
Diversity, 1500 Pennsylvania Ave. NW, Washington, DC 20220 or (202)
622-1160 (not a toll-free number).
VIII. Other Information
A. Reasonable Accommodations: Requests for reasonable
accommodations under section 504 of the Rehabilitation Act should be
directed to Mr. Jay Santiago, Community Development Financial
Institutions Fund, U.S. Department of the Treasury, at
[email protected] no later than 72 hours in advance of the
application deadline.
B. 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.
C. Application Information Sessions: The CDFI Fund may conduct
webinars or host information sessions for organizations that are
considering applying to, or are interested in learning about, the CDFI
Fund's programs. For further information, please visit the CDFI Fund's
website at https://www.cdfifund.gov.
Authority: 12 U.S.C. 1834a, 4703, 4703 note, 4713; 12 CFR part
1806.
Jodie Harris,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2019-08787 Filed 4-30-19; 8:45 am]
BILLING CODE 4810-70-P
