Funding Opportunities: Bank Enterprise Award (BEA) Program; FY 2024 Funding Round
Citation: "89 FR 33451"
Page Number: "33451"
"Notices"
Funding Opportunity Title: Notice of Funds Availability (NOFA) inviting Applications for the Fiscal Year (FY) 2024 Funding Round of the Bank Enterprise Award Program (BEA Program).
Announcement Type: Announcement of funding opportunity.
Funding Opportunity Number: CDFI-2024-BEA.
Catalog of Federal Domestic Assistance (CFDA) Number: 21.021.
Dates:
See table in Original Document.
Executive Summary: This NOFA is issued in connection with the fiscal year (FY) 2024 funding round of the Bank Enterprise Award Program (BEA Program). The BEA Program is administered by the
I. Program Description
A. History:
The BEA Program encourages 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, investments, and Service Activities within Distressed Communities. Providing monetary awards to banks for increasing their community development activities leverages the
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).
C. Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (2 CFR part 200): The Uniform Administrative Requirements codify financial, administrative, procurement, and program management standards that Federal award-making agencies and Award 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 Award Recipients must comply.
D. Priorities: Through the BEA Program, the
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:
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 2024 funding round, the Baseline Period is
F. Funding Limitations:
G. Persistent Poverty Counties: Pursuant to the Consolidated Appropriations Act, 2024 (Pub. L. 118-42),
II. Federal Award Information
A. Funding Availability:
B. Types of Awards: BEA Program Awards are made in the form of grants.
C. Anticipated Start Date and Period of Performance:
D. Eligible Activities: Eligible activities for BEA Program Applicants 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 Certificates of Deposits, Loans, 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,
When calculating BEA Program Award amounts, the
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
E.
Please note that a
1. Designation of
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
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 Award Recipient under this NOFA must electronically sign an Award Agreement via AMIS prior to payment of the award proceeds by the
G. Use of Award: It is the policy of the
FOOTNOTE 1
(a) Recipients and subrecipients are prohibited from obligating or expending loan or grant funds to:
(1) Procure or obtain; (2) Extend or renew a contract to procure or obtain; or
(3) Enter into a contract (or extend or renew a contract) to procure or obtain, equipment, services, or systems that uses covered telecommunications equipment or services as a substantial or essential component of any system, or as critical technology as part of any system. As described in Public Law 115-232, section 889, covered telecommunications equipment is telecommunications equipment produced by
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
Table 2-Eligibility Requirements for BEA Applicants
Criteria Description
Eligible Applicants -- Eligible Applicants for the BEA Program must be Insured Depository Institutions, as defined in the Interim Rule.
-- For the FY 2024 funding round, an Applicant must have been FDIC -insured as of the first day of the Baseline Period, January 1, 2022 , and maintain its FDIC -insured status at the time of
Application submission.
-- 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 2024 funding round, an eligible Certified-CDFI Applicant is an Insured Depository Institution that is one of the following: (1) is certified as a CDFI as of December 31, 2023 (end of
the Assessment Period) and remains certified at the time BEA Program Awards are announced; OR (2) has submitted a CDFI Certification Application by May 28, 2024 and receives its status as a
Certified CDFI by the time BEA Program Awards are announced.
-- No Applicant may receive a FY 2024 BEA Program Award, either directly or through a community partnership, if it has: (1) an application pending for assistance under the CDFI Program; (2) 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 2024 BEA Program Award Agreement; (3) ever received assistance
under the CDFI Program based on the same activities during the same period for which it is seeking a FY 2024 BEA Program Award; or (4) ever received assistance from another CDFI Fund program or
federal program based on the same activities during the same period for which it is seeking a FY 2024 BEA Program Award.
Application and submission in Grants.gov and Awards -- The CDFI Fund will only accept Applications that use the official Application templates provided on Grants.gov and AMIS. Applications submitted with
Management Information System (AMIS) alternative or altered templates will not be considered.
-- Applicants undergo a two-step process that requires the submission of Application documents by two separate deadlines in two different locations: (1) the SF-424 in
Grants.gov and (2) all other Required Application Documents in AMIS.
-- Grants.gov and the Standard Form 424 (SF-424):
o Applicants must submit the SF-424, Application for Federal Assistance, through Grants.gov.
o All Applicants must register in the Grants.gov system to successfully submit an Application. The CDFI Fund strongly encourages Applicants to
register as soon as possible.
o The CDFI Fund will not extend the SF-424 application deadline for any Applicant that started the Grants.gov registration process on, before, or
after the date of the publication of this NOFA, but did not complete it by the deadline, except in the case of a federal government administrative or federal technological error that directly
resulted in a late submission of the SF-424.
o The SF-424 must be submitted in Grants.gov on or before the deadline listed in Table 1. Applicants are strongly encouraged to submit their SF-424 as
early as possible in the Grants.gov portal. The deadline for the Grants.gov submission is before the AMIS submission deadline.
o The SF-424 must be submitted under the BEA Program Funding Opportunity Number.
o If the SF-424 is not accepted by Grants.gov by the deadline, the CDFI Fund will not review any material submitted in AMIS and the Application will
be deemed ineligible.
-- AMIS and all other Required Application Documents:
o The CDFI Fund's Award Management Information System (AMIS) is an enterprise-wide information technology system ( amis.cdfifund.gov ). Applicants will
use AMIS to submit and store organization and Application information with the CDFI Fund .
o Applicants are only allowed one BEA Program Application submission in AMIS.
o Each Application in AMIS must be signed by an Authorized Representative.
o Applicants must ensure that the Authorized Representative is an employee or officer of the Applicant, authorized to sign legal documents on behalf of the organization.
Consultants working on behalf of the organization may not be designated as Authorized Representatives.
o Only the Authorized Representative or Application Point of Contact listed as an Organization Contact may submit the Application in AMIS.
o All Required Application Documents must be submitted in AMIS on or before the deadline specified in Tables 1.
-- The CDFI Fund will not extend the deadline for any Applicant except in the case of a federal government administrative or federal technological error that directly resulted in the late
submission of the Application in AMIS.
Employer Identification Number (EIN) -- Applicants must have a unique EIN assigned by the Internal Revenue Service (IRS).
-- The CDFI Fund will reject an Application submitted with the EIN of a parent or Affiliate organization.
-- The EIN in the Applicant's AMIS account must match the EIN in the Applicant's System for Award Management (SAM) account. The CDFI Fund reserves the right to reject an Application if the EIN in
the Applicant's AMIS account does not match the EIN in its SAM account.
-- Applicants must enter their EIN into their AMIS profile by the deadline specified in Table 1.
Unique Entity Identifier (UEI) -- The transition from the Dun and Bradstreet Universal Numbering System (DUNS) to UEI is a federal, government-wide initiative.
-- The CDFI Fund will reject an Application submitted with the UEI number of a parent or Affiliate organization.
-- The UEI number in the Applicant's AMIS account must match the UEI number in the Applicant's Grants.gov and SAM accounts. The CDFI Fund will reject
an Application if the UEI number in the Applicant's AMIS account does not match the UEI number in its Grants.gov and SAM accounts.
-- Applicants must enter their UEI number into their AMIS profile on or before the deadline specified in Table 1.
System for Award Management (SAM) -- 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 ( SAM.gov ).
-- Applicants must register in SAM as part of the Grants.gov registration process.
-- Applicants that have an active SAM registration are already assigned a UEI. Applicants must also have an EIN number in order to register in SAM.
-- Applicants must be registered in SAM in order to submit an SF-424 in Grants.gov.
-- The CDFI Fund reserves the right to deem an Application ineligible if the Applicant's SAM account expires during the time period between the submission of the Applicant's SF-424 and the Award
announcement, or is set to expire before September 30, 2024 and the Applicant does not re-activate, or renew, as applicable, the account within the deadlines that the CDFI Fund communicates to
affected Applicants during the Application evaluation period.
AMIS Account -- Each Applicant must register as an organization in AMIS and submit its Application and all required documents through the AMIS portal ( amis.cdfifund.gov
).
-- The Application of any organization that does not properly register in AMIS by the deadline set forth in Table 1 will be rejected without further consideration.
-- The Authorized Representative and/or Application Point of Contact must be included as "users" in the Applicant's AMIS account.
-- An Applicant that fails to properly register and update its AMIS account may miss important communication from the CDFI Fund and/or may not be able to successfully submit an Application.
501(c)(4) status -- Pursuant to 2 U.S.C. 1611, any 501(c)(4) organization that engages in lobbying activities is not eligible to receive a BEA Program Award.
Compliance with Nondiscrimination and Equal Opportunity Statutes, Regulations, and Executive -- An Applicant may not be eligible to receive a BEA Award if proceedings have been instituted against it in, by, or before any court, governmental agency, or administrative body,
Orders and a final determination within the time period beginning three years prior to the publication of this NOFA until the execution of the Award Agreement that indicates the Applicant has violated any
federal civil rights laws or regulations, including but not limited to: Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C.2000d et seq. ); the Fair Housing
Act (42 U.S.C. 3601 et seq. ); the Equal Credit Opportunity Act (15 U.S.C. 1691 et seq. ); Section 504 of the Rehabilitation Act of 1973
(29 U.S.C. 794); the Age Discrimination Act of 1975, (42 U.S.C. 6101-6107); and Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq. ).
-- Applicants will be required to submit the Title VI Compliance Worksheet (Worksheet) once annually to assist the CDFI Fund in determining whether Applicants are compliant with the Treasury
regulations implementing Title VI of the Civil Rights Act of 1964 (Title VI), set forth in 31 CFR part 22, Nondiscrimination on the Basis of Race, Color, or National Origin in Programs or
Activities Receiving Federal Financial Assistance from the Department of the Treasury .
-- In addition, an Applicant must be compliant with federal civil rights requirements in order to be deemed eligible to receive an Award from the CDFI Fund . The CDFI Fund will consider an
Application submitted by an Applicant that may have pending Title VI noncompliance issues; however, until the CDFI Fund makes a final determination that the Applicant is Title VI compliant, it will
not enter into an Award Agreement.
-- The Title VI Compliance Worksheet and program award terms and conditions do not impose antidiscrimination requirements on Tribal governments beyond what would otherwise apply under federal law.
Depository Institution Holding Company -- 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.
Regulated Institutions -- Eligible Applicants for the BEA Program must be Insured Depository Institutions, as defined in the Interim Rule.
Use of Award -- All awards made through this NOFA must be used to support the Applicant's Eligibility Activities per Section II (D).
-- Awards may not be used to support the activities of, or otherwise be passed through, transferred, or co-awarded to, third-party entities, whether Affiliates, Subsidiaries, or others, unless
done pursuant to a merger or acquisition or similar transaction, and with the CDFI Fund's prior written consent. The Recipient of any award made through this NOFA must comply, as applicable, with
the Buy American Act of 1933, 41 U.S.C. 8301-8303 and section 2 CFR 200.216 of the Uniform Requirements, with respect to any Direct Costs.
Pending resolution of noncompliance or default -- If an Applicant (or Affiliate of an Applicant) that is a prior Recipient or Allocatee under any CDFI Fund program: (i) Has demonstrated it has been in noncompliance or default 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 or default.
Noncompliance or default status -- The CDFI Fund will not consider an Application submitted by an Applicant that is a prior CDFI Fund award Recipient or Allocatee under any CDFI Fund program if, as of the AMIS Application
deadline in this NOFA, (i) the CDFI Fund has made a final determination in writing that such Applicant (or Affiliate of such Applicant) is in noncompliance with or default of a previously executed
assistance agreement, award agreement, allocation agreement, bond loan agreement, or agreement to guarantee, 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.
-- The CDFI Fund will not consider any Applicant that has defaulted on a loan from the CDFI Fund within five years of the Application deadline.
Debarment/Do Not Pay Verification -- The CDFI Fund will conduct a 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.
Table 3-Eligibility Requirements for Applicants With PriorCDFI Fund Awards Criteria Description Pending resolution of Default or Noncompliance -- If an Applicant (or Affiliate of an Applicant) that is a prior Award Recipient or Allocatee under anyCDFI Fund program: (i) has demonstrated it is in noncompliance with or default of a previous assistance agreement, award agreement, allocation agreement, bond loan agreement, or agreement to guarantee and (ii) theCDFI Fund has yet to make a final determination as to whether the entity is in noncompliance with or default of its previous agreement, theCDFI Fund will consider the Applicant's Application under this NOFA pending full resolution, in the sole determination of theCDFI Fund , of the noncompliance or default. Default or Noncompliance status --The CDFI Fund will not consider 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) theCDFI Fund has made a determination that such entity is noncompliant with and or in default of such previously executed agreement, and (ii) theCDFI Fund has provided written notification that such entity is ineligible to apply for or receive any futureCDFI Fund awards or allocations. Such entities will be ineligible to submit an Application for such time period as specified by theCDFI Fund in writing.
C. Contact the
IV. Application and Submission Information
A. Address to Request an Application Package: Application materials can be found on Grants.gov and the
B. Content and Form of Application Submission:
C. Application Submission:
Applicants are strongly encouraged to submit the SF-424 as early as possible through Grants.gov in order to provide sufficient time to resolve any potential submission issues. Applicants should contact Grants.gov directly with questions related to the registration or submission process, as the
D. System for Award Management: Any entity applying for federal grants or other forms of federal financial assistance through Grants.gov must be registered in SAM before submitting its Application materials through that platform. When accessing SAM.gov, users will be asked to create a login.gov user account (if they do not already have one). Registration in SAM is required as part of the Grants.gov registration process. Going forward, users will use their login.gov username and password every time when logging into SAM.gov. The SAM registration process can take four weeks or longer to complete, so Applicants are strongly encouraged to begin the registration process upon publication of this NOFA in order to avoid potential Application submission issues. An original, signed notarized letter identifying the authorized entity administrator for the entity associated with the UEI number is required by SAM and must be mailed to the Federal Service Desk. This requirement is applicable to new entities registering in SAM or on existing registrations where there is no existing entity administrator. Existing entities with registered entity administrators do not need to submit an annual notarized letter. Applicants that have previously completed the SAM registration process must verify that their SAM accounts are current and active. 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.
E. Unique Entity Identifier: The Unique Entity Identifier (UEI), generated in the System for Award Management (SAM.gov), has become the official identifier for doing business with the federal government. This allows the federal government to streamline the entity identification and validation process, making it easier and less burdensome for entities to do business with the federal government. If an entity is registered in SAM.gov, its UEI has already been assigned and is viewable in SAM.gov, including inactive registrations. New registrants will be assigned a UEI as part of their SAM registration.
F. Submission Dates and
Table 4-Submission Deadlines for the FY 2024 BEA Funding Round
Description Deadline Time
(Eastern Time)
OMB Standard Form (SF)-424 Mandatory Form May 28, 2024 11:59 p.m. ET .
Submission Method: Electronically via Grants.gov. .
Title VI Compliance Worksheet (all Applicants) June 25, 2024 11:59 pm ET .
FY 2024 BEA Program AMIS Application and Required Attachments June 25, 2024 11:59 pm ET .
Submission Method: Electronically via AMIS. .
G. Confirmation of Application Submission in Grants.gov and AMIS: Applicants are required to submit the SF-424 Mandatory Form through the Grants.gov system under the FY 2024 BEA Program Funding Opportunity Number (listed at the beginning of this NOFA). All other required Application materials must be submitted through AMIS. Application materials submitted through each system are due by the applicable deadline listed in Table 1 and Table 4. Applicants must submit the SF-424 by an earlier deadline than that of the other required Application materials in AMIS. If a valid SF-424 is not submitted through Grants.gov by the corresponding deadline, the Applicant will not be able to submit the additional Application materials in AMIS, and the Application will be deemed ineligible. Thus, Applicants are strongly encouraged to submit the SF-424 as early as possible in the Grants.gov portal, given that potential submission issues may impact the ability to submit a complete Application.
(a) Grants.gov Submission Information: Each Applicant will receive an initial email from Grants.gov immediately after submitting the SF-424, confirming that the submission has entered the Grants.gov system. This email will contain a tracking number for the submitted SF-424. Within forty-eight (48) hours, the Applicant will receive a second email which will indicate if the submitted SF-424 was either successfully validated or rejected with errors. However, Applicants should not rely on the email notification from Grants.gov to confirm that their SF-424 was validated. Applicants are strongly encouraged to use the tracking number provided in the first email to closely monitor the status of their SF-424 by checking Grants.gov directly. The Application materials submitted in AMIS are not accepted by the
(b) AMIS Submission Information: AMIS is a web-based portal where Applicants will directly enter their Application information and upload required documents identified in the FY 2024 BEA Program Application Instructions. Each Applicant must register as an organization in AMIS in order to submit the required Application materials through this portal. AMIS will verify that the Applicant provided the minimum information required to submit an Application. Applicants are responsible for the quality and accuracy of the information and attachments included in the Application submitted in AMIS.
Prior to submission, each Application in AMIS must be signed by an Authorized Representative. An Authorized Representative is an employee or officer and has the authority to legally bind and make representations on behalf of the Applicant; consultants working on behalf of the Applicant cannot be designated as Authorized Representatives. The Applicant may include consultants as Application point(s) of contact, who will be included on any communication regarding the Application and will be able to submit the Application but cannot sign the Application. The Authorized Representative and/or Application point(s) of contact must be included as "Contacts" in the Applicant's AMIS account. The Authorized Representative must also be a "user" in AMIS. An Applicant that fails to properly register and update its AMIS account may miss important communications from the
(c)Multiple Application Submissions: Applicants are only permitted to submit one complete Application. However, the
(d) Late Submission or AMIS Account Creation:
(1) Creation of AMIS Account: In cases where a federal government administrative or technological error directly precluded an Applicant from creating an AMIS account by the required deadline, the Applicant must submit a written request for approval to create its AMIS account after the deadline, and include documentation of the error, no later than two business days after the AMIS account creation deadline.
(2) SF-424 Late Submission: In cases where a federal government administrative or federal government technological error directly resulted in the late submission of the SF-424, the Applicant must submit a written request for acceptance of the late SF-424 submission and include documentation of the error no later than two business days after the SF-424 deadline.
(3) Title VI Compliance Worksheet Late Submission: In cases where a federal government administrative or technological error directly precluded an Applicant from submitting the Title VI Compliance Worksheet by the required deadline, the Applicant must submit a written request for approval to submit the Worksheet after the deadline, and include documentation of the error, no later than two business days after the Title VI Compliance Worksheet submission deadline.
(4) AMIS Application Late Submission: In cases where a federal government administrative or federal government technological error directly resulted in a late submission of the Application in AMIS, the Applicant must submit a written request for acceptance of the late Application submission and include documentation of the error no later than two business days after the Application deadline.
H. Funding Restrictions: BEA Program Awards are limited by the following:
1. The Award Recipient shall use BEA Program Award funds only for the eligible activities described in Section II. D. of this NOFA and the Authorized BEA Program Activities described in its Award Agreement.
2. The Award Recipient may not distribute BEA Program Award funds to an Affiliate, Subsidiary, or any other entity, without the
3. BEA Program Award funds shall only be disbursed to the Award Recipient.
4.
I. Other Submission Requirements: None.
V. Application Review Information
A. Contacting Applicant for Clarification: If the Applicant submitted a complete and eligible Application, the
B. Personally Identifiable Information (PII):
C. Qualified Activities Criteria and Requirements: Applicants may submit transactions for Qualified Activities for the categories outlined below. Applicants must provide all required transaction information in the AMIS Application as required in this NOFA and the FY 2024 BEA Program Application Instructions. If an Applicant fails to provide the mandatory information on a transaction, it will be deemed ineligible for the purposes of calculating the BEA Award amount.
1. CDFI Related Activities: For CDFI Related Activities, Applicants may select transactions in the following two sub-categories: (1) CDFI Equity; and (2) CDFI Support Activities.
(1) CDFI Equity: This sub-category includes the following three components: a. Equity Investments; and b. Equity-Like Loans. Additional requirements and limitations for this sub-category are described in Parts c. through e.
a.
b. 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
(i) 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;
(ii) 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;
(iii) Failure to pay principal or interest (except at maturity) will not automatically result in a default of the loan agreement; and
(iv) The loan must be subordinated to all other debt except for other Equity-Like Loans. Notwithstanding the foregoing, the
c. 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 that receives CDFI Support Activities from an Applicant must be Integrally Involved in a
d. Limitations on eligible Qualified Activities provided to certain
e. 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.
(2) 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
(a) Certificates of Deposit: A Certificate of Deposit (CD), a CDFI Support Activity, 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
i. For purposes of this NOFA, "materially below market interest rate" is defined as an annual percentage rate that does not exceed the yields on
ii. 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 specified in this NOFA 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.
(b) Loans: Loans, a CDFI Support Activity, refers to an Applicant providing loans to an Eligible CDFI Partner.
(c) Technical Assistance: Technical Assistance, a CDFI Support Activity, refers to the provision of consulting services, resources, training, and other nonmonetary support to an Eligible CDFI Partner relating to an organization, individual, or operation of a trade or business.
(d) 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; or (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 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; or (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.
2. Distressed Community Financing Activities and Service Activities: Distressed Community Financing Activities comply with consumer protection laws and are defined as the following: (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:
(1) Consumer Loans: Consumer Loans is a sub-category of Distressed Community Financing Activities and is defined as the following lending activity types: a. Affordable Housing Loans; b. Education Loans; c. Home Improvement Loans; and d. Small Dollar Consumer Loans.
a. Affordable Housing Loans: Affordable Housing Loans are Consumer Loans that refer to the origination of a loan to finance the purchase or improvement of the borrower's primary residence, and that is secured by such property, where such borrower is an Eligible Resident who meets Low- and Moderate-Income requirements.
b. Education Loans: Education Loans are Consumer Loans that refer to an advance of funds to a student who is an Eligible Resident who meets Low- and Moderate-Income requirements for the purpose of financing a college or vocational education.
c. Home Improvement Loans: Home Improvement Loans are Consumer Loans that refer to an advance of funds, either unsecured or secured by a one-to-four family residential property, the proceeds of which are used to improve the borrower's primary residence, where such borrower is an Eligible Resident who meets Low- and Moderate-Income requirements.
d. Small Dollar Consumer Loans: For purposes of this NOFA, eligible Small Dollar Consumer Loans are responsible and affordable loans that serve as available alternatives to the marketplace for individuals who are Eligible Residents who meet Low- and Moderate-Income requirements with a total principal value of no less than
(2) 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: a. Affordable Housing Development Loans and related Project Investments; b. Commercial Real Estate Loans and related Project Investments; and c. Small Business Loans and related Project Investments.
a. Affordable Housing Development Loans and Project Investments: Affordable Housing Development Loans are Commercial Loans that refer to the origination of a loan to finance the acquisition, construction, and/or development of single- or multifamily residential real property, where at least 60 percent of the units in such property are affordable, to Eligible Residents who meet Low- and Moderate-Income requirements. For the 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
c. Small Business Loans and Project Investments: Small Business Loans are Commercial Loans that refer to the origination of a loan used for commercial or industrial activities (other than an Affordable Housing Loan, Affordable Housing Development Loan, Commercial Real Estate Loan, or Home Improvement Loan) to a business or farm that meets the size eligibility standards of the
d. Distressed Community Financing Activities for Transactions Less Than
3. Service Activities: Service Activities consist of the following five types: a: Deposit Liabilities; b. Community Services; c. Financial Services; d.
a. Deposit Liabilities: Deposit Liabilities are considered Service Activities and refer to time or savings deposits or demand deposits. Any such deposit must be accepted from Eligible Residents at the offices of the Applicant or of the Subsidiary of the Applicant and located in the
b. Community Services: Community Services are considered Service Activities and refer to the following forms of assistance provided by officers, employees or agents (contractual or otherwise) of the Applicant: (1) Provision of Technical Assistance and financial education to Eligible Residents regarding managing their personal finances; (2) Provision of Technical Assistance and consulting services to newly formed small businesses and nonprofit organizations located in the
c. Financial Services: Financial Services are Service Activities that refer to check cashing, providing money orders and certified checks, automated teller machines, safe deposit boxes, new branches, and other comparable services, that are provided by the Applicant to Eligible Residents or enterprises that are Integrally Involved in the
(1)
(2)
(3)
(4)
(5)
(6) In the case of Applicants engaging in Financial Services activities not described above, the
(7) 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;
(8) Financial Service Activities must be provided by the Applicant to Eligible Residents or enterprises that are located in a
(9) 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. Instructions for determining the net change is available in the FY 2024 BEA Program Application Instructions in AMIS.
d.
e. Targeted Retail Savings/Investment Products:
C. 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 (
See table in Original Document.
D. Certain Limitations on Qualified Activities:
1. Low-Income Housing Tax Credits: Financial assistance provided by an Applicant for which the Applicant receives benefits through Low-Income Housing Tax Credits, authorized pursuant to Section 42 of the Internal Revenue Code, as amended (26 U.S.C. 42), shall not constitute an
2. New Markets Tax Credits: Financial assistance provided by an Applicant for which the Applicant receives benefits as an investor in a Community Development Entity that has received an allocation of New Markets Tax Credits, authorized pursuant to Section 45D of the Internal Revenue Code, as amended (26 U.S.C. 45D), shall not constitute an
3. Loan Renewals and Refinances: Financial assistance provided by an Applicant shall not constitute a Qualified Activity, as defined in this part, for the purposes of calculating or receiving a 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 a loan to a borrower that is retired or restructured using the proceeds of a new commitment by the Applicant.
4. Certain Business Types: Financial assistance provided by an Applicant shall not constitute a Qualified Activity 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.
5. 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.
6. Prior
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, analyzing and interpreting financial documentation, strong written communication skills, and strong mathematical skills. Reviewers must complete the
2. Selection Process: The Interim Rule and this NOFA describe the process for selecting Applicants to receive a BEA Program Award and determining Award amounts. If the amount of funds available during the funding round is insufficient for all estimated Award amounts, Award 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.
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 the 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.
Within each category, CDFI Applicants will be ranked first based on the ratio of the award amount calculated by the
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
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 and 1806.404). As outlined in the Interim Rule, the
In calculating the increase in Qualified Activities, the
3. Programmatic and Financial Risk:
Furthermore, the
(i) 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; or (iii) a Prompt Corrective Action directive from its regulator imposing restrictions on its level of lending activities, that was active at the time the Applicant submitted its Application to the
Applicants and/or their appropriate Federal bank regulator agency may be contacted by the
4. Persistent Poverty Counties: Should the
5. Application Rejection:
There is no right to appeal the
C. Anticipated Announcement:
VI. Federal Award Administration Information
A. Federal Award Notices: Each successful Applicant will receive notification from the
B. Administrative and Policy Requirements Prior to Entering into an Award Agreement: If, prior to entering into an Award Agreement, information (including an administrative error) comes to the
By executing an Award Agreement, the Award Recipient agrees that, if the
In addition, the
Table 6-Criteria That May Result in Award Termination Prior to the Execution of an Award Agreement Criteria Description Failure to maintainFDIC -insured status -- If prior to entering into an Award Agreement under this NOFA, the Award Recipient does not maintain itsFDIC -insured status, theCDFI Fund will terminate and/or rescind the Award Agreement and the award made under this NOFA. Failure to meet reporting requirements -- If a Recipient received a prior award or allocation under anyCDFI 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, as of the date of the notice of award, theCDFI Fund reserves the right, in its sole discretion, to delay entering into an Assistance Agreement and/or to delay making a payment of BEA Program Award, 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. -- If such a prior Recipient or Allocatee is unable to meet this requirement within the timeframe set by theCDFI Fund , theCDFI Fund reserves the right, in its sole discretion, to terminate and rescind the notice of award and the BEA Program Award made under this NOFA. -- Please note that automated systems employed by theCDFI 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, nor that it met reporting requirements. Pending resolution of Default or Noncompliance --The CDFI Fund will delay entering into an Award Agreement with a Recipient that has pending noncompliance or default issue with any of its previously executed CDFI Award Agreement(s), Allocation Agreement(s), and/or Assistance Agreement(s), if theCDFI Fund has not yet made a final compliance determination. -- If the Recipient is unable to satisfactorily resolve the compliance issues, theCDFI Fund may terminate and rescind the Assistance Agreement and the award made under this NOFA. Default or Noncompliance status -- If, at any time prior to entering into an Award Agreement, theCDFI Fund determines that a Recipient is noncompliant or found in default with any previously executed Award Agreement(s), Allocation Agreement(s), and/or Assistance Agreement(s), and theCDFI Fund has provided written notification that the Recipient is ineligible to apply for or receive any future awards or allocations for a time period specified by theCDFI Fund in writing, theCDFI Fund may delay entering into an Award Agreement until the Recipient has cured the noncompliance or default by taking actions theCDFI Fund has specified within such specified timeframe. If the Recipient is unable to cure the noncompliance or default within the specified timeframe, theCDFI Fund may terminate and rescind the Award Agreement and the award made under this NOFA. Compliance with Federal civil rights requirements -- If, within the period starting three years prior to this NOFA and through the date of the Award Agreement, the Recipient received a final determination, in any proceeding instituted against the Recipient in, by, or before any court, governmental, or administrative body or agency, declaring that the Recipient violated any federal civil rights laws or regulations, including, but not limited to: Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq.); Fair Housing Act (42 U.S.C. 3601 et seq.); Equal Credit Opportunity Act (15 U.S.C. 1691 et seq.); Section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794); the Age Discrimination Act of 1975 (42 U.S.C. 6101-6107); and Title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.), theCDFI Fund may terminate and rescind the Award Agreement and the Award made under this NOFA.The CDFI Fund will delay entering into an Award Agreement with a Recipient that has pending Title VI noncompliance issues, if theCDFI Fund has not yet made a final compliance determination. -- If the Recipient is unable to satisfactorily resolve the Title VI noncompliance issues, theCDFI Fund may terminate and rescind the Award Agreement and the award made under this NOFA. -- The Title VI Compliance Worksheet and program award terms and conditions do not impose antidiscrimination requirements on Tribal governments beyond what would otherwise apply under federal law. Do Not Pay --The CDFI Fund reserves the right, in its sole discretion, to rescind an award if the Recipient (or Affiliate of a Recipient) is determined to be ineligible based on data in the Do Not Pay database. --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. Safety and Soundness -- If it is determined the Recipient is or will be incapable of meeting its award obligations, theCDFI 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
D. Reporting: Through this NOFA, the
Table 7-Reporting Requirements Criteria Description Use of BEA Program Award Report-for all Award Recipients Award Recipients must submit the Use of Award Report to theCDFI Fund via AMIS. Use of BEA Program Award Report-Funds Deployed in Persistent Poverty Counties-as applicableThe CDFI Fund will require each Award Recipient with Persistent Poverty County 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 theCDFI Fund . Explanation of Noncompliance or successor report-as applicable If the Award Recipient fails to meet a Performance Goal or reporting requirement, it must submit the Explanation of Noncompliance via AMIS.
Each Award Recipient is responsible for the timely and complete submission of the reporting requirements.
E. Financial Management and Accounting:
Each of the Qualified Activities categories will be ineligible for indirect costs and an associated indirect cost rate. The cost principles used by Award 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
VII. Federal Awarding Agency Contacts
A. Questions Related to Application and Prior Award Recipient Reporting, Compliance and Disbursements:
The following table lists contact information for the
See table in Original Document.
B. Information Technology Support: People who have visual or mobility impairments that prevent them from using the
C. Communication with the
E. Statutory and National Policy Requirements:
VIII. Other Information
A. Reasonable Accommodations: Requests for reasonable accommodations under section 504 of the Rehabilitation Act should be directed to Mr.
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:
Authority: 12 U.S.C. 1834a, 4703, 4703 note, 4713; 12 CFR part 1806.
Director,
[FR Doc. 2024-09124 Filed 4-26-24;
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