64448 Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices

DEPARTMENT OF THE TREASURY

Community Development Financial

Institutions Fund

Notice of Funds Availability (NOFA)

Inviting Applications for the Bank

Enterprise Award (BEA) Program

AGENCY: Community Development

Financial Institutions Fund, Department

of the Treasury.

ACTION: Notice of Funds Availability

(NOFA) inviting applications.

SUMMARY: The Community Development

Banking and Financial Institutions Act

of 1994 (12 U.S.C. 4701 et seq.)

authorizes the Community Development

Financial Institutions Fund (hereafter

referred to as ‘‘the Fund’’) to provide

incentives to insured depository

institutions for the purpose of

promoting investments in or other

support to Community Development

Financial Institutions (‘‘CDFIs’’) and

facilitating increased lending and

provision of financial and other services

in economically distressed

communities. Insured depository

institutions and CDFIs are defined terms

in an interim rule (12 CFR part 1806)

published elsewhere in this issue of the

Federal Register. This interim rule

implements the Bank Enterprise Award

(BEA) Program. The Fund reserves the

right to award funds under this NOFA

up to the maximum amount authorized

by law. As of the date of this NOFA and

subject to funding availability, the Fund

intends to make available up to $25

million in BEA Program funds. The

Fund reserves the right to award in

excess of $25 million if it deems it

appropriate.

DATES: Applications may be submitted

at any time after December 5, 1997. The

deadline for receipt of an application is

6 p.m. Eastern Standard Time on

February 12, 1998. Applications

received after that date and time will

not be accepted and will be returned to

the sender. Any entity seeking

certification as a CDFI (as described in

12 CFR 1805.200) for the purposes of 12

CFR part 1806 are strongly encouraged

to submit the Application Form for

Certification, the contents of which are

described in 12 CFR 1805.701(b) (1)

through (8), by February 12, 1998. If an

entity fails to submit such Application

by this deadline, the Fund cannot

guarantee that it will have sufficient

time to complete a certification review

for the purposes of the current funding

round of the BEA Program. In addition,

with respect to all requests for

certification, the Fund reserves the right

to request clarifying or technical

information after reviewing materials

submitted as described in 12 CFR

1805.701(b) (1) through (8). If the entity

seeking certification does not respond to

such requests in a timely manner, the

Fund cannot guarantee that it will have

sufficient time to complete a

certification review for the purposes of

the current funding round of the BEA

Program.

ADDRESSES: Applications shall be sent

to: The Community Development

Financial Institutions Fund, U.S.

Department of the Treasury, 601 13th

Street, NW, Washington DC 20005.

Applications sent by fax will not be

accepted.

FOR FURTHER INFORMATION CONTACT: The

Community Development Financial

Institutions Fund, U.S. Department of

the Treasury, 601 13th Street, NW,

Washington DC 20005, (202) 622–8662.

(This is not a toll free number.)

SUPPLEMENTARY INFORMATION:

I. Background

As part of a national strategy to

facilitate revitalization and increase the

availability of credit and investment

capital in distressed communities, the

Community Development Banking and

Financial Institutions Act of 1994 (Act)

authorizes a portion of funds

appropriated to the Fund to be made

available for distribution through the

BEA Program. The BEA Program is

largely based on the Bank Enterprise Act

of 1991 although Congress significantly

amended the program to facilitate

greater coordination with other

activities of the Fund. The BEA Program

and the Community Development

Financial Institutions Program (12 CFR

part 1805) are intended to be

complementary initiatives that support

a wide range of community

development activities and facilitate

partnerships between traditional lenders

and CDFIs. This NOFA invites

applications from insured depository

institutions for the purpose of

promoting community development

activities and revitalization.

II. Eligibility

The Act specifies that eligible

applicants must be insured depository

institutions as defined in 12 U.S.C.

1813(c)(2).

III. Designation of Distressed

Community

In accordance with 12 CFR

1806.200(d), in the case of applicants

carrying out Qualified Activities

requiring the designation of a Distressed

Community (as defined in 12 CFR

1806.103(r)), the Fund will provide

prospective Applicants with data and

other information to help identify areas

eligible to be Distressed Communities.

The Fund is requiring all applicants to

contact the BEA Help Desk at (202) 622–

8662 to obtain such necessary data and

information.

IV. Designation Factors

The revised interim rule published

separately in this issue of the Federal

Register (12 CFR part 1806) describes

the process for selecting applicants to

receive assistance and for determining

award amounts. The rating and

selection process will give priority to

applicants in the following priority of

categories: Equity Investments in CDFIs

serving Distressed Communities, Equity

Investment in CDFIs not serving

Distressed Communities, CDFI Support

Activities, and Development and

Services Activities (as such activities are

defined in the revised interim rule).

Assistance amounts will be calculated

based on increases in Qualified

Activities that occur during a 6-month

Assessment Period in excess of

activities that occurred during a 6-

month Baseline Period. In general,

estimated award amounts for applicants

making Equity Investments in CDFIs

will be equal to 15 percent of the

projected increase in such activities. An

applicant may choose to accept less

than the maximum amount of assistance

in order to increase the ranking of its

application. Estimated award amounts

for CDFI applicants for carrying out

CDFI Support Activities will be equal to

33 percent of the projected increase in

such activities. Estimated award

amounts for non-CDFI applicants for

carrying out CDFI Support Activities

will be equal to 11 percent of the

projected increase in such activities.

The revised interim rule establishes the

ranking and selection process. For an

applicant pursuing Development and

Service Activities, a multi-step

procedure is outlined in the interim rule

that will be used to calculate the

estimated award amount. In general, if

an applicant is a CDFI, such estimated

award amount will be equal to 15

percent of the total score calculated in

the multi-step procedure. If an applicant

is not a CDFI, such estimated award

amount will be equal to 5 percent of the

total score calculated in the multi-step

procedure. In ranking and funding such

applicants within each category, the

Fund will apply criteria contained in

the revised interim rule. The Fund, in

its sole discretion, may adjust the

estimated award amount that an

applicant may receive prior to the end

of the Assessment Period. The Fund

may, in its sole discretion, establish any
Federal Register / Vol. 62, No. 234 / Friday, December 5, 1997 / Notices 64449

limitations on the maximum amount

that may be awarded to an applicant.

The Fund reserves the right to limit the

amount of an award to any Awardee if

deemed appropriate.

V. Baseline Period and Assessment

Period Dates

As part of its application, an applicant

shall report the Qualified Activities that

it actually carried out during a 6-month

Baseline Period. Such Baseline Period

will begin on January 1, 1997, and end

on June 30, 1997. An applicant shall

also project the Qualified Activities that

it expects to carry out during a 6-month

Assessment Period. Such Assessment

Period will begin on January 1, 1998,

and end on June 30, 1998. Applicants

selected to participate in the Program

during the Assessment Period will be

required to submit to the Fund a Final

Report of Qualified Activities actually

carried out during the Assessment

Period. The deadline for receipt of the

Final Report is 6 p.m. Eastern Standard

Time on July 31, 1998. The Fund will

evaluate the performance of applicants

in carrying out projected activities to

determine actual award amounts.

Authority: 12 U.S.C. 4703, 4703 note; 12

U.S.C. 1834a; 12 CFR part 1806.

Maurice A. Jones,

Acting Deputy Director, Community

Development Financial Institutions Fund.

[FR Doc. 97–31451 Filed 12–4–97; 8:45 am]

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