[Federal Register Volume 87, Number 63 (Friday, April 1, 2022)]
[Notices]
[Pages 19139-19142]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-06953]


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NATIONAL CREDIT UNION ADMINISTRATION


Community Development Revolving Loan Fund Access for Credit 
Unions

ACTION: Notice of funding opportunity.

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SUMMARY: The National Credit Union Administration (NCUA) is issuing 
this Notice of Funding Opportunity (NOFO) to announce the availability 
of technical assistance grants (awards) for low-income designated 
credit unions (LICUs) through the CDRLF. The CDRLF provides financial 
support in the form of loans and technical assistance grants that help 
LICUs support the communities in which they operate. All grant awards 
made under this NOFO are subject to funds availability and are at the 
NCUA's discretion.
    Funding Opportunity Title: Community Development Revolving Loan 
Fund (CDRLF) Grants.
    Catalog of Federal Domestic Assistance (CFDA) Number: 44.002.

Table of Contents

A. Program Description
B. Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration
G. Federal Awarding Agency
H. Grant Terms and Conditions

A. Program Description

    The purpose of the Community Development Revolving Loan Fund 
(CDRLF) is to assist low-income-designated credit unions in providing 
basic financial services to their members and to stimulate economic 
activities in their communities. Through the CDRLF, the NCUA provides 
financial support in the form of technical assistance grants to 
eligible credit unions to modernize, build capacity, and extend 
outreach into underserved communities.
    The NCUA will consider requests for various funding initiatives. 
More detailed information about the purpose of each initiative, amount 
of funds available, funding priorities, permissible uses of funds, 
funding limits, deadlines, and other pertinent details will be defined 
in the grant round guidelines. In addition, the NCUA may periodically 
publish information regarding the CDRLF in Letters to Credit Unions, 
press releases, and/or on the agency website, NCUA.gov.

1. Funding Initiatives

    The funding initiatives available during 2022 include:
    i. Training;
    ii. Digital Services and Cybersecurity;
    iii. Small, Low-Income Credit Union (LICU) Mentoring; and
    iv. Underserved Outreach.

2. Authority and Regulations

    i. Authority: 12 U.S.C. 1772c-1, 1756, 1757(5)(D), and (7)(I), 
1766, 1782, 1784, 1785 and 1786;
    ii. Regulations: The regulation governing the CDRLF is found at 12 
CFR part 705. In general, this regulation governs the CDRLF, and sets 
forth the program requirements. Additional regulations related to the 
low-income designation are found at 12 CFR 701.34 and 741.204. For the 
purposes of this NOFO, an ``Applicant'' is a Participating Credit Union 
that submits a complete application to the NCUA under the CDRLF. The 
NCUA encourages Applicants to review the regulations, this NOFO, the 
grant round guidelines, and other program materials for a complete 
understanding of the program.

B. Award Information

    Approximately $1.545 million in awards will be available through 
this NOFO. The NCUA reserves the right to: (i) Award more or less than 
the amounts cited above; (ii) fund, in whole or in part, any, all, or 
none of the applications submitted in response to this NOFO; and (iii) 
reallocate funds available under this NOFO to other programs, 
particularly if the NCUA finds that the number of awards made under 
this NOFO is fewer than projected. General information about the 
purpose of each funding initiative and the maximum award amount is 
provided below.

1. Purpose of Funding Initiatives

    i. Training: The Training initiative focuses on helping credit 
unions develop the skills and talents of employees through specialized 
management programs and advanced training courses. The goal of this 
initiative is to enhance the operational knowledge of credit union 
employees and support staff professional development. Applicants can 
select up to three of the eligible projects below:
    a. Continuity and Succession Planning;
    b. Leadership Training; and/or
    c. Staff Development.
    ii. Digital Services and Cybersecurity: The Digital Services and 
Cybersecurity initiative provides financial assistance to better 
protect the credit union and its members against cyberattacks, increase 
the access of low-income and underserved communities to safe and secure 
digital financial products and services, and acquire software and 
equipment that supports a remote work posture or delivers products and 
services to members without physical access to a credit union facility. 
Applicants can select up to three of the eligible projects below:
    a. Implementation of Mobile/Online Banking Features;
    b. Remote Workforce Management and Solutions; and/or
    c. Strengthening Cybersecurity.
    iii. Small LICU Mentoring: The purpose of the Small LICU Mentoring 
initiative is to encourage strong and experienced credit unions to 
provide guidance to small low-income-designated credit unions to 
increase their ability to thrive and serve low-income and underserved 
populations. This grant may be used for eligible expenses associated 
with facilitating a new mentorship relationship. Funding approval will 
be based on the applicant's ability to demonstrate a

[[Page 19140]]

well-developed plan for the mentoring assistance it would receive from 
a mentor credit union. The award is structured as a relationship 
between two credit unions, the mentee and mentor. The mentee credit 
union is responsible for submitting the grant application. Applicants 
can select up to two of the eligible projects below:
    a. Credit union growth and expansion; and/or
    b. Improved management and operations.
    iv. Underserved Outreach: The Underserved Outreach initiative is 
designed to help credit unions implement innovative outreach strategies 
to increase access to financial products and services in underserved 
communities. The goal of this initiative is for credit unions to 
improve the financial health of individuals in underserved communities 
by closing the wealth gap, increasing equity, and expanding economic 
inclusion. Applicants can select up to three of the eligible projects 
below:
    a. New or expanded outreach efforts;
    b. New or expanded financial education programs; and/or
    c. New or expanded financial products or services.

2. Maximum Award Amount

    The maximum amount for a CDRLF award is determined by the type of 
funding initiative. There is no minimum amount for CDRLF awards. The 
maximum award amount for each funding initiative is provided below.

i. Training--$5,000
ii. Digital Services and Cybersecurity--$10,000
iii. Small LICU Mentoring--$25,000
iv. Underserved Outreach--$50,000

C. Eligibility Information

1. Eligible Applicants

    This NOFO is open to credit unions that meet the eligibility 
requirements defined in 12 CFR part 705. A credit union must have a 
low-income designation obtained in accordance with 12 CFR 701.34 or 
741.204 to participate in the CDRLF.
    i. Non-Federally Insured Applicants: Each Applicant that is a non-
federally insured, state-chartered credit union must submit additional 
application materials. These additional materials are more fully 
described in 12 CFR 705.7(b)(3) and in the application.
    a. Non-federally insured, state-chartered credit unions must agree 
to be examined by the NCUA. The specific terms and covenants pertaining 
to this condition will be provided in the award agreement of the 
Participating Credit Union.

2. Employer Identification Number

    Each application must include a valid and current Employer 
Identification Number (EIN) issued by the U.S. Internal Revenue Service 
(IRS). The NCUA will not consider an application that does not include 
a valid and current EIN. Such an application will be deemed incomplete 
and will be declined. Information on how to obtain an EIN may be found 
on the IRS's website.

3. System for Award Management

    All Applicants are required by federal law to have an active 
registration with the federal government's System for Award Management 
(SAM) prior to applying for funding. SAM is a web-based, government-
wide application that collects, validates, stores, and disseminates 
business information about the federal government's trading partners in 
support of the contract awards, grants, and electronic payment 
processes. An active SAM account status and unique entity identifier 
(UEI) number are required to apply for a CDRLF grant. Credit unions 
receive a UEI upon registration in the System for Award Management. 
Once registered, credit unions must recertify and maintain an active 
status annually. There is no charge for the SAM registration and 
recertification process. SAM users can register or recertify their 
account by following the instructions for registration. The NCUA will 
not consider an applicant that does not have an active SAM status.

4. Other Eligibility Requirements

    i. Financial Viability: Applicants must meet the underwriting 
standards established by the NCUA, including those pertaining to 
financial viability, as set forth in the application and defined in 12 
CFR 705.7(c).
    ii. Compliance with Past Agreements: In evaluating funding requests 
under this NOFO, the NCUA will consider an Applicant's record of 
compliance with past agreements. The NCUA, in its sole discretion, will 
determine whether to consider an application from an Applicant with a 
past record of noncompliance, including any de-obligation of funds 
(removal of unused awards).
    a. If an Applicant is in default of a previously executed agreement 
with the NCUA, the NCUA will not consider an application for funding 
under this NOFO.
    b. If an Applicant is a prior Participating Credit Union under the 
CDRLF and has unused awards as of the date of application, the NCUA may 
request a narrative from the Applicant that addresses the reason for 
its record of noncompliance. The NCUA, in its sole discretion, will 
determine whether the reason is sufficient to proceed with the review 
of the application.

D. Application and Submission Information

1. Application

    Under this NOFO, all applications must be submitted online in the 
NCUA's web-based application system, CyberGrants, to be considered. 
Applications must be submitted online at https://www.cybergrants.com/ncua/applications. The application and related documents are also 
located on the NCUA's website at https://www.ncua.gov/services/Pages/resources-expansion/grants-loans.aspx.

2. Minimum Application Content

    A complete application will consist of similar components for each 
funding initiative. At a minimum, each initiative requires a narrative 
that describes the Applicant's proposed use of the CDRLF award. The 
NCUA may waive this requirement for funding initiatives with a defined 
list of allowable project activities. The NCUA will identify the 
funding initiatives that do not require a narrative response in the 
grant round guidelines. Other application contents that are specific to 
a particular funding initiative will be defined in the grant round 
guidelines found on the NCUA's website.

3. Submission Dates and Times

    i. The NCUA will accept applications beginning May 2, 2022, at 9:00 
a.m. eastern time (ET). Applications must be submitted by June 24, 
2022, at 11:59 p.m. ET. Late applications will not be considered.

E. Application Review Information

1. Eligibility and Completeness Review

    The NCUA will review each application to determine it is complete 
and that the Applicant meets the eligibility requirements described in 
the regulations, the grant round guidelines, and in this NOFO. An 
incomplete application or one that does not meet the eligibility 
requirements will be declined without further consideration.

2. Evaluation Criteria

    Each funding initiative, due to its structure and impact, may have 
different evaluation criteria assigned. The evaluation criteria for 
each funding initiative are fully described in the grant round 
guidelines.

[[Page 19141]]

3. Application Review

    The purpose of the application review is to determine whether an 
application satisfies the criteria for the applicable funding 
initiative. The NCUA will evaluate each application for adherence to 
the grant round guidelines. The NCUA may contact the Applicant during 
its review to clarify or confirm information in the application. The 
Applicant must respond within the time specified by the NCUA or the 
NCUA, in its sole discretion, may decline the application without 
further consideration.

4. Scoring and Funding Decision

    The NCUA uses a scoring system that establishes a ranking position 
for each application. The applications will be ranked according to the 
scoring criteria set forth for each funding initiative in the grant 
round guidelines.

F. Federal Award Administration

1. NCUA Award Notice

    The NCUA will notify each Applicant of its funding decision by 
email. In addition, the NCUA will announce the successful applications 
through a press release that includes a list of the Awardees. 
Applicants that are approved for funding will also receive instructions 
on how to proceed with the post-award activities.

2. Administrative and National Policy Requirements

    i. Award Agreement: The specific terms and conditions will be 
established in the award agreement each Participating Credit Union must 
sign prior to formally accepting an award. Each Participating Credit 
Union under this NOFO must enter into an agreement with the NCUA before 
the NCUA will disburse the award funds. The agreement includes the 
terms and conditions of funding, including but not limited to the (i) 
award amount, (ii) grant award details, (iii) accounting treatment, 
(iv) signature pages, and (v) reporting requirements.
    ii. Failure to Sign Agreement: The NCUA, in its sole discretion, 
may rescind an award if the Applicant fails to sign and return the 
agreement or any other requested documentation, within the time 
specified by the NCUA.

3. Reimbursement Process

    Awardees will be responsible for the timely completion of all post-
award activities. This includes, but it is not limited to, signing the 
award agreement and completing a reimbursement request for the awarded 
funds. The reimbursement requirements vary by funding initiative and 
are detailed in the post-award guidelines.
    The reimbursement request may require, all or a combination of, the 
following items: (i) Certification of expenses; (ii) project related 
documentation; (iii) a summary of project accomplishments and outcomes; 
or (iv) a certification form signed by a credit union official (such as 
CEO, manager, or Board Chairperson) authorized to request the 
reimbursement and make the certifications. The NCUA, in its sole 
discretion, may modify these requirements. Additional reimbursement 
request requirements will be described in the post-award guidelines.

G. Federal Awarding Agency

1. Methods of Contact

    Further information can be found at https://www.ncua.gov/services/Pages/resources-expansion/grants-loans.aspx. For questions related to 
the CDRLF, email the NCUA's Office of Credit Union Resources and 
Expansion at <a href="/cdn-cgi/l/email-protection#da998f889f9b8a8a899ab4b9afbbf4bdb5ac"><span class="__cf_email__" data-cfemail="470412150206171714072924322669202831">[email protected]</span></a>.

2. Information Technology Support

    People who have visual or mobility impairments that prevent them 
from using the NCUA's website should call (703) 518-6610 for guidance 
(this is not a toll-free number).

H. Grant Terms and Conditions

1. Every Applicant Must Certify It Meets and Agrees to the Following 
Terms and Conditions, Prior To Submitting an Application

    i. Applicant is a low-income-designated credit union, as defined in 
Section 701.34 of the NCUA's Rules and Regulations.
    ii. Applicant shall comply with United States Office of Management 
and Budget, Uniform Administrative Requirements, Cost Principles, and 
Audit Requirements for Federal Awards.
    iii. Applicants are required to have an audit conducted if they 
hold $750,000 or more in Federal awards during a fiscal year. 
Applicants that hold less than $750,000 in Federal awards are exempt 
from this requirement.
    a. For example, if a credit union uses a $250,000 loan from the 
NCUA's CDRLF and a $500,000 grant from the Community Development 
Financial Institutions (CDFI) Fund, totaling $750,000 in Federal awards 
during the same fiscal year, then the credit union must have an audit 
conducted.
    iv. Applicant is responsible for the efficient and effective 
administration of the Federal Award through application of sound 
management practices. Applicant assumes the responsibility for 
administering Federal Funds in a manner consistent with underlying 
agreements, program objectives, and the term and conditions of the 
Federal Award.
    v. No employee, contractor, consultant, or vendor has participated 
substantially for this grant-funded activity, nor otherwise benefited 
directly or indirectly from the grant, who, to its knowledge (assuming 
reasonable diligence), has a ``covered relationship'' with an NCUA 
employee who presently holds a position that would enable him or her to 
influence a pending or future grant award, or a reimbursement of 
permitted expenses thereunder.
    vi. An employee, contractor, consultant, or vendor of the Applicant 
would have such a ``covered relationship'' if he or she were either: 
(1) A member of the household of an NCUA employee who presently holds a 
position that would enable him or her to influence a pending or future 
grant award, or a reimbursement thereunder; or (2) a relative of such 
an NCUA employee with whom he or she has a close personal relationship. 
5 CFR 2635.502(b)(1)(ii).
    vii. Applicant must disclose in writing to the NCUA any potential 
conflict of interest in accordance with applicable Federal awarding 
agency policy.
    viii. Per 2 CFR 200.113, Applicant must disclose all violations of 
Federal criminal law involving fraud, bribery, or gratuity violations 
potentially affecting the award.
    ix. The Applicant conducts its activities such that no person is 
excluded from participation in, is denied the benefits of, or is 
subject to discrimination on the basis of race, color, national origin, 
sex, age, or disability in the distribution of services and/or benefits 
provided under this grant program. The credit union agrees to provide 
evidence of its compliance as required by the NCUA. Furthermore, credit 
unions should ensure compliance with title VI of the Civil Rights Act 
of 1964.
    x. If a credit union enters into commitments for a project before 
the grant decision is made, the credit union will be obligated to pay 
project expenses from its own funds should the grant not be approved; 
if the grant is approved, the credit union is responsible for the 
expenses incurred prior to the grant approval date.
    xi. Requests to reallocate or change approved project(s) and/or 
request an extension to the deadline must be submitted in writing prior 
to the

[[Page 19142]]

original deadline and approved by the NCUA prior to Applicant incurring 
expenses.
    xii. The Applicant is aware that the NCUA will correspond with the 
credit union regarding this application by email, utilizing the email 
address provided in this application.
    xiii. Applicant hereby acknowledges that the NCUA reserves full 
discretion to deny reimbursement under this grant in the event the NCUA 
determines the Applicant is, or previously was, either in breach of any 
condition or limitation in the grant guidelines or in breach of the 
`covered relationship' restriction set forth above.
    xiv. Information included in Outcome Summary or Success Stories is 
considered by the NCUA to be Research Data and is governed by 2 CFR 
200.315 and may be made publicly available.
    xv. Applicant is aware that any false, fictitious, or fraudulent 
information or the omission of any material fact may subject Applicant 
to criminal, civil or administrative penalties for fraud, false 
statements, false claims, or otherwise. (U.S. Code title 18, section 
1001 and title 31, sections 3729-3730, and 3801-3812).
    xvi. Applicant is aware recipients and subrecipients are prohibited 
from obligating or expending loan or grant funds to procure or obtain 
equipment, services, or systems that use covered telecommunications 
equipment or services as a substantial or essential component of any 
system or as critical technology as part of any system in accordance 
with Public Law 115-232, section 889 and 2 CFR 200.216.

    By the National Credit Union Administration Board on March 29, 
2022.
Melane Conyers-Ausbrooks,
Secretary of the Board.
[FR Doc. 2022-06953 Filed 3-31-22; 8:45 am]
BILLING CODE 7535-01-P


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