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[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 97167-97169]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2024-28521]

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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund

Notice of Information Collection and Request for Public Comment

ACTION: Notice and request for public comment.

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SUMMARY: The U.S. Department of the Treasury, as part of a continuing 
effort to reduce paperwork and respondent burden, invites the general 
public and other Federal agencies to take this opportunity to comment 
on proposed and/or continuing information collections, as required by 
the Paperwork Reduction Act (PRA) of 1995. Currently, the Community 
Development Financial Institutions Fund (CDFI Fund), Department of the 
Treasury, is soliciting comments concerning the Small Dollar Loan 
Program (SDL Program) Application (Application). The Application is an 
online form submitted through the CDFI Fund's Awards Management

[[Page 97168]]

Information System (AMIS). Information on the SDL Program can be found 
on the CDFI Fund's website at https://www.cdfifund.gov/programs-training/programs/sdlp. The CDFI Fund is required by law to make the 
Applications publicly available for comment prior to submission for a 
new PRA number.

DATES: Written comments must be received on or before February 4, 2025 
to be assured of consideration.

ADDRESSES: You may submit comments concerning the SDL Program 
Application via the Federal e-Rulemaking Portal at www.regulations.gov. 
Follow the instructions on the website for the submission of comments. 
In general, all comments will be available for inspection at 
www.regulations.gov. Comments, including attachments and other 
supporting materials, are part of the public record. Do not submit any 
information in your comments or supporting materials that you consider 
confidential or inappropriate for public disclosure. Information 
regarding the CDFI Fund and its programs may be obtained through the 
CDFI Fund's website at http://www.cdfifund.gov.

FOR FURTHER INFORMATION CONTACT: Eddie Tsibulevskiy, Program Manager, 
SDL Program, CDFI Fund, U.S. Department of the Treasury, 1500 
Pennsylvania Avenue NW, Washington, DC 20220, by email to 
[email protected], or phone 202-653-0421 (Option 3).

SUPPLEMENTARY INFORMATION: 
    Title: Small Dollar Loan Program Application.
    OMB Number: 1559-0051.
    Abstract: The Small Dollar Loan Program (SDL Program) was 
authorized by Title XII--Improving Access to Mainstream Financial 
Institutions Act of the Dodd-Frank Wall Street Reform and Consumer 
Protection Act of 2010 (Pub. L. 111-203), which amended the Community 
Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 
4719). Through the SDL Program, the CDFI Fund provides Federal 
Financial Assistance in the form of grants for loan loss reserves and 
technical assistance to enable award recipients to establish and/or 
expand small dollar loan programs. Small dollar loan programs supported 
by the SDL Program are intended to address the issues of consumer 
access to mainstream financial institutions and provide alternatives to 
high-cost small dollar loans. The SDL Program is also intended to 
enable award recipients to help unbanked and underbanked populations 
build credit, access affordable capital, and allow greater access into 
the mainstream financial system.
    Through the SDL Program, the CDFI Fund provides:
     Grants for Loan Loss Reserves (LLR): The awards will 
enable a Certified Community Development Financial Institution (CDFI) 
to establish a loan loss reserve fund to defray the costs of 
establishing or expanding a small dollar loan program.
     Grants for Technical Assistance (TA): The awards will 
support technology, staff support, and other eligible activities to 
enable a Certified CDFI to establish and maintain a small dollar loan 
program.
    SDL Program Award Recipients are selected through a competitive 
process involving a careful review of all Applications for program 
funding. The Application requires the submission of numeric data and 
narrative responses in three parts: 1. Market Need; 2. Business 
Strategy and Impact; and 3. Organizational Capacity, including 
financial and compliance-related data. The Award selection process is 
defined in the Notice of Funds Availability (NOFA) for each funding 
round.
    SDL Program Award Recipients enter into Assistance Agreements with 
the CDFI Fund that set forth required terms and conditions of the 
Award, including reporting and data collection requirements. The 
Assistance Agreement requires the submission of annual performance 
reports. The CDFI Fund reviews the information collected in the 
performance reports to ensure the Recipient's compliance with its 
Performance Goals and contractual obligations, as well as monitor the 
overall performance of the program.
    This request for public comment relates to the SDL Program form 
under OMB control number 1559-0051, which includes the Application. 
Capitalized terms not defined in this Notice (other than titles) have 
the meaning set forth in the fiscal year (FY) 2024 SDL Program NOFA.
    Current Actions: Renewal of existing Information Collection.
    Type of Review: Regular Review.
    Affected Public: Businesses or other for-profit institutions, non-
profit entities, and State, local and Tribal entities participating in 
CDFI Fund programs.
    Estimated Number of Respondents: 100 (Application).
    Estimated Annual Time per Respondent: 89 hours (Application).
    Estimated Annual Burden Hours: 8,900 hours (Application).
    Request for Comments: Comments submitted in response to this Notice 
will be summarized and/or included in the request for Office of 
Management and Budget approval. All comments will become a matter of 
public record and may be published on the CDFI Fund website at https://www.cdfifund.gov. The CDFI Fund is seeking input on the SDL Program 
Application. The Application may be obtained from the Request for 
Public Comments page of the CDFI Fund's website at https://www.cdfifund.gov/requests-for-comments.
    The CDFI Fund is seeking: (a) specific input on the content of the 
SDL Program Application and (b) general input on the SDL Program 
related topics and considerations.
    Comments concerning the Application are invited on: (a) whether the 
collection of information is necessary for the proper performance of 
the functions of the agency, including whether the information shall 
have practical utility; (b) the accuracy of the agency's estimate of 
the burden of the collection of information; (c) ways to enhance the 
quality, utility and clarity of the information to be collected; (d) 
ways to minimize the burden of the collection of information on 
respondents, including through the use of technology; (e) estimates of 
capital or start-up costs and costs of operation, maintenance and 
purchase of services required to provide information; and (f) whether 
any additional questions or factors should be considered as part of the 
CMF Application and/or review process.
    Additionally, the CDFI Fund specifically requests comments 
concerning the following questions:
    1. Should any data fields, questions, or tables, be added, removed, 
or clarified to ensure collection of relevant information?
    2. The Application states that LLR Awards cannot exceed 20% of the 
Applicant's three-year projected total of small dollar loans closed. Is 
the 20% cap appropriate for the purpose of supporting a wide variety of 
small dollar loan program designs? If not, provide a rationale and 
state what alternative cap would be more appropriate.
    3. Is the maximum LLR Award size of $350,000 appropriate for the 
purpose of supporting a wide variety of small dollar loan program 
designs? If not, what maximum award size would be more appropriate and 
why?
    4. The Application requests information on how the Applicant will 
use an LLR Award to establish a small dollar loan program or expand an 
existing one. Is the requested information adequate to demonstrate a

[[Page 97169]]

need for an LLR Award? Why or why not? What, if any, additional 
information should be collected to assess the need and use of an LLR 
Award request?
    5. Is the maximum award size for Technical Assistance Awards of 
$150,000 appropriate to support eligible Technical Assistance 
activities? If not, what maximum award size would be appropriate and 
why?
    6. Is the data collected in the track record and projections tables 
adequate and appropriate to assess an Applicant's experience in small 
dollar lending and projections? Why or why not?
    7. The period of performance for SDLP awards is three years. Is 
three years sufficient to expend the award to launch or expand a small 
dollar loan program? If it's not sufficient, what period would be more 
appropriate and why?
    8. Is there other information not requested (such as additional 
detail on other unsecured consumer loans below $10,000) in the 
Application that would demonstrate an Applicant's experience in small 
dollar lending and projected small dollar lending activities? If yes, 
what is that information?
    9. The Application includes questions about the intended impact of 
an Applicant's small dollar lending strategy. (1) How should the CDFI 
Fund assess the impact of SDL Program Awards on communities served by 
Applicants? (2) The CDFI Fund has identified a set of impact options 
for Applicants to choose in the Application. Are the current impact 
choices sufficient? Why or why not? Are there impacts that should be 
added or modified and if yes, what are they?
    10. The SDL Program Application states that the Awards will not be 
made to Applicants that engage in the Prohibited Practices listed in 
Table 1. Are the Prohibited Practices appropriate to prevent predatory 
or abusive lending practices that low-income borrowers often face? Why 
are why not? Are there any Prohibited Practices that should be added, 
eliminated, or clarified? What are they?

                Table 1--SDL Program Prohibited Practices
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          Prohibited practice             Prohibited practice definition
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i. High-Rate loans.....................  Loans that exceed the lower of
                                          the following two rates: (1)
                                          an all-inclusive 36% APR
                                          (using the methodology
                                          prescribed in 32 CFR 232.4 of
                                          the Military Lending Act
                                          (referred to as the Military
                                          Annual Percentage Rate [MAPR];
                                          or (2) the interest rate limit
                                          as set by the state agency
                                          that oversees financial
                                          institutions in your state.
ii. Coerced automated repayments.......  Loans that: (1) have delayed
                                          loan disbursements for
                                          borrowers who do not agree to
                                          automatic repayments, (2)
                                          charge fees for borrowers who
                                          select manual payments, or (3)
                                          require borrowers to make
                                          payments using wire transfers
                                          or other means that may result
                                          in additional fees for
                                          borrowers.
iii. Excessive refinancing.............  Loans that allow refinancing
                                          before at least 80% of the
                                          principal has been repaid.
iv. Loan insurance or credit card add-   Loans that offer add-on
 ons.                                     insurance or credit card
                                          products, whether they are
                                          automatic or not, that require
                                          borrowers to opt-in or opt-out
                                          to decline coverage or require
                                          the borrower to accept or opt-
                                          out of a credit card. For
                                          example, loans that
                                          automatically include
                                          insurance products such as
                                          credit, life, disability
                                          insurance or involuntary
                                          unemployment insurance
                                          coverage, or loans that
                                          automatically open a credit
                                          card for the borrower.
v. Security interests in household       Loans that are secured, except
 goods, vehicles, or deposit accounts.    for loans secured by a savings
 Exception: loans with a savings          account for loans with a
 account component or credit builder      savings component or credit
 loans.                                   builder loans.
vi. Excessive late fees on missed loan   Loans that charge more than one
 payments.                                fee per late payment.
vii. Abusive overdraft practices.......  Lenders who hold the account
                                          from which repayment is being
                                          made may not collect a loan
                                          payment from the borrower's
                                          account that overdraws the
                                          account, triggering overdraft
                                          fees.
viii. Aggressive debt collection         Loans in which the lender:
 practices.                               Does not offer a
                                          workout program or other
                                          accommodations to help
                                          struggling borrowers before
                                          pursuing other debt collection
                                          avenues.
                                          All debt collection
                                          activities must comply with
                                          the Fair Debt Collection
                                          Practices Act, whether
                                          conducted by the lender, a
                                          contract debt collector or
                                          sold to third party debt
                                          collectors.
                                          Does not disclose to
                                          borrowers the details of its
                                          debt collection practices or
                                          provide notice to a borrower
                                          when its account is placed
                                          with debt collectors.
ix. Forced arbitration clause, class     Loan contracts that contain
 action ban, and other bans on legal      clauses that prevent borrowers
 remedies.                                from seeking legal remedies in
                                          court, such as mandatory
                                          arbitration clauses, or
                                          clauses requiring that the
                                          borrower waive the right to a
                                          trial by jury or the right to
                                          participate in a class action
                                          lawsuit.
------------------------------------------------------------------------

    Authority: (Pub. L. 111-203. 12 U.S.C. 4719, 12 CFR part 1805, 12 
CFR part 1815, 12 U.S.C. 4502)

Pravina Raghavan,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2024-28521 Filed 12-5-24; 8:45 am]
BILLING CODE 4810-05-P
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