5782 Federal Register / Vol. 74, No. 19 / Friday, January 30, 2009 / Notices 

DEPARTMENT OF THE TREASURY 

Community Development Financial 

Institutions Fund 

Notice of Funds Availability 

Funding Opportunity Title: Notice of 

Funds Availability (NOFA) inviting 

applications for the FY 2009 funding 

round of the Bank Enterprise Award 

(BEA) Program. 

Announcement Type: Initial 

announcement of funding opportunity. 

Catalog of Federal Domestic 

Assistance (CDFA) Number: 21.021. 

Dates: Applications for the FY 2009 

funding round must be received by 

11:59 p.m. ET on March 13, 2009. 

Applications must meet all eligibility 

and other requirements and deadlines, 

as applicable, set forth in this NOFA. 

Applications received after 11:59 p.m. 

ET on the applicable deadline will be 

rejected. 

Executive Summary: This NOFA is 

issued in connection with the FY 2009 

funding round of the BEA Program. 

Through the BEA Program, the 

Community Development Financial 

Institutions Fund (the Fund) encourages 

Insured Depository Institutions to 

increase their levels of loans, 

investments, services, and technical 

assistance within Distressed 

Communities, and financial assistance 

to Community Development Financial 

Institutions (CDFIs) through grants, 

stock purchases, loans, deposits, and 

other forms of financial and technical 

assistance, during a specified period. 

Actual funding for this program is 

contingent upon available resources. 

Publication of this NOFA does not 

obligate the Fund or the Department of 

the Treasury to make any award or to 

obligate any available funds. 

I. Funding Opportunity Description 

A. Baseline Period and Assessment 

Period Dates 

A BEA Program award is based on an 

Applicant’s increases in Qualified 

Activities from the Baseline Period to 

the Assessment Period. For the FY 2009 

funding round, the Baseline Period is 

calendar year 2007 (January 1, 2007 

through December 31, 2007), and the 

Assessment Period is calendar year 2008 

(January 1, 2008 through December 31, 

2008). 

B. Program Regulations 

The regulations governing the BEA 

Program have been published in this 

issue of the Federal Register, and 

replace, in their entirety, the regulations 

found at 12 CFR part 1806 (the Interim 

Rule or Rule) and provide guidance on 

evaluation criteria and other 

requirements of the BEA Program. The 

Fund encourages Applicants to review 

the Interim Rule. Detailed application 

content requirements are found in the 

application related to this NOFA. Each 

capitalized term in this NOFA is more 

fully defined either in the Interim Rule 

or the application. 

C. Qualified Activities 

Qualified Activities are defined in the 

Interim Rule to include CDFI Related 

Activities, Distressed Community 

Financing Activities, and Service 

Activities (12 CFR 1806.103(nn)). CDFI 

Related Activities include Equity 

Investments, Equity-Like Loans, and 

CDFI Support Activities (12 CFR 

1806.103(r)). Distressed Community 

Financing Activities (12 CFR 

1806.103(u)) include Affordable 

Housing Loans, Affordable Housing 

Development Loans and related Project 

Investments; Education Loans; 

Commercial Real Estate Loans and 

related Project Investments; Home 

Improvement Loans; and Small 

Business Loans and related Project 

Investments. Service Activities (12 CFR 

1806.103(nn)) include Deposit 

Liabilities, Financial Services, 

Community Services, Targeted 

Financial Services, and Targeted Retail 

Savings/Investment Products. 

When calculating BEA Program award 

amounts, the Fund will count only the 

amount that an Applicant reasonably 

expects to disburse for a Qualified 

Activity within 12 months from the end 

of the Assessment Period. Subject to the 

requirements outlined in Section I. G.1. 

of this NOFA, in the case of Commercial 

Real Estate Loans and CDFI Related 

Activities, the total principal amount of 

the transaction must be $10 million or 

less to be considered a Qualified 

Activity. Qualified Activities funded 

with prior funding round Award dollars 

shall not constitute a Qualified Activity 

for the purposes of calculating or 

receiving an Award. 

D. Designation of Distressed Community 

An Applicant applying for a BEA 

Program award for carrying out 

Distressed Community Financing 

Activities or Services Activities must 

designate one or more Distressed 

Communities. Each CDFI Partner that is 

the recipient of CDFI Support Activities 

from an Applicant must designate a 

Distressed Community. The CDFI 

Partner can identify a different 

Distressed Community than the 

Applicant. Applicants providing Equity 

Investments to a CDFI, and CDFI 

Partners that receive Equity 

Investments, are not required to 

designate Distressed Communities. 

Please note that a Distressed 

Community as defined by the BEA 

Program is not necessarily the same as 

an Investment Area as defined by the 

CDFI Program, or a Low-Income 

Community as defined by the New 

Markets Tax Credit (NMTC) Program. 

1. Definition of Distressed 

Community: A Distressed Community 

must meet certain minimum geographic 

area and distress requirements, which 

are defined in the Interim Rule at 12 

CFR 1806.103(t) and more fully 

described in 12 CFR 1806.200. 

2. Designation of Distressed 

Community: An Applicant or CDFI 

Partner (as appropriate) shall designate 

an area as a Distressed Community by: 

(a) Selecting Geographic Units which 

individually meet the minimum area 

eligibility requirements; or 

(b) Selecting two or more Geographic 

Units which, in the aggregate, meet the 

minimum area eligibility requirements 

set forth in paragraph (1) of this section 

provided that no Geographic Unit 

selected by the Applicant within the 

area has a poverty rate of less than 20 

percent. 

An Applicant engaging in Distressed 

Community Financing Activities or 

Service Activities designates a 

Distressed Community by submitting a 

Map of the Distressed Community as 

described in the applicable BEA 

Program application. A CDFI Partner 

designates a Distressed Community by 

submitting a Map of the Distressed 

Community as described in the 

applicable BEA Program application. 

Applicants and CDFI Partners must 

use the CDFI Fund Information 

Mapping System (CIMS) to designate 

Distressed Communities. CIMS is 

accessed through myCDFIFund and 

contains step-by-step instructions on 

how to create and print the 

aforementioned Map of the Distressed 

Community. MyCDFIFund is an 

electronic interface that is accessed 

through the Fund’s Web site 

(www.cdfifund.gov). Instructions for 

registering with myCDFIFund are 

available on the Fund’s Web site. If you 

have any questions or problems with 

registering, please contact the CDFI 

Fund IT HelpDesk by telephone at (202) 

622–2455, or by e-mail to 

ITHelpDesk@cdfi.treas.gov. 

E. CDFI Related Activities 

CDFI Related Activities include 

Equity Investments, Equity-Like Loans, 

and CDFI Support Activities provided to 

eligible CDFI Partners. In addition to 

regulatory requirements, this NOFA 

provides the following: 


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1. Eligible CDFI Partner: CDFI Partner 

is defined as a CDFI that has been 

provided assistance in the form of CDFI 

Related Activities by an Applicant (12 

CFR 1806.103(p)). For the purposes of 

this NOFA, an eligible CDFI Partner is 

an entity that has been certified as a 

CDFI as of the end of the applicable 

Assessment Period. 

2. Limitations on eligible Qualified 

Activities provided to certain CDFI 

Partners: An Applicant that is also a 

CDFI cannot receive credit for any 

financial assistance or Qualified 

Activities provided to a CDFI Partner 

that is also an FDIC-insured depository 

institution or depository institution 

holding company. 

3. Certificates of Deposit: Section 

1806.103(r) of the Interim Rule states 

that any certificate of deposit placed by 

an Applicant or its Subsidiary in a CDFI 

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 Fund. 

(a) For purposes of this NOFA, 

‘‘materially below market interest rate’’ 

is defined as an annual percentage rate 

that does not exceed 100 percent of 

yields on Treasury securities at constant 

maturity as interpolated by Treasury 

from the daily yield curve and available 

on the Treasury Web site at 

www.treas.gov/offices/domesticfinance/debt-management/interest-rate/ 

yield.shtml. For example, for a threeyear certificate of deposit, Applicants 

should use the three-year rate U.S. 

Government securities, Treasury Yield 

Curve Rate posted for that business day. 

The Treasury updates the Web site daily 

at approximately 5:30 p.m. ET. 

Certificates of deposit placed prior to 

that time may use the rate posted for the 

previous business day. The annual 

percentage rate on a certificate of 

deposit should be compounded 

quarterly, semi-annually, or annually. In 

addition, Applicants should determine 

whether a certificate of deposit is 

insured based on the total amount that 

the Applicant or its Subsidiary has on 

deposit on the day the certificate of 

deposit is placed. The Applicant must 

note, in its BEA Program application, 

whether the certificate of deposit is 

insured or uninsured. 

(b) For purposes of this NOFA, a 

deposit placed by an Applicant directly 

with a CDFI Partner that participates in 

a deposit network or service may be 

treated as eligible under this NOFA if it 

otherwise meets the criteria for deposits 

in 1806.103(r) 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. 

F. Equity-Like Loans 

An Equity-Like Loan is a loan 

provided by an Applicant or its 

Subsidiary to a CDFI, and made on such 

terms that it has characteristics of an 

Equity Investment, as such 

characteristics may be specified by the 

Fund (12 CFR 1806.103(z)). For 

purposes of this NOFA, Equity-Like 

Loans must meet the following 

characteristics: 

1. 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; 

2. 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; 

3. Failure to pay principal or interest 

(except at maturity) will not 

automatically result in a default of the 

loan agreement; and 

4. The loan must be subordinated to 

all other debt except for other EquityLike Loans. 

Notwithstanding the foregoing, the 

Fund reserves the right to determine, in 

its sole discretion and on a case-by-case 

basis, whether an instrument meets the 

above-stated characteristics of an 

Equity-Like Loan. Applicants must 

submit all documents evidencing loans 

that they wish to be considered EquityLike Loans to the Fund for review, no 

later than 45 days prior to the end of the 

applicable Assessment Period. The 

Fund will not redraft instruments, 

provide language for Applicants, or 

render legal opinions related to EquityLike Loans. However, the Fund, in its 

sole discretion, may comment as to the 

consistency of a proposed instrument 

with the above-stated Equity-Like Loan 

characteristics. Such information will 

allow Applicants, if they so choose, to 

modify the instruments to conform to 

the program requirements prior to the 

end of the Assessment Period. The Fund 

cannot guarantee timely feedback to 

Applicants that submit the 

aforementioned documentation less 

than 45 days prior to the end of the 

applicable Assessment Period. 

G. Distressed Community Financing 

Activities and Service Activities 

Distressed Community Financing 

Activities include Affordable Housing 

Loans, Affordable Housing Development 

Loans and related Project Investments, 

Education Loans, Commercial Real 

Estate Loans and related Project 

Investments, Home Improvement Loans, 

and Small Business Loans and related 

Project Investments (12 CFR 

1806.103(u)). In addition to the 

regulatory requirements, this NOFA 

provides the following additional 

requirements. 

1. Commercial Real Estate Loans and 

related Project Investments: For 

purposes of this NOFA, eligible 

Commercial Real Estate Loans (12 CFR 

1806.103(l)) and related Project 

Investments (12 CFR 1806.103(ll)) are 

generally limited to transactions with a 

total principal value of $10 million or 

less. Notwithstanding the foregoing, the 

Fund, in its sole discretion, may 

consider transactions with a total 

principal value of over $10 million, 

subject to review. In such cases, the 

Fund may request that the Applicant 

provide a separate narrative, or other 

information, to demonstrate that the 

proposed project offers, or significantly 

enhances the quality of, a facility or 

service not currently provided to the 

Distressed Community. 

2. Reporting certain Financial 

Services: 

(a) The Fund will value the 

administrative cost of providing certain 

Financial Services using the following 

per unit values: 

(i) $100.00 per account for Targeted 

Financial Services; 

(ii) $50.00 per account for checking 

and savings accounts that do not meet 

the definition of Targeted Financial 

Services; 

(iii) $5.00 per check cashing 

transaction; 

(iv) $25,000 per new ATM installed at 

a location in a Distressed Community; 

(v) $2,500 per ATM operated at a 

location in a Distressed Community; 

(vi) $250,000 per new retail bank 

branch office opened in a Distressed 

Community; and 

(vii) In the case of Applicants 

engaging in Financial Services activities 

not described above, the Fund will 

determine the unit value of such 

services. 

(b) When reporting the opening of a 

new retail bank branch office, the 

Applicant must certify that it has not 

operated a retail branch in the same 

census tract in which the new retail 

branch office is being opened in the past 

three years, and that such new branch 

will remain in operation for at least the 

next five years. 

(c) Financial Service Activities must 

be provided by the Applicant to Lowand Moderate-Income Residents. An 

Applicant may determine the number of 


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Low- and Moderate-Income individuals 

who are recipients of Financial Services 

by either: 

(i) Collecting income data on its 

Financial Services customers; or 

(ii) Certifying that the Applicant 

reasonably believes that such customers 

are Low- and Moderate-Income 

individuals and providing a brief 

analytical narrative with information 

describing how the Applicant made this 

determination. 

H. Integrally Involved Enterprises: 

Integrally Involved Means 

(i) For a CDFI Partner, having 

provided at least five percent of 

financial transactions or dollars 

transacted (e.g., loans or equity 

investments as defined in 12 CFR 

1805.104(s)), or five percent of 

Development Service activities, in the 

Distressed Community identified by the 

Applicant or the CDFI Partner, as 

applicable, in each of the three calendar 

years preceding the date of the 

applicable NOFA, or having transacted 

at least ten percent of financial 

transactions (e.g., loans or equity 

investments) in said Distressed 

Community in at least one of the three 

calendar years preceding the date of the 

applicable NOFA, or demonstrating that 

it has attained at least five percent of 

market share for a particular product in 

said Distressed Community (such as at 

least five percent of home mortgages 

originated in said Distressed 

Community) in at least one of the three 

calendar years preceding the date of the 

applicable NOFA; or 

(ii) For a non-CDFI, having directed at 

least five percent of its business 

activities (e.g., investments, revenues, 

expenses, or other appropriate 

measures) to serving the Distressed 

Community identified by the Applicant 

in each of the three calendar years 

preceding the date of the applicable 

NOFA, or having provided at least ten 

percent of its business activities in said 

Distressed Community in at least one of 

the three calendar years preceding the 

date of the applicable NOFA. 

II. Award Information 

A. Award Amounts 

Subject to funding availability, the 

Fund expects that it may award 

approximately $20 million for FY 2009 

BEA Program awards, in appropriated 

funds under this NOFA. The Fund 

reserves the right to award in excess of 

said funds under this NOFA, provided 

that the appropriated funds are 

available. Under this NOFA, the Fund 

anticipates a maximum award amount 

of $500,000 per Applicant. The Fund, in 

its sole discretion, reserves the right to 

award amounts in excess of the 

anticipated maximum award amount. 

The Fund also reserves the right to 

impose a minimum award amount. 

Further, the Fund reserves the right to 

fund, in whole or in part, any, all, or 

none of the applications submitted in 

response to this NOFA. The Fund 

reserves the right to re-allocate funds 

from the amount that is anticipated to 

be available under this NOFA to other 

Fund programs, particularly if the Fund 

determines that the number of awards 

made under this NOFA is fewer than 

projected. 

When calculating award amounts, the 

Fund will count only the amount that 

an Applicant reasonably expects to 

disburse on a transaction within 12 

months from the end of the Assessment 

Period. 

B. Types of Awards 

BEA Program awards are made in the 

form of grants. 

C. Notice of Award and Award 

Agreement 

Each awardee under this NOFA must 

sign a Notice of Award and an Award 

Agreement prior to disbursement by the 

Fund of award proceeds. The Notice of 

Award and the Award Agreement 

contain the terms and conditions of the 

award. For further information, see 

Section IX. of this NOFA. 

III. Eligibility 

A. Eligible Applicants 

Eligible Applicants for the BEA 

Program must be Insured Depository 

Institutions, as defined in 12 U.S.C. 

1813(c)(2). An Applicant must be FDICinsured by December 31, 2008 for the 

FY 2009 funding round to be eligible for 

consideration for a BEA Program award 

under this NOFA. 

1. Prior awardees: Applicants must be 

aware that success in a prior round of 

any of the Fund’s programs is not 

indicative of success under this NOFA. 

For purposes of this section, the Fund 

will consider an Affiliate to be any 

entity that Controls (as such term is 

defined in paragraph (g) below) the 

Applicant, is Controlled by the 

Applicant or is under common Control 

with the Applicant (as determined by 

the Fund) and any entity otherwise 

identified as an affiliate by the 

Applicant in its Application under this 

NOFA. Prior BEA Program awardees 

and prior awardees of other Fund 

programs are eligible to apply under this 

NOFA, except as follows: 

(a) Failure to meet reporting 

requirements: The Fund will not 

consider an application submitted by an 

Applicant if the Applicant or its 

Affiliate is a prior Fund awardee or 

allocatee under any Fund program and 

is not current on the reporting 

requirements set forth in the previously 

executed assistance, award or allocation 

agreement(s), as of the application 

deadline(s) of this NOFA. Please note 

that the Fund only acknowledges the 

receipt of reports that are complete. As 

such, incomplete reports or reports that 

are deficient of required elements will 

not be recognized as having been 

received. 

(b) Pending resolution of 

noncompliance: If an Applicant that is 

a prior awardee or allocatee under any 

Fund program: (i) Has submitted 

complete and timely reports to the Fund 

that demonstrate noncompliance with a 

previous assistance, award or allocation 

agreement, and (ii) the Fund has yet to 

make a final determination as to 

whether the entity is in default of its 

previous assistance, award or allocation 

agreement, the Fund will consider the 

Applicant’s application under this 

NOFA pending full resolution, in the 

sole determination of the Fund, of the 

noncompliance. Further, if an Affiliate 

of the Applicant that is a prior Fund 

awardee or allocate under any Fund 

program: (i) Has submitted complete 

and timely reports to the Fund that 

demonstrate noncompliance with a 

previous assistance, award or allocation 

agreement, and (ii) the Fund has yet to 

make a final determination as to 

whether the entity is in default of its 

previous assistance, award or allocation 

agreement, the Fund will consider the 

applicant’s application under this 

NOFA pending full resolution, in the 

sole determination of the Fund, of the 

noncompliance. 

(c) Default status: The Fund will not 

consider an application submitted by an 

Applicant that is a prior Fund awardee 

or allocatee under any Fund program if, 

as of the applicable application deadline 

of this NOFA, the Fund has made a final 

determination that such Applicant is in 

default of a previously executed 

assistance, award or allocation 

agreement(s). Further, an entity is not 

eligible to apply for an award pursuant 

to this NOFA if, as of the applicable 

application deadline, the Fund has 

made a final determination that an 

Affiliate of the Applicant: (i) Is a prior 

Fund awardee or allocatee under any 

Fund program, and (ii) has been 

determined by the Fund to be in default 

of a previously executed assistance, 

award or allocation agreement(s). Such 

entities will be ineligible to apply for an 

award pursuant to this NOFA so long as 

the Applicant’s, or its Affiliate’s, prior 


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award or allocation remains in default 

status or such other time period as 

specified by the Fund in writing. 

(d) Termination in default: The Fund 

will not consider an application 

submitted by an Applicant that is a 

prior Fund awardee or allocatee under 

any Fund program if, within the 12- 

month period prior to the application 

deadline of this NOFA, the Fund has 

made a final determination that such 

Applicant’s prior award or allocation 

terminated in default of the assistance, 

award or allocation agreement and the 

Fund has provided written notification 

of such determination to such 

Applicant. Further, an entity is not 

eligible to apply for an award pursuant 

to this NOFA if, within the 12-month 

period prior to the application deadline 

of this NOFA, the Fund has made a final 

determination that an Affiliate of the 

Applicant is a prior Fund awardee or 

allocatee under any Fund program 

whose award or allocation terminated in 

default of the assistance, award or 

allocation agreement and the Fund has 

provided written notification of such 

determination to the defaulting entity. 

(e) Undisbursed balances: For the 

purposes of this section, ‘‘undisbursed 

funds’’ is defined as: (i) In the case of 

prior BEA Program award(s), any 

balance of award funds equal to or 

greater than five (5) percent of the total 

prior BEA Program award(s) that 

remains undisbursed more than three 

(3) years after the end of the calendar 

year in which the Fund signed an award 

agreement with the Awardee, and (ii) in 

the case of prior CDFI Program or other 

Fund program award(s), any balance of 

award funds equal to or greater than five 

(5) percent of the total prior award(s) 

that remains undisbursed more than two 

(2) years after the end of the calendar 

year in which the Fund signed an 

assistance agreement with the awardee. 

‘‘Undisbursed funds’’ does not 

include (i) tax credit allocation 

authority allocated through the New 

Markets Tax Credit Program; (ii) any 

award funds for which the Fund 

received a full and complete 

disbursement request from the awardee 

as of the application deadline of this 

NOFA; and (iii) any award funds for an 

award that has been terminated, 

expired, rescinded, or deobligated by 

the Fund. 

The Fund will not consider an 

application submitted by an Applicant 

that is a prior Fund awardee under any 

Fund program if the Applicant has a 

balance of undisbursed funds under 

said prior award(s), as of the application 

deadline of this NOFA. Further, an 

entity is not eligible to apply for an 

award pursuant to this NOFA if an 

Affiliate of the Applicant is a prior Fund 

awardee under any Fund program, and 

has a balance of undisbursed funds 

under said prior award(s), as of the 

application deadline of this NOFA. In 

the case where an Affiliate of the 

Applicant is a prior Fund awardee 

under any Fund program, and has a 

balance of undisbursed funds under 

said prior award(s), as of the application 

deadline of this NOFA, the Fund will 

include the combined awards of the 

Applicant and such Affiliates when 

calculating the amount of undisbursed 

funds. 

(f) For purposes of this NOFA, the 

term ‘‘Control’’ means: (1) Ownership, 

control, or power to vote 25 percent or 

more of the outstanding shares of any 

class of voting securities as defined in 

12 CFR 1805.104(mm) of any legal 

entity, directly or indirectly or acting 

through one or more other persons; (2) 

control in any manner over the election 

of a majority of the directors, trustees, 

or general partners (or individuals 

exercising similar functions) of any legal 

entity; or (3) the power to exercise, 

directly or indirectly, a controlling 

influence over the management, credit 

or investment decisions, or policies of 

any legal entity. 

(g) Contact the Fund: Accordingly, 

Applicants that are prior awardees and/ 

or allocatees under any Fund program 

are advised to: (i) Comply with 

requirements specified in assistance, 

award and/or allocation agreement(s), 

and (ii) contact the Fund to ensure that 

all necessary actions are underway for 

the disbursement of any outstanding 

balance of a prior award(s). All 

outstanding reports, compliance or 

disbursement questions should be 

directed to Compliance & Monitoring 

Support by e-mail at cme@cdfi.treas.gov; 

by telephone at (202) 622–6330; by 

facsimile at (202) 622–6453; or by mail 

to CDFI Fund, 601 13th Street, NW., 

Suite 200 South, Washington, DC 20005. 

The Fund will respond to Applicants’ 

reporting, compliance or disbursement 

questions between the hours of 9 a.m. 

and 5 p.m. ET, starting the date of the 

publication of this NOFA through 

March 11, 2009. The Fund will not 

respond to Applicants’ reporting, 

compliance or disbursement telephone 

calls or e-mail inquiries that are 

received after 5 p.m. ET on March 11, 

2009. 

2. Cost sharing and matching fund 

requirements: Not applicable. 

IV. Application and Submission 

Information 

A. Address To Request Application 

Package 

Applicants may submit applications 

under this NOFA in paper form (except 

as provided below for the Report of 

Transactions). Shortly following the 

publication of this NOFA, the Fund will 

make the FY 2009 BEA Program 

application materials available via 

Grants.gov. 

B. Application Content Requirements 

Detailed application content 

requirements are found in the 

application related to this NOFA. 

Applicants must submit all materials 

described in and required by the 

application by the applicable deadlines. 

Additional information, including 

instructions relating to the submission 

of the application via Grants.gov and 

supporting documentation, is set forth 

in further detail in the application. 

Please note that, pursuant to OMB 

guidance (68 FR 38402), each Applicant 

must provide, as part of its application 

submission, a Dun and Bradstreet Data 

Universal Numbering System (DUNS) 

number. In addition, each application 

must include a valid and current 

Employer Identification Number (EIN), 

with a letter or other documentation 

from the Internal Revenue Service (IRS) 

confirming the EIN. Incomplete 

applications will be rejected. 

An Applicant may not submit more 

than one application in response to the 

FY 2009 funding round. 

C. Form of Application Submission 

Applicants must submit applications 

under this NOFA via Grants.gov with 

certain required documentation via 

paper according to the instructions in 

the application. Applications sent by 

facsimile or by e-mail will not be 

accepted, except in circumstances that 

the Fund, in its sole discretion, deems 

acceptable. In order to submit an 

application via Grants.gov, Applicants 

must complete a multi-step registration 

process. Applicants are encouraged to 

allow at least two to three weeks to 

complete the registration process. 

MyCDFIFund Accounts: All 

Applicants must register User and 

Organization accounts in myCDFIFund, 

the Fund’s Internet-based interface by 

the applicable Application deadline. 

Failure to register on MyCDFIFund 

could result in the Fund being unable to 

accept the application. As myCDFIFund 

is the Fund’s primary means of 

communication with Applicants and 

Awardees, organizations must make 

sure that they update the contact 


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information in their myCDFIFund 

accounts. For more information on 

myCDFIFund, please see the 

‘‘Frequently Asked Questions’’ link 

posted at https://www.cdfifund.gov/ 

myCDFI/Help/Help.asp. 

D. Application Submission Dates and 

Times 

1. Grants.gov Applications: The 

deadline for receipt of applications via 

Grants.gov for the FY 2009 funding 

round is 11:59 p.m. ET on March 13, 

2009. The deadline for receipt of paper 

documentation at the BPD address 

specified below is 5 p.m. ET, March 17, 

2009. Applications and other required 

documents and other attachments 

received after the deadline on the 

applicable date will be rejected. Please 

note that the document submission 

deadlines in this NOFA and/or the 

funding application are strictly 

enforced. The Fund will not grant 

exceptions or waivers for late delivery 

of documents including, but not limited 

to, late delivery that is caused by third 

parties such as the United States Postal 

Service, couriers or overnight delivery 

services. 

V. Intergovernmental Review: Not 

Applicable 

VI. Funding Restrictions: Not 

Applicable 

VII. Addresses 

Qualified Activity Documentation and 

Other Attachments as specified in the 

applicable BEA Program application 

must be sent to: CDFI Fund Grants 

Manager, BEA Program, Bureau of 

Public Debt, 200 Third Street, Room 10, 

Parkersburg, WV 26101. The telephone 

number to be used in conjunction with 

overnight mailings to this address is 

(304) 480–5450. The Fund will not 

accept applications in its offices in 

Washington, DC. Applications and 

attachments received in the Fund’s 

Washington, DC offices will be rejected. 

VIII. Application Review Information 

A. Priority Factors 

Priority Factors are the numeric 

values assigned to individual types of 

activity within a category of Qualified 

Activity. A Priority Factor represents 

the Fund’s assessment of the degree of 

difficulty, the extent of innovation 

(including, for example, pricing), and 

the extent of benefits accruing to the 

Distressed Community for each type of 

activity. The Priority Factor works by 

multiplying the change in a Qualified 

Activity by its assigned Priority Factor 

to achieve a ‘‘weighted value.’’ This 

weighted value of the change would be 

multiplied by the applicable award 

percentage to yield the award amount 

for that particular activity. For purposes 

of this NOFA, the Fund is establishing 

Priority Factors for the Distressed 

Community Financing Activities 

category only, as follows: 

Qualified activities Priority 

factor 

Affordable Housing Loans ............ 3.0 

Education Loans ........................... 3.0 

Home Improvement Loans ........... 3.0 

Small Business Loans and related 

Project Investments .................. 3.0 

Affordable Housing Development 

Loans and related Project Investments .................................. 2.0 

Commercial Real Estate Loans 

and related Project Investments 2.0 

B. Award Percentages, Award Amounts, 

Selection Process 

The Interim Rule describes the 

process for selecting Applicants to 

receive BEA Program awards and 

determining award amounts. Applicants 

will calculate and request an estimated 

award amount in accordance with a 

multiple step procedure that is outlined 

in the Interim Rule (at 12 CFR 

1806.202). As outlined in the Interim 

Rule at 12 CFR 1806.203, the Fund will 

determine actual award amounts based 

on the availability of funds, increases in 

Qualified Activities from the Baseline 

Period to the Assessment Period, and 

each Applicant’s priority ranking. In 

calculating the increase in Qualified 

Activities, the Fund will determine the 

eligibility of each transaction for which 

an Applicant has applied for a BEA 

Program award. In some cases, the 

actual award amount calculated by the 

Fund may not be the same as the 

estimated award amount requested by 

the Applicant. 

In the CDFI Related Activities 

category (except for an Equity 

Investment or Equity-Like Loan), if an 

Applicant is a CDFI, such estimated 

award amount will be equal to 18 

percent of the increase in Qualified 

Activity for the category. If an Applicant 

is not a CDFI, such estimated award 

amount will be equal to 6 percent of the 

increase in Qualified Activity for the 

category. Notwithstanding the foregoing, 

for an Applicant that is a CDFI and for 

an Applicant that is not a CDFI, the 

award percentage applicable to an 

Equity Investment, Equity-Like Loan, or 

Grant in a CDFI shall be 15 percent of 

the increase in Qualified Activity for the 

category. For the Distressed Community 

Financing Activities and Service 

Activities categories, if an Applicant is 

a CDFI, such 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 CDFI, such estimated 

award amount will be equal to 3 percent 

of the weighted value of the increase in 

Qualified Activity for the category. 

If the amount of funds available 

during the funding round is insufficient 

for all estimated award amounts, 

Awardees will be selected based on the 

process described in the Interim Rule at 

12 CFR 1806.203(b). This process gives 

funding priority to Applicants that 

undertake activities in the following 

order: 

1. CDFI Related Activities, 

2. Distressed Community Financing 

Activities, and 

3. Service Activities. 

Within each category, Applicants will 

be ranked according to the ratio of the 

actual award amount calculated by the 

Fund for the category to the total assets 

of the Applicant. Within the Distressed 

Community Financing category as well 

as the Service Activities category, 

Applicants that are certified CDFIs will 

be ranked first, followed by Applicants 

that have carried out such Distressed 

Community Financing Activities and 

Service Activities in a Distressed 

Community that encompasses an Indian 

Reservation. 

The Fund, in its sole discretion: (i) 

May adjust the estimated award amount 

that an Applicant may receive; (ii) may 

establish a maximum amount that may 

be awarded to an Applicant; and (iii) 

reserves the right to limit the amount of 

an award to any Applicant if the Fund 

deems it appropriate. 

For purposes of calculating award 

disbursement amounts, the Fund will 

treat Qualified Activities with a total 

principal amount of less than $250,000 

as fully disbursed. For all other 

Qualified Activities, Awardees will 

have 12 months from the end of the 

Assessment Period to make 

disbursements and 18 months from the 

end of the Assessment Period to submit 

to the Fund disbursement requests for 

the corresponding portion of their 

awards, after which the Fund will 

rescind and deobligate any outstanding 

award balance and said outstanding 

award balance will no longer be 

available to the Awardee. 

The Fund reserves the right to change 

its eligibility and evaluation criteria and 

procedures. If said changes materially 

affect the Fund’s award decisions, the 

Fund will provide information 

regarding the changes through the 

Fund’s Web site. 

There is no right to appeal the Fund’s 

award decisions. The Fund’s award 

decisions are final. 


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C. Certain Limitations on Qualified 

Activities 

(a) Low-Income Housing Tax Credits. 

Financial assistance provided by an 

Applicant for which the Applicant 

receives benefits through Low-Income 

Housing Tax Credits, authorized 

pursuant to Section 42 of the Internal 

Revenue Code, as amended (26 U.S.C. 

42), shall not constitute an Equity 

Investment, Project Investment, or other 

Qualified Activity, for the purposes of 

calculating or receiving a Bank 

Enterprise Award. 

(b) New Markets Tax Credits. 

Financial assistance provided by an 

Applicant for which the Applicant 

receives benefits as an investor in a 

Community Development Entity that 

has received an allocation of New 

Markets Tax Credits, authorized 

pursuant to Section 45D of the Internal 

Revenue Code, as amended (26 U.S.C. 

45D), shall not constitute an Equity 

Investment, Project Investment, or other 

Qualified Activity, for the purposes of 

calculating or receiving a Bank 

Enterprise Award. 

(c) Loan Renewals. Financial 

assistance provided by an Applicant 

shall not constitute a Qualified Activity, 

as defined in this part, for the purposes 

of calculating or receiving an award if, 

such financial assistances consist of a 

loan that has matured and is then 

renewed by the Applicant. 

(d) Prior BEA Awards. Qualified 

Activities funded with prior funding 

round Award dollars shall not 

constitute a Qualified Activity for the 

purposes of calculating or receiving an 

Award. 

(e) Prior CDFI Program Awards. No 

CDFI may receive a BEA Program award 

for activities funded by a CDFI Program 

award. 

IX. Award Administration Information 

A. Notice of Award 

The Fund will signify its selection of 

an Applicant as an Awardee by 

delivering a signed Notice of Award and 

Award Agreement to the Applicant. The 

Notice of Award will contain the 

general terms and conditions underlying 

the Fund’s provision of an award 

including, but not limited to, the 

requirement that an Awardee and the 

Fund enter into an Award Agreement. 

The Applicant must execute the Notice 

of Award and return it to the Fund 

along with the Award Agreement. The 

Fund reserves the right, in its sole 

discretion, to rescind its award and 

Notice of Award if the Awardee fails to 

return the Notice of Award or Award 

Agreement, signed by the Authorized 

Representative of the Awardee, along 

with any other requested 

documentation, by the deadline set by 

the Fund. 

By executing a Notice of Award, the 

Awardee agrees that, if information 

(including administrative errors) comes 

to the attention of the Fund that either 

adversely affects the Awardee’s 

eligibility for an award, or adversely 

affects the Fund’s evaluation of the 

Awardee’s application, or indicates 

fraud or mismanagement on the part of 

the Awardee, the Fund may, in its 

discretion and without advance notice 

to the Awardee, terminate the Notice of 

Award or take such other actions as it 

deems appropriate. 

1. Failure to meet reporting 

requirements: If an Applicant, or its 

Affiliate, is a prior Fund Awardee or 

Allocatee under any Fund program and 

is not current on the reporting 

requirements set forth in the previously 

executed Assistance, Award or 

Allocation Agreement(s), as of the date 

of the Notice of Award, the Fund 

reserves the right, in its sole discretion, 

to delay entering into an Award 

Agreement and/or to delay making a 

disbursement of Award proceeds, until 

said prior Awardee or Allocatee is 

current on the reporting requirements in 

the previously executed Assistance, 

Award or Allocation Agreement(s). 

Please note that the Fund only 

acknowledges the receipt of reports that 

are complete. As such, incomplete 

reports or reports that are deficient of 

required elements will not be 

recognized as having been received. If 

said prior Awardee or Allocatee is 

unable to meet this requirement within 

the timeframe set by the Fund, the Fund 

reserves the right, in its sole discretion, 

to terminate and rescind the Notice of 

Award and the Award made under this 

NOFA. 

2. Pending resolution of 

noncompliance: If an Applicant is a 

prior Fund Awardee or Allocatee under 

any Fund program and if: (i) It has 

submitted complete and timely reports 

to the Fund that demonstrate 

noncompliance with a previous 

Assistance, Award, or Allocation 

agreement, and (ii) the Fund has yet to 

make a final determination regarding 

whether or not the entity is in default 

of its previous Assistance, Award, or 

Allocation Agreement, the Fund 

reserves the right, in its sole discretion, 

to delay entering into an Award 

Agreement and/or to delay making a 

disbursement of Award proceeds, 

pending full resolution, in the sole 

determination of the Fund, of the 

noncompliance. Further, if an Affiliate 

of the Applicant is a prior Fund 

Awardee or Allocatee under any Fund 

program, and if such entity: (i) Has 

submitted complete and timely reports 

to the Fund that demonstrate 

noncompliance with a previous 

Assistance, Award, or Allocation 

Agreement, and (ii) the Fund has yet to 

make a final determination as to 

whether the entity is in default of its 

previous Assistance, Award, or 

Allocation Agreement, the Fund 

reserves the right, in its sole discretion, 

to delay entering into an Award 

Agreement and/or to delay making a 

disbursement of Award proceeds 

pending full resolution, in the sole 

determination of the Fund, of the 

noncompliance. If said prior Awardee or 

Allocatee is unable to meet this 

requirement, in the sole determination 

of the Fund, the Fund reserves the right, 

in its sole discretion, to terminate and 

rescind the Notice of Award and the 

Award made under this NOFA. 

3. Default status: If, at any time prior 

to entering into an Award Agreement 

under this NOFA, the Fund has made a 

final determination that an Applicant 

that is a prior Fund Awardee or 

Allocatee under any Fund program is in 

default of a previously executed 

Assistance, Award, or Allocation 

Agreement(s) and has provided written 

notification of such determination to the 

Applicant, the Fund reserves the right, 

in its sole discretion, to delay entering 

into an Award Agreement and/or to 

delay making a disbursement of Award 

proceeds until said prior Awardee or 

Allocatee has submitted a complete and 

timely report demonstrating full 

compliance with said Agreement within 

a timeframe set by the Fund. Further, if, 

at any time prior to entering into an 

Award Agreement under this NOFA, the 

Fund has made a final determination 

that an Affiliate of the Applicant is a 

prior Fund Awardee or Allocatee under 

any Fund program, and is in default of 

a previously executed Assistance, 

Allocation or Award Agreement(s) and 

has provided written notification of 

such determination to the defaulting 

entity, the Fund reserves the right, in its 

sole discretion, to delay entering into an 

Award Agreement and/or to delay 

making a disbursement of Award 

proceeds until said prior Awardee or 

Allocatee has submitted a complete and 

timely report demonstrating full 

compliance with said Agreement within 

a timeframe set by the Fund. If said 

prior awardee or allocatee is unable to 

meet this requirement, the Fund 

reserves the right, in its sole discretion, 

to terminate and rescind the Notice of 

Award and the Award made under this 

NOFA. 

4. Termination in default: If, within 

the 12-month period prior to entering 


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into an Award Agreement under this 

NOFA, the Fund has made a final 

determination that an Applicant that is 

a prior Fund Awardee or Allocatee 

under any Fund program whose Award 

or Allocation terminated in default of 

such prior Agreement and the Fund has 

provided written notification of such 

determination to such organization, the 

Fund reserves the right, in its sole 

discretion, to delay entering into an 

Award Agreement and/or to delay 

making a disbursement of Award 

proceeds. Further, if, within the 12- 

month period prior to entering into an 

Award Agreement under this NOFA, the 

Fund has made a final determination 

that an Affiliate of the Applicant, is a 

prior Fund Awardee or Allocatee under 

any Fund program, and whose Award or 

Allocation terminated in default of such 

prior Agreement(s) and has provided 

written notification of such 

determination to the defaulting entity, 

the Fund reserves the right, in its sole 

discretion, to delay entering into an 

Award Agreement and/or to delay 

making a disbursement of Award 

proceeds. 

E. Award Agreement 

After the Fund selects an Awardee, 

the Fund and the Awardee will enter 

into an Award Agreement. The Award 

Agreement will set forth certain 

required terms and conditions of the 

award, which will include, but not be 

limited to: (i) The amount of the award; 

(ii) the type of the award; (iii) the 

approved uses of the award; (iv) 

performance goals and measures; and 

(v) reporting requirements for all 

Awardees. Award Agreements under 

this NOFA generally will have one-year 

performance periods. The Award 

Agreement shall provide that an 

Awardee shall: (i) Carry out its 

Qualified Activities in accordance with 

applicable law, the approved 

application, and all other applicable 

requirements; (ii) not receive any 

monies until the Fund has determined 

that the Awardee has fulfilled all 

applicable requirements, and (iii) use an 

amount equivalent to the BEA Award 

amount for BEA Qualified Activities. 

F. Administrative and National Policy 

Requirements 

Not applicable. 

G. Reporting and Accounting 

1. Reporting Requirements: The Fund 

will collect information, on at least an 

annual basis, from each Awardee that 

receives an award over $50,000 through 

this NOFA including, but not limited to, 

an Annual Report that comprises the 

following components: (i) Institution 

Level Report; (ii) Financial Reports 

(including an OMB A–133 audit, as 

applicable); and (iii) such other 

information as the Fund may require. 

Each Awardee is responsible for the 

timely and complete submission of the 

Annual Report, even if all or a portion 

of the documents actually is completed 

by another entity or signatory to the 

Award Agreement. If such other entities 

or signatories are required to provide 

Institution Level Reports, Financial 

Reports, or other documentation that the 

Fund may require, the Awardee is 

responsible for ensuring that the 

information is submitted timely and 

complete. The Fund reserves the right to 

contact such additional signatories to 

the Award Agreement and require that 

additional information and 

documentation be provided. The Fund 

will use such information to monitor 

each Awardee’s compliance with the 

requirements set forth in the Award 

Agreement and to assess the impact of 

the CDFI Program. All reports must be 

electronically submitted to the Fund via 

the Awardee’s my CDFIFund account. 

The Institution Level Report must be 

submitted through the Fund’s Webbased data collection system, the 

Community Investment Impact System 

(CIIS). The Financial Report may be 

submitted through CIIS. All other 

components of the Annual Report may 

be submitted electronically, as directed, 

by the Fund. The Fund reserves the 

right, in its sole discretion, to modify 

these reporting requirements if it 

determines it to be appropriate and 

necessary; however, such reporting 

requirements will be modified only after 

notice to Awardees. 

2. Accounting: The Fund will require 

each Awardee that receives an award 

over $50,000 through this NOFA to 

account for the use of the award. This 

will require Awardees to establish 

administrative and accounting controls, 

subject to the applicable OMB Circulars. 

The Fund will provide guidance to 

Awardees outlining the format and 

content of the information to be 

provided on an annual basis, outlining 

and describing how the funds were 

used. Each Awardee that receives an 

Award must provide the Fund with the 

required and complete and accurate 

Automated Clearinghouse (ACH) form 

for its bank account prior to award 

closing and disbursement. 

X. Agency Contacts 

The Fund will respond to questions 

and provide support concerning this 

NOFA and the funding application 

between the hours of 9 a.m. and 5 p.m. 

ET, starting the date of the publication 

of this NOFA through close of business 

March 11, 2009 for the FY 2009 funding 

round. 

The Fund will not respond to 

questions or provide support concerning 

the application after 5 p.m. ET on March 

11, 2009 for the FY 2009 funding round. 

Applications and other information 

regarding the Fund and its programs 

may be downloaded and printed from 

the Fund’s Web site at 

www.cdfifund.gov. The Fund will post 

on its Web site responses to questions 

of general applicability regarding the 

BEA Program. 

A. Information Technology Support: 

Technical support can be obtained by 

calling (202) 622–2455 or by e-mail at 

ithelpdesk@cdfi.treas.gov. People who 

have visual or mobility impairments 

that prevent them from creating a 

Distressed Community map using the 

Fund’s Web site should call (202) 622– 

2455 for assistance. These are not toll 

free numbers. 

B. Programmatic Support: If you have 

any questions about the programmatic 

requirements of this NOFA, contact the 

Fund’s Program office by e-mail at 

cdfihelp@cdfi.treas.gov, by telephone at 

(202) 622–6355, by facsimile at (202) 

622–7754, or by mail at CDFI Fund, 601 

13th Street NW., Suite 200 South, 

Washington, DC 20005. These are not 

toll-free numbers. 

C. Grants Management Support: If 

you have any questions regarding the 

administrative requirements of this 

NOFA, including questions regarding 

submission requirements, contact the 

Fund’s Grants Manager by e-mail at 

grantsmanagement@cdfi.treas.gov, by 

telephone at (202) 622–8226, by 

facsimile at (202) 622–9625, or by mail 

at CDFI Fund, 601 13th Street, NW., 

Suite 200 South, Washington, DC 20005. 

These are not toll free numbers. 

D. Compliance and Monitoring 

Support: If you have any questions 

regarding the compliance requirements 

of this NOFA, including questions 

regarding performance on prior awards, 

contact the Fund’s Compliance Manager 

by e-mail at cme@cdfi.treas.gov, by 

telephone at (202) 622–6330, by 

facsimile at (202) 622–6453, or by mail 

at CDFI Fund, 601 13th Street, NW., 

Suite 200 South, Washington, DC 20005. 

These are not toll free numbers. 

E. Legal Counsel Support: If you have 

any questions or matters that you 

believe require response by the Fund’s 

Office of Legal Counsel, please refer to 

the document titled ‘‘How to Request a 

Legal Review,’’ found on the Fund’s 

Web site at www.cdfifund.gov. Further, 

if you wish to review the Award 

Agreement form document from a prior 

funding round, you may find it posted 

on the Fund’s Web site (please note that 


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there may be revisions to the Award 

Agreement that will be used for 

Awardees under this NOFA and thus 

the sample document on the Fund’s 

Web site should not be relied upon for 

purposes of this NOFA). 

F. Communication with the CDFI 

Fund: The Fund will use its 

myCDFIFund Internet interface to 

communicate with Applicants and 

Awardees under this NOFA. Awardees 

must use myCDFIFund to submit 

required reports. The Fund will notify 

Awardees by e-mail using the addresses 

maintained in each Awardee’s 

myCDFIFund account. Therefore, the 

Awardee and any Subsidiaries, 

signatories, and Affiliates must maintain 

accurate contact information (including 

contact person and authorized 

representative, e-mail addresses, fax 

numbers, phone numbers, and office 

addresses) in their myCDFIFund 

account(s). For more information about 

myCDFIFund, please see the Help 

documents posted at https:// 

www.cdfifund.gov/myCDFI/Help/ 

Help.asp. 

Authority: 12 U.S.C. 1834a, 4703, 4703 

note, 4713; 12 CFR part 1806. 

Dated: January 15, 2009. 

Donna J. Gambrell, 

Director, Community Development Financial 

Institutions Fund. 

[FR Doc. E9–1576 Filed 1–29–09; 8:45 am] 

BILLING CODE 4810–70–P 


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