Source: https://www.federalregister.gov/documents/2015/01/05/2014-30867/office-of-small-credit-unions-oscui-loan-program-access-for-credit-unions
Timestamp: 2018-04-19 14:04:50
Document Index: 601529196

Matched Legal Cases: ['§\u2009705', 'art 705', 'art 705', 'arts 701', 'art 705', '§\u2009705', '§\u2009705']

A Notice by the National Credit Union Administration on 01/05/2015
The application open period is from January 1, 2015 thru December 31, 2015. Funds may be exhausted prior to this deadline, at which time the programs/funds will no longer be available.
260-263 (4 pages)
https://www.federalregister.gov/d/2014-30867 https://www.federalregister.gov/d/2014-30867
Permissible Uses of Funds: NCUA will consider requests for funds consistent with the purpose of the OSCUI Loan Program. 12 CFR 705.1. A non-exhaustive list of examples of permissible uses or projects of loan proceeds are contained in § 705.4 of the regulation, and include: (i) Development of new products or services for members including new or expanded share draft or credit card programs; (ii) Partnership arrangements with community based service organizations or government agencies; (iii) Loan programs, including, but not lmited to, micro business loans, payday loan alternatives, education loans, and real estate loans; (iv) Acquisition, expansion or improvement of office space or equipment, including branch facilities, ATMs, and electronic banking facilities; and (v) Operational programs such as security and disaster recovery.
Regulation: Part 705 of NCUA's regulations implements the OSCUI Grant and Loan Program. 12 CFR 705. A revised Part 705 was published on November 2, 2011. 76 FR 67583. Additional requirements are found at 12 CFR parts 701 and 741. Applicants should review these regulations in addition to this NOFO. Each capitalized term in this NOFO is more fully defined in the regulations, the loan application, and the loan agreement. For the purposes of this NOFO, an Applicant is a Qualifying Credit Union that submits a complete Application to NCUA under the OSCUI Loan Program.
Congress has not made an appropriation to the OSCUI Loan Program for Fiscal Years 2014-2015. NCUA expects to lend approximately $5.2 million under this NOFO, derived from appropriated and earned funds. Monies for additional loans come from scheduled loan amortizations. NCUA reserves the right to: (i) Award more or less than the amount 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 from the amount that is anticipated to be available under this NOFO to other programs, particularly if NCUA determines that the number of awards made under this NOFO is fewer than projected.
1. Maximum Loan Amount: NCUA expects that most loans made under this NOFO will be in an amount less than or equal to $300,000. NCUA has determined that loans of this size will help maximize allocation of this limited resource among many credit unions. However, NCUA will consider funding requests in excess of $300,000 from Applicants that demonstrate the need and capability to effectively deploy such funding; and have a high probability of realizing significant impact, while maintaining financial and operational soundness. NCUA may consider other factors for the approval of funding requests in excess of $300,000 and will be assessed on a case-by-case basis. See Start Printed Page 261Section D and E of this NOFO for additional information.
2. Dates: The application open period is from January 1, 2015 thru December 31, 2015. Funds may be exhausted prior to this deadline, at which time the programs/funds will no longer be available.
4. Interest: The interest rate on loans is governed by the Loan Interest Rate Policy, which can be found on NCUA's Web site at http://www.ncua.gov/​Resources/​OSCUI/​Pages/​Loans.aspx.
6. Renewals: Not Applicable.
3. Other Eligiblity Requirements:
(a) Financial Viability: Applicants must meet the underwriting standards established by NCUA, including those pertaining to financial viability, as set forth in the application and found in 12 CFR 705.6(c).
1. Application Form: The application and related documents can be found on NCUA's Web site at www.ncua.gov/​OSCUI/​GrantsandLoans.
(b) Employer Identification Number: Each Application must include a valid and current Employer Identification Number (EIN) issued by the U.S. Internal Revenue Service (IRS). 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 a EIN may be found on the IRS's Web site at www.irs.gov.
(c) Abbreviated Application: An Applicant requesting a loan amount of $300,000 or less is permitted to complete a short online application form that limits the amount of required narrative responses. The required narratives will address the proposed use of funds; the credit union's ability to obtain matching funds, if required; and how the credit union will assess the impact of the funding.
(d) Narrative Responses: Each Application must include the narratives listed below. Applicants must adhere to character limitations contained in the Application. NCUA will not read or consider narrative comments beyond the limits specified. Additionally, NCUA will read only information requested in the Application and will not read attachments that have not been requested in this NOFO or the Application.Start Printed Page 262
(i) Business Plan: As detailed in Part 705 of NCUA's regulations, the business plan must: Describe the community's need for financial products and services and the Applicant's need for funding; summarize the services, financial products, and services provided by the Applicant; describe the Applicant's involvement with other entities; describe the credit union's marketing strategy to reach members and the community; and include financial projections.
(i) Additional Application Requirements: 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 § 705.6(b)(3) of NCUA's regulations and in the Application.
3. Dun and Bradstreet Univeral Numbering System (DUNS) Number and System for Award Management (SAM): Based on an Office of Management and Budget (OMB) policy directive effective October 31, 2003, credit unions are required to: (i) Be registered in SAM before submitting its application; (ii) provided a valid Data Universal Numbering System (DUNS) number issued by Dun and Bradstreet (D&B); and (iii) continue to maintain an active SAM registration with current information at all times during which it has an active Federal award or an application or plan under consideration. NCUA will not consider an Application that does not include a valid DUNS number. Such an Application will be deemed incomplete and will be declined. Information on how to obtain a DUNS number may be found on D&B's Web site at http://fedgov.dnb.com/​webform or by calling D&B, toll-free, at 1-866-705-5711.
4. Submission Dates and Times: The application open period is from January 1, 2015 thru December 31, 2015. Funds may be exhausted prior to this deadline, at which time the programs/funds will no longer be available.
(c) Evaluation and Scoring: The evaluation criteria are more fully described in § 705.6 of NCUA's regulations. NCUA will evaluate each Application that receives a substantive review on the four criteria categories described in the regulation: Financial Performance, Compatibility, Feasibility, and Examination Information and Concurrence from Regional Director of Qualifying Credit Unions.
(d) Input from Examiners: NCUA will not approve an award to a credit union for which its NCUA regional examining office or State Supervisory Agency (SSA), if applicable, indicates it has safety and soundness concerns. If the NCUA regional office or SSA identifies a safety and soundness concern, OSCUI, in conjunction with the regional office or SSA, will assess whether the condition of the Applicant is adequate to undertake the activities for which funding is requested, and the obligations of the loan and its conditions. NCUA, in its sole discretion, may defer decision on funding an Application until the credit union's safety and soundness conditions improve.
(e) Funding Selection: NCUA will make its funding selections based on a consistent scoring tier where each applicant will receive an individual score. NCUA will consider the impact of the funding. In addition, NCUA may consider the geographic diversity of the Applicants in its funding decisions. When loan demand is high applications will be ranked based on the aforementioned.
(a) Loan Agreements: Each Participating Credit Union under this NOFO must enter into agreement with NCUA before NCUA will disburse loan funds. The agreement documents include, for example, a promissory note, loan agreement, and security agreement (if applicable). The Loan Agreement will include the terms and conditions of funding, including but not limited to the: (i) Loan amount; (ii) interest rate; (iii) repayment requirements; (iv) accounting treatment; (v) impact measures; and (vi) reporting requirements.Start Printed Page 263
3. Reporting: Annually, each Participating Credit Union will submit an annual report to NCUA. The report will address the Participating Credit Union's use of the loan funds; the impact of funding; and explanation of any failure to meet objectives for use of proceeds, outcome, or impact. NCUA, in its sole discretion, may modify these requirements. However, such reporting requirements will be modified only after notice to affected credit unions.
1. Methods of Contact: Further information can be found at: www.ncua.gov/​OSCUI/​grantsandloans. For questions email: National Credit Union Administration, Office of Small Credit Union Initiatives at OSCUIAPPS@ncua.gov.
By the National Credit Union Administration Board on December 29, 2014.
Jon Canerday,
[FR Doc. 2014-30867 Filed 1-2-15; 8:45 am]