Office of Small Credit Unions (OSCUI) Loan Program Access for Credit Unions, 4875-4878 [2013-01206]
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Federal Register / Vol. 78, No. 15 / Wednesday, January 23, 2013 / Notices
NATIONAL AERONAUTICS AND
SPACE ADMINISTRATION
[Notice 13–003]
Notice of Information Collection
National Aeronautics and
Space Administration (NASA).
ACTION: Notice of information collection.
AGENCY:
The National Aeronautics and
Space Administration, as part of its
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 of 1995 (Pub. L. 104–13, 44 U.S.C.
3506(c)(2)(A)).
DATES: All comments should be
submitted within 60 calendar days from
the date of this publication.
ADDRESSES: All comments should be
addressed to Ms. Frances Teel, NASA
Aeronautics and Space Administration,
Washington, DC 20546–0001.
FOR FURTHER INFORMATION CONTACT:
Requests for additional information or
copies of the information collection
instrument(s) and instructions should
be directed to Ms. Frances Teel, NASA
Clearance Officer/JF000, NASA
Headquarters, 300 E Street SW.,
Washington, DC 20546 or
Frances.C.Teel@nasa.gov.
SUMMARY:
SUPPLEMENTARY INFORMATION:
Type of review: Extension of currently
approved collection.
Affected Public: Individuals or
households.
Responses per Respondent: 1.
Annual Responses: 8,455.
Hours per Request: 0.08 hours/5
minutes.
Annual Burden Hours: 705.
Annual Cost to the Government:
$170,200.
IV. Request for Comments
Comments are invited on: (1) Whether
the proposed collection of information
is necessary for the proper performance
of the functions of NASA, including
whether the information collected has
practical utility; (2) the accuracy of
NASA’s estimate of the burden
(including hours and cost) of the
proposed collection of information; (3)
ways to enhance the quality, utility, and
clarity of the information to be
collected; and (4) ways to minimize the
burden of the collection of information
on respondents, including automated
collection techniques or the use of other
forms of information technology.
Comments submitted in response to
this notice will be summarized and
included in the request for OMB
approval of this information collection.
They will also become a matter of
public record.
Frances Teel,
NASA Clearance Officer.
[FR Doc. 2013–01228 Filed 1–22–13; 8:45 am]
BILLING CODE 7510–13–P
I. Abstract
The LISTS (Locator and Information
Services Tracking System) form is used
at NASA Goddard Space Flight Center
to collect locator information on support
contractors when the information
cannot be imported from other systems.
The LISTS also serves as repository for
contact information in the event of an
emergency during or outside official
duty hours. Information collected is also
used for short and long-term
institutional planning.
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II. Method of Collection
The preferred method of collection is
electronic. Approximately 60% of the
data is collected electronically by means
of a data entry screen that duplicates the
Goddard Space Flight Center form GSFC
24–27 in the LISTS system. The
remaining 40% of the data is keyed into
the system from submissions of a
hardcopy version of form GSFC 24–27.
III. Data
Title: Locator and Information
Services Tracking System (LISTS) Form.
OMB Number: 2700–0064.
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NATIONAL CREDIT UNION
ADMINISTRATION
Office of Small Credit Unions (OSCUI)
Loan Program Access for Credit
Unions
National Credit Union
Administration (NCUA).
ACTION: Notice of Funding Opportunity.
AGENCY:
The National Credit Union
Administration (NCUA) is issuing a
Notice of Funding Opportunity (NOFO)
to invite eligible credit unions to submit
applications for participation in the
OSCUI Loan Program (a.k.a. Community
Development Revolving Loan Fund
(CDRLF)), subject to funding
availability. The OSCUI Loan Program
serves as a source of financial support,
in the form of loans, for credit unions
serving predominantly low-income
members. It also serves as a source of
funding to help low-income designated
credit unions (LICUs) respond to
emergencies arising in their
communities.
SUMMARY:
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The application open period is
from January 1, 2013 thru December 31,
2013. Funds may be exhausted prior to
this deadline, at which time the
programs/funds will no longer be
available.
ADDRESSES: Applications must be
submitted online at
www.cybergrants.com/ncua/
applications.
FOR FURTHER INFORMATION 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.
SUPPLEMENTARY INFORMATION:
DATES:
I. Description of Funding Opportunity
The purpose of the OSCUI Loan
Program is to assist specially designated
credit unions in providing basic
financial services to their low-income
members to stimulate economic
activities in their communities. Through
the OSCUI Loan Program, NCUA
provides financial support in the form
of loans to LICUs. These funds help
improve and expand the availability of
financial services to these members. The
OSCUI Loan Program also serves as a
source of funding to help LICUs respond
to emergencies. The Loan Program
consists of Congressional appropriations
that are administered by OSCUI, an
office of the NCUA.
A. Program 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.
B. Funds Availability: Congress has
not made an appropriation to the OSCUI
Loan Program for Fiscal Years 2013–
2014. NCUA expects to lend
approximately $9.5 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
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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.
II. Description of Loan Program
OSCUI loans are made to LICUs that
meet the requirements in the program
regulation and this NOFO, subject to
funds availability. OSCUI loans are
generally made at lower than market
interest rates.
A. Eligibility Requirements: The
regulations specify the requirements a
credit union must meet in order to be
eligible to apply for assistance under
this NOFO. See 12 CFR 705.
Following are additional requirements
for participating in the Loan Program
under this NOFO. In short, an Applicant
must:
Æ Be a Qualifying Credit Union
(QCU);
Æ Meet the underwriting standards
and program requirements specified in
the Regulations and this NOFO; and
Æ Complete and submit an
Application (see Section III. of this
NOFO for additional information).
1. Low Income Credit Union
Designation: A credit union must be a
LICU, or equivalent in the case of a
Qualifying State-chartered Credit Union,
in order to participate in the OSCUI
Grant and Loan Program. Requirements
for obtaining the designation are found
at 12 CFR § 701.34.
B. 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.
NCUA will consider other proposed
uses of funds that in its sole discretion
it determines are consistent with the
purpose of the OSCUI Loan Program,
the requirements of the regulations, and
this NOFO.
C. Terms: The specific terms and
conditions governing a loan will be
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established in the loan documents each
Participating Credit Union will sign
prior to disbursement of funds.
Following are the general loan terms
under the program.
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
Section III and IV of this NOFO for
additional information.
2. Maturity: Loans will generally
mature in five years. A credit union may
request a shorter loan period, but in no
case will the term exceed five years.
3. Interest: The interest rate on loans
is governed by the Loan Interest Rate
Policy, which can be found on NCUA’s
Web site at www.ncua.gov/OSCUI/
GrantsandLoans.
4. Repayment: All loans must be
repaid to NCUA regardless of how they
are accounted for by the Participating
Credit Union.
(a) Principal: The entire principal is
due at maturity.
(b) Interest: Interest is due in semiannual payments beginning six months
after the initial distribution of the loan.
(c) Principal Prepayment: There is no
penalty for principal prepayment.
Principal prepayments may be made as
often as monthly.
D. Conditions:
1. 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). For further information,
see Section VI. of this NOFO.
2. Matching Funds: Part 705.5(g) of
NCUA’s regulations describe the overall
requirements for matching funds.
NCUA, in its sole discretion, may
require matching funds of an Applicant,
on a case-by-case basis depending on
the financial condition of the Applicant.
NCUA anticipates that most Applicants
will not be required to obtain matching
funds. However, each Applicant should
address in the Application its strategy
for raising matching funds if NCUA
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determines matching funds are required
(see 12 CFR Part 705 and the
Application for additional information).
(a) Matching Funds Requirements:
The specific terms and covenants
pertaining to any matching funds
requirement will be provided in the
loan agreement of the Participating
Credit Union. Following, are general
matching requirements. NCUA, in its
sole discretion, may amend these
requirements depending upon its
evaluation of the Applicant, but in no
case will the amended requirements be
greater than the conditions listed below.
(i) The amount of matching funds
required must generally be in an amount
equal to the loan amount.
(ii) Matching funds must be from nongovernmental member or nonmember
share deposits.
(iii) Any loan monies matched by
nonmember share deposits are not
subject to the 20% limitation on
nonmember deposits under § 701.32 of
NCUA’s regulations.
(iv) Participating Credit Unions must
maintain the outstanding loan amount
in the total amount of share deposits for
the duration of the loan. Once the loan
is repaid, nonmember share deposits
accepted to meet the matching
requirement are subject to § 701.32 of
NCUA’s regulations.
(b) Criteria for Requiring Matching
Funds: NCUA will use the following
criteria to determine whether to require
an Applicant to have matching funds as
a condition of its loan.
(i) CAMEL Composite Rating
(ii) CAMEL Management Component
Rating
(iii) CAMEL Asset Quality
(iv) Regional Director Concurrence
(v) Net Worth Ratio
(c) Documentation of Matching
Funds: NCUA may contact the matching
funds source to discuss the matching
funds and the documentation that the
Applicant has provided. If NCUA
determines that any portion of the
Applicant’s matching funds is ineligible
under this NOFO, NCUA, in its sole
discretion, may permit the Applicant to
offer alternative matching funds as a
substitute for the ineligible matching
funds. In this case: (i) the Applicant
must provide acceptable alternative
matching funds documentation within
10 business days of NCUA’s request.
3. Compliance with Past Agreements:
In evaluating funding requests under
this NOFO, NCUA will consider an
Applicant’s record of compliance with
past agreements, including any
deobligation of funds. NCUA, in its sole
discretion, will determine whether to
consider an Application from an
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Applicant with a past record of
noncompliance, including any
deobligation (i.e. removal of unused
awards) of funds.
(a) Default Status: If an Applicant is
in default of a previously executed
agreement with NCUA, NCUA will not
consider an Application for funding
under this NOFO.
(b) Undisbursed Funds: NCUA may
not consider an Application if the
Applicant is a prior awardee under the
OSCUI Grant Program and has unused
grant awards as of the date of
Application.
III. Application Requirements
A. Application Form: The application
and related documents can be found on
NCUA’s Web site at www.ncua.gov/
OSCUI/GrantsandLoans.
B. Minimum Application Content:
Each Applicant must complete and
submit information regarding the
applicant and requested funding. In
addition, applicants will be required to
certify applications prior to submission.
1. DUNS Number: Based on an Office
of Management and Budget (OMB)
policy directive effective October 31,
2003, credit unions must have a Data
Universal Numbering System (DUNS)
number issued by Dun and Bradstreet
(D&B) in order to be eligible to receive
funding from the OSCUI Loan Program.
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 https://fedgov.dnb.com/
webform or by calling D&B, toll-free, at
1–866–705–5711.
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). 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.
3. 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.
4. Narrative Responses: Each
Application must include the narratives
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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.
(a) Use of Funds: A narrative
describing how it intends to use the
loan proceeds. The narrative should
demonstrate that the loan will enhance
the products and services the credit
union provides to its members. It also
should describe how those enhanced
products and services will support the
economic development of the
community served by the credit union.
(b) Matching Funds: A narrative
describing its strategy for raising
matching funds from non-federal
sources if matching funds are required.
5. Large Loans: An Applicant
requesting a loan in excess of $300,000
is required to complete an online
application form that contains
additional narrative comments
supporting such request. The additional
narrative consists of a business plan.
(a) 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.
6. Non-federally Insured Applicants:
(a) 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.
(b) Examination by NCUA: Nonfederally insured, state-chartered credit
unions must agree to be examined by
NCUA. The specific terms and
covenants pertaining to this condition
will be provided in the loan agreement
of the Participating Credit Union.
C. Submission of Application: Under
this NOFO, Applications must be
submitted online at
www.cybergrants.com/ncua/
applications.
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IV. Application Review
A. Review Process
1. Eligibility and Completeness
Review: NCUA will review each
Application to determine whether it is
complete and that the Applicant meets
the eligibility requirements described in
the Regulations and Section II of this
NOFO. An incomplete Application or
one that does not meet the eligibility
requirements will be declined without
further consideration.
2. Substantive Review: After an
Applicant is determined eligible and its
Application is determined complete,
NCUA will conduct a substantive
review in accordance with the criteria
and procedures described in the
Regulations and this NOFO. NCUA
reserves the right to contact the
Applicant during its review for the
purpose of clarifying or confirming
information contained in the
Application. If so contacted, the
Applicant must respond within the time
specified by NCUA or NCUA, in its sole
discretion, may decline the application
without further consideration.
3. 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.
(a) Assessment of Impact: The
Compatibility criteria will take into
consideration the extent of community
need and projected impact of the
funding on the Applicant’s members
and community.
(b) Effective Strategy: The Feasibility
criteria will take into consideration the
quality of the Applicant’s strategy and
its capacity to execute the strategy as
demonstrated by its past performance,
partnering relationships, and other
relevant factors.
(c) Evaluating Prior Award
Performance: For prior participants of
the OSCUI Grant and Loan Program,
loans may not be awarded if the
participant: (i) is noncompliant with
any active award; (ii) failed to make
timely loan payments to NCUA during
fiscal years prior to the date of
Application; and (iii) had an award
deobligated (i.e. removal of unused
awarded funds) during fiscal years prior
to the date of Application.
4. Input from Examiners: NCUA will
not approve an award to a credit union
for which its NCUA regional examining
office or State Supervisory Agency
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(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.
V. Funding Process
A. 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.
B. Notice of Funding: NCUA will
notify each Applicant of its funding
decision. Notification will generally be
by email. Applicants that are approved
for funding will also receive
instructions on how to proceed with
disbursement of the loan.
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VI. Disbursement of Funds
A. Loan Agreement: Each Applicant
selected to receive a loan under this
NOFO must sign a Loan Agreement and
a Promissory Note in order to receive a
disbursement of funds. 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.
1. Failure to Sign Agreement: NCUA,
in its sole discretion, may rescind a loan
offer if the Applicant fails to return the
signed loan documents and/or any other
requested documentation, within the
time specified by NCUA.
2. Multiple Disbursements: NCUA
may determine, in its sole discretion, to
fund a loan in multiple disbursements.
In such cases, the process for
disbursement will be specified by
NCUA in the Loan Agreement.
VII. Post-Award Requirements
A. Reporting Requirements: 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
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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. Report Form: Applicable credit
unions will be notified regarding the
submission of the report form. A
Participating Credit Union is
responsible for timely and complete
submission of the report. NCUA will use
such information to monitor each
Participating Credit Union’s compliance
with the requirements of its loan
agreement and to assess the impact of
the OSCUI Loan Program.
VIII. Agency Contacts
A. Methods of Contact: For further
information, contact NCUA by email at
OSCUIAPPS@ncua.gov.
B. Information Technology Support:
People who have visual or mobility
impairments that prevent them from
using NCUA’s Web site should call
(703) 518–6610 for guidance (this is not
a toll free number).
Authority: 12 U.S.C. 1756, 1757(5)(D), and
(7)(I), 1766, 1782, 1784, 1785 and 1786; 12
CFR 705.
By the National Credit Union
Administration Board on January 16, 2013.
Mary F. Rupp,
Secretary of the Board.
[FR Doc. 2013–01206 Filed 1–22–13; 8:45 am]
BILLING CODE 7535–01–P
Pennsylvania Ave. NW., Washington,
DC 20506, in Room 730.
FOR FURTHER INFORMATION CONTACT:
Lisette Voyatzis, Committee
Management Officer, 1100 Pennsylvania
Avenue NW., Room 529, Washington,
DC 20506, or call (202) 606–8322.
Hearing-impaired individuals are
advised that information on this matter
may be obtained by contacting the
National Endowment for the
Humanities’ TDD terminal at (202) 606–
8282.
SUPPLEMENTARY INFORMATION: Because
the meeting will consider proprietary
financial and commercial data provided
in confidence by indemnity applicants,
and material that is likely to disclose
trade secrets or other privileged or
confidential information, and because it
is important to keep the values of
objects to be indemnified and the
methods of transportation and security
measures confidential, the meeting will
be closed to the public pursuant to
section 552b(c)(4) of Title 5 U.S.C., as
amended. I have made this
determination under the authority
granted me by the Chairman’s
Delegation of Authority to Close
Advisory Committee Meetings dated
July l9, l993.
Dated: January 17, 2013.
Lisette Voyatzis,
Committee Management Officer.
[FR Doc. 2013–01265 Filed 1–22–13; 8:45 am]
BILLING CODE 7536–01–P
NATIONAL FOUNDATION ON THE
ARTS AND THE HUMANITIES
NUCLEAR REGULATORY
COMMISSION
Arts and Artifacts Indemnity Panel
Advisory Committee
[Docket No. NRC–2012–0191]
Federal Council on the Arts
and the Humanities; National
Endowment for the Humanities.
ACTION: Notice of meeting.
Agency Information Collection
Activities: Submission for the Office of
Management and Budget (OMB)
Review; Comment Request
AGENCY:
Pursuant to section 10(a)(2) of
the Federal Advisory Committee Act (5
U.S.C. App.), notice is hereby given that
the Federal Council on the Arts and the
Humanities will hold a meeting of the
Arts and Artifacts Domestic Indemnity
Panel. The purpose of the meeting is for
panel review, discussion, evaluation,
and recommendation of applications for
Certificates of Indemnity submitted to
the Federal Council on the Arts and the
Humanities for exhibitions beginning on
or after April 1, 2013.
DATES: The meeting will be held on
Tuesday, February 12, 2013, from 9:30
a.m. to 5:00 p.m.
ADDRESSES: The meeting will be held at
the Old Post Office Building, 1100
SUMMARY:
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Nuclear Regulatory
Commission.
ACTION: Notice of the OMB review of
information collection and solicitation
of public comment.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) has recently
submitted to OMB for review the
following proposal for the collection of
information under the provisions of the
Paperwork Reduction Act of 1995 (44
U.S.C. chapter 35). The NRC hereby
informs potential respondents that an
agency may not conduct or sponsor, and
that a person is not required to respond
to, a collection of information unless it
displays a currently valid OMB control
number. The NRC published a Federal
SUMMARY:
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[Federal Register Volume 78, Number 15 (Wednesday, January 23, 2013)]
[Notices]
[Pages 4875-4878]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-01206]
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NATIONAL CREDIT UNION ADMINISTRATION
Office of Small Credit Unions (OSCUI) Loan Program Access for
Credit Unions
AGENCY: National Credit Union Administration (NCUA).
ACTION: Notice of Funding Opportunity.
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SUMMARY: The National Credit Union Administration (NCUA) is issuing a
Notice of Funding Opportunity (NOFO) to invite eligible credit unions
to submit applications for participation in the OSCUI Loan Program
(a.k.a. Community Development Revolving Loan Fund (CDRLF)), subject to
funding availability. The OSCUI Loan Program serves as a source of
financial support, in the form of loans, for credit unions serving
predominantly low-income members. It also serves as a source of funding
to help low-income designated credit unions (LICUs) respond to
emergencies arising in their communities.
DATES: The application open period is from January 1, 2013 thru
December 31, 2013. Funds may be exhausted prior to this deadline, at
which time the programs/funds will no longer be available.
ADDRESSES: Applications must be submitted online at
www.cybergrants.com/ncua/applications.
FOR FURTHER INFORMATION 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.
SUPPLEMENTARY INFORMATION:
I. Description of Funding Opportunity
The purpose of the OSCUI Loan Program is to assist specially
designated credit unions in providing basic financial services to their
low-income members to stimulate economic activities in their
communities. Through the OSCUI Loan Program, NCUA provides financial
support in the form of loans to LICUs. These funds help improve and
expand the availability of financial services to these members. The
OSCUI Loan Program also serves as a source of funding to help LICUs
respond to emergencies. The Loan Program consists of Congressional
appropriations that are administered by OSCUI, an office of the NCUA.
A. Program 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.
B. Funds Availability: Congress has not made an appropriation to
the OSCUI Loan Program for Fiscal Years 2013-2014. NCUA expects to lend
approximately $9.5 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
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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.
II. Description of Loan Program
OSCUI loans are made to LICUs that meet the requirements in the
program regulation and this NOFO, subject to funds availability. OSCUI
loans are generally made at lower than market interest rates.
A. Eligibility Requirements: The regulations specify the
requirements a credit union must meet in order to be eligible to apply
for assistance under this NOFO. See 12 CFR 705.
Following are additional requirements for participating in the Loan
Program under this NOFO. In short, an Applicant must:
[cir] Be a Qualifying Credit Union (QCU);
[cir] Meet the underwriting standards and program requirements
specified in the Regulations and this NOFO; and
[cir] Complete and submit an Application (see Section III. of this
NOFO for additional information).
1. Low Income Credit Union Designation: A credit union must be a
LICU, or equivalent in the case of a Qualifying State-chartered Credit
Union, in order to participate in the OSCUI Grant and Loan Program.
Requirements for obtaining the designation are found at 12 CFR Sec.
701.34.
B. Permissible Uses of Funds: NCUA will consider requests for funds
consistent with the purpose of the OSCUI Loan Program. 12 CFR Sec.
705.1. A non-exhaustive list of examples of permissible uses or
projects of loan proceeds are contained in Sec. 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.
NCUA will consider other proposed uses of funds that in its sole
discretion it determines are consistent with the purpose of the OSCUI
Loan Program, the requirements of the regulations, and this NOFO.
C. Terms: The specific terms and conditions governing a loan will
be established in the loan documents each Participating Credit Union
will sign prior to disbursement of funds. Following are the general
loan terms under the program.
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 Section III
and IV of this NOFO for additional information.
2. Maturity: Loans will generally mature in five years. A credit
union may request a shorter loan period, but in no case will the term
exceed five years.
3. Interest: The interest rate on loans is governed by the Loan
Interest Rate Policy, which can be found on NCUA's Web site at
www.ncua.gov/OSCUI/GrantsandLoans.
4. Repayment: All loans must be repaid to NCUA regardless of how
they are accounted for by the Participating Credit Union.
(a) Principal: The entire principal is due at maturity.
(b) Interest: Interest is due in semi-annual payments beginning six
months after the initial distribution of the loan.
(c) Principal Prepayment: There is no penalty for principal
prepayment. Principal prepayments may be made as often as monthly.
D. Conditions:
1. 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). For further
information, see Section VI. of this NOFO.
2. Matching Funds: Part 705.5(g) of NCUA's regulations describe the
overall requirements for matching funds. NCUA, in its sole discretion,
may require matching funds of an Applicant, on a case-by-case basis
depending on the financial condition of the Applicant. NCUA anticipates
that most Applicants will not be required to obtain matching funds.
However, each Applicant should address in the Application its strategy
for raising matching funds if NCUA determines matching funds are
required (see 12 CFR Part 705 and the Application for additional
information).
(a) Matching Funds Requirements: The specific terms and covenants
pertaining to any matching funds requirement will be provided in the
loan agreement of the Participating Credit Union. Following, are
general matching requirements. NCUA, in its sole discretion, may amend
these requirements depending upon its evaluation of the Applicant, but
in no case will the amended requirements be greater than the conditions
listed below.
(i) The amount of matching funds required must generally be in an
amount equal to the loan amount.
(ii) Matching funds must be from non-governmental member or
nonmember share deposits.
(iii) Any loan monies matched by nonmember share deposits are not
subject to the 20% limitation on nonmember deposits under Sec. 701.32
of NCUA's regulations.
(iv) Participating Credit Unions must maintain the outstanding loan
amount in the total amount of share deposits for the duration of the
loan. Once the loan is repaid, nonmember share deposits accepted to
meet the matching requirement are subject to Sec. 701.32 of NCUA's
regulations.
(b) Criteria for Requiring Matching Funds: NCUA will use the
following criteria to determine whether to require an Applicant to have
matching funds as a condition of its loan.
(i) CAMEL Composite Rating
(ii) CAMEL Management Component Rating
(iii) CAMEL Asset Quality
(iv) Regional Director Concurrence
(v) Net Worth Ratio
(c) Documentation of Matching Funds: NCUA may contact the matching
funds source to discuss the matching funds and the documentation that
the Applicant has provided. If NCUA determines that any portion of the
Applicant's matching funds is ineligible under this NOFO, NCUA, in its
sole discretion, may permit the Applicant to offer alternative matching
funds as a substitute for the ineligible matching funds. In this case:
(i) the Applicant must provide acceptable alternative matching funds
documentation within 10 business days of NCUA's request.
3. Compliance with Past Agreements: In evaluating funding requests
under this NOFO, NCUA will consider an Applicant's record of compliance
with past agreements, including any deobligation of funds. NCUA, in its
sole discretion, will determine whether to consider an Application from
an
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Applicant with a past record of noncompliance, including any
deobligation (i.e. removal of unused awards) of funds.
(a) Default Status: If an Applicant is in default of a previously
executed agreement with NCUA, NCUA will not consider an Application for
funding under this NOFO.
(b) Undisbursed Funds: NCUA may not consider an Application if the
Applicant is a prior awardee under the OSCUI Grant Program and has
unused grant awards as of the date of Application.
III. Application Requirements
A. Application Form: The application and related documents can be
found on NCUA's Web site at www.ncua.gov/OSCUI/GrantsandLoans.
B. Minimum Application Content: Each Applicant must complete and
submit information regarding the applicant and requested funding. In
addition, applicants will be required to certify applications prior to
submission.
1. DUNS Number: Based on an Office of Management and Budget (OMB)
policy directive effective October 31, 2003, credit unions must have a
Data Universal Numbering System (DUNS) number issued by Dun and
Bradstreet (D&B) in order to be eligible to receive funding from the
OSCUI Loan Program. 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 https://fedgov.dnb.com/webform
or by calling D&B, toll-free, at 1-866-705-5711.
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). 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.
3. 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.
4. 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.
(a) Use of Funds: A narrative describing how it intends to use the
loan proceeds. The narrative should demonstrate that the loan will
enhance the products and services the credit union provides to its
members. It also should describe how those enhanced products and
services will support the economic development of the community served
by the credit union.
(b) Matching Funds: A narrative describing its strategy for raising
matching funds from non-federal sources if matching funds are required.
5. Large Loans: An Applicant requesting a loan in excess of
$300,000 is required to complete an online application form that
contains additional narrative comments supporting such request. The
additional narrative consists of a business plan.
(a) 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.
6. Non-federally Insured Applicants:
(a) 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 Sec. 705.6(b)(3) of NCUA's regulations and in the
Application.
(b) Examination by NCUA: Non-federally insured, state-chartered
credit unions must agree to be examined by NCUA. The specific terms and
covenants pertaining to this condition will be provided in the loan
agreement of the Participating Credit Union.
C. Submission of Application: Under this NOFO, Applications must be
submitted online at www.cybergrants.com/ncua/applications.
IV. Application Review
A. Review Process
1. Eligibility and Completeness Review: NCUA will review each
Application to determine whether it is complete and that the Applicant
meets the eligibility requirements described in the Regulations and
Section II of this NOFO. An incomplete Application or one that does not
meet the eligibility requirements will be declined without further
consideration.
2. Substantive Review: After an Applicant is determined eligible
and its Application is determined complete, NCUA will conduct a
substantive review in accordance with the criteria and procedures
described in the Regulations and this NOFO. NCUA reserves the right to
contact the Applicant during its review for the purpose of clarifying
or confirming information contained in the Application. If so
contacted, the Applicant must respond within the time specified by NCUA
or NCUA, in its sole discretion, may decline the application without
further consideration.
3. Evaluation and Scoring: The evaluation criteria are more fully
described in Sec. 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.
(a) Assessment of Impact: The Compatibility criteria will take into
consideration the extent of community need and projected impact of the
funding on the Applicant's members and community.
(b) Effective Strategy: The Feasibility criteria will take into
consideration the quality of the Applicant's strategy and its capacity
to execute the strategy as demonstrated by its past performance,
partnering relationships, and other relevant factors.
(c) Evaluating Prior Award Performance: For prior participants of
the OSCUI Grant and Loan Program, loans may not be awarded if the
participant: (i) is noncompliant with any active award; (ii) failed to
make timely loan payments to NCUA during fiscal years prior to the date
of Application; and (iii) had an award deobligated (i.e. removal of
unused awarded funds) during fiscal years prior to the date of
Application.
4. Input from Examiners: NCUA will not approve an award to a credit
union for which its NCUA regional examining office or State Supervisory
Agency
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(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.
V. Funding Process
A. 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.
B. Notice of Funding: NCUA will notify each Applicant of its
funding decision. Notification will generally be by email. Applicants
that are approved for funding will also receive instructions on how to
proceed with disbursement of the loan.
VI. Disbursement of Funds
A. Loan Agreement: Each Applicant selected to receive a loan under
this NOFO must sign a Loan Agreement and a Promissory Note in order to
receive a disbursement of funds. 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.
1. Failure to Sign Agreement: NCUA, in its sole discretion, may
rescind a loan offer if the Applicant fails to return the signed loan
documents and/or any other requested documentation, within the time
specified by NCUA.
2. Multiple Disbursements: NCUA may determine, in its sole
discretion, to fund a loan in multiple disbursements. In such cases,
the process for disbursement will be specified by NCUA in the Loan
Agreement.
VII. Post-Award Requirements
A. Reporting Requirements: 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. Report Form: Applicable credit unions will be notified regarding
the submission of the report form. A Participating Credit Union is
responsible for timely and complete submission of the report. NCUA will
use such information to monitor each Participating Credit Union's
compliance with the requirements of its loan agreement and to assess
the impact of the OSCUI Loan Program.
VIII. Agency Contacts
A. Methods of Contact: For further information, contact NCUA by
email at OSCUIAPPS@ncua.gov.
B. Information Technology Support: People who have visual or
mobility impairments that prevent them from using NCUA's Web site
should call (703) 518-6610 for guidance (this is not a toll free
number).
Authority: 12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782,
1784, 1785 and 1786; 12 CFR 705.
By the National Credit Union Administration Board on January 16,
2013.
Mary F. Rupp,
Secretary of the Board.
[FR Doc. 2013-01206 Filed 1-22-13; 8:45 am]
BILLING CODE 7535-01-P
