Notice of Funding Availability (NOFA) Inviting Applications for the FY 2013 Funding Round of the Bank Enterprise Award (BEA) Program, 34162-34169 [2013-13417]

Agencies

• Community Development Financial Institutions Fund
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 78, Number 109 (Thursday, June 6, 2013)]
[Notices]
[Pages 34162-34169]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-13417]


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DEPARTMENT OF THE TREASURY

Community Development Financial Institutions Fund


Notice of Funding Availability (NOFA) Inviting Applications for 
the FY 2013 Funding Round of the Bank Enterprise Award (BEA) Program

    Announcement Type: Announcement of funding opportunity.

    Catalog Of Federal Domestic Assistance (CFDA) Number: 21.021.


DATES: Applications for the FY 2013 funding round of the BEA Program 
must be received by July 12, 2013. Applications must meet all 
eligibility and other requirements and deadlines, as applicable, set 
forth in this NOFA. Applications received after July 12, 2013 will be 
rejected.
    Executive Summary: This NOFA is issued in connection with the FY 
2013 funding round of the BEA Program. The BEA Program is administered 
by the Community Development Financial Institutions (CDFI) Fund, a 
wholly owned government corporation within the Department of the 
Treasury. The BEA Program encourages Insured Depository Institutions to 
increase their levels of loans, investments, services, and technical 
assistance within Distressed Communities, and financial assistance to 
CDFIs through equity investments, equity-like loans, grants, stock 
purchases, loans, deposits, and other forms of financial and technical 
assistance, during a specified period.

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 2013 funding 
round, the Baseline Period is calendar year 2011 (January 1, 2011 
through December 31, 2011), and the Assessment Period is calendar year 
2012 (January 1, 2012 through December 31, 2012). If Qualified 
Activities in a specific category results in a decrease in activity 
from the Baseline Period to the Assessment Period, there is no need to 
report the activity.
    B. Program regulations: The regulations governing the BEA Program 
can be found at 12 CFR part 1806 (the Interim Rule) and provide 
guidance on evaluation criteria and other requirements of the BEA 
Program. The CDFI Fund encourages Applicants to review the Interim 
Rule. Detailed BEA Program requirements are also 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). CDFI 
Related Activities (12 CFR 1806.103(q)) include Equity Investments, 
Equity-Like Loans, and CDFI Support Activities). 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 CDFI Fund will only 
consider the amount of Qualified Activity that has been fully 
disbursed, or in the case of partially disbursed Qualified Activities 
will only consider 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 VII. 
B.1. of this NOFA, in the case of Commercial Real Estate Loans and 
related Project Investments, the total principal amount of the 
transaction must be $10 million or less to be considered a Qualified 
Activity. Notwithstanding the foregoing, the CDFI Fund, in its sole 
discretion, may consider transactions with a total principal value of 
over $10 million, subject to review.
    Activities funded with prior BEA Award dollars, or funded to 
satisfy requirements of a BEA Award Agreement from a prior Award shall 
not constitute a Qualified Activity for the purposes of calculating or 
receiving an Award.
    D. Designation of Distressed Community: Each CDFI Partner that is 
the recipient of CDFI Support Activities from an Applicant must 
designate a Distressed Community. CDFI Partners that receive Equity 
Investments are not required to designate Distressed Communities. 
Applicants applying for a BEA Program Award for carrying out Distressed 
Community Financing Activities or Service Activities must verify that 
addresses of both Baseline and Assessment Period activities are in 
Distressed Communities when completing their Application. 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. Applicants should use CIMS to determine 
whether a Baseline Period activity or Assessment Period activity is 
located in a qualifying Distressed Community.
    2. Designation of Distressed Community: A 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.
    A CDFI Partner designates a Distressed Community by submitting a 
map of the Distressed Community as described in the BEA Program 
Application. CDFI Partners must use CIMS to designate Distressed 
Communities. CIMS is accessed through myCDFIFund and contains step-by-
step instructions on how to create and save the aforementioned map of 
the Distressed Community. myCDFIFund is an electronic interface that is 
accessed through the CDFI Fund's Web site (www.cdfifund.gov). 
Instructions for registering with myCDFIFund are available on the CDFI 
Fund's Web site. If you have any questions or problems with 
registering, please contact the CDFI Fund IT HelpDesk by telephone at 
(202) 653-0300, or by email to ITHelpDesk@cdfi.treas.gov.
    3. Persistent Poverty Counties: In FY 2012, Congress mandated that 
at least ten percent of the CDFI Fund's appropriations be directed to 
counties

[[Page 34163]]

that meet the criteria for ``Persistent Poverty'' designation. This 
Persistent Poverty Counties (PPC) requirement continues under the 
current Continuing Resolution for FY 2013 appropriations. PPCs are 
defined as any county that has had 20 percent or more of its population 
living in poverty over the past 30 years, as measured by the 1990 and 
2000 decennial censuses, and the 2010 American Community Survey census. 
The specific counties that qualify as meeting the criteria for 
``persistent poverty'' can be found at: www.cdfifund.gov/persistentpoverty. Applicants that apply under this NOFA will be 
required to indicate the minimum and maximum percentage of the BEA 
Award that the Applicant will commit to investing in PPCs.

II. Award Information

    A. CDFI Applicants: No CDFI Applicant may receive a FY 2013 Bank 
Enterprise Award if it has: (1) An application pending for assistance 
under the FY 2013 round of the Community Development Financial 
Institutions Program (CDFI Program); (2) Been awarded assistance from 
the CDFI Fund under the CDFI Program within the 12-month period prior 
to the date the CDFI Fund selects the Applicant to receive a FY 2013 
Bank Enterprise Award; or (3) Ever received assistance under the CDFI 
Program for the same activities for which it is seeking a FY 2013 Bank 
Enterprise Award. Please note that Applicants may apply for both a CDFI 
Program Award and a BEA Program Award in FY 2013; however, receiving a 
FY 2013 CDFI Program award removes an Applicant from eligibility for a 
FY 2013 BEA Program Award.
    B. Award amounts: The CDFI Fund expects that it may award 
approximately $17.1 million in FY 2013 BEA Program Awards, in 
appropriated funds under this NOFA. The CDFI Fund reserves the right to 
award in excess of said funds under this NOFA, provided that the 
appropriated funds are available. The CDFI Fund reserves the right to 
impose a maximum Award amount; however under no circumstances will an 
Award be higher than $2 million for any Awardee. The CDFI Fund also 
reserves the right to impose a minimum Award amount due to availability 
of funds. Further, the CDFI 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 CDFI Fund reserves the right to reallocate funds from 
the amount that is anticipated to be available under this NOFA to other 
CDFI Fund programs, or reallocate remaining funds to a future BEA 
Program funding round, if the CDFI Fund determines that the number of 
Awards made under this NOFA is fewer than projected.
    When calculating Award amounts, the CDFI Fund will only consider 
the amount of the Qualified Activity that has been fully disbursed, or 
in the case of partially disbursed Qualified Activities will only 
consider the amount that an Applicant reasonably expects to disburse 
for a Qualified Activity within 12 months from the end of the 
Assessment Period.
    C. Types of Awards: BEA Program Awards are made in the form of 
grants.
    D. 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 CDFI Fund of the Award proceeds. The Notice of 
Award and the Award Agreement contains the terms and conditions of the 
Award. For further information, see Section VIII of this NOFA.

III. Eligibility

    A. Eligible Applicants: Eligible Applicants for the BEA Program 
must be Insured Depository Institutions, as defined in Section 3 of the 
Federal Deposit Insurance Act 12 U.S.C. 1813(c)(2). An Applicant must 
be FDIC-insured as of December 31, 2012 for the FY 2013 funding round 
to be eligible for consideration for a BEA Program Award under this 
NOFA. The depository institution holding company of an Insured 
Depository Institution may not apply on behalf of an Insured Depository 
Institution. Applications received from depository institution holding 
companies will be disqualified. For the purposes of this NOFA, an 
eligible CDFI Applicant is an Insured Depository Institution that was 
certified as a CDFI as of the end of the applicable Assessment Period 
and maintains its status as a certified CDFI at the time BEA Program 
Awards are announced under this NOFA. Please note that all CDFIs 
originally or most recently certified prior to February 1, 2010 must 
have applied to the CDFI Fund for recertification no later than 11:59 
p.m. EDT April 8, 2013 and be fully recertified by the time that BEA 
Program Awards are announced under this NOFA. Additional information 
regarding the mandatory CDFI recertification requirements can be found 
at: www.cdfifund.gov/cdficert
    The CDFI Fund will conduct a debarment check and will not consider 
an Application submitted by an Applicant, if the Applicant is 
delinquent on any federal debt.
    1. Prior Awardees: Applicants must be aware that success in a prior 
round of any of the CDFI Fund's programs is not indicative of success 
under this NOFA. For purposes of this section, the CDFI Fund will 
consider an Affiliate to be any entity that Controls (as such term is 
defined in paragraph (f) below) the Applicant, is Controlled by the 
Applicant or is under common Control with the Applicant (as determined 
by the CDFI 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 CDFI Fund programs are eligible to 
apply under this NOFA, except as follows:
    (a) Failure to meet reporting requirements: The CDFI Fund will not 
consider an Application submitted by an Applicant if the Applicant or 
its Affiliate is a prior CDFI Fund awardee or allocatee under any CDFI 
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) stated in this NOFA. 
Please note that automated systems employed by the CDFI Fund for 
receipt of reports submitted electronically typically acknowledge only 
a report's receipt; such acknowledgment does not warrant that the 
report received was complete and therefore met reporting requirements.
    (b) Pending resolution of noncompliance: If an Applicant that is a 
prior awardee or allocatee under any CDFI Fund program: (i) Has 
submitted complete and timely reports to the CDFI Fund that demonstrate 
noncompliance with a previous assistance, award or allocation 
agreement, and (ii) the CDFI 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 CDFI Fund will consider the 
Applicant's Application under this NOFA pending full resolution, in the 
sole determination of the CDFI Fund, of the noncompliance.
    (c) Default status: The CDFI Fund will not consider an Application 
submitted by an Applicant that is a prior CDFI Fund awardee or 
allocatee under any CDFI Fund program if, as of the applicable 
Application deadline of this NOFA, the CDFI Fund has made a final 
determination that such Applicant is 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 prior award or allocation

[[Page 34164]]

remains in default status or such other time period as specified by the 
CDFI Fund in writing.
    (d) Undisbursed funds: For the purposes of this section, the term 
``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 percent of the total prior BEA Program Award(s) that remains 
undisbursed more than three years after the end of the calendar year in 
which the CDFI Fund signed an Award Agreement with the Awardee, or (ii) 
in the case of prior CDFI Program or other CDFI Fund program award(s), 
any balance of award funds equal to or greater than five percent of the 
total prior award(s) that remains undisbursed more than two years after 
the end of the calendar year in which the CDFI Fund signed an 
assistance agreement with the awardee.
    The term ``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 CDFI Fund received a full 
and complete disbursement request from the awardee as of the 
Application deadline of this NOFA; or (iii) any award funds for an 
award that has been terminated, expired, rescinded, or deobligated by 
the CDFI Fund.
    The CDFI Fund will not consider an Application submitted by an 
Applicant that is a prior CDFI Fund awardee under any CDFI 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 CDFI Fund awardee under any 
CDFI 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 CDFI Fund awardee 
under any CDFI Fund program, and has a balance of undisbursed funds 
under said prior award(s), as of the Application deadline of this NOFA, 
the CDFI Fund will include the combined awards of the Applicant and 
such Affiliates when calculating the amount of undisbursed funds.
    (e) Control: 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.
    (f) Contact the CDFI Fund: Accordingly, Applicants that are prior 
awardees and/or allocatees under any CDFI Fund program are advised to: 
(i) Comply with requirements specified in assistance, award and/or 
allocation agreement(s), and (ii) contact the CDFI Fund to ensure that 
all necessary actions are underway for the disbursement of any 
outstanding balance of a prior award(s). An Applicant that is unsure 
about the disbursement status of any prior award should contact the 
CDFI Fund by sending an email to cdfihelp@cdfi.treas.gov. All 
outstanding reports and compliance questions should be directed to 
Certification, Compliance Monitoring, and Evaluation support by email 
at ccme@cdfi.treas.gov or by telephone at (202) 653-0421. The CDFI Fund 
will respond to Applicants' reporting, compliance, or disbursement 
questions between the hours of 9:00 a.m. and 5:00 p.m. ET, starting on 
the date of the publication of this NOFA through July 10, 2013. The 
CDFI Fund will not respond to Applicants' reporting, compliance, or 
disbursement telephone calls or email inquiries that are received after 
5:00 p.m. ET on July 10, 2013 until after the Application deadline. The 
CDFI Fund will respond to technical issues related to myCDFIFund 
Accounts through 5:00 p.m. ET on July 12, 2013.
    2. Cost sharing and matching fund requirements: Not applicable.

IV. Application and Submission Information

    A. 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, the FY 2013 BEA Signature Page via myCDFIFund, 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. Applicants 
should allow sufficient time for the IRS and/or Dun and Bradstreet to 
respond to inquiries and/or requests for identification numbers. EINs 
and DUNS numbers must match the information in the Applicant's System 
for Award Management (SAM) account. An active SAM account is required 
to submit Applications via Grants.gov. Neither the SAM account, EIN, 
nor the DUNS number can be that of the depository institution holding 
company of the Applicant. An Application that does not include an EIN 
or DUNS number is incomplete and cannot be transmitted to the CDFI 
Fund. The preceding sentences do not limit the CDFI Fund's ability to 
contact an Applicant for the purpose of confirming or clarifying 
information regarding a DUNS number or EIN. Once an Application is 
submitted, the Applicant will not be allowed to change any element of 
the Application.
    As set forth in further detail in the Application, any Qualified 
Activity missing the required documentation will be disqualified. 
Applicants will not be allowed to submit missing documentation for 
Qualified Activities after the Application deadline.
    B. 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 email will not be 
accepted, except in circumstances that the CDFI Fund, in its sole 
discretion, deems acceptable. In order to submit an Application via 
Grants.gov, Applicants must complete a multi-step registration process. 
This includes registration at www.sam.gov. Applicants are advised to 
make sure their SAM account is active and valid well in advance of 
submitting an Application via Grants.gov and to allow ample time to 
complete the entire registration and submission process prior to the 
application deadline of July 12, 2013.
    myCDFIFund Accounts: All Applicants and CDFI Partners must complete 
a FY 2013 BEA Signature Page in myCDFIFund. All Applicants and CDFI 
Partners must register User and Organization accounts in myCDFIFund, 
the CDFI Fund's Internet-based interface, by the applicable Application 
deadline. Failure to register and complete a FY 2013 BEA Signature Page 
in myCDFIFund could result in the CDFI Fund being unable to accept the 
Application. As myCDFIFund is the

[[Page 34165]]

CDFI Fund's primary means of communication with Applicants and 
awardees, institutions must make sure that they update their contact 
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.
    Qualified Activity documentation and other attachments as specified 
in the applicable BEA Program Application must be sent to: Bureau of 
the Public Debt Warehouse & Operations Center Dock 1; 257 Bosley 
Industrial Park Drive; Parkersburg, WV 26101; ATTN: CDFI Fund--BEA 
Program Awards Management, A3-H. The telephone number to be used in 
conjunction with overnight mailings to this address is (304) 480-8071. 
The CDFI Fund will not accept Applications in its office in Washington, 
DC. Applications and attachments received in the CDFI Fund's 
Washington, DC, office will be rejected.
    C. Application Deadlines: The deadline for receipt of Applications 
via Grants.gov for the FY 2013 funding round is 11:59 p.m. ET on July 
12, 2013. The deadline for the submission of the FY 2013 BEA Signature 
Page via myCDFIFund for the FY 2013 funding round is 5:00 p.m. ET on 
July 12, 2013. The deadline for receipt of paper documentation at the 
Bureau of Public Debt address specified above is 5:00 p.m. ET, July 16, 
2013. 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 the 
funding Application are strictly enforced. The CDFI 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.
    D. Paperwork Reduction Act: Under the Paperwork Reduction Act (44 
U.S.C. chapter 35), an agency may not conduct or sponsor a collection 
of information, and an individual is not required to respond to a 
collection of information, unless it displays a valid OMB control 
number. Pursuant to the Paperwork Reduction Act, the BEA Program 
funding Application has been assigned the following control number: 
1559-0005.

V. Intergovernmental Review

    Not Applicable.

VI. Funding Restrictions

    Not Applicable.

VII. Application Review Information

    A. 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:
    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 and is Integrally 
Involved in a Distressed Community.
    2. Integrally Involved: Integrally Involved is defined as having 
provided: (i) At least 10 percent of financial transactions or dollars 
transacted (e.g., loans or equity investments as defined in 12 CFR 
1805.104(t)), or 10 percent of Development Service activities (as 
defined in 12 CFR 1805.104(s)), 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, (ii) 
having transacted at least 25 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 (iii) demonstrated that it has attained at least 10 percent of 
market share for a particular product in said Distressed Community 
(such as at least 10 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.
    3. Limitations on eligible Qualified Activities provided to certain 
CDFI Partners: A CDFI Applicant 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.
    4. Certificates of Deposit: Section 1806.103(r) of the Interim Rule 
states that any certificate of deposit (CD) placed by an Applicant or 
its Subsidiary in a CDFI Partner 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 CDFI 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/domestic-finance/debt-management/interest-rate/yield.shtml. For example, for a three-year CD, 
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. CDs placed 
prior to that time may use the rate posted for the previous business 
day. The annual percentage rate on a CD should be compounded quarterly, 
semi-annually, or annually. If a variable interest rate is used, the CD 
must also have an interest rate that is materially below the market 
interest rate over the life of the CD, in the determination of the CDFI 
Fund. (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.
    5. Equity Investment: An Equity Investment means financial 
assistance in the form of a grant, a stock purchase, a purchase of a 
partnership interest, a purchase of a limited liability company 
membership interest, or any other investment deemed to be an Equity 
Investment by the CDFI Fund provided by an Applicant or its Subsidiary 
to a CDFI Partner that meets the criteria set forth in the applicable 
NOFA.
    6. Equity-Like Loan: An Equity-Like Loan is a loan provided by an 
Applicant or its Subsidiary to a CDFI Partner, and made on such terms 
that it has characteristics of an Equity Investment, as such 
characteristics may be specified by the CDFI Fund (12 CFR 1806.103(z)). 
For purposes of this NOFA, an Equity-Like Loan must meet the following 
characteristics:
    (a) 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;
    (b) 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;

[[Page 34166]]

    (c) Failure to pay principal or interest (except at maturity) will 
not automatically result in a default of the loan agreement; and
    (d) The loan must be subordinated to all other debt except for 
other Equity-Like Loans.
    Notwithstanding the foregoing, the CDFI 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.
    7. CDFI Support Activity: A CDFI Support Activity is defined as 
assistance provided by an Applicant or its Subsidiary to a CDFI 
Partner, in the form of a loan, technical assistance, or deposits.
    8. CDFI Program Matching Funds: Equity Investments, Equity-Like 
Loans, and CDFI Support Activities (except technical assistance) 
provided by a BEA Applicant to a CDFI and used by the CDFI for matching 
funds under the CDFI Program are eligible as a Qualified Activity under 
the CDFI Related Activity category.
    B. 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 CDFI Fund, in 
its sole discretion, may consider transactions with a total principal 
value of over $10 million, subject to review. For such transactions, 
Applicants must 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: The CDFI Fund will value 
the administrative cost of providing certain Financial Services using 
the following per unit values:
    (a) $100.00 per account for Targeted Financial Services;
    (b) $50.00 per account for checking and savings accounts that do 
not meet the definition of Targeted Financial Services;
    (c) $5.00 per check cashing transaction;
    (d) $25,000 per new ATM installed at a location in a Distressed 
Community;
    (e) $2,500 per ATM operated at a location in a Distressed 
Community;
    (f) $250,000 per new retail bank branch office opened in a 
Distressed Community; and
    (g) In the case of Applicants engaging in Financial Services 
activities not described above, the CDFI Fund will determine the unit 
value of such services.
    (i) 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 Distressed Community 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.
    (ii) Financial Service Activities must be provided by the Applicant 
to Low- and Moderate-Income Residents. An Applicant may determine the 
number of 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. Citations must be 
provided for external sources. In addition, if external sources are 
referenced in the narrative, the Applicant must explain how it reached 
the conclusion that the cited references are directly related to the 
Low- and Moderate-Income residents to whom it is claiming to have 
provided the Financial Services.
    (iii) When reporting changes in the dollar amount of deposit 
accounts, only calculate the net change in the total dollar amount of 
eligible Deposit Liabilities between the Baseline Period and the 
Assessment Period. Do not report each individual deposit. If the net 
change between the Baseline Period and Assessment Period is a negative 
dollar amount, then a negative dollar amount may be recorded for 
Deposit Liabilities only. Instructions for determining the net change 
is available in the Supplemental Guidance to the FY 2013 BEA Program 
Application.
    C. Priority Factors: Priority Factors are the numeric values 
assigned to individual types of activity within: (i) The Distressed 
Community Financing, and (ii) Services categories of Qualified 
Activities. For the purposes of this NOFA, Priority Factors will be 
based on the Applicant's asset size as of the end of the Assessment 
Period (December 31, 2012) as reported by the Applicant in the 
Application. Asset size classes (i.e., small banks, intermediate-small 
banks, and large banks) will correspond to the Community Reinvestment 
Act (CRA) asset size classes set by the three Federal bank regulatory 
agencies and that were effective as of the end of the Assessment 
Period. The Priority Factor works by multiplying the change in a 
Qualified Activity by the 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 CDFI Fund 
is establishing Priority Factors based on Applicant asset size to be 
applied to all activity within the Distressed Community Financing 
Activities and Service Activities categories only, as follows:

------------------------------------------------------------------------
                                                             Priority
              CRA Asset size classification                   factor
------------------------------------------------------------------------
Small banks (assets of less than $296 million as of 12/              5.0
 31/2012)...............................................
Intermediate--small banks (assets of at least $296                   3.0
 million but less than $1.186 billion as of 12/31/2012).
Large banks (assets of $1.186 billion or greater as of               1.0
 12/31/2012)............................................
------------------------------------------------------------------------

    D. Certain Limitations on Qualified Activities:
    1. 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.
    2. 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

[[Page 34167]]

purposes of calculating or receiving a Bank Enterprise Award. Leverage 
loans used in New Markets Tax Credit structured transactions that meet 
the requirements outlined in the applicable NOFA are considered 
Distressed Community Financing Activities.
    3. Loan Renewals and Refinances. Financial assistance provided by 
an Applicant shall not constitute a Qualified Activity, as defined in 
this part, for the purposes of calculating or receiving a Bank 
Enterprise Award if such financial assistances consists of a loan to a 
borrower that has matured and is then renewed by the Applicant, or 
consists of a loan to a borrower that is retired or restructured using 
the proceeds of a new commitment by the Applicant. Payoff of a separate 
third party obligation will only be considered a Qualified Activity if 
the payoff of a transaction is part of the sale of property or business 
to an unaffiliated party to the borrower. Applicants should include a 
narrative statement to describe any such transactions. Otherwise the 
transaction will be disqualified.
    4. Prior BEA Awards. Qualified Activities funded with prior funding 
round Bank Enterprise Award dollars or funded to satisfy requirements 
of the BEA Program Award Agreement shall not constitute a Qualified 
Activity for the purposes of calculating or receiving a Bank Enterprise 
Award.
    5. Prior CDFI Program Awards. No CDFI Applicant may receive a Bank 
Enterprise Award for activities funded by a CDFI Program Award.
    E. Award percentages, Award amounts, selection process: The Interim 
Rule describes the process for selecting Applicants to receive Bank 
Enterprise Awards and determining Award amounts. Applicants will 
calculate and request an estimated Award amount in accordance with a 
multi-step procedure that is outlined in the Interim Rule (at 12 CFR 
1806.202). As outlined in the Interim Rule at 12 CFRSec.  1806.203, the 
CDFI 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 CDFI Fund will 
determine the eligibility of each transaction for which an Applicant 
has applied for a Bank Enterprise Award. In some cases, the actual 
Award amount calculated by the CDFI Fund may not be the same as the 
estimated Award amount requested by the Applicant.
    The CDFI Fund may take into consideration the views of the 
appropriate Federal bank regulatory agency, as defined in Section 3 of 
the Federal Deposit Insurance Act (12 U.S.C. 1813(q)) and may choose 
not to approve a BEA Program Award to an Insured Depository Institution 
Applicant if the appropriate Federal bank regulatory agency indicates 
safety and soundness concerns about the Applicant. Furthermore, the 
CDFI Fund may choose not to approve a BEA Program Award for the 
following reasons if at the time of application: (i) The Applicant and/
or its Affiliates most recent overall CRA assessment rating is below 
``Satisfactory'', or (ii) the Applicant received a going concern 
opinion on its most recent audit. Applicants may be contacted to 
provide additional information related to Federal bank regulatory or 
CRA information.
    Should the CDFI Fund determine, upon analysis of the final BEA 
Awardee pool, that it has not achieved the 10 percent persistent 
poverty requirement mandated by Congress, this information will affect 
the ranking of Applications and/or the size of an Award. In this case, 
to ensure that this Congressional mandate is achieved, Award preference 
will be given to Applicants that commit to targeting a minimum of 10 
percent of Bank Enterprise Award dollars to be invested in BEA 
Qualified Activities in persistent poverty counties (PPCs). If an 
institution is selected to receive a Bank Enterprise Award through the 
FY 2013 funding round, the stated commitment to serving PPCs will be 
incorporated in the institution's Award agreement and performance 
goals. Awardees may be held to the minimum and up to the maximum PPC 
commitment articulated in its Application. No applicant, however, will 
be disqualified from consideration if it does not make a PPC commitment 
in its Bank Enterprise Award Program Application.
    In the CDFI Related Activities category (except for an Equity 
Investment or Equity-Like Loan), for CDFI Applicants, 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 Applicant, 
such estimated Award amount will be equal to 6 percent of the increase 
in Qualified Activity for the category. Notwithstanding the foregoing, 
for a CDFI Applicant and for an Applicant that is not a CDFI Applicant, 
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, for a CDFI 
Applicant, 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 Applicant, 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 Sec.  
1806.203(b). This process gives funding priority to Applicants that 
undertake activities in the following order: (i) CDFI Related 
Activities, (ii) Distressed Community Financing Activities, and (iii) 
Service Activities, as described in the Interim Rule at 12 CFR Sec.  
1806.203(c).
    Within each category, CDFI Applicants will be ranked first 
according to the ratio of the actual Award amount calculated by the 
CDFI Fund for the category to the total assets of the Applicant, 
followed by Applicants that are not CDFI Applicants according to the 
ratio of the actual Award amount calculated by the CDFI Fund for the 
category to the total assets of the Applicant.
    The CDFI 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 CDFI 
Fund deems it appropriate.
    For purposes of calculating Award disbursement amounts, the CDFI 
Fund will treat Qualified Activities with a total principal amount less 
than or equal to $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 CDFI Fund disbursement requests for 
the corresponding portion of their Awards, after which the CDFI Fund 
will rescind and deobligate any outstanding Award balance and said 
outstanding Award balance will no longer be available to the Awardee.
    The CDFI Fund reserves the right to contact the Applicant to 
confirm or clarify information. If contacted, the Applicant must 
respond within the CDFI Fund's time parameters or run the risk of being 
rejected.
    The CDFI Fund reserves the right to change its eligibility and 
evaluation criteria and procedures. If those changes materially affect 
the CDFI Fund's Award decisions, the CDFI Fund will provide

[[Page 34168]]

information regarding the changes through the CDFI Fund's Web site.
    There is no right to appeal the CDFI Fund's Award decisions. The 
CDFI Fund's Award decisions are final. The CDFI Fund does not provide 
debriefings and will not discuss the specifics of an Applicant's BEA 
Program Application or provide reasons why an Applicant did not receive 
a BEA Program Award. The CDFI Fund will only respond to general 
questions regarding the FY 2013 Application and Award decision process 
until 30 days after the award announcement date.

VIII. Award Administration Information

    A. Notice of Award: The CDFI Fund will signify its selection of an 
Applicant as an Awardee by delivering a Notice of Award and Award 
Agreement to the Applicant. The Notice of Award and Award Agreement 
will contain the general terms and conditions underlying the CDFI 
Fund's provision of an Award. The Applicant must execute the Notice of 
Award and Award Agreement and return it to the CDFI Fund. Each Awardee 
must also ensure that complete and accurate banking information is 
reflected in its System for Award Management (SAM) account on 
www.sam.gov.
    The CDFI Fund reserves the right, in its sole discretion, to 
rescind the Award, the Notice of Award, and the Award Agreement if the 
Awardee fails to return the Notice of Award and Award Agreement signed 
by the Authorized Representative of the Awardee or any other requested 
documentation by the deadline set by the CDFI Fund.
    By executing a Notice of Award and Award Agreement, the Awardee 
agrees that, if information (including administrative errors) comes to 
the attention of the CDFI Fund prior to the Effective Date of the Award 
Agreement that either adversely affects the Awardee's eligibility for 
an Award, or adversely affects the CDFI Fund's evaluation of the 
Awardee's Application, or indicates fraud or mismanagement on the part 
of the Awardee, the CDFI Fund may, in its discretion and without 
advance notice to the Awardee, terminate the Notice of Award and Award 
Agreement or take other actions as it deems appropriate.
    1. Failure to meet reporting requirements: If an Applicant, or its 
Affiliate, is a prior CDFI Fund awardee or allocatee under any CDFI 
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 CDFI 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 automated systems employed by 
the CDFI Fund for receipt of reports submitted electronically typically 
acknowledge only a report's receipt; such acknowledgment does not 
warrant that the report received was complete and therefore met 
reporting requirements. If said prior awardee or allocatee is unable to 
meet this requirement within the timeframe set by the CDFI Fund, the 
CDFI 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 
CDFI Fund awardee or allocatee under any CDFI Fund program and if: (i) 
It has submitted complete and timely reports to the CDFI Fund that 
demonstrate noncompliance with a previous assistance, award, or 
allocation agreement, and (ii) the CDFI 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 CDFI 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 
CDFI Fund, of the noncompliance. If said prior awardee or allocatee is 
unable to meet this requirement, in the sole determination of the CDFI 
Fund, the CDFI 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 CDFI Fund has made a final determination 
that an Applicant that is a prior CDFI Fund awardee or allocatee under 
any CDFI 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 CDFI 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 CDFI Fund. If said prior awardee or allocatee is 
unable to meet this requirement, the CDFI 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 prior to entering into an Award 
Agreement under this NOFA, (i) the CDFI Fund has made a final 
determination that an Applicant that is a prior CDFI Fund awardee or 
allocatee under any CDFI Fund program whose award or allocation 
terminated in default of such prior agreement; (ii) the CDFI Fund has 
provided written notification of such determination to such 
organization; and (iii) the anticipated date for entering into the 
Award Agreement under this NOFA is within a period of time specified in 
such notification throughout which any new award, allocation, or 
assistance is prohibited, the CDFI Fund reserves the right, in its sole 
discretion, to terminate and rescind the Award Agreement and the award 
made under this NOFA.
    B. Award Agreement: After the CDFI Fund selects an Awardee, unless 
an exception detailed in this NOFA applies, the CDFI 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 CDFI 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.
    C. Administrative and National Policy Requirements: Not applicable.
    D. Reporting and Accounting:
    1. Awardees Without Persistent Poverty County Commitments: The CDFI 
Fund will require each Awardee without persistent poverty commitments 
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 applicable OMB 
Circulars.

[[Page 34169]]

The CDFI Fund will collect information from each such Awardee on its 
use of the Award at least once following the Award and more often if 
deemed appropriate by the CDFI Fund in its sole discretion. The CDFI 
Fund will provide guidance to Awardees outlining the format and content 
of the information to be provided, outlining and describing how the 
funds were used.
    2. Awardees With Persistent Poverty County Commitments: The CDFI 
Fund will require each Awardee with persistent poverty county 
commitments, regardless of Award size, to report data for Award funds 
deployed in persistent poverty counties and maintain proper supporting 
documentation and records which are subject to review by the CDFI 
Fund's Certification, Compliance Monitoring, and Evaluation unit.

IX. Agency Contacts

    The CDFI Fund will respond to questions and provide support 
concerning this NOFA and the funding Application between the hours of 
9:00 a.m. and 5:00 p.m. ET, starting on the date of the publication of 
this NOFA through July 10, 2013 for the FY 2013 funding round. The CDFI 
Fund will not respond to Applicants' reporting, compliance, or 
disbursement telephone calls or email inquiries that are received after 
5:00 p.m. ET on July 10, 2013 until after the Application deadline. The 
CDFI Fund will respond to technical issues related to myCDFIFund 
accounts through 5:00 p.m. ET on July 12, 2013.
    Applications and other information regarding the CDFI Fund and its 
programs may be downloaded and printed from the CDFI Fund's Web site at 
www.cdfifund.gov. The CDFI Fund will post responses to questions of 
general applicability regarding the BEA Program on its Web site.
    A. Information Technology Support: Technical support can be 
obtained by calling (202) 653-0300 or by email to 
ithelpdesk@cdfi.treas.gov. People who have visual or mobility 
impairments that prevent them from creating a Distressed Community map 
using the CDFI Fund's Web site should call (202) 653-0300 for 
assistance. These are not toll free numbers.
    B. Application Support: If you have any questions about the 
programmatic or administrative requirements of this NOFA, contact the 
CDFI Fund's BEA Program office by email at cdfihelp@cdfi.treas.gov, by 
telephone at (202) 653-0421, by facsimile at (202) 508-0089, or by mail 
at CDFI Fund, 1500 Pennsylvania Avenue NW., Washington, DC 20220. The 
number provided is not toll free.
    C. Certification, Compliance Monitoring and Evaluation (CCME) 
Support: If you have any questions regarding the compliance 
requirements of this NOFA, including questions regarding performance on 
prior Awards, contact the CDFI Fund's CCME Unit by email at 
ccme@cdfi.treas.gov or by telephone at (202) 653-0423. The number 
provided is not toll free.
    D. Communication with the CDFI Fund: The CDFI 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 CDFI Fund will notify Awardees by email using the 
addresses maintained in each Awardee's myCDFIFund account. Therefore, 
an Awardee and any Subsidiaries, signatories, and Affiliates must 
maintain accurate contact information (including contact person and 
authorized representative, email 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: May 31, 2013.
Donna J. Gambrell,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2013-13417 Filed 6-5-13; 8:45 am]
BILLING CODE 4810-70-P