Office of Small Credit Unions (OSCUI) Loan Program Access for Credit Unions, 23380-23383 [2014-09560]

Download as PDF 23380 Federal Register / Vol. 79, No. 81 / Monday, April 28, 2014 / Notices TABLE 1—LIST OF APPROPRIATE TEST STANDARDS FOR INCLUSION IN UL’S NRTL SCOPE OF RECOGNITION—Continued Test standard Test standard title ANSI/UL 61010–2–030 ................................................ Safety Requirements for Electrical Equipment for Measurement, Control, and Laboratory Use—Part 2–030: Particular Requirements for Testing and Measuring Circuits. Electrical Equipment for Measurement, Control, and Laboratory Use; Part 031: Safety Requirements for Hand-Held Probe Assemblies for Electrical Measurement and Test. Information Technology Equipment Safety—Part 1: General Requirements. Information Technology Equipment—Safety—Part 21: Remote Power Feeding. Information Technology Equipment Safety—Part 22: Equipment to be Installed Outdoors. Information Technology Equipment Safety—Part 23: Large Data Storage Equipment. Low-Voltage Switchgear and Controlgear—Part 4–1A: Contactors and Motor-Starters— Electromechanical Contactors and Motor—Starters. Induction Power Transmitters and Receivers for Use with Low Energy Products. Nonmetallic Underground Conduit with Conductors. Low-Voltage Switchgear and Controlgear—Part 5–2: Control Circuit Devices and Switching Elements—Proximity Switches. Single Pole Locking-Type Separable Connectors. Switches for Appliances—Part 1: General Requirements. Low-Voltage Lighting Systems. Hand-Held Motor—Operated Electric Tools—Safety—Part 2–16: Particular Requirements for Tackers. Hand-Held Motor-Operated electric Tools—Safety—Part 2–22: Particular Requirements for Cut-Off Machines. Household and Similar Electrical Appliances, Part 2: Particular Requirements for Electric Irons. Furniture Power Distribution Units. Outdoor Seasonal-Use Cord-Connected Wiring Devices. ANSI/UL 61010–031 .................................................... ANSI/UL ANSI/UL ANSI/UL ANSI/UL ANSI/UL 60950–1 ........................................................ 60950–21 ...................................................... 60950–22 ...................................................... 60950–23 ...................................................... 60947–4–1A ................................................. ANSI/UL 2738 .............................................................. ANSI/UL 1990 .............................................................. ANSI/UL 60947–5–2 .................................................... ANSI/UL ANSI/UL ANSI/UL ANSI/UL 1691 .............................................................. 61058–1 ........................................................ 2108 .............................................................. 60745–2–16 .................................................. ANSI/UL 60745–2–22 .................................................. ANSI/UL 60335–2–3 .................................................... ANSI/UL 962A ............................................................. ANSI/UL 2438 .............................................................. tkelley on DSK3SPTVN1PROD with NOTICES The designations and titles of these test standards were current at the time of the preparation of this notice. OSHA’s recognition of any NRTL for a particular test standard is limited to equipment or materials for which OSHA standards require third-party testing and certification before using them in the workplace. Consequently, if a test standard also covers any products for which OSHA does not require such testing and certification, an NRTL’s scope of recognition does not include that product. The American National Standards Institute (ANSI) may approve the test standards listed above as American National Standards. However, for convenience, we may use the designation of the standards-developing organization for the standard as opposed to the ANSI designation. Under the NRTL Program’s policy (see OSHA Instruction CPL 1–0.3, Appendix C, paragraph XIV), any NRTL recognized for a particular test standard may use either the proprietary version of the test standard or the ANSI version of that standard. Contact ANSI to determine whether a test standard is currently ANSI approved. and of any major change in its operations as an NRTL, and provide details of the change(s); 2. UL must meet all the terms of its recognition and comply with all OSHA policies pertaining to this recognition; and 3. UL must continue to meet the requirements for recognition, including all previously published conditions on UL’s scope of recognition, in all areas for which it has recognition. Pursuant to the authority in 29 CFR 1910.7, OSHA hereby expands the scope of recognition of UL, subject to the limitation and conditions specified above. A. Conditions In addition to those conditions already required by 29 CFR 1910.7, UL also must abide by the following conditions of the recognition: 1. UL must inform OSHA as soon as possible, in writing, of any change of ownership, facilities, or key personnel, Signed at Washington, DC, on April 22, 2014. David Michaels, Assistant Secretary of Labor for Occupational Safety and Health. VerDate Mar<15>2010 17:06 Apr 25, 2014 Jkt 232001 III. Authority and Signature David Michaels, Ph.D., MPH, Assistant Secretary of Labor for Occupational Safety and Health, 200 Constitution Avenue NW., Washington, DC 20210, authorized the preparation of this notice. Accordingly, the Agency is issuing this notice pursuant to Section 8(g)(2) of 29 U.S.C. 657(g)(2), Secretary of Labor’s Order No. 1–2012 (77 FR 3912, Jan. 25, 2012), and 29 CFR 1910.7. [FR Doc. 2014–09530 Filed 4–25–14; 8:45 am] BILLING CODE 4510–26–P PO 00000 Frm 00064 Fmt 4703 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: The application open period is from January 1, 2014 thru December 31, 2014. Funds may be exhausted prior to this deadline, at which time the programs/funds will no longer be available. DATES: Applications must be submitted online at www.cybergrants.com/ncua. ADDRESSES: FOR FURTHER INFORMATION CONTACT: Further information can be found at: Sfmt 4703 E:\FR\FM\28APN1.SGM 28APN1 Federal Register / Vol. 79, No. 81 / Monday, April 28, 2014 / Notices http://www.ncua.gov/Resources/OSCUI/ Pages/Contacts.aspx. For questions email: National Credit Union Administration, Office of Small Credit Union Initiatives at OSCUIAPPS@ ncua.gov. SUPPLEMENTARY INFORMATION: tkelley on DSK3SPTVN1PROD with NOTICES 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 part 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 $6.3 million under this NOFO, derived from appropriated and earned funds. Monies for additional loans come from scheduled loan amortizations. NCUA reserves the right to: (i) Award more or less than the amount cited above; (ii) fund, in whole or in part, any, all, or none of the applications submitted in response to this NOFO; and (iii) reallocate funds from the amount that is anticipated to be available under this NOFO to other programs, particularly if NCUA determines that the number of awards made under this NOFO is fewer than projected. II. Description of Loan Program OSCUI loans are made to LICUs that meet the requirements in the program regulation and this NOFO, subject to VerDate Mar<15>2010 17:06 Apr 25, 2014 Jkt 232001 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 part 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 limited 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; (v) Operational programs such as security and disaster recovery, and (vi) Investing in U.S. Treasury Securities. 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 PO 00000 Frm 00065 Fmt 4703 Sfmt 4703 23381 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 http://www.ncua.gov/ Resources/OSCUI/Pages/Loans.aspx. 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 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 E:\FR\FM\28APN1.SGM 28APN1 tkelley on DSK3SPTVN1PROD with NOTICES 23382 Federal Register / Vol. 79, No. 81 / Monday, April 28, 2014 / Notices 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 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. VerDate Mar<15>2010 17:06 Apr 25, 2014 Jkt 232001 (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 http://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 PO 00000 Frm 00066 Fmt 4703 Sfmt 4703 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 http:// www.cybergrants.com/ncua. 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. E:\FR\FM\28APN1.SGM 28APN1 tkelley on DSK3SPTVN1PROD with NOTICES Federal Register / Vol. 79, No. 81 / Monday, April 28, 2014 / Notices 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 (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 VerDate Mar<15>2010 17:06 Apr 25, 2014 Jkt 232001 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 PO 00000 Frm 00067 Fmt 4703 Sfmt 9990 23383 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 part 705. By the National Credit Union Administration Board on April 22, 2014. Gerard Poliquin, Secretary of the Board. [FR Doc. 2014–09560 Filed 4–25–14; 8:45 am] BILLING CODE 7535–01–P NATIONAL CREDIT UNION ADMINISTRATION Sunshine Act; Meeting Notice Federal Register Citation of Previous Announcement—April 21, 2014 (79 FR 22166) Notice of a Matter To Be Added to the Agenda for Consideration at an Agency Meeting 11:15 a.m., Thursday, April 24, 2014. PLACE: Board Room, 7th Floor, Room 7047, 1775 Duke Street, Alexandria, VA 22314–3428. STATUS: Closed. Pursuant to the provisions of the ‘‘Government in Sunshine Act’’ notice is hereby given that the NCUA Board gave notice on April 21, 2014 (79 FR 22166) of the regular meeting of the NCUA Board scheduled for April 24, 2014. Prior to the meeting, on April 23, 2014, with less than seven days’ notice to the public, the NCUA Board unanimously determined that agency business required changing the previously announced closed meeting time from 11:15 a.m. to 9:00 a.m. No earlier notice of the change was possible. REVISED TIME: 9:00 a.m., Thursday, April 24, 2014. FOR FURTHER INFORMATION CONTACT: Gerard Poliquin, Secretary of the Board, Telephone: 703–518–6304. TIME AND DATE: Gerard Poliquin, Secretary of the Board. [FR Doc. 2014–09781 Filed 4–24–14; 4:15 pm] BILLING CODE 7535–01–P E:\FR\FM\28APN1.SGM 28APN1

Agencies

[Federal Register Volume 79, Number 81 (Monday, April 28, 2014)]
[Notices]
[Pages 23380-23383]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2014-09560]


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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.

-----------------------------------------------------------------------

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, 2014 thru 
December 31, 2014. 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.

FOR FURTHER INFORMATION CONTACT: Further information can be found at:

[[Page 23381]]

http://www.ncua.gov/Resources/OSCUI/Pages/Contacts.aspx. 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 part 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 $6.3 million under this NOFO, derived from appropriated 
and earned funds. Monies for additional loans come from scheduled loan 
amortizations. NCUA reserves the right to: (i) Award more or less than 
the amount cited above; (ii) fund, in whole or in part, any, all, or 
none of the applications submitted in response to this NOFO; and (iii) 
reallocate funds from the amount that is anticipated to be available 
under this NOFO to other programs, particularly if NCUA determines that 
the number of awards made under this NOFO is fewer than projected.

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 part 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 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 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 limited 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; (v) Operational programs such as security and 
disaster recovery, and (vi) Investing in U.S. Treasury Securities.
    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 http://www.ncua.gov/Resources/OSCUI/Pages/Loans.aspx.
    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

[[Page 23382]]

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 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 http://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 http://www.cybergrants.com/ncua.

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.

[[Page 23383]]

    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 (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 part 705.

    By the National Credit Union Administration Board on April 22, 
2014.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2014-09560 Filed 4-25-14; 8:45 am]
BILLING CODE 7535-01-P