Community Development Revolving Loan Fund Access for Credit Unions, 6441-6444 [2019-03321]
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Federal Register / Vol. 84, No. 39 / Wednesday, February 27, 2019 / Notices
proposed collection of information,
including the validity of the
methodology and assumptions used;
—Evaluate whether and if so how the
quality, utility, and clarity of the
information to be collected can be
enhanced; and
—Minimize the burden of the collection
of information on those who are to
respond, including through the use of
appropriate automated, electronic,
mechanical, or other technological
collection techniques or other forms
of information technology, e.g.,
permitting electronic submission of
responses.
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Overview of This Information
Collection
(1) Type of Information Collection:
Extension of a currently approved
collection.
(2) The Title of the Form/Collection:
Generic Clearance for cognitive, pilot
and field studies for Bureau of Justice
Statistics data collection activities.
(3) The agency form number, if any,
and the applicable component of the
Department sponsoring the collection:
Form numbers not available for generic
clearance. The applicable component
within the Department of Justice is the
Bureau of Justice Statistics, in the Office
of Justice Programs.
(4) Affected public who will be asked
or required to respond, as well as a brief
abstract: Administrators or staff of state
and local agencies or programs in the
relevant fields; administrators or staff of
non-government agencies or programs
in the relevant fields; individuals;
policymakers at various levels of
government.
(5) An estimate of the total number of
respondents and the amount of time
estimated for an average respondent to
respond: We estimate that
approximately 50,000 respondents will
be involved in exploratory, field test,
pilot, cognitive, and focus group work
conducted under this clearance over the
requested 3-year clearance period. The
average response time per respondent
will be specific to each project covered
under the clearance. Specific estimates
of the number of respondents and the
average response time are not known for
each pilot study or development project
covered under a generic clearance at
this time. Project specific estimates will
be submitted to OMB separately for each
project conducted under this clearance.
BJS originally estimated that 30,000
respondents would be involved in the
statistical activities covered under this
clearance. Upon reviewing additional
projects that were identified after the
60-day notice was posted, BJS increased
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the estimate to 52,000 to account for the
additional efforts.
(6) An estimate of the total public
burden (in hours) associated with the
collection: The total respondent burden
for identified and future projects
covered under this generic clearance
over the 3-year clearance period is
approximately 25,000 hours. BJS
originally estimated that 20,000 burden
hours would be needed, but upon
reviewing additional projects that were
identified after the 60-day notice was
posted, BJS increased the estimate to
25,000 to account for the additional
efforts.
If additional information is required
contact: Melody Braswell, Department
Clearance Officer, United States
Department of Justice, Justice
Management Division, Policy and
Planning Staff, Two Constitution
Square, 145 N Street NE, 3E.405A,
Washington, DC 20530.
Dated: February 22, 2019.
Melody Braswell,
Department Clearance Officer for PRA, U.S.
Department of Justice.
[FR Doc. 2019–03355 Filed 2–26–19; 8:45 am]
BILLING CODE 4410–18–P
NATIONAL CREDIT UNION
ADMINISTRATION
Community Development Revolving
Loan Fund Access for Credit Unions
Funding Opportunity Title:
Community Development Revolving
Loan Fund (CDRLF) Loan Program.
Catalog of Federal Domestic
Assistance (CFDA) Number: 44.002.
Summary: The National Credit Union
Administration (NCUA) is issuing this
Notice of Funding Opportunity (NOFO)
to announce the availability of loan
awards for low-income designated
credit unions (LICUs) through the
CDRLF program. The CDRLF program
serves as a source of financial support
in the form of loans that better enables
LICUs to support the communities in
which they operate. CDRLF loan awards
typically range from $250,000 to
$500,000. All awards made under this
NOFO are subject to funds availability
and are at the NCUA’s discretion.
Table of Contents
A. Program Description
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration
G. Federal Awarding Agency Contacts
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A. Program Description
The purpose of the CDRLF program is
to assist LICUs in providing basic
financial services to their members to
stimulate economic activities in their
communities. Through the CDRLF
program, the NCUA provides financial
support in the form of loans to LICUs
serving predominantly low-income
members. These funds help improve
and expand the availability of financial
services to these members. The NCUA
accepts loan applications on a
continuous basis subject to funding
availability.
The CDRLF program consists of
Congressional appropriations that are
administered by the NCUA. Since its
inception, Congress has appropriated
approximately $13.4 million for
revolving loans through the CDRLF
program. The CDRLF’s revolving loan
component received its last
appropriation in fiscal year 2005 for
$200,000. Approximately $3.6 million
will be available for loans under this
NOFO as of January 1, 2019.
1. Permissible Uses of Loan Funds
The NCUA may consider requests for
loan funds for various uses. A nonexhaustive list of examples of
permissible uses or projects is defined
in 12 CFR 705.4. The NCUA may
consider other proposed uses of loan
funds that are not listed if it determines
the proposal to be consistent with the
purpose of the CDRLF program. The list
includes the following:
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, microbusiness loans, payday
loan alternatives, education loans, and
real estate loans;
iv. Acquisition, expansion, or
improvement of office space or
equipment, including branch facilities,
ATMs, and electronic banking facilities;
and
v. Operational programs such as
security and disaster recovery.
2. Authority and Regulations
i. Authority: 12 U.S.C. 1756,
1757(5)(D), and (7)(I), 1766, 1782, 1784,
1785 and 1786; 12 CFR part 705.
ii. Regulations: The regulation
governing the CDRLF program is found
at 12 CFR part 705. In general, this
regulation is used by the NCUA to
govern the CDRLF program and set forth
the program requirements. Additional
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regulations related to the CDRLF
program are found at 12 CFR parts 701
and 741. For the purposes of this NOFO,
an Applicant is a Qualifying Credit
Union that submits a complete
Application to the NCUA under the
CDRLF program. The NCUA encourages
Applicants to review the regulations,
this NOFO, and other program materials
for a complete understanding of the
program. Capitalized terms in this
NOFO are defined in the authorizing
statutes, regulations, and program
materials.
iv. Demonstrated capability of the
credit union to provide financial and
related services to its members; and
v. Concurrence from the credit
union’s NCUA regional office and/or the
applicable the State Supervisory
Authority (SSA) for qualifying statechartered credit unions.
B. Federal Award Information
The NCUA expects to award as many
qualified credit unions as possible
through this NOFO, subject to funding
availability. CDRLF loans are typically
made at lower than market interest
rates.
Approximately $3.6 million, derived
from prior-year appropriated and earned
funds, will be available for qualified
credit unions beginning January 1, 2019.
The amount of funding available for
CDRLF loans fluctuate whenever
previously scheduled loans are fully
amortized and/or if Congress makes an
appropriation to the CDRLF revolving
loan component. The NCUA reserves
the right to: (i) Award more or less than
the amounts 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 the NCUA
determines that the number of awards
made under this NOFO is fewer than
projected.
The specific terms and conditions
governing a CDRLF award will be
established in the loan documents that
each Participating Credit Union must
sign prior to disbursement of funds. The
rest of this section contains general
award information regarding loans made
through the CDRLF program.
3. Interest Rate
The interest rate on CDRLF loans is
governed by the CDRLF Loan Interest
Rate Policy. The policy can be found on
the NCUA’s website at https://
www.ncua.gov/support-services/creditunion-resources-expansion/grantsloans/loans. CDRLF loans are generally
offered at a fixed rate for the full term.
1. Loan Amount
The NCUA makes loans based on the
financial condition of the credit union.
The applicable regulation does not
provide a maximum limit on loan
applications for consideration, but in
practice the NCUA discourages loan
applications of higher than $500,000 to
mitigate risk. There is no minimum loan
amount. CDRLF loan awards typically
range from $250,000 to $500,000. The
amount of the loan will be based on the
following factors:
i. Funds availability;
ii. Credit worthiness of the credit
union;
iii. Financial need;
2. Matching Funds (if Applicable)
At its discretion, the NCUA may
require the Applicant to submit a
functional plan to meet the matching
funds requirement depending on the
financial condition of the Applicant.
The NCUA anticipates that most
Applicants will not be required to
obtain matching funds. 12 CFR 705.5(g)
of the NCUA’s regulations describe the
overall requirements for matching
funds.
i. 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,
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2. Maturity
CDRLF 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.
4. Repayment
All loans must be repaid to the NCUA
regardless of how they are accounted for
by the Participating Credit Union.
i. Principal: The entire principal is
due at maturity.
ii. Interest: Interest is due in semiannual payments beginning six months
after the initial distribution of the loan.
iii. Principal Prepayment: There is no
penalty for principal prepayment.
Principal prepayments may be made as
often as monthly.
C. Eligibility Information
1. Eligible Applicants
This NOFO is open to credit unions
that meet the eligibility requirements
defined in 12 CFR part 705. A credit
union must have a low-income
designation, or equivalent in the case of
a Qualifying State-chartered Credit
Union, in order to participate in the
CDRLF program. Requirements for
obtaining the designation is defined in
12 CFR 701.34.
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are general matching fund requirements.
The 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.
a. The amount of matching funds
required must generally be in an amount
equal to the loan amount.
b. Matching funds must be from nongovernmental member or nonmember
share deposits.
c. Any loan monies matched by
nonmember share deposits are not
subject to the 20% limitation on
nonmember deposits defined in 12 CFR
701.32.
d. 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 requirements
defined in defined in 12 CFR 701.32.
ii. Criteria for Requiring Matching
Funds: The NCUA will use the
following criteria to determine whether
to require an Applicant to have
matching funds as a condition of its
loan.
a. CAMEL Composite Rating
b. CAMEL Management Rating
c. CAMEL Asset Quality Rating
d. Regional Director Concurrence
e. Net Worth Ratio
iii. Documentation of Matching
Funds: The NCUA may contact the
matching funds source to discuss the
matching funds and the documentation
that the Applicant has provided. If the
NCUA determines that any portion of
the Applicant’s matching funds is
ineligible under this NOFO, the 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, the
Applicant must provide acceptable
alternative matching funds
documentation within 10 business days
of the NCUA’s request.
3. Other Eligibility Requirements
i. Financial Viability: Applicants must
meet the underwriting standards
established by the NCUA, including
those pertaining to financial viability, as
set forth in the application and defined
in 12 CFR 705.7(c).
ii. Compliance with Past Agreements:
In evaluating funding requests under
this NOFO, the NCUA will consider an
Applicant’s record of compliance with
past agreements. The NCUA, in its sole
discretion, will determine whether to
consider an Application from an
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Applicant with a past record of
noncompliance, including any
deobligation (i.e. removal of unused
awards) of funds.
a. Default Status: If an Applicant is in
default of a previously executed
agreement with the NCUA, the NCUA
will not consider an Application for
funding under this NOFO.
b. Undisbursed Funds: If an Applicant
is a prior awardee under the CDRLF
program and has unused awards as of
the date of Application, the NCUA will
request a narrative from the Applicant
that addresses the reason for its record
of noncompliance. The NCUA, in its
sole discretion, will determine whether
the reason is sufficient to proceed with
the review of the Application.
D. Application and Submission
Information
1. Application Form
The application and related
documents can be found on the NCUA’s
website at https://www.ncua.gov/
services/Pages/resources-expansion/
grants-loans.aspx. Under this NOFO,
Applications must be submitted online
at https://www.cybergrants.com/ncua/
applications.
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2. Application Content
i. Data Universal Numbering System:
The Data Universal Numbering System
(DUNS) number is a unique ninecharacter number used to identify your
organization. The federal government
uses the DUNS number to track how
federal money is allocated. Applicants
can obtain a DUNS number by visiting
the Dun & Bradstreet (D&B) website or
calling 1–866–705–5711 to register or
search for a DUNS number. Registering
for a DUNS number is FREE. The NCUA
will not consider an Application that
does not include a valid DUNS number
issued by Dun and Bradstreet (D&B).
Such an Application will be deemed
incomplete and will be declined.
ii. System for Award Management: All
Applicants are required by federal law
to have an active registration with the
federal government’s System for Award
Management (SAM) prior to applying
for funding. SAM is a web-based,
government-wide application that
collects, validates, stores, and
disseminates business information
about the federal government’s trading
partners in support of the contract
awards, grants, and electronic payment
processes. Applicants can register by
visiting www.sam.gov. An active SAM
account status and CAGE number is
required to apply for the NCUA’s
CDRLF programs. The SAM registration
process is FREE. Applicants that have
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an existing registration with SAM must
recertify and maintain an active status
annually. The NCUA will not consider
an Applicant that does not have an
active SAM status. Such an Application
will be deemed incomplete and will be
declined.
iii. Employer Identification Number:
Each Application must include a valid
and current Employer Identification
Number (EIN) issued by the U.S.
Internal Revenue Service (IRS). The
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
an EIN may be found on the IRS’s
website at www.irs.gov.
iv. Large Loans: An Applicant
requesting a loan in excess of $300,000
is required to provide additional
narrative comments to support the
request. In addition, the NCUA may also
require a business plan. The business
plan should: 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.
v. Non-Federally Insured Applicants:
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 12 CFR
705.7(b)(3) and in the Application.
a. Examination by the NCUA: Nonfederally insured, state-chartered credit
unions must agree to be examined by
the NCUA. The specific terms and
covenants pertaining to this condition
will be provided in the loan agreement
of the Participating Credit Union.
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2. Evaluation Criteria
The evaluation criteria is fully
described in 12 CFR 705.7(c). The
NCUA will evaluate each Application
that receives a substantive review on the
four criteria described in the regulation,
this NOFO and the applicable guideline:
financial performance, compatibility,
feasibility, and examination information
and applicable concurrence. Each
initiative, due to its structure and
impact, have varying degrees of
evaluation criteria assigned which are
reflected in the guidelines for credit
union’s information.
3. Substantive Review
The purpose of the substantive review
is to determine whether the NCUA
should support and fund the loan
request. During this phase of the review,
the NCUA reviews the credit union’s
prior financial and operational
performance, the collateral offered to
securitize the loan (if applicable), and
its longevity in operation. The 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 the NCUA or the NCUA, in
its sole discretion, may decline the
application without further
consideration.
4. Examination Information and
Applicable Concurrence
E. Application Review Information
The NCUA will not approve an award
to a credit union for which it’s NCUA
regional examining office or SSA, if
applicable, indicates it has safety and
soundness concerns. If the NCUA
regional office or SSA identifies a safety
and soundness concern, the NCUA, 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. The NCUA, in its sole
discretion, may defer decision on
funding an Application until the credit
union’s safety and soundness conditions
improve.
1. Eligibility and Completeness Review
5. Funding Selection
The NCUA will review each
Application to determine whether it is
complete and that the Applicant meets
the eligibility requirements described in
the Regulations and in this NOFO. An
incomplete Application or one that does
not meet the eligibility requirements
will be declined without further
consideration.
The NCUA will make its funding
selections based on a consistent scoring
tier for each Applicant. The NCUA will
consider the impact of the funding. In
addition, the 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.
3. Submission Dates and Times
The NCUA accepts applications on a
continuous basis subject to funding
availability.
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F. Federal Award Adminsitration
G. Federal Award Agency Contacts
1. Federal Award Notice
1. Methods of Contact
Further information can be found at
https://www.ncua.gov/services/Pages/
resources-expansion/grants-loans.aspx.
For questions email: National Credit
Union Administration, Office of Credit
Union Resources and Expansion at
CUREAPPS@ncua.gov.
The NCUA will notify each Applicant
of its funding decision by email.
Applicants that are approved for
funding will also receive instructions on
how to proceed with disbursement of
the award.
2. Administrative and National Policy
Requirements
i. Loan Agreement: Each Participating
Credit Union under this NOFO must
enter into an Agreement with the NCUA
before the NCUA will disburse the
award funds. The Agreement documents
include, for example, a promissory note,
loan agreement, repayment schedule,
and security agreement (if applicable).
The Agreement will include the terms
and conditions of funding, including
but not limited to the: (i) award amount;
(ii) interest rate; (iii) repayment
requirements; (iv) accounting treatment;
(v) impact measures; and (vi) reporting
requirements.
ii. Failure to Sign Agreement: The
NCUA, in its sole discretion, may
rescind an award if the Applicant fails
to sign and return the agreement or any
other requested documentation, within
the time specified by the NCUA.
iii. Multiple Disbursements: The
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 the NCUA in the Loan
Agreement.
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3. Reporting
The reporting requirements are more
fully described in 12 CFR 705.9.
Annually, each Participating Credit
Union will submit a report to the
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. The NCUA, in its sole
discretion, may modify these
requirements. However, such reporting
requirements will be modified only after
notice to affected credit unions.
i. 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. The 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 CDRLF loan.
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2. Information Technology Support
People who have visual or mobility
impairments that prevent them from
using the NCUA’s website should call
(703) 518–6610 for guidance (this is not
a toll free number).
By the National Credit Union
Administration Board on February 21, 2019.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2019–03321 Filed 2–26–19; 8:45 am]
BILLING CODE P
NUCLEAR REGULATORY
COMMISSION
[NRC–2019–0061]
Seismic Qualification of Electrical and
Active Mechanical Equipment and
Functional Qualification of Active
Mechanical Equipment for Nuclear
Power Plants
Nuclear Regulatory
Commission.
ACTION: Draft regulatory guide; request
for comment.
AGENCY:
The U.S. Nuclear Regulatory
Commission (NRC) is issuing for public
comment draft regulatory guide (DG),
DG–1328, ‘‘Seismic Qualification of
Electrical and Active Mechanical
Equipment and Functional Qualification
of Active Mechanical Equipment for
Nuclear Power Plants.’’ This proposed
guide, revision 4 to Regulatory Guide
(RG) 1.100 of the same name, was
revised to endorse industry consensus
standards with certain exceptions and
clarifications. The guide describes
methods that the staff of the NRC
considers acceptable for use in the
seismic qualification of electrical and
active mechanical equipment and the
functional qualification of active
mechanical equipment for nuclear
power plants.
DATES: Submit comments by April 29,
2019. Comments received after this date
will be considered if it is practical to do
so, but the NRC is able to ensure
consideration only for comments
received on or before this date.
Although a time limit is given,
comments and suggestions in
SUMMARY:
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connection with items for inclusion in
guides currently being developed or
improvements in all published guides
are encouraged at any time.
ADDRESSES: You may submit comments
by any of the following methods (unless
this document describes a different
method for submitting comments on a
specific subject):
• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID: NRC–2019–0061. Address
questions about Docket IDs in
Regulations.gov to Krupskaya Castellon;
telephone: 301–287–9221; email:
Krupskaya.Castellon@nrc.gov. For
technical questions, contact the
individual(s) listed in the FOR FURTHER
INFORMATION CONTACT section of this
document.
• Mail comments to: Office of
Administration, Mail Stop: TWFN–7–
A60M, U.S. Nuclear Regulatory
Commission, Washington, DC 20555–
0001, ATTN: Program Management,
Announcements and Editing Staff.
• For additional direction on
obtaining information and submitting
comments, see ‘‘Obtaining Information
and Submitting Comments’’ in the
SUPPLEMENTARY INFORMATION section of
this document.
FOR FURTHER INFORMATION CONTACT: Ian
Tseng, Office of Nuclear Reactor
Regulation, telephone: 301–415–7964,
email: ian.tseng@nrc.gov, and Edward
O’Donnell, Office of Nuclear Regulatory
Research, telephone: 301–415–3317,
email: Edward.odonnell@nrc.gov. Both
are staff members of the U.S. Nuclear
Regulatory Commission, Washington,
DC 20555–0001.
SUPPLEMENTARY INFORMATION:
I. Obtaining Information and
Submitting Comments
A. Obtaining Information
Please refer to Docket ID NRC–2019–
0061 when contacting the NRC about
the availability of information regarding
this action. You may obtain publicallyavailable information related to this
action, by any of the following methods:
• Federal Rulemaking Website: Go to
https://www.regulations.gov and search
for Docket ID: NRC–2019–0061.
• NRC’s Agencywide Documents
Access and Management System
(ADAMS): You may obtain publiclyavailable documents online in the
ADAMS Public Documents collection at
https://www.nrc.gov/reading-rm/
adams.html. To begin the search, select
‘‘Begin Web-based ADAMS Search.’’ For
problems with ADAMS, please contact
the NRC’s Public Document Room (PDR)
reference staff at 1–800–397–4209, 301–
415–4737, or by email to pdr.resource@
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Agencies
[Federal Register Volume 84, Number 39 (Wednesday, February 27, 2019)]
[Notices]
[Pages 6441-6444]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-03321]
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NATIONAL CREDIT UNION ADMINISTRATION
Community Development Revolving Loan Fund Access for Credit
Unions
Funding Opportunity Title: Community Development Revolving Loan
Fund (CDRLF) Loan Program.
Catalog of Federal Domestic Assistance (CFDA) Number: 44.002.
Summary: The National Credit Union Administration (NCUA) is issuing
this Notice of Funding Opportunity (NOFO) to announce the availability
of loan awards for low-income designated credit unions (LICUs) through
the CDRLF program. The CDRLF program serves as a source of financial
support in the form of loans that better enables LICUs to support the
communities in which they operate. CDRLF loan awards typically range
from $250,000 to $500,000. All awards made under this NOFO are subject
to funds availability and are at the NCUA's discretion.
Table of Contents
A. Program Description
B. Federal Award Information
C. Eligibility Information
D. Application and Submission Information
E. Application Review Information
F. Federal Award Administration
G. Federal Awarding Agency Contacts
A. Program Description
The purpose of the CDRLF program is to assist LICUs in providing
basic financial services to their members to stimulate economic
activities in their communities. Through the CDRLF program, the NCUA
provides financial support in the form of loans to LICUs serving
predominantly low-income members. These funds help improve and expand
the availability of financial services to these members. The NCUA
accepts loan applications on a continuous basis subject to funding
availability.
The CDRLF program consists of Congressional appropriations that are
administered by the NCUA. Since its inception, Congress has
appropriated approximately $13.4 million for revolving loans through
the CDRLF program. The CDRLF's revolving loan component received its
last appropriation in fiscal year 2005 for $200,000. Approximately $3.6
million will be available for loans under this NOFO as of January 1,
2019.
1. Permissible Uses of Loan Funds
The NCUA may consider requests for loan funds for various uses. A
non-exhaustive list of examples of permissible uses or projects is
defined in 12 CFR 705.4. The NCUA may consider other proposed uses of
loan funds that are not listed if it determines the proposal to be
consistent with the purpose of the CDRLF program. The list includes the
following:
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, microbusiness
loans, payday loan alternatives, education loans, and real estate
loans;
iv. Acquisition, expansion, or improvement of office space or
equipment, including branch facilities, ATMs, and electronic banking
facilities; and
v. Operational programs such as security and disaster recovery.
2. Authority and Regulations
i. Authority: 12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782,
1784, 1785 and 1786; 12 CFR part 705.
ii. Regulations: The regulation governing the CDRLF program is
found at 12 CFR part 705. In general, this regulation is used by the
NCUA to govern the CDRLF program and set forth the program
requirements. Additional
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regulations related to the CDRLF program are found at 12 CFR parts 701
and 741. For the purposes of this NOFO, an Applicant is a Qualifying
Credit Union that submits a complete Application to the NCUA under the
CDRLF program. The NCUA encourages Applicants to review the
regulations, this NOFO, and other program materials for a complete
understanding of the program. Capitalized terms in this NOFO are
defined in the authorizing statutes, regulations, and program
materials.
B. Federal Award Information
The NCUA expects to award as many qualified credit unions as
possible through this NOFO, subject to funding availability. CDRLF
loans are typically made at lower than market interest rates.
Approximately $3.6 million, derived from prior-year appropriated
and earned funds, will be available for qualified credit unions
beginning January 1, 2019. The amount of funding available for CDRLF
loans fluctuate whenever previously scheduled loans are fully amortized
and/or if Congress makes an appropriation to the CDRLF revolving loan
component. The NCUA reserves the right to: (i) Award more or less than
the amounts 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 the NCUA determines
that the number of awards made under this NOFO is fewer than projected.
The specific terms and conditions governing a CDRLF award will be
established in the loan documents that each Participating Credit Union
must sign prior to disbursement of funds. The rest of this section
contains general award information regarding loans made through the
CDRLF program.
1. Loan Amount
The NCUA makes loans based on the financial condition of the credit
union. The applicable regulation does not provide a maximum limit on
loan applications for consideration, but in practice the NCUA
discourages loan applications of higher than $500,000 to mitigate risk.
There is no minimum loan amount. CDRLF loan awards typically range from
$250,000 to $500,000. The amount of the loan will be based on the
following factors:
i. Funds availability;
ii. Credit worthiness of the credit union;
iii. Financial need;
iv. Demonstrated capability of the credit union to provide
financial and related services to its members; and
v. Concurrence from the credit union's NCUA regional office and/or
the applicable the State Supervisory Authority (SSA) for qualifying
state-chartered credit unions.
2. Maturity
CDRLF 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 Rate
The interest rate on CDRLF loans is governed by the CDRLF Loan
Interest Rate Policy. The policy can be found on the NCUA's website at
https://www.ncua.gov/support-services/credit-union-resources-expansion/grants-loans/loans. CDRLF loans are generally offered at a fixed rate
for the full term.
4. Repayment
All loans must be repaid to the NCUA regardless of how they are
accounted for by the Participating Credit Union.
i. Principal: The entire principal is due at maturity.
ii. Interest: Interest is due in semi-annual payments beginning six
months after the initial distribution of the loan.
iii. Principal Prepayment: There is no penalty for principal
prepayment. Principal prepayments may be made as often as monthly.
C. Eligibility Information
1. Eligible Applicants
This NOFO is open to credit unions that meet the eligibility
requirements defined in 12 CFR part 705. A credit union must have a
low-income designation, or equivalent in the case of a Qualifying
State-chartered Credit Union, in order to participate in the CDRLF
program. Requirements for obtaining the designation is defined in 12
CFR 701.34.
2. Matching Funds (if Applicable)
At its discretion, the NCUA may require the Applicant to submit a
functional plan to meet the matching funds requirement depending on the
financial condition of the Applicant. The NCUA anticipates that most
Applicants will not be required to obtain matching funds. 12 CFR
705.5(g) of the NCUA's regulations describe the overall requirements
for matching funds.
i. Matching Funds Requirements: The specific terms and covenants
pertaining to any matching funds requirement will be provided in the
loan agreement of the Participating Credit Union. Following, are
general matching fund requirements. The 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.
a. The amount of matching funds required must generally be in an
amount equal to the loan amount.
b. Matching funds must be from non-governmental member or nonmember
share deposits.
c. Any loan monies matched by nonmember share deposits are not
subject to the 20% limitation on nonmember deposits defined in 12 CFR
701.32.
d. 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 requirements defined in
defined in 12 CFR 701.32.
ii. Criteria for Requiring Matching Funds: The NCUA will use the
following criteria to determine whether to require an Applicant to have
matching funds as a condition of its loan.
a. CAMEL Composite Rating
b. CAMEL Management Rating
c. CAMEL Asset Quality Rating
d. Regional Director Concurrence
e. Net Worth Ratio
iii. Documentation of Matching Funds: The NCUA may contact the
matching funds source to discuss the matching funds and the
documentation that the Applicant has provided. If the NCUA determines
that any portion of the Applicant's matching funds is ineligible under
this NOFO, the 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, the Applicant must provide acceptable
alternative matching funds documentation within 10 business days of the
NCUA's request.
3. Other Eligibility Requirements
i. Financial Viability: Applicants must meet the underwriting
standards established by the NCUA, including those pertaining to
financial viability, as set forth in the application and defined in 12
CFR 705.7(c).
ii. Compliance with Past Agreements: In evaluating funding requests
under this NOFO, the NCUA will consider an Applicant's record of
compliance with past agreements. The NCUA, in its sole discretion, will
determine whether to consider an Application from an
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Applicant with a past record of noncompliance, including any
deobligation (i.e. removal of unused awards) of funds.
a. Default Status: If an Applicant is in default of a previously
executed agreement with the NCUA, the NCUA will not consider an
Application for funding under this NOFO.
b. Undisbursed Funds: If an Applicant is a prior awardee under the
CDRLF program and has unused awards as of the date of Application, the
NCUA will request a narrative from the Applicant that addresses the
reason for its record of noncompliance. The NCUA, in its sole
discretion, will determine whether the reason is sufficient to proceed
with the review of the Application.
D. Application and Submission Information
1. Application Form
The application and related documents can be found on the NCUA's
website at https://www.ncua.gov/services/Pages/resources-expansion/grants-loans.aspx. Under this NOFO, Applications must be submitted
online at https://www.cybergrants.com/ncua/applications.
2. Application Content
i. Data Universal Numbering System: The Data Universal Numbering
System (DUNS) number is a unique nine-character number used to identify
your organization. The federal government uses the DUNS number to track
how federal money is allocated. Applicants can obtain a DUNS number by
visiting the Dun & Bradstreet (D&B) website or calling 1-866-705-5711
to register or search for a DUNS number. Registering for a DUNS number
is FREE. The NCUA will not consider an Application that does not
include a valid DUNS number issued by Dun and Bradstreet (D&B). Such an
Application will be deemed incomplete and will be declined.
ii. System for Award Management: All Applicants are required by
federal law to have an active registration with the federal
government's System for Award Management (SAM) prior to applying for
funding. SAM is a web-based, government-wide application that collects,
validates, stores, and disseminates business information about the
federal government's trading partners in support of the contract
awards, grants, and electronic payment processes. Applicants can
register by visiting www.sam.gov. An active SAM account status and CAGE
number is required to apply for the NCUA's CDRLF programs. The SAM
registration process is FREE. Applicants that have an existing
registration with SAM must recertify and maintain an active status
annually. The NCUA will not consider an Applicant that does not have an
active SAM status. Such an Application will be deemed incomplete and
will be declined.
iii. Employer Identification Number: Each Application must include
a valid and current Employer Identification Number (EIN) issued by the
U.S. Internal Revenue Service (IRS). The 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 an EIN may be found on the IRS's website at
www.irs.gov.
iv. Large Loans: An Applicant requesting a loan in excess of
$300,000 is required to provide additional narrative comments to
support the request. In addition, the NCUA may also require a business
plan. The business plan should: 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.
v. Non-Federally Insured Applicants: 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 12 CFR 705.7(b)(3) and in the Application.
a. Examination by the NCUA: Non-federally insured, state-chartered
credit unions must agree to be examined by the NCUA. The specific terms
and covenants pertaining to this condition will be provided in the loan
agreement of the Participating Credit Union.
3. Submission Dates and Times
The NCUA accepts applications on a continuous basis subject to
funding availability.
E. Application Review Information
1. Eligibility and Completeness Review
The NCUA will review each Application to determine whether it is
complete and that the Applicant meets the eligibility requirements
described in the Regulations and in this NOFO. An incomplete
Application or one that does not meet the eligibility requirements will
be declined without further consideration.
2. Evaluation Criteria
The evaluation criteria is fully described in 12 CFR 705.7(c). The
NCUA will evaluate each Application that receives a substantive review
on the four criteria described in the regulation, this NOFO and the
applicable guideline: financial performance, compatibility,
feasibility, and examination information and applicable concurrence.
Each initiative, due to its structure and impact, have varying degrees
of evaluation criteria assigned which are reflected in the guidelines
for credit union's information.
3. Substantive Review
The purpose of the substantive review is to determine whether the
NCUA should support and fund the loan request. During this phase of the
review, the NCUA reviews the credit union's prior financial and
operational performance, the collateral offered to securitize the loan
(if applicable), and its longevity in operation. The 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
the NCUA or the NCUA, in its sole discretion, may decline the
application without further consideration.
4. Examination Information and Applicable Concurrence
The NCUA will not approve an award to a credit union for which it's
NCUA regional examining office or SSA, if applicable, indicates it has
safety and soundness concerns. If the NCUA regional office or SSA
identifies a safety and soundness concern, the NCUA, 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. The
NCUA, in its sole discretion, may defer decision on funding an
Application until the credit union's safety and soundness conditions
improve.
5. Funding Selection
The NCUA will make its funding selections based on a consistent
scoring tier for each Applicant. The NCUA will consider the impact of
the funding. In addition, the 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.
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F. Federal Award Adminsitration
1. Federal Award Notice
The NCUA will notify each Applicant of its funding decision by
email. Applicants that are approved for funding will also receive
instructions on how to proceed with disbursement of the award.
2. Administrative and National Policy Requirements
i. Loan Agreement: Each Participating Credit Union under this NOFO
must enter into an Agreement with the NCUA before the NCUA will
disburse the award funds. The Agreement documents include, for example,
a promissory note, loan agreement, repayment schedule, and security
agreement (if applicable). The Agreement will include the terms and
conditions of funding, including but not limited to the: (i) award
amount; (ii) interest rate; (iii) repayment requirements; (iv)
accounting treatment; (v) impact measures; and (vi) reporting
requirements.
ii. Failure to Sign Agreement: The NCUA, in its sole discretion,
may rescind an award if the Applicant fails to sign and return the
agreement or any other requested documentation, within the time
specified by the NCUA.
iii. Multiple Disbursements: The 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 the NCUA in the Loan
Agreement.
3. Reporting
The reporting requirements are more fully described in 12 CFR
705.9. Annually, each Participating Credit Union will submit a report
to the 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. The
NCUA, in its sole discretion, may modify these requirements. However,
such reporting requirements will be modified only after notice to
affected credit unions.
i. 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. The 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 CDRLF loan.
G. Federal Award Agency Contacts
1. Methods of Contact
Further information can be found at https://www.ncua.gov/services/Pages/resources-expansion/grants-loans.aspx. For questions email:
National Credit Union Administration, Office of Credit Union Resources
and Expansion at CUREAPPS@ncua.gov.
2. Information Technology Support
People who have visual or mobility impairments that prevent them
from using the NCUA's website should call (703) 518-6610 for guidance
(this is not a toll free number).
By the National Credit Union Administration Board on February
21, 2019.
Gerard Poliquin,
Secretary of the Board.
[FR Doc. 2019-03321 Filed 2-26-19; 8:45 am]
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