Agency Information Collection Activities; Proposed Collection: Comment Request; Bank Enterprise Award Program Application, 55223-55228 [2019-22377]
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Federal Register / Vol. 84, No. 199 / Tuesday, October 15, 2019 / Notices
Government, or national security; and
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11b. To another Federal agency or
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responding to a suspected or confirmed
breach or (2) preventing, minimizing, or
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Claire Barrett,
DOT Chief Privacy Officer.
[FR Doc. 2019–22398 Filed 10–11–19; 8:45 am]
BILLING CODE 4910–9X–P
DEPARTMENT OF THE TREASURY
Community Development Financial
Institutions Fund
Agency Information Collection
Activities; Proposed Collection:
Comment Request; Bank Enterprise
Award Program Application
Notice and request for public
comment.
ACTION:
The U.S. Department of the
Treasury, as part of its continuing effort
to reduce paperwork and respondent
burden, invites the general public and
other Federal agencies to take this
opportunity to comment on proposed
and/or continuing information
collections, as required by the
Paperwork Reduction Act (PRA) of
1995. Currently, the Community
Development Financial Institutions
Fund (CDFI Fund), U.S. Department of
the Treasury, is soliciting comments
concerning the Bank Enterprise Award
Program (BEA Program) Application, for
the fiscal year (FY) 2020–FY 2022
funding rounds (hereafter, the
Application or Applications).
DATES: Written comments must be
received on or before December 16, 2019
to be assured of consideration.
ADDRESSES: Submit your comments via
email to Mia Sowell, BEA Program
Associate Program Manager, CDFI Fund,
at bea@cdfi.treas.gov, or by facsimile to
(202) 508–0089. Please note that this is
not a toll free number.
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SUMMARY:
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Mia
Sowell, BEA Program Associate Program
Manager, CDFI Fund, U.S. Department
of the Treasury, 1500 Pennsylvania
Avenue NW, Washington, DC 20220 or
email to bea@cdfi.treas.gov.
SUPPLEMENTARY INFORMATION:
Title: BEA Program Application.
OMB Number: 1559–0005.
Abstract: The purpose of the Bank
Enterprise Award Program (BEA
Program) is to provide an incentive to
Federal Deposit Insurance Corporationinsured (FDIC-insured) depository
institutions to increase their lending,
investment, and financial services to
residents and businesses located in
economically distressed communities,
and provide assistance to Community
Development Financial Institutions
(CDFIs) through grants, stock purchases,
loans, deposits, and other forms of
financial and technical assistance. The
CDFI Fund will make awards through
the BEA Program to FDIC-insured
depository institutions, based upon
such institutions’ demonstrated increase
of qualified activities, as reported in the
Application. The Application will
solicit information concerning:
Applicants’ eligibility to participate in
the BEA Program; the increase in total
dollar value of applicants’ qualified
activities; impact of qualified activities;
and appropriate supporting
documentation. The questions that the
Application contains, and the
information generated thereby, will
enable the CDFI Fund to evaluate
applicants’ activities and determine the
extent of applicants’ eligibility for BEA
Program awards.
Current Actions: Extension without
change of currently approved collection.
Type of Review: Regular.
Affected Public: Businesses or other
for-profit institutions, non-profit
entities, and State, local and Tribal
entities participating in CDFI Fund
programs.
Estimated Number of Respondents:
125.
Frequency of Response: Annually.
Estimated Total Number of Annual
Responses: 125.
Estimated Annual Time per
Respondent Including Optional
Questions: 20 hours.
Estimated Total Annual Burden
Hours: 2,500.
Requests for Comments: Comments
submitted in response to this notice will
be summarized and/or included in the
request for Office of Management and
Budget approval. All comments will
become a matter of public record and
may be published on the CDFI Fund’s
website at https://www.cdfifund.gov.
FOR FURTHER INFORMATION CONTACT:
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The CDFI Fund is seeking: (a) Specific
input on the BEA Program Application;
and (b) general input on other BEA
Program-related topics and
considerations. Commentators should
ensure that their comments are clearly
labeled in order to distinguish those
related to: (a) The BEA Program
Application or, (b) other BEA Program
related topics and considerations. The
Application may be obtained on BEA
page of the CDFI Fund’s website at
https://www.cdfifund.gov/programstraining/Programs/bank_enterprise_
award/Pages/apply-step.aspx#step1.
Commentators are encouraged to
consider, at a minimum, the following
topics:
A. BEA Program Application
Comments concerning the
Application are invited on: (a) Whether
the collection of information is
necessary for the proper performance of
the functions of the agency, including
whether the information shall have
practical utility; (b) the accuracy of the
agency’s estimate of the burden of the
collection of information; (c) ways to
enhance the quality, utility, and clarity
of the information to be collected; (d)
ways to minimize the burden of the
collection of information on
respondents, including through the use
of technology; and (e) estimates of
capital or start-up costs and costs of
operation, maintenance, and purchase
of services required to provide
information.
In addition, the CDFI Fund requests
comments in response to the following
general questions about the BEA
Program Application:
1. Is the data and information that is
proposed to be collected by the BEA
Program Application necessary and
appropriate for the CDFI Fund to
consider for the purpose of making
award decisions?
2. In general, does the data and
information requested in the BEA
Program Application allow an applicant
to demonstrate its lending, investment
and service activities in BEA Program
Distressed Communities or to CDFIs?
3. Are certain data fields, questions or
tables redundant or unnecessary?
4. Should any data fields, questions or
tables be added to ensure collection of
relevant information?
5. Are there any data fields, questions
or tables that are particularly difficult or
burdensome to answer? If so, please be
specific as to which questions or tables
and describe why they are difficult or
burdensome.
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A. Other BEA Program-Related Topics
and Considerations
The following section includes topics
and considerations that are not related
to the FY 2020 BEA Program funding
round or Application. Commentators
should clearly distinguish their
comments related to this section when
providing their responses.
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1. Financial Health
The CDFI Fund considers the safety
and soundness of BEA Program
Applicants in making award decisions.
Through Memorandums of
Understanding with federal regulators,
the CDFI Fund obtains safety and
soundness information directly from the
Federal Reserve Board, Federal Deposit
Insurance Corporation and the Office of
the Comptroller of the Currency. The
CDFI Fund is considering requiring
Applicants to report on their safety and
soundness by requesting that they
provide information on their most
recent independent audit, their most
recent Community Reinvestment Act
(CRA) Rating, and information on any
enforcement actions. The collection of
this information from Applicants would
be used to consider an Applicant’s
eligibility. Applicants will be deemed
ineligible if any of the following are
noted: Enforcement actions with
material concerns or Prompt Corrective
Actions, CRA assessment ratings below
‘‘Satisfactory’’, or the most recent
independent audit report with any of
the following: Going concern opinion;
an adverse opinion; a disclaimer of
opinion; or withdrawal of an opinion.
a. How much of a burden will the
collection of this information be for
Applicants?
b. Are there any reasons that the CDFI
Fund should not request this
information from Applicants? If yes,
please describe.
c. Is there anything else the CDFI
Fund should consider? If yes, please
describe.
2. BEA Program Categories,
Subcategories and Qualified Activities
Definitions
The BEA Program defines the
Qualified Activities, Categories and
Subcategories in the BEA Program
Interim Rule dated August 10, 2016 (12
CFR 1806). These definitions have been
provided as Appendix 1: BEA Program
Category, Subcategory and Activity
Type Definitions.
a. New Qualified Activities
(1) Are there any loan, investment or
service activities not currently
considered BEA Program Qualified
Activities that the CDFI Fund should
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consider adding? If so, indicate what the
activity is, describe it, and explain why
the CDFI Fund should consider it. Also,
describe the benefits of the activity to
CDFIs, residents or businesses in
Distressed Communities.
(2) The CDFI Fund does not currently
have a specific Qualified Activity type
for working capital or equipment loans.
These types of loans are typically
reported as Small Business Loans if the
borrower meets the size eligibility
standards. Should the CDFI Fund
consider introducing a new Qualified
Activity type specifically for working
capital or equipment loans for
businesses located in Distressed
Communities that do not meet the
criteria for a Small Business Loans?
Please explain why or why not.
(3) The CDFI Fund does not currently
have specific guidance for reverse
mortgages. A reverse mortgage is a
mortgage loan available to homeowners
62 years of age and older, usually
secured over a residential property that
enables the borrower to access the
unencumbered value of the property for
cash. Should the CDFI Fund consider
introducing reverse mortgages as a new
Qualified Activity type or consider
revising the definition of Affordable
Housing Loan to include reverse
mortgages? Please explain why or why
not.
b. Existing Qualified Activities
(1) Are there any loans, investments,
or service activities that are currently
considered BEA Program Qualified
Activities that the CDFI Fund should
consider updates to the definition? If so,
indicate the Qualified Activity and
explain why the CDFI Fund should
consider revising the definition.
(2) Are there any loans, investments,
or service activities that are currently
considered BEA Program Qualified
Activities that the CDFI Fund should
consider eliminating? If so, indicate
which activity it is and explain why the
CDFI Fund should consider eliminating.
(3) In FY 2016, the CDFI Fund
included Small Dollar Consumer Loans
as a BEA Qualified Activity. Small
Dollar Consumer Loans are defined as
affordable consumer lending products
that serve as available alternatives in the
marketplace for individuals who are
Eligible Residents who meet Low-andModerate income requirements and
meet criteria further specified in the
applicable NOFA. The FY 2016–2018
NOFAs indicate that Small Dollar
Consumer Loans have a total principal
value of no less than $500 and no
greater than $5,000. Is this dollar range
still relevant for this product? If no,
please provide a dollar range based on
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your organization’s experience offering
this product and explain why the CDFI
Fund should consider updating these
amounts.
(4) For Small Business Loans which
are Qualified Activities in the
Commercial Loans and Investments subcategory of the Distressed Community
Financing Activities category, the CDFI
Fund instructs Applicants to use the
size eligibility standards adopted by the
U.S. Small Business Administration’s
Development Company or Small
Business Investment Company programs
(13 CFR 121.01) for determining
whether a loan to a borrower is eligible
to be reported as this Qualified Activity.
Is there any other criteria the CDFI Fund
should consider for determining
whether a loan to a borrower is eligible
to be reported as a Small Business Loan?
If yes, please describe the criteria and
explain why the CDFI Fund should
consider it.
(5) The CDFI Fund currently values
the administrative cost of providing
certain Financial Services using the
following per unit values:
• $100.00 per account for Targeted
Financial Services including safe
transaction accounts, youth transaction
accounts, Electronic Transfer Accounts
and Individual Development Accounts;
• $50.00 per account for checking and
savings accounts that do not meet the
definition of Targeted Financial
Services;
• $5.00 per check cashing transaction;
• $50,000 per new ATM installed at
a location in a Distressed Community;
and
• $500,000 per new retail bank
branch office opened in a Distressed
Community, including school-based
bank branches approved by the
Applicant’s Federal bank regulator.
Should the CDFI Fund consider
updates to the valuation of these
administrative costs? If so, indicate the
Financial Service, suggested value, and
explain why the CDFI Fund should
consider revising the value.
3. Impact of Program Related Loans,
Investments and Service Activities
The CDFI Fund is considering adding
the following text entry fields in order
to improve the quality of impact data
collected in the BEA Program
Application. This information will
allow the CDFI Fund to standardize and
effectively report quantitative and
qualitative social impacts of program
related investments.
• Business Description: Applicants
will be required to provide a brief
description of the entity or business that
received the loan or investments. For
example, for Commercial Loans and
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Investments, if an Applicant provided a
commercial real estate loan to a widget
manufacturing business so that it could
purchase a warehouse in a distressed
community, the Applicant would
describe the business, using this text
entry field as ‘Commercial Real Estate
Loan to Widget Manufacturing Business
for Warehouse Purchase.’ If
implemented, there will be character
limits and the CDFI Fund will provide
additional examples.
• Impact: A further description of the
impact of the loan, investment or
service activity would be required. This
will help to contextualize the numerical
impact data currently collected.
Currently, applicants are only required
to provide numerical impact
information for certain activity types.
This new text entry field would add a
picklist or text entry box which would
depend on the activity type. Refer to
Appendix 2: Impact Reporting
Enhancements for examples of impact
as it relates to specific BEA Qualified
Activities.
a. Will reporting this information
significantly increase the number of
hours spent completing the BEA
Program Application?
b. Are there any reasons that the CDFI
Fund should not collect this
information?
c. Is there any additional information
or data that demonstrates the impact of
program related investments that the
CDFI Fund should consider?
a. How much of a burden will the
collection of this information be for
Applicants?
b. Are there any reasons that the CDFI
Fund should not collect this
information?
For all BEA Qualified Activities:
c. Is there any additional information
or data that demonstrates the
affordability of program related loans or
investments that the CDFI Fund should
consider?
4. Affordability of Program Related
Loans and Investments
a. Award Amount
(1) Should the CDFI Fund consider
awarding eligible applicants who
successfully demonstrate increases in
more than one BEA category a higher
single BEA Program award amount than
Applicants who demonstrate an
increase in one BEA category, if eligible
for the maximum award amount? If yes,
explain what should be considered in
determining the proportion of the
increased award amount. If no, explain
why not.
(2) Should the CDFI Fund establish a
maximum dollar amount that may be
awarded for the CDFI Related Activities
category? Explain why or why not.
(3) Should the CDFI Fund establish a
maximum dollar amount that may be
awarded for Distressed Community
Financing Activities category? Explain
why or why not.
(4) Should the CDFI Fund establish a
maximum dollar amount that may be
awarded for the Service Activities
category? Explain why or why not.
(5) Should the CDFI Fund determine
actual award amounts by a method
other than the existing formulaic award
The CDFI Fund is considering adding
the following fields to collect basic
information on the affordability of
financial products reported to the CDFI
Fund in the BEA Program Application
for award consideration. This data will
be used to perform future analyses to
better understand the affordability of
program related lending and may inform
future policy considerations. For BEA
Qualified Activities that are loans,
Applicants will be asked to provide:
• Interest Rate, Interest Type, and
Term: Applicants will input the interest
rate, select the interest type as either
‘Fixed’ or ‘Variable,’ and provide the
Term as the number of months. These
fields will provide important insight
into the pricing and terms offered to
borrowers that receive loans from BEA
Program Applicants.
• Origination Fees and Points:
Applicants will input this numerically
as basis points. This field will help the
CDFI Fund to better understand the
overall cost of loans made by BEA
Program Applicants.
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5. Award Selection Process
Section 1806.404(b), (c), and (d) of the
Interim Rule describes the award
selection process if insufficient funds
are available to cover estimated awards
for which Applicants are eligible,
priority of awards, and calculating
actual award amounts. Applicants are
ranked based on whether the Applicant
is a CDFI or a non-CDFI, and prioritized
in each category of BEA Qualified
Activities. Currently, one overall
maximum award amount has been
determined for an Applicant’s single
BEA Program award, despite the
number of categories the Applicant is
eligible to receive an award for. Award
selections within each BEA category are
based on an Applicant’s relative ranking
within each such category, subject to the
availability of funds and any established
maximum dollar amount of total awards
that may be awarded for the Distressed
Community Financing Activities
category of Qualified Activities, as
determined by the CDFI Fund.
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calculation? If yes, please describe the
method and note what benefits are
offered to Applicants, residents and
businesses in Distressed Communities,
and/or US taxpayers by implementing
this method. Also, indicate if/how the
method addresses the following factors
noted in Section 1834a(h)(1)(C). of the
BEA Statute: Degree of difficulty in
carrying out activities, community
impact, degree of innovative methods
for meeting community needs, leverage
of qualified activity amounts, total asset
size of the Applicant, new entrance to
providing services in a Distressed
Community, need for subsidy, and
extent of distress in a community.
b. Award Calculation
The estimated BEA Program award
calculation is the year-over-year
increase in Qualified Activities from the
Baseline to the Assessment Period
prioritized based on CDFI certification
status and CRA asset size, and
multiplied by an award percentage
based on the Category, Sub-category and
Qualified Activity type.
(1) Is there any additional criteria that
the CDFI Fund should consider in the
estimated BEA Program award
calculation?
6. Persistent Poverty Counties
The CDFI Fund is considering
prioritizing awards to Applicants that
invested in Persistent Poverty Counties
during the Assessment Period (this will
be determined by transactions
submitted in the application that are in
Persistent Poverty Counties). The CDFI
Fund would potentially implement this
by using the Address and Census Tract
to determine if BEA Qualified Activities
submitted in the application were made
in a Persistent Poverty County. This will
be used either separately or along with
Persistent Poverty County commitment
information currently collected in Table
8: Projected Use of BEA Program Award
to prioritize awards or increase award
amounts to Applicants will that serve
Persistent Poverty Counties with their
BEA Awards.
a. Are there are any reasons that CDFI
Fund should not use this information to
prioritize awards or increase award
amounts to Applicants that serve
Persistent Poverty Counties?
b. Is there anything else the CDFI
Fund should consider when
determining how Recipients can serve
Persistent Poverty Counties?
7. Integral Involvement
The Interim Rule defines CDFI
Support Activity as assistance provided
by an Applicant or its Subsidiary to a
certified CDFI that meets the Integral
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Involvement criteria set forth by the
CDFI Fund in the applicable NOFA.
Commenters should note that Integral
Involvement is a statutory program
requirement.
The NOFA defines Integrally Involved
as:
• Scenario I: Having provided at least
10% of the number of its financial
transactions or dollars transacted (e.g.,
loans or equity investments) in one or
more Distressed Communities in each of
the three calendar years preceding the
date of the applicable NOFA; or 10% of
the number of its Development Service
Activities or value of the administrative
cost of providing such services in one or
more Distressed Communities in each of
the three calendar years preceding the
date of the applicable NOFA;
• Scenario II: Transacted at least 25%
of the number of its financial
transactions or dollars transacted (e.g.,
loans or equity investments) in one or
more Distressed Communities in at least
one of the three calendar years
preceding the date of the applicable
NOFA or transacted at least 25% of the
number of its Development Service
Activities or value of the administrative
cost of providing such services in one or
more Distressed Communities in at least
one of the three calendar years
preceding the date of the applicable
NOFA;
• Scenario III: Demonstrating that it
has attained at least 10% of market
share for a particular product in one or
more Distressed Communities in at least
one of the three calendar years
preceding the date of the applicable
NOFA;
• Scenario IV: At least 25% of the
CDFI Partner’s physical locations (e.g.,
offices or branches) are located in one
or more Distressed Communities where
it provided financial transactions or
Development Service Activities during
the one calendar year preceding the date
of the NOFA.
a. Should the current definition of
Integrally Involved be revised or
replaced? If so, how should the CDFI
Fund define Integrally Involved?
b. Are there any other factors the CDFI
Fund should consider when
determining an updated definition of
Integrally Involved?
Authority: 12 U.S.C. 1834a, 4703, 4713,
4717; 12 CFR part 1806.
Dated: October 8, 2019.
Jodie L. Harris,
Director, Community Development Financial
Institutions Fund.
APPENDIX 1—BEA PROGRAM CATEGORY, SUBCATEGORY, ACTIVITY TYPE, AND OTHER RELATED TERMS—DEFINITIONS
Category, subcategory, activity
type, and other related terms
Interim rule definition
CDFI Related Activities ...................
Equity Investment ....................
Means Equity Investments, Equity-Like Loans, and CDFI Support Activities.
Means financial assistance provided by an Applicant or its Subsidiary to a CDFI, which CDFI meets such
criteria as set forth in the applicable NOFA, in the form of a grant, a stock purchase, a purchase of a
partnership interest, a purchase of a limited liability company membership interest, or any other investment deemed to be an Equity Investment by the CDFI Fund.
Means a loan provided by an Applicant or its Subsidiary to a CDFI, and made on such terms that it has
characteristics of an Equity Investment that meets such criteria as set forth in the applicable NOFA.
Means assistance provided by an Applicant or its Subsidiary to a CDFI that meets criteria set forth by the
CDFI Fund in the applicable NOFA and that is Integrally Involved in a Distressed Community, in the
form of the origination of a loan, Technical Assistance, or deposits, as further specified in the applicable
NOFA.
Means: (1) Consumer Loans; or (2) Commercial Loans and Investments.
Equity-Like Loan ......................
CDFI Support Activity ..............
Distressed Community Financing
Activities.
Consumer Loans .....................
Affordable Housing Loan .........
Education Loan ........................
Home Improvement Loan ........
Small Dollar Consumer Loan ..
Commercial Loans and Investments.
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Affordable Housing Development Loan.
Small Business Loan ...............
Commercial Real Estate Loan
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Means the following lending activity types: Affordable Housing Loans; Education Loans; Home Improvement Loans; and Small Dollar Consumer Loans.
Means origination of a loan to finance the purchase or improvement of the borrower’s primary residence,
and that is secured by such property, where such borrower is an Eligible Resident who meets Low- and
Moderate-Income requirements. Affordable Housing Loan may also refer to second (or otherwise subordinated) liens or ‘‘soft second’’ mortgages and other similar types of down payment assistance loans, but
may not necessarily be secured by such property originated for the purpose of facilitating the purchase
or improvement of the borrower’s primary residence, where such borrower is an Eligible Resident who
meets Low- and Moderate-Income requirements.
Means an advance of funds to a student who is an Eligible Resident who meets Low- and Moderate-Income requirements for the purpose of financing a college or vocational education.
Means an advance of funds, either unsecured or secured by a one-to-four family residential property, the
proceeds of which are used to improve the borrower’s primary residence, where such borrower is an Eligible Resident who meets Low- and Moderate-Income requirements.
Means affordable consumer lending products that serve as available alternatives in the marketplace for individuals who are Eligible Residents who meet Low- and Moderate-Income requirements and meet criteria further specified in the applicable NOFA.
Means the following lending types: Affordable Housing Development Loans and related Project Investments; Small Business Loans and related Project Investments, and Commercial Real Estate Loans and
related Project Investments.
Means origination of a loan to finance the acquisition, construction, and/or development of single- or multifamily residential real property, where at least 60% of the units in such property are affordable, as may
be defined in the applicable NOFA, to Eligible Residents who meet Low- and Moderate-Income requirements.
Means an origination of a loan used for commercial or industrial activities (other than an Affordable Housing Loan, Affordable Housing Development Loan, Commercial Real Estate Loan, Home Improvement
Loan) to a business or farm that meets the size eligibility standards of the Small Business Administration’s Development Company or Small Business Investment Company programs (13 CFR 121.301) and
is located in a Distressed Community.
Means an origination of a loan (other than an Affordable Housing Development Loan or Affordable Housing Loan) that is secured by real estate and used to finance the acquisition or rehabilitation of a building
in a Distressed Community, or the acquisition, construction and or development of property in a Distressed Community, used for commercial purposes.
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APPENDIX 1—BEA PROGRAM CATEGORY, SUBCATEGORY, ACTIVITY TYPE, AND OTHER RELATED TERMS—DEFINITIONS—
Continued
Category, subcategory, activity
type, and other related terms
Interim rule definition
Service Activities .............................
Means the following activities: Deposit Liabilities; Financial Services; Community Services; Targeted Financial Services; and Targeted Retail Savings/Investment Products.
Means time or savings deposits or demand deposits. Any such deposit must be accepted from Eligible
Residents at the offices of the Applicant or of the Subsidiary of the Applicant and located in the Distressed Community. Deposit Liabilities may only include deposits held by individuals in transaction accounts (e.g., demand deposits, negotiable order of withdrawal accounts, automated transfer service accounts, and telephone or preauthorized transfer accounts) or non-transaction accounts (e.g., money
market deposit accounts, other savings deposits, and all time deposits), as defined by the Appropriate
Federal Banking Agency.
Means check cashing, providing money orders and certified checks, automated teller machines (ATM),
safe deposit boxes, new branches, and other comparable services as may be specified by the CDFI
Fund in the applicable NOFA, that are provided by the Applicant to Eligible Residents or enterprises that
are Integrally Involved in the Distressed Community.
Means the following forms of assistance provided by officers, employees or agents (contractual or otherwise) of the Applicant:
(1) Provision of Technical Assistance and financial education to Eligible Residents regarding managing
their personal finances;
(2) Provision of Technical Assistance and consulting services to newly formed small businesses and nonprofit organizations located in the Distressed Community;
(3) Provision of Technical Assistance and financial education to, or servicing the loans of, homeowners
who are Eligible Residents and meet Low- and Moderate-Income requirements; and
(4) Other services provided to Eligible Residents who meet Low- and Moderate-Income requirements or
enterprises that are Integrally Involved in a Distressed Community, as deemed appropriate by the CDFI
Fund, and other comparable services as may be specified by the CDFI Fund in the applicable NOFA.
Deposit Liabilities .....................
Financial Services ....................
Community Services ................
Other Related Terms ......................
Targeted Financial Services ....
Targeted Retail Savings/Investment.
Products ...................................
Electronic Transfer Account
(ETA) 1.
Individual Development
count (or IDA) 2.
Ac-
Technical Assistance 3 .............
Means ETAs, IDAs, and such other banking products targeted to Eligible Residents, as may be specified
by the CDFI Fund in the applicable NOFA.
Means certificates of deposit, mutual funds, life insurance, and other similar savings or investment vehicles
targeted to Eligible Residents, as may be specified by the CDFI Fund in the applicable NOFA.
Means an account that meets the following requirements, and with respect to which the Applicant has satisfied the requirements: (1) Be an individually owned account at a Federally insured financial institution;
(2) Be available to any individual who receives a Federal benefit, wage, salary, or retirement payment;
(3) Accept electronic Federal benefit, wage, salary, and retirement payments and such other deposits as
a financial institution agrees to permit; (4) Be subject to a maximum price of $3.00 per month; (5) Have
a minimum of four cash withdrawals and four balance inquiries per month, to be included in the monthly
fee, through: (i) The financial institution’s proprietary (on-us) automated teller machines (ATMs); (ii)
Over-the-counter transactions at the main office or a branch of the financial institution; or (iii) Any combination of on-us ATM access and over-the-counter access at the option of the financial institution; (6)
Provide the same consumer protections that are available to other account holders at the financial institution, including, for accounts that provide electronic access, Regulation E (12 CFR part 205) protections
regarding disclosure, limitations on liability, procedures for reporting lost or stolen cards, and procedures
for error resolution; (7) For financial institutions that are members of an on-line point-of-sale (POS) network, allow on-line POS purchases, cash withdrawals, and cash back with purchases at no additional
charge by the financial institution offering the ETA; (8) Require no minimum balance, except as required
by Federal or State law; (9) At the option of the financial institution, be either an interest-bearing or a
non-interest-bearing account; and (10) Provide a monthly statement.
Means a special savings account that matches the deposits of Eligible Residents who meet Low- and
Moderate-Income requirements individuals and that enables such individuals to save money for a particular financial goal including, but not limited to, and as determined by the CDFI Fund: Buying a home,
paying for post-secondary education, or starting or expanding a small business.
Means the provision of consulting services, resources, training, and other nonmonetary support relating to
an organization, individual, or operation of a trade or business, as may be specified by the CDFI Fund in
the applicable NOFA.
khammond on DSKJM1Z7X2PROD with NOTICES
APPENDIX 2—IMPACT REPORTING ENHANCEMENTS
Activity type
Affordable Housing Development Loans and
Project Investments.
Abbreviation
Current impact reporting guidance
AHD ..................
Total number of affordable units developed or
rehabilitated as part of the transaction.
1 Included in the definition of Targeted Financial
Securities.
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2 Ibid.
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Proposed enhancement
Picklist—Single Family; Multi-Family.
3 Included in the definitions of: CDFI Support
Activity and Community Services.
Fmt 4703
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E:\FR\FM\15OCN1.SGM
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55228
Federal Register / Vol. 84, No. 199 / Tuesday, October 15, 2019 / Notices
APPENDIX 2—IMPACT REPORTING ENHANCEMENTS—Continued
Activity type
Abbreviation
Current impact reporting guidance
Proposed enhancement
Commercial Real Estate
Loans and Project Investments.
Small Business Loans
and Project Investments.
Financial Services ..........
CRE ..................
Total number of commercial real estate properties acquired, developed or rehabilitated.
Picklist—Acquisition; Development; Rehabilitation.
SBL ...................
Total number of full-time equivalent jobs created or maintained by borrower.
FS .....................
Number of accounts opened, checks cashed,
etc.
Number of accounts opened, checks cashed,
etc.
Number of products developed, sold or opened
Picklist—Working Capital; Business Expansion;
Business Startup; Fixed Capital; Equipment;
Other.
Picklist—Accounts Opened; Checks Cashed;
New Branch, New ATM, Other.
Picklist—Accounts Opened; Checks Cashed;
Other.
Text box—Describe the Product Type.
Number of individuals who received the identified service.
Text box—Describe the Type of Community
Services Provided.
Targeted Financial Services.
Targeted Savings Products.
Community Services ......
TFS ...................
TSP ..................
CS .....................
[FR Doc. 2019–22377 Filed 10–11–19; 8:45 am]
BILLING CODE 4810–70–P
DEPARTMENT OF THE TREASURY
Office of the Comptroller of the
Currency
Agency Information Collection
Activities: Information Collection
Renewal; Submission for OMB Review;
OCC Supplier Registration Form
Office of the Comptroller of the
Currency (OCC), Treasury.
ACTION: Notice and request for comment.
AGENCY:
The OCC, as part of its
continuing effort to reduce paperwork
and respondent burden, invites the
general public and other federal
agencies to take this opportunity to
comment on the renewal of an
information collection, as required by
the Paperwork Reduction Act of 1995
(PRA).
In accordance with the requirements
of the PRA, the OCC may not conduct
or sponsor, and respondents are not
required to respond to, an information
collection unless it displays a currently
valid Office of Management and Budget
(OMB) control number.
The OCC is soliciting comment
concerning the renewal of its
information collection titled, ‘‘OCC
Supplier Registration Form.’’ The OCC
also is giving notice that it has sent the
collection to OMB for review.
DATES: Comments must be submitted on
or before November 14, 2019.
ADDRESSES: Commenters are encouraged
to submit comments by email, if
possible. You may submit comments by
any of the following methods:
• Email: prainfo@occ.treas.gov.
• Mail: Chief Counsel’s Office,
Attention: Comment Processing, 1557–
0316, Office of the Comptroller of the
khammond on DSKJM1Z7X2PROD with NOTICES
SUMMARY:
VerDate Sep<11>2014
16:25 Oct 11, 2019
Jkt 250001
Currency, 400 7th Street SW, Suite 3E–
218, Washington, DC 20219.
• Hand Delivery/Courier: 400 7th
Street SW, Suite 3E–218, Washington,
DC 20219.
• Fax: (571) 465–4326.
Instructions: You must include
‘‘OCC’’ as the agency name and ‘‘1557–
0316’’ in your comment. In general, the
OCC will publish comments on
www.reginfo.gov without change,
including any business or personal
information provided, such as name and
address information, email addresses, or
phone numbers. Comments received,
including attachments and other
supporting materials, are part of the
public record and subject to public
disclosure. Do not include any
information in your comment or
supporting materials that you consider
confidential or inappropriate for public
disclosure.
Additionally, please send a copy of
your comments by mail to: OCC Desk
Officer, 1557–0316, U.S. Office of
Management and Budget, 725 17th
Street NW, #10235, Washington, DC
20503 or by email to oira_submission@
omb.eop.gov.
You may review comments and other
related materials that pertain to this
information collection 1 following the
close of the 30-day comment period for
this notice by any of the following
methods:
• Viewing Comments Electronically:
Go to www.reginfo.gov. Click on the
‘‘Information Collection Review’’ tab.
Underneath the ‘‘Currently under
Review’’ section heading, from the dropdown menu select ‘‘Department of
Treasury’’ and then click ‘‘submit.’’ This
information collection can be located by
searching by OMB control number
‘‘1557–0316’’ or ‘‘OCC Supplier
Registration Form.’’ Upon finding the
1 On April 5, 2019, the OCC published a 60-day
notice for this information collection, 84 FR 13785.
PO 00000
Frm 00095
Fmt 4703
Sfmt 4703
appropriate information collection, click
on the related ‘‘ICR Reference Number.’’
On the next screen, select ‘‘View
Supporting Statement and Other
Documents’’ and then click on the link
to any comment listed at the bottom of
the screen.
• For assistance in navigating
www.reginfo.gov, please contact the
Regulatory Information Service Center
at (202) 482–7340.
• Viewing Comments Personally: You
may personally inspect comments at the
OCC, 400 7th Street SW, Washington,
DC. For security reasons, the OCC
requires that visitors make an
appointment to inspect comments. You
may do so by calling (202) 649–6700 or,
for persons who are deaf or hearing
impaired, TTY, (202) 649–5597. Upon
arrival, visitors will be required to
present valid government-issued photo
identification and submit to security
screening in order to inspect comments.
FOR FURTHER INFORMATION CONTACT:
Shaquita Merritt, OCC Clearance
Officer, (202) 649–5490 or, for persons
who are deaf or hearing impaired, TTY,
(202) 649–5597, Chief Counsel’s Office,
Office of the Comptroller of the
Currency, 400 7th Street SW, Suite 3E–
218, Washington, DC 20219.
SUPPLEMENTARY INFORMATION: Under the
PRA (44 U.S.C. 3501 et seq.), federal
agencies must obtain approval from the
OMB for each collection of information
that they conduct or sponsor.
‘‘Collection of information’’ is defined
in 44 U.S.C. 3502(3) and 5 CFR
1320.3(c) to include agency requests or
requirements that members of the public
submit reports, keep records, or provide
information to a third party.
Title: OCC Supplier Registration
Form.
OMB Number: 1557–0316.
Frequency of Response: On occasion.
Affected Public: Business or other forprofit.
E:\FR\FM\15OCN1.SGM
15OCN1
]]>Agencies
[Federal Register Volume 84, Number 199 (Tuesday, October 15, 2019)]
[Notices]
[Pages 55223-55228]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-22377]
=======================================================================
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Agency Information Collection Activities; Proposed Collection:
Comment Request; Bank Enterprise Award Program Application
ACTION: Notice and request for public comment.
-----------------------------------------------------------------------
SUMMARY: The U.S. Department of the Treasury, as part of its continuing
effort to reduce paperwork and respondent burden, invites the general
public and other Federal agencies to take this opportunity to comment
on proposed and/or continuing information collections, as required by
the Paperwork Reduction Act (PRA) of 1995. Currently, the Community
Development Financial Institutions Fund (CDFI Fund), U.S. Department of
the Treasury, is soliciting comments concerning the Bank Enterprise
Award Program (BEA Program) Application, for the fiscal year (FY) 2020-
FY 2022 funding rounds (hereafter, the Application or Applications).
DATES: Written comments must be received on or before December 16, 2019
to be assured of consideration.
ADDRESSES: Submit your comments via email to Mia Sowell, BEA Program
Associate Program Manager, CDFI Fund, at [email protected], or by
facsimile to (202) 508-0089. Please note that this is not a toll free
number.
FOR FURTHER INFORMATION CONTACT: Mia Sowell, BEA Program Associate
Program Manager, CDFI Fund, U.S. Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington, DC 20220 or email to
[email protected].
SUPPLEMENTARY INFORMATION:
Title: BEA Program Application.
OMB Number: 1559-0005.
Abstract: The purpose of the Bank Enterprise Award Program (BEA
Program) is to provide an incentive to Federal Deposit Insurance
Corporation-insured (FDIC-insured) depository institutions to increase
their lending, investment, and financial services to residents and
businesses located in economically distressed communities, and provide
assistance to Community Development Financial Institutions (CDFIs)
through grants, stock purchases, loans, deposits, and other forms of
financial and technical assistance. The CDFI Fund will make awards
through the BEA Program to FDIC-insured depository institutions, based
upon such institutions' demonstrated increase of qualified activities,
as reported in the Application. The Application will solicit
information concerning: Applicants' eligibility to participate in the
BEA Program; the increase in total dollar value of applicants'
qualified activities; impact of qualified activities; and appropriate
supporting documentation. The questions that the Application contains,
and the information generated thereby, will enable the CDFI Fund to
evaluate applicants' activities and determine the extent of applicants'
eligibility for BEA Program awards.
Current Actions: Extension without change of currently approved
collection.
Type of Review: Regular.
Affected Public: Businesses or other for-profit institutions, non-
profit entities, and State, local and Tribal entities participating in
CDFI Fund programs.
Estimated Number of Respondents: 125.
Frequency of Response: Annually.
Estimated Total Number of Annual Responses: 125.
Estimated Annual Time per Respondent Including Optional Questions:
20 hours.
Estimated Total Annual Burden Hours: 2,500.
Requests for Comments: Comments submitted in response to this
notice will be summarized and/or included in the request for Office of
Management and Budget approval. All comments will become a matter of
public record and may be published on the CDFI Fund's website at
https://www.cdfifund.gov. The CDFI Fund is seeking: (a) Specific input
on the BEA Program Application; and (b) general input on other BEA
Program-related topics and considerations. Commentators should ensure
that their comments are clearly labeled in order to distinguish those
related to: (a) The BEA Program Application or, (b) other BEA Program
related topics and considerations. The Application may be obtained on
BEA page of the CDFI Fund's website at https://www.cdfifund.gov/programs-training/Programs/bank_enterprise_award/Pages/apply-step.aspx#step1.
Commentators are encouraged to consider, at a minimum, the
following topics:
A. BEA Program Application
Comments concerning the Application are invited on: (a) Whether the
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility, and clarity of the information to be collected; (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of technology; and (e) estimates
of capital or start-up costs and costs of operation, maintenance, and
purchase of services required to provide information.
In addition, the CDFI Fund requests comments in response to the
following general questions about the BEA Program Application:
1. Is the data and information that is proposed to be collected by
the BEA Program Application necessary and appropriate for the CDFI Fund
to consider for the purpose of making award decisions?
2. In general, does the data and information requested in the BEA
Program Application allow an applicant to demonstrate its lending,
investment and service activities in BEA Program Distressed Communities
or to CDFIs?
3. Are certain data fields, questions or tables redundant or
unnecessary?
4. Should any data fields, questions or tables be added to ensure
collection of relevant information?
5. Are there any data fields, questions or tables that are
particularly difficult or burdensome to answer? If so, please be
specific as to which questions or tables and describe why they are
difficult or burdensome.
[[Page 55224]]
A. Other BEA Program-Related Topics and Considerations
The following section includes topics and considerations that are
not related to the FY 2020 BEA Program funding round or Application.
Commentators should clearly distinguish their comments related to this
section when providing their responses.
1. Financial Health
The CDFI Fund considers the safety and soundness of BEA Program
Applicants in making award decisions. Through Memorandums of
Understanding with federal regulators, the CDFI Fund obtains safety and
soundness information directly from the Federal Reserve Board, Federal
Deposit Insurance Corporation and the Office of the Comptroller of the
Currency. The CDFI Fund is considering requiring Applicants to report
on their safety and soundness by requesting that they provide
information on their most recent independent audit, their most recent
Community Reinvestment Act (CRA) Rating, and information on any
enforcement actions. The collection of this information from Applicants
would be used to consider an Applicant's eligibility. Applicants will
be deemed ineligible if any of the following are noted: Enforcement
actions with material concerns or Prompt Corrective Actions, CRA
assessment ratings below ``Satisfactory'', or the most recent
independent audit report with any of the following: Going concern
opinion; an adverse opinion; a disclaimer of opinion; or withdrawal of
an opinion.
a. How much of a burden will the collection of this information be
for Applicants?
b. Are there any reasons that the CDFI Fund should not request this
information from Applicants? If yes, please describe.
c. Is there anything else the CDFI Fund should consider? If yes,
please describe.
2. BEA Program Categories, Subcategories and Qualified Activities
Definitions
The BEA Program defines the Qualified Activities, Categories and
Subcategories in the BEA Program Interim Rule dated August 10, 2016 (12
CFR 1806). These definitions have been provided as Appendix 1: BEA
Program Category, Subcategory and Activity Type Definitions.
a. New Qualified Activities
(1) Are there any loan, investment or service activities not
currently considered BEA Program Qualified Activities that the CDFI
Fund should consider adding? If so, indicate what the activity is,
describe it, and explain why the CDFI Fund should consider it. Also,
describe the benefits of the activity to CDFIs, residents or businesses
in Distressed Communities.
(2) The CDFI Fund does not currently have a specific Qualified
Activity type for working capital or equipment loans. These types of
loans are typically reported as Small Business Loans if the borrower
meets the size eligibility standards. Should the CDFI Fund consider
introducing a new Qualified Activity type specifically for working
capital or equipment loans for businesses located in Distressed
Communities that do not meet the criteria for a Small Business Loans?
Please explain why or why not.
(3) The CDFI Fund does not currently have specific guidance for
reverse mortgages. A reverse mortgage is a mortgage loan available to
homeowners 62 years of age and older, usually secured over a
residential property that enables the borrower to access the
unencumbered value of the property for cash. Should the CDFI Fund
consider introducing reverse mortgages as a new Qualified Activity type
or consider revising the definition of Affordable Housing Loan to
include reverse mortgages? Please explain why or why not.
b. Existing Qualified Activities
(1) Are there any loans, investments, or service activities that
are currently considered BEA Program Qualified Activities that the CDFI
Fund should consider updates to the definition? If so, indicate the
Qualified Activity and explain why the CDFI Fund should consider
revising the definition.
(2) Are there any loans, investments, or service activities that
are currently considered BEA Program Qualified Activities that the CDFI
Fund should consider eliminating? If so, indicate which activity it is
and explain why the CDFI Fund should consider eliminating.
(3) In FY 2016, the CDFI Fund included Small Dollar Consumer Loans
as a BEA Qualified Activity. Small Dollar Consumer Loans are defined as
affordable consumer lending products that serve as available
alternatives in the marketplace for individuals who are Eligible
Residents who meet Low-and-Moderate income requirements and meet
criteria further specified in the applicable NOFA. The FY 2016-2018
NOFAs indicate that Small Dollar Consumer Loans have a total principal
value of no less than $500 and no greater than $5,000. Is this dollar
range still relevant for this product? If no, please provide a dollar
range based on your organization's experience offering this product and
explain why the CDFI Fund should consider updating these amounts.
(4) For Small Business Loans which are Qualified Activities in the
Commercial Loans and Investments sub-category of the Distressed
Community Financing Activities category, the CDFI Fund instructs
Applicants to use the size eligibility standards adopted by the U.S.
Small Business Administration's Development Company or Small Business
Investment Company programs (13 CFR 121.01) for determining whether a
loan to a borrower is eligible to be reported as this Qualified
Activity. Is there any other criteria the CDFI Fund should consider for
determining whether a loan to a borrower is eligible to be reported as
a Small Business Loan? If yes, please describe the criteria and explain
why the CDFI Fund should consider it.
(5) The CDFI Fund currently values the administrative cost of
providing certain Financial Services using the following per unit
values:
$100.00 per account for Targeted Financial Services
including safe transaction accounts, youth transaction accounts,
Electronic Transfer Accounts and Individual Development Accounts;
$50.00 per account for checking and savings accounts that
do not meet the definition of Targeted Financial Services;
$5.00 per check cashing transaction;
$50,000 per new ATM installed at a location in a
Distressed Community; and
$500,000 per new retail bank branch office opened in a
Distressed Community, including school-based bank branches approved by
the Applicant's Federal bank regulator.
Should the CDFI Fund consider updates to the valuation of these
administrative costs? If so, indicate the Financial Service, suggested
value, and explain why the CDFI Fund should consider revising the
value.
3. Impact of Program Related Loans, Investments and Service Activities
The CDFI Fund is considering adding the following text entry fields
in order to improve the quality of impact data collected in the BEA
Program Application. This information will allow the CDFI Fund to
standardize and effectively report quantitative and qualitative social
impacts of program related investments.
Business Description: Applicants will be required to
provide a brief description of the entity or business that received the
loan or investments. For example, for Commercial Loans and
[[Page 55225]]
Investments, if an Applicant provided a commercial real estate loan to
a widget manufacturing business so that it could purchase a warehouse
in a distressed community, the Applicant would describe the business,
using this text entry field as `Commercial Real Estate Loan to Widget
Manufacturing Business for Warehouse Purchase.' If implemented, there
will be character limits and the CDFI Fund will provide additional
examples.
Impact: A further description of the impact of the loan,
investment or service activity would be required. This will help to
contextualize the numerical impact data currently collected. Currently,
applicants are only required to provide numerical impact information
for certain activity types. This new text entry field would add a
picklist or text entry box which would depend on the activity type.
Refer to Appendix 2: Impact Reporting Enhancements for examples of
impact as it relates to specific BEA Qualified Activities.
a. Will reporting this information significantly increase the
number of hours spent completing the BEA Program Application?
b. Are there any reasons that the CDFI Fund should not collect this
information?
c. Is there any additional information or data that demonstrates
the impact of program related investments that the CDFI Fund should
consider?
4. Affordability of Program Related Loans and Investments
The CDFI Fund is considering adding the following fields to collect
basic information on the affordability of financial products reported
to the CDFI Fund in the BEA Program Application for award
consideration. This data will be used to perform future analyses to
better understand the affordability of program related lending and may
inform future policy considerations. For BEA Qualified Activities that
are loans, Applicants will be asked to provide:
Interest Rate, Interest Type, and Term: Applicants will
input the interest rate, select the interest type as either `Fixed' or
`Variable,' and provide the Term as the number of months. These fields
will provide important insight into the pricing and terms offered to
borrowers that receive loans from BEA Program Applicants.
Origination Fees and Points: Applicants will input this
numerically as basis points. This field will help the CDFI Fund to
better understand the overall cost of loans made by BEA Program
Applicants.
a. How much of a burden will the collection of this information be
for Applicants?
b. Are there any reasons that the CDFI Fund should not collect this
information?
For all BEA Qualified Activities:
c. Is there any additional information or data that demonstrates
the affordability of program related loans or investments that the CDFI
Fund should consider?
5. Award Selection Process
Section 1806.404(b), (c), and (d) of the Interim Rule describes the
award selection process if insufficient funds are available to cover
estimated awards for which Applicants are eligible, priority of awards,
and calculating actual award amounts. Applicants are ranked based on
whether the Applicant is a CDFI or a non-CDFI, and prioritized in each
category of BEA Qualified Activities. Currently, one overall maximum
award amount has been determined for an Applicant's single BEA Program
award, despite the number of categories the Applicant is eligible to
receive an award for. Award selections within each BEA category are
based on an Applicant's relative ranking within each such category,
subject to the availability of funds and any established maximum dollar
amount of total awards that may be awarded for the Distressed Community
Financing Activities category of Qualified Activities, as determined by
the CDFI Fund.
a. Award Amount
(1) Should the CDFI Fund consider awarding eligible applicants who
successfully demonstrate increases in more than one BEA category a
higher single BEA Program award amount than Applicants who demonstrate
an increase in one BEA category, if eligible for the maximum award
amount? If yes, explain what should be considered in determining the
proportion of the increased award amount. If no, explain why not.
(2) Should the CDFI Fund establish a maximum dollar amount that may
be awarded for the CDFI Related Activities category? Explain why or why
not.
(3) Should the CDFI Fund establish a maximum dollar amount that may
be awarded for Distressed Community Financing Activities category?
Explain why or why not.
(4) Should the CDFI Fund establish a maximum dollar amount that may
be awarded for the Service Activities category? Explain why or why not.
(5) Should the CDFI Fund determine actual award amounts by a method
other than the existing formulaic award calculation? If yes, please
describe the method and note what benefits are offered to Applicants,
residents and businesses in Distressed Communities, and/or US taxpayers
by implementing this method. Also, indicate if/how the method addresses
the following factors noted in Section 1834a(h)(1)(C). of the BEA
Statute: Degree of difficulty in carrying out activities, community
impact, degree of innovative methods for meeting community needs,
leverage of qualified activity amounts, total asset size of the
Applicant, new entrance to providing services in a Distressed
Community, need for subsidy, and extent of distress in a community.
b. Award Calculation
The estimated BEA Program award calculation is the year-over-year
increase in Qualified Activities from the Baseline to the Assessment
Period prioritized based on CDFI certification status and CRA asset
size, and multiplied by an award percentage based on the Category, Sub-
category and Qualified Activity type.
(1) Is there any additional criteria that the CDFI Fund should
consider in the estimated BEA Program award calculation?
6. Persistent Poverty Counties
The CDFI Fund is considering prioritizing awards to Applicants that
invested in Persistent Poverty Counties during the Assessment Period
(this will be determined by transactions submitted in the application
that are in Persistent Poverty Counties). The CDFI Fund would
potentially implement this by using the Address and Census Tract to
determine if BEA Qualified Activities submitted in the application were
made in a Persistent Poverty County. This will be used either
separately or along with Persistent Poverty County commitment
information currently collected in Table 8: Projected Use of BEA
Program Award to prioritize awards or increase award amounts to
Applicants will that serve Persistent Poverty Counties with their BEA
Awards.
a. Are there are any reasons that CDFI Fund should not use this
information to prioritize awards or increase award amounts to
Applicants that serve Persistent Poverty Counties?
b. Is there anything else the CDFI Fund should consider when
determining how Recipients can serve Persistent Poverty Counties?
7. Integral Involvement
The Interim Rule defines CDFI Support Activity as assistance
provided by an Applicant or its Subsidiary to a certified CDFI that
meets the Integral
[[Page 55226]]
Involvement criteria set forth by the CDFI Fund in the applicable NOFA.
Commenters should note that Integral Involvement is a statutory program
requirement.
The NOFA defines Integrally Involved as:
Scenario I: Having provided at least 10% of the number of
its financial transactions or dollars transacted (e.g., loans or equity
investments) in one or more Distressed Communities in each of the three
calendar years preceding the date of the applicable NOFA; or 10% of the
number of its Development Service Activities or value of the
administrative cost of providing such services in one or more
Distressed Communities in each of the three calendar years preceding
the date of the applicable NOFA;
Scenario II: Transacted at least 25% of the number of its
financial transactions or dollars transacted (e.g., loans or equity
investments) in one or more Distressed Communities in at least one of
the three calendar years preceding the date of the applicable NOFA or
transacted at least 25% of the number of its Development Service
Activities or value of the administrative cost of providing such
services in one or more Distressed Communities in at least one of the
three calendar years preceding the date of the applicable NOFA;
Scenario III: Demonstrating that it has attained at least
10% of market share for a particular product in one or more Distressed
Communities in at least one of the three calendar years preceding the
date of the applicable NOFA;
Scenario IV: At least 25% of the CDFI Partner's physical
locations (e.g., offices or branches) are located in one or more
Distressed Communities where it provided financial transactions or
Development Service Activities during the one calendar year preceding
the date of the NOFA.
a. Should the current definition of Integrally Involved be revised
or replaced? If so, how should the CDFI Fund define Integrally
Involved?
b. Are there any other factors the CDFI Fund should consider when
determining an updated definition of Integrally Involved?
Authority: 12 U.S.C. 1834a, 4703, 4713, 4717; 12 CFR part 1806.
Dated: October 8, 2019.
Jodie L. Harris,
Director, Community Development Financial Institutions Fund.
Appendix 1--BEA Program Category, Subcategory, Activity Type, and Other
Related Terms--Definitions
------------------------------------------------------------------------
Category, subcategory, activity
type, and other related terms Interim rule definition
------------------------------------------------------------------------
CDFI Related Activities........... Means Equity Investments, Equity-
Like Loans, and CDFI Support
Activities.
Equity Investment............. Means financial assistance provided
by an Applicant or its Subsidiary
to a CDFI, which CDFI meets such
criteria as set forth in the
applicable NOFA, in the form of a
grant, a stock purchase, a purchase
of a partnership interest, a
purchase of a limited liability
company membership interest, or any
other investment deemed to be an
Equity Investment by the CDFI Fund.
Equity-Like Loan.............. Means a loan provided by an
Applicant or its Subsidiary to a
CDFI, and made on such terms that
it has characteristics of an Equity
Investment that meets such criteria
as set forth in the applicable
NOFA.
CDFI Support Activity......... Means assistance provided by an
Applicant or its Subsidiary to a
CDFI that meets criteria set forth
by the CDFI Fund in the applicable
NOFA and that is Integrally
Involved in a Distressed Community,
in the form of the origination of a
loan, Technical Assistance, or
deposits, as further specified in
the applicable NOFA.
Distressed Community Financing Means: (1) Consumer Loans; or (2)
Activities. Commercial Loans and Investments.
Consumer Loans................ Means the following lending activity
types: Affordable Housing Loans;
Education Loans; Home Improvement
Loans; and Small Dollar Consumer
Loans.
Affordable Housing Loan....... Means origination of a loan to
finance the purchase or improvement
of the borrower's primary
residence, and that is secured by
such property, where such borrower
is an Eligible Resident who meets
Low- and Moderate-Income
requirements. Affordable Housing
Loan may also refer to second (or
otherwise subordinated) liens or
``soft second'' mortgages and other
similar types of down payment
assistance loans, but may not
necessarily be secured by such
property originated for the purpose
of facilitating the purchase or
improvement of the borrower's
primary residence, where such
borrower is an Eligible Resident
who meets Low- and Moderate-Income
requirements.
Education Loan................ Means an advance of funds to a
student who is an Eligible Resident
who meets Low- and Moderate-Income
requirements for the purpose of
financing a college or vocational
education.
Home Improvement Loan......... Means an advance of funds, either
unsecured or secured by a one-to-
four family residential property,
the proceeds of which are used to
improve the borrower's primary
residence, where such borrower is
an Eligible Resident who meets Low-
and Moderate-Income requirements.
Small Dollar Consumer Loan.... Means affordable consumer lending
products that serve as available
alternatives in the marketplace for
individuals who are Eligible
Residents who meet Low- and
Moderate-Income requirements and
meet criteria further specified in
the applicable NOFA.
Commercial Loans and Means the following lending types:
Investments. Affordable Housing Development
Loans and related Project
Investments; Small Business Loans
and related Project Investments,
and Commercial Real Estate Loans
and related Project Investments.
Affordable Housing Development Means origination of a loan to
Loan. finance the acquisition,
construction, and/or development of
single- or multifamily residential
real property, where at least 60%
of the units in such property are
affordable, as may be defined in
the applicable NOFA, to Eligible
Residents who meet Low- and
Moderate-Income requirements.
Small Business Loan........... Means an origination of a loan used
for commercial or industrial
activities (other than an
Affordable Housing Loan, Affordable
Housing Development Loan,
Commercial Real Estate Loan, Home
Improvement Loan) to a business or
farm that meets the size
eligibility standards of the Small
Business Administration's
Development Company or Small
Business Investment Company
programs (13 CFR 121.301) and is
located in a Distressed Community.
Commercial Real Estate Loan... Means an origination of a loan
(other than an Affordable Housing
Development Loan or Affordable
Housing Loan) that is secured by
real estate and used to finance the
acquisition or rehabilitation of a
building in a Distressed Community,
or the acquisition, construction
and or development of property in a
Distressed Community, used for
commercial purposes.
[[Page 55227]]
Service Activities................ Means the following activities:
Deposit Liabilities; Financial
Services; Community Services;
Targeted Financial Services; and
Targeted Retail Savings/Investment
Products.
Deposit Liabilities........... Means time or savings deposits or
demand deposits. Any such deposit
must be accepted from Eligible
Residents at the offices of the
Applicant or of the Subsidiary of
the Applicant and located in the
Distressed Community. Deposit
Liabilities may only include
deposits held by individuals in
transaction accounts (e.g., demand
deposits, negotiable order of
withdrawal accounts, automated
transfer service accounts, and
telephone or preauthorized transfer
accounts) or non-transaction
accounts (e.g., money market
deposit accounts, other savings
deposits, and all time deposits),
as defined by the Appropriate
Federal Banking Agency.
Financial Services............ Means check cashing, providing money
orders and certified checks,
automated teller machines (ATM),
safe deposit boxes, new branches,
and other comparable services as
may be specified by the CDFI Fund
in the applicable NOFA, that are
provided by the Applicant to
Eligible Residents or enterprises
that are Integrally Involved in the
Distressed Community.
Community Services............ Means the following forms of
assistance provided by officers,
employees or agents (contractual or
otherwise) of the Applicant:
(1) Provision of Technical
Assistance and financial education
to Eligible Residents regarding
managing their personal finances;
(2) Provision of Technical
Assistance and consulting services
to newly formed small businesses
and nonprofit organizations located
in the Distressed Community;
(3) Provision of Technical
Assistance and financial education
to, or servicing the loans of,
homeowners who are Eligible
Residents and meet Low- and
Moderate-Income requirements; and
(4) Other services provided to
Eligible Residents who meet Low-
and Moderate-Income requirements or
enterprises that are Integrally
Involved in a Distressed Community,
as deemed appropriate by the CDFI
Fund, and other comparable services
as may be specified by the CDFI
Fund in the applicable NOFA.
Other Related Terms............... ....................................
Targeted Financial Services... Means ETAs, IDAs, and such other
banking products targeted to
Eligible Residents, as may be
specified by the CDFI Fund in the
applicable NOFA.
Targeted Retail Savings/ Means certificates of deposit,
Investment. mutual funds, life insurance, and
Products...................... other similar savings or investment
vehicles targeted to Eligible
Residents, as may be specified by
the CDFI Fund in the applicable
NOFA.
Electronic Transfer Account Means an account that meets the
(ETA) \1\. following requirements, and with
respect to which the Applicant has
satisfied the requirements: (1) Be
an individually owned account at a
Federally insured financial
institution; (2) Be available to
any individual who receives a
Federal benefit, wage, salary, or
retirement payment; (3) Accept
electronic Federal benefit, wage,
salary, and retirement payments and
such other deposits as a financial
institution agrees to permit; (4)
Be subject to a maximum price of
$3.00 per month; (5) Have a minimum
of four cash withdrawals and four
balance inquiries per month, to be
included in the monthly fee,
through: (i) The financial
institution's proprietary (on-us)
automated teller machines (ATMs);
(ii) Over-the-counter transactions
at the main office or a branch of
the financial institution; or (iii)
Any combination of on-us ATM access
and over-the-counter access at the
option of the financial
institution; (6) Provide the same
consumer protections that are
available to other account holders
at the financial institution,
including, for accounts that
provide electronic access,
Regulation E (12 CFR part 205)
protections regarding disclosure,
limitations on liability,
procedures for reporting lost or
stolen cards, and procedures for
error resolution; (7) For financial
institutions that are members of an
on-line point-of-sale (POS)
network, allow on-line POS
purchases, cash withdrawals, and
cash back with purchases at no
additional charge by the financial
institution offering the ETA; (8)
Require no minimum balance, except
as required by Federal or State
law; (9) At the option of the
financial institution, be either an
interest-bearing or a non-interest-
bearing account; and (10) Provide a
monthly statement.
Individual Development Account Means a special savings account that
(or IDA) \2\. matches the deposits of Eligible
Residents who meet Low- and
Moderate-Income requirements
individuals and that enables such
individuals to save money for a
particular financial goal
including, but not limited to, and
as determined by the CDFI Fund:
Buying a home, paying for post-
secondary education, or starting or
expanding a small business.
Technical Assistance \3\...... Means the provision of consulting
services, resources, training, and
other nonmonetary support relating
to an organization, individual, or
operation of a trade or business,
as may be specified by the CDFI
Fund in the applicable NOFA.
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\1\ Included in the definition of Targeted Financial Securities.
\2\ Ibid.
\3\ Included in the definitions of: CDFI Support Activity and
Community Services.
Appendix 2--Impact Reporting Enhancements
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Current impact reporting
Activity type Abbreviation guidance Proposed enhancement
----------------------------------------------------------------------------------------------------------------
Affordable Housing Development AHD...................... Total number of Picklist--Single Family;
Loans and Project Investments. affordable units Multi-Family.
developed or
rehabilitated as part
of the transaction.
[[Page 55228]]
Commercial Real Estate Loans and CRE...................... Total number of Picklist--Acquisition;
Project Investments. commercial real estate Development;
properties acquired, Rehabilitation.
developed or
rehabilitated.
Small Business Loans and Project SBL...................... Total number of full- Picklist--Working
Investments. time equivalent jobs Capital; Business
created or maintained Expansion; Business
by borrower. Startup; Fixed Capital;
Equipment; Other.
Financial Services............... FS....................... Number of accounts Picklist--Accounts
opened, checks cashed, Opened; Checks Cashed;
etc. New Branch, New ATM,
Other.
Targeted Financial Services...... TFS...................... Number of accounts Picklist--Accounts
opened, checks cashed, Opened; Checks Cashed;
etc. Other.
Targeted Savings Products........ TSP...................... Number of products Text box--Describe the
developed, sold or Product Type.
opened.
Community Services............... CS....................... Number of individuals Text box--Describe the
who received the Type of Community
identified service. Services Provided.
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[FR Doc. 2019-22377 Filed 10-11-19; 8:45 am]
BILLING CODE 4810-70-P
