Agency Information Collection Activities; Proposed Collection: Comment Request; Bank Enterprise Award Program Application, 55223-55228 [2019-22377]

Download as PDF Federal Register / Vol. 84, No. 199 / Tuesday, October 15, 2019 / Notices Government, or national security; and (3) the disclosure made to such agencies, entities, and persons is reasonably necessary to assist in connection with DOT’s efforts to respond to the suspected or confirmed breach or to prevent, minimize, or remedy such harm. 11b. To another Federal agency or Federal entity, when DOT determines that information from this system of records is reasonably necessary to assist the recipient agency or entity in (1) responding to a suspected or confirmed breach or (2) preventing, minimizing, or remedying the risk of harm to individuals, the recipient agency or entity (including its information systems, programs, and operations), the Federal Government, or national security, resulting from a suspected or confirmed breach. 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. khammond on DSKJM1Z7X2PROD with NOTICES SUMMARY: VerDate Sep<11>2014 16:25 Oct 11, 2019 Jkt 250001 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: PO 00000 Frm 00090 Fmt 4703 Sfmt 4703 55223 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. E:\FR\FM\15OCN1.SGM 15OCN1 55224 Federal Register / Vol. 84, No. 199 / Tuesday, October 15, 2019 / Notices 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. khammond on DSKJM1Z7X2PROD with NOTICES 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 VerDate Sep<11>2014 16:25 Oct 11, 2019 Jkt 250001 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 PO 00000 Frm 00091 Fmt 4703 Sfmt 4703 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 E:\FR\FM\15OCN1.SGM 15OCN1 khammond on DSKJM1Z7X2PROD with NOTICES Federal Register / Vol. 84, No. 199 / Tuesday, October 15, 2019 / Notices 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. VerDate Sep<11>2014 16:25 Oct 11, 2019 Jkt 250001 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. PO 00000 Frm 00092 Fmt 4703 Sfmt 4703 55225 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 E:\FR\FM\15OCN1.SGM 15OCN1 55226 Federal Register / Vol. 84, No. 199 / Tuesday, October 15, 2019 / Notices 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. khammond on DSKJM1Z7X2PROD with NOTICES Affordable Housing Development Loan. Small Business Loan ............... Commercial Real Estate Loan VerDate Sep<11>2014 16:25 Oct 11, 2019 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. Jkt 250001 PO 00000 Frm 00093 Fmt 4703 Sfmt 4703 E:\FR\FM\15OCN1.SGM 15OCN1 Federal Register / Vol. 84, No. 199 / Tuesday, October 15, 2019 / Notices 55227 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. VerDate Sep<11>2014 16:25 Oct 11, 2019 Jkt 250001 2 Ibid. PO 00000 Frm 00094 Proposed enhancement Picklist—Single Family; Multi-Family. 3 Included in the definitions of: CDFI Support Activity and Community Services. Fmt 4703 Sfmt 4703 E:\FR\FM\15OCN1.SGM 15OCN1 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
----------------------------------------------------------------------------------------------------------------
                                                              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.
----------------------------------------------------------------------------------------------------------------

[FR Doc. 2019-22377 Filed 10-11-19; 8:45 am]
BILLING CODE 4810-70-P