Community Development Financial Institutions Program (21.020)

Program

21.020 Community Development Financial Institutions Program

Federal Agency

Agency: Department of the Treasury
Office: Community Development Financial Institutions Fund

Authorization

Community Development Banking and Financial Institutions Act of 1994, Public Law 103-325, 12 U.S.C 4701 et.seq; American Recovery and Reinvestment Act of 2009, Executive Order ("Recovery Act"), Public Law 111-5.

Program Number

21.020

Last Known Status

Active

Objectives

Through the CDFI Program and the Native American CDFI Assistance (NACA) Program Financial Assistance (FA) awards invests in CDFIs that demonstrate they have the financial and managerial capacity to: 1) provide affordable and appropriate financial products and services to positively impact their communities; 2) be viable financial institutions; and 3) use and leverage CDFI Fund dollars effectively. Technical Assistance (TA) awards, provides grants to build the internal capacity of start-up and existing CDFIs by helping them provide their products or services. For example, TA grants can be used: 1) to purchase technology (usually efficiency enhancing technology such as computers and loan management software); 2) to facilitate staff training; 3) to engage consulting services to acquire needed skills or services (such as a market analysis or lending policies and procedures); and 4) to pay for staff time to conduct discrete, capacity-building activities such as website development.

Types of Assistance

PROJECT GRANTS

Uses and Use Restrictions

Awards under this program provide financial assistance to enhance the awardee's ability to make loans or development investments and to provide development services that will promote economic revitalization and community development. Each awardee enters into an assistance agreement that requires it to comply with performance goals and abide by other terms and conditions pertinent to assistance received under this program. No awards may be issued to Federal Government agencies; departments or instrumentalities; and State government or local government or any agency or instrumentality thereof. Under Section 1512 of the Recovery Act guidance, each awardee or recipient is required to report specific data elements including job creation information back to the CDFI Fund 10 days after the end of each calendar quarter, starting on July 10th.

Eligibility Requirements

Applicant Eligibility

Private nonprofit institutions/organizations, other private institutions/organizations, profit organizations. Only Community Development Financial Institutions or entities that provide information necessary for the awarding agency to certify the applicant organization as a Community Development Financial Institution or is seeking to become a CDFI, are eligible to apply for this program.

Beneficiary Eligibility

Private nonprofit institutions/organizations, other private institutions/organizations, profit organizations. Awards to eligible applicants under this program provide financial and /or technical assistance in order to enhance their ability to make loans and development investments and provide development services that benefit a designated investment area(s), targeted population(s), or both.

Credentials/Documentation

An applicant must provide information necessary to establish that it is, or will be, a CDFI. This program is excluded from coverage under OMB Circular No. A-87.

Application and Award Process

Preapplication Coordination

Preapplication coordination is not applicable. Environmental impact information is not required for this program. This program is excluded from coverage under E.O. 12372.

Application Procedure

This program is excluded from coverage under OMB Circular No. A-102. OMB Circular No. A-110 applies to this program. Each applicant must complete an application package which includes a Comprehensive Business Plan. The CDFI Fund provides the application package format.

Award Procedure

The CDFI Fund reviews applications and makes awards based on an established awards review process.

Deadlines

Contact the headquarters or regional office, as appropriate, for application deadlines.

Range of Approval/Disapproval Time

Annual Notice of Funds Availability (NOFA), published in the Federal Register, announces deadline dates for submission of applications. Deadline dates generally range from 60 to 90 days subsequent to the notice publication date.

Appeals

None.

Renewals

None.

Assistance Considerations

Formula and Matching Requirements

Statutory formulas are not applicable to this program.

Matching Requirements: The American Reinvestment and Recovery Act of 2009 waived the requirement that the CDFI Fund make awards to applicants in a "like form" to the matching funds secured by the awardee, thus 2009 CDFI and NACA program awards are not required to be matched by non-Federal sources. The Recovery Act also waived the 3-year, $5 million cap on awards for 2009.

MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Awards are made for a three-year period. See the following for information on how assistance is awarded/released: Disbursement of funds may be provided in a lump sum or over the life of the award depending on the terms and conditions established at time of award issuance.

Post Assistance Requirements

Reports

Program reports are not applicable. Cash reports are not applicable. Progress reports are not applicable. Expenditure reports are not applicable. The type and schedule of reports is specified in the Notice of Funding Aviliability and in the agreement governing the award.

Audits

This program is excluded from coverage under OMB Circular No. A-133. See the Notice of Funding Availability.

Records

Award recipients are expected to maintain records to substantiate total costs incurred and to assure that all performance measures were met. Records must be retained in accordance with the provisions of OMB Circular No. A-110.

Program Accomplishments

Fiscal Year 2008: 88 awards were made for the FA and TA CDFI program. Fiscal Year 2009: 54 awards are projected with regular appropriation; 50 awards are projected for Recovery Act appropriation. Fiscal Year 2010: 85 awards are projected for FA and TA CDFI program.

Financial Information

Account Identification

20-1882-0-0-910 - American Recovery and Reinvestment Act of 2009; 20-1881-0-1-451 - Regular Appropriation.

Obligations

(Project Grants) FY 08 $44,794,749; FY 09 est $55,000,000; FY 10 est $113,600,000. (Project Grants) FY 08 $0; FY 09 est $100,000,000; FY 10 est $0 - Recovery Act Appropriation $98,000,000 Grants; $2,000,000 Administration.

Range and Average of Financial Assistance

FY 2008 Range of Financial Assistance Awards - $25,000 - $2,000,000; Average Financial Assistance award - $745,806; for Fy 2009, range will be the same as FY 2008 and the Average Financial Assistnace award is projected to be $2,000,000.

Regulations, Guidelines and Literature

12 CFR Part 1805, Notice of Funding Availability. Community Development Financial Institutions Program Application. Website: www.cdfifund.gov.

Related Programs

21.021 Bank Enterprise Award Program

Information Contacts

Regional or Local Office

None.

Headquarters Office

Glennel M. Cooper 601 13th Street, N.W.,
Suite 200 South, Washington, District of Columbia 20005 Email: cooperg@cdfi.treas.gov Phone: (202) 622-7165 Fax: (202) 622-8728

Web Site Address

http://www.cdfifund.gov.

Examples of Funded Projects

Fiscal Year 2008: One award of $1,500,000, along with required matching funds, was issued to retain and expand manufacturing companies and other businesses that employ low-income resident of a city empowerment zone. Another award, with matching funds, is providing funding so that loans can be originated to assist in working to restore or establish small business development and affordable housing opportunities in targeted population areas. Fiscal Year 2009: No Current Data Available Fiscal Year 2010: No Current Data Available

Criteria for Selecting Proposals

Evaluation factors include: (1) Financial strength and organizational capacity of applicant organization, (2) External resources or matching fund commitment/ability to obtain commitments, (3) Community Impact (The community need for award and activities to be executed), (4) Community Partnerships (Ability to carry out activities and work effectively), and (5) Other factors deemed appropriate under this program and published in the notice of funds availability.