[Federal Register: December 4, 2003 (Volume 68, Number 233)]
[Notices]
[Page 67905-67908]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr04de03-67]
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Part III
Department of the Treasury
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Community Development Financial Institutions Fund
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CDFI Fund Native American Initiative; Notice of Funds Availability
(NOFA) Inviting Applications for the Native American CDFI Assistance
Program; Notices
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
CDFI Fund Native American Initiative
AGENCY: Community Development Financial Institutions Fund, Department
of the Treasury.
ACTION: Preamble for the CDFI Fund's Native American Initiative, which
includes: The Native American CDFI Assistance (NACA) Program; the
Native American Technical Assistance (NATA) Component (part of the
Technical Assistance Component) of the CDFI Program; and the Native
American CDFI Development (NACD) Program.
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SUMMARY:
I. Legislative Background
The Community Development Banking and Financial Institutions Act of
1994 (12 U.S.C. 4701 et seq.) (the ``Act'') authorizes the Community
Development Financial Institutions Fund (the ``Fund'') of the U.S.
Department of the Treasury to promote economic revitalization and
community development through investment in and assistance to Fund-
certified community development financial institutions (``CDFIs'')
through the CDFI Program. The Consolidated Appropriations Resolution,
2003 (Pub. L. 108-7) authorizes the Fund to provide financial
assistance (``FA'') and technical assistance (``TA'') to benefit Native
American, Alaska Native and Native Hawaiian communities (hereafter
referred to as ``Native American Communities''), with such benefit
being provided primarily through qualified community development lender
organizations with experience and expertise in community development
banking and lending in Indian country, Native American organizations,
Tribes and tribal organizations and other suitable providers.
II. The CDFI Fund's Overall Strategic Objectives
Credit and investment capital are essential ingredients for
developing affordable housing, starting or expanding businesses,
meeting unmet market needs, and stimulating economic growth. Access to
financial services is critical to helping bring more Americans into the
economic mainstream. The Fund's programs are designed to address the
unique capitalization and/or technical capacity needs of CDFIs and
other community development entities so that they may better meet the
needs of their particular target markets through loans, investments,
financial services and other related activities. This strategy builds
strong institutions that make loans and investments and provide
financial services in markets (including economically distressed
investment areas and disadvantaged targeted populations) whose needs
for loans, investments, and financial services have not been fully met
by traditional financial institutions.
III. The CDFI Fund's Native American Initiative
Pursuant to the Act, in 2001, the Fund completed and published the
Native American Lending Study (``the Study''), which identifies
significant barriers to lending and investment in Native American
Communities throughout the country and strategies for overcoming those
barriers. One of the barriers identified by the Study is the fact that
there are few CDFIs and other financial institutions that serve Native
American Communities. Since CDFIs are important tools for developing
self-sustaining economies in many underserved communities, the Fund
seeks to assist Native American Communities to create CDFIs as well as
to strengthen CDFIs already serving those communities.
The Fund seeks to accomplish these goals through its Native
American Initiative. The primary objective of the Native American
Initiative is to increase the market coverage and capacity of Native
American CDFIs throughout the country. While the Fund also is
undertaking other activities, such as its comprehensive training
program, to further strengthen Native American CDFIs, the Native
American Initiative principally comprises three facets:
(1) Native American CDFI Assistance (NACA) Program: Through the
NACA Program, the Fund provides (i) FA and/or TA awards to Native
American CDFIs and entities that can be certified as Native American
CDFIs at time of award; and (ii) TA awards to entities that propose to
become Native American CDFIs within two years and ``Sponsoring
Entities'' (e.g., Native American organizations, Tribes, Tribal
organizations) that propose to create separate legal entities that will
become Native American CDFIs within two years. A NOFA covering two
annual funding rounds for the NACA Program is published in this issue
of the Federal Register, subject to funding availability and Fiscal
Year 2004 and Fiscal Year 2005 appropriations. Interested parties may
obtain additional and detailed information on the NACA Program,
including application materials, through the Fund's website at
http://www.cdfifund.gov. Summary information on the NACA Program is provided
in the chart, below.
(2) Native American Technical Assistance (NATA) Component (part of
the Technical Assistance Component of the CDFI Program): Through the
NATA Component, the Fund provides capacity-building TA grants to Native
American CDFIs, entities that can be certified as Native American CDFIs
at time of award, and entities that propose to become Native American
CDFIs within two years. The FY 2003 and 2004 NOFA for the NATA
Component/Technical Assistance Component was published in the February
4, 2003 issue of the Federal Register (68 FR 5735). The Fund is
accepting applications on a rolling basis (subject to funding
availability) through May 31, 2004. Interested parties may obtain
additional and detailed information on the NATA Component, including
application materials, through the Fund's website at http://www.cdfifund.gov.
Summary information on the NATA Component is provided in the chart,
below.
(3) Native American Community Development (NACD) Program: Through
the NACD Program, the Fund provides TA grants to Sponsoring Entities to
facilitate the creation of separate legal entities that will become
Native American CDFIs within two years. The FY 2003 and 2004 NOFA for
the NACD Program was published in the February 4, 2003 issue of the
Federal Register (68 FR 5731). The Fund is accepting applications on a
rolling basis (subject to funding availability) through May 31, 2004.
Interested parties may obtain additional and detailed information on
the NACD Program, including application materials, through the Fund's
website at http://www.cdfifund.gov. Summary information on the NACD Program is
provided in the chart, below.
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Purpose; types and
Component or program amounts of assistance Eligible applicants Application deadlines
available
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Native American CDFI Assistance FA awards (grants, loans, FA/TA awards............ Applications will be
Program. equity investments, Type 1: certified Native accepted and evaluated
secondary capital American CDFIs or in two rounds: Round 1:
accounts, deposits, certifiable Native application deadline is
credit union shares) to American CDFIs (i.e., March 15, 2004; Round
support financing needs, entities that can be 2: application deadline
and/or TA grants to certified as Native is January 30, 2005
build capacity to serve American CDFIs at time (subject to FY 2004
target markets, of award). funding availability).
including operating TA awards only..........
grants; up to $500,000 Type 2: emerging Native
per award. American CDFIs (i.e.,
Eligible Uses of TA entities that propose
Funds: technology to become Native
acquisition, training, American CDFIs withing
consulting services, two years of receiving
staff salary for certain the award); and.
purposes, and operating Type 3: Sponsoring
funds. Entities (e.g., Native
American organizations,
Tribes and Tribal
organizations) that
propose to create an
entity that will become
a Native American CDFI
within two years of
receiving the award.
Ineligible Applicants:
Firms that provide
training or TA in
community developments
finance (such
organizations are
eligible to apply
through NACD).
NATA Component................... TA grants to build Certified Native Applications will be
capacity to serve target American CDFIs, accepted and elevated
markets; up to $100,000 certifiable Native on a first-come, first
per award. American CDFIs (i.e., reviewed basis,
Eligible Uses of TA entities that can be beginning February 4,
Funds: technology certified as Native 2003 through May 31,
acquisition, training, American CDFIs at time 2003 (subject to FY
consulting services, of award), emerging 2004 funding
staff salary for certain Native American CDFIs availability).
purposes. (i.e., entities that
Ineligible Uses of TA propose to become
Funds: operating funds. Native American CDFIs
within two years of
receiving the award).
Ineligible Applicants:
Sponsoring Entities (as
described under NACD
below), and entities
that the Fund has
previously selected to
receive over $250,000
in TA or FA (in
aggregate).
NACD Program..................... TA grants to build Sponsoring Entities that
capacity to create will not themselves
Native American CDFIs; become Native American
up to $100,000 per award. CDFIs but instead plan
The applying entity must to create separate
use the TA award to Native American CDFIs.
assist in the Such entities include
establishment of a (a) Category I: Tribes,
separately incorporated, Tribal entities and
new Native American CDFI. nonprofit organizations
Eligible Uses of TA that primarily serve
Funds: technology Native American, Alaska
acquisition, training, Native and/or Native
consulting services, Hawaiian populations;
staff salary for certain and (b) Category II:
purposes. firms that provide
Ineligible Use of TA training or TA in
Funds: operating funds. community development
finance or that
specialize in economic
development in Native
American, Alaska Native
and/or Native Hawaiian
communities, and other
suitable providers,
including CDC,
certified CDFIs, or
organizations with
experience and
expertise in banking
and lending in Native
American, Alaska Native
and/or Native Hawaiian
communities.
Ineligible Applicants:
certified Native
American CDFIs,
certifiable Native
American CDFIs (i.e.,
entities that can be
certified as Native
American CDFIs at time
of award, emerging
Native American CDFIs
(i.e., entities that
propose to become
Native American CDFIs
within two years of
receiving the award).
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In addition to the Native American Initiative, described above, the
Fund administers the New Markets Tax Credit (``NMTC'') Program, the
Financial Assistance Component and the Technical Assistance Component
of the CDFI Program, and the Bank Enterprise Award Program. Interested
parties are encouraged to learn more about these programs, and how to
apply, through the Fund's website at http://www.cdfifund.gov.
A Native American CDFI may apply for a FA award through either the
FA Component or the NACA Program. While an applicant may receive only
one FA award through either the FA Component or the NACA Program, an
applicant, its subsidiaries or affiliates may apply for and receive:
(i) A tax credit allocation through the NMTC Program; (ii) a TA award
through the CDFI Program; (iii) an award through the NACD Program; or
(iv) an award through the BEA Program, subject to certain restrictions
described in the BEA Program regulations.
Catalog of Federal Domestic Assistance: 21.020
Authority: 12 U.S.C. 4703, 4703 note, 4704, 4706, 4707, 4717; 12
CFR part 1805, Pub. L. 107-73, Pub. L. 108-7.
Dated: November 21, 2003.
Tony T. Brown,
Director, Community Development Financial Institutions Fund.
[FR Doc. 03-30174 Filed 12-3-03; 8:45 am]
BILLING CODE 4810-70-P