Community Development Financial Institutions Program

Published on AidPage by IDILOGIC on Jun 24, 2005

Purpose of this program:

Through the FA Component, the Community Development Financial Institutions Fund (the Fund) provides FA awards and technical assistance (TA) grants to CDFIs that have comprehensive business plans for creating demonstrable community development impact through the deployment of capital within their respective target markets for community development purposes.

Possible uses and use restrictions...

Awards under this program are issued to provide financial and/or technical assistance that 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 is required to enter into an assistance agreement that requires the awardee 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. No awards may be issued to any State or local government or any agency or instrumentality thereof.

Who is eligible to apply...

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.

Eligible Applicant Categories:
Eligible Functional Categories:
Credentials/Documentation

An applicant shall provide information necessary to establish that it is, or will be, a Community Development Financial Institution.

Note:This is a brief description of the credentials or documentation required prior to, or along with, an application for assistance.

About this section:

This section indicates who can apply to the Federal government for assistance and the criteria the potential applicant must satisfy. For example, individuals may be eligible for research grants, and the criteria to be satisfied may be that they have a professional or scientific degree, 3 years of research experience, and be a citizen of the United States. Universities, medical schools, hospitals, or State and local governments may also be eligible. Where State governments are eligible, the type of State agency will be indicated (State welfare agency or State agency on aging) and the criteria that they must satisfy.

Certain federal programs (e.g., the Pell Grant program which provides grants to students) involve intermediate levels of application processing, i.e., applications are transmitted through colleges or universities that are neither the direct applicant nor the ultimate beneficiary. For these programs, the criteria that the intermediaries must satisfy are also indicated, along with intermediaries who are not eligible.

How to apply...

Application Procedure:

Each applicant must complete a Community Development Financial Institutions application package. This program follows OMB Circular No. A-110 guidance.

Note: Each program will indicate whether applications are to be submitted to the Federal headquarters, regional or local office, or to a State or local government office.

Award Procedure:

Applications are reviewed and grant awardees are selected by the Community Development Financial Institution Fund.

Note: Grant payments may be made by a letter of credit, advance by Treasury check, or reimbursement by Treasury check. Awards may be made by the headquarters office directly to the applicant, an agency field office, a regional office, or by an authorized county office. The assistance may pass through the initial applicant for further distribution by intermediate level applicants to groups or individuals in the private sector.

Deadlines and process...

Deadlines

Annual notice of funds availability, published in the Federal Register, announces deadline dates for submission of applications. Deadline dates generally range from 30 to 90 days subsequent to the notice publication date.

Note: When available, this section indicates the deadlines for applications to the funding agency which will be stated in terms of the date(s) or between what dates the application should be received. When not available, applicants should contact the funding agency for deadline information.

Range of Approval/Disapproval Time

Generally, approximately 6 months from submission of application.

Preapplication Coordination

None. This program is excluded from coverage under E.O. 12372 and OMB Circular No. A-102.

Note: This section indicates whether any prior coordination or approval is required with governmental or nongovernmental units prior to the submission of a formal application to the federal funding agency.

Appeals

Regarding certain findings of ineligibility only.

Note: In some cases, there are no provisions for appeal. Where applicable, this section discusses appeal procedures or allowable rework time for resubmission of applications to be processed by the funding agency. Appeal procedures vary with individual programs and are either listed in this section or applicants are referred to appeal procedures documented in the relevant Code of Federal Regulations (CFR).

Renewals

None.

Note: In some instances, renewal procedures may be the same as for the application procedure, e.g., for projects of a non-continuing nature renewals will be treated as new, competing applications; for projects of an ongoing nature, renewals may be given annually.

Who can benefit...

Private nonprofit institutions/organizations, other private institutions/organizations, profit organizations. Awards to eligible applicants under this program provide financial and /or technical assistance to select applicants 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.

Beneficiaries
About this section:

This section lists the ultimate beneficiaries of a program, the criteria they must satisfy and who specifically is not eligible. The applicant and beneficiary will generally be the same for programs that provide assistance directly from a Federal agency. However, financial assistance that passes through State or local governments will have different applicants and beneficiaries since the assistance is transmitted to private sector beneficiaries who are not obligated to request or apply for the assistance.

What types of assistance...

Project Grants

The funding, for fixed or known periods, of specific projects. Project grants can include fellowships, scholarships, research grants, training grants, traineeships, experimental and demonstration grants, evaluation grants, planning grants, technical assistance grants, survey grants, and construction grants.

How much financial aid...

Range and Average of Financial Assistance

$50,000 to $3,000,000; $800,000.

Note: This section lists the representative range (smallest to largest) of the amount of financial assistance available. These figures are based upon funds awarded in the past fiscal year and the current fiscal year to date. Also indicated is an approximate average amount of awards which were made in the past and current fiscal years.

Obligations

(Grants) FY 04 est $45,000,000; FY 05 est $30,000,000; and FY 06 est not available.

Note: The dollar amounts listed in this section represent obligations for the past fiscal year (PY), estimates for the current fiscal year (CY), and estimates for the budget fiscal year (BY) as reported by the Federal agencies. Obligations for non-financial assistance programs indicate the administrative expenses involved in the operation of a program.

Account Identification

20-1881-0-1-451.

Note: Note: This 11-digit budget account identification code represents the account which funds a particular program. This code should be consistent with the code given for the program area as specified in Appendix III of the Budget of the United States Government.

Examples of funded projects...

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.

About this section

This section indicates the different types of projects which have been funded in the past. Only projects funded under Project Grants or Direct Payments for Specified Use should be listed here. The examples give potential applicants an idea of the types of projects that may be accepted for funding. The agency should list at least five examples of the most recently funded projects.

Program accomplishments...

For FY 2003, $23 million in awards made.

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.

Assistance considerations...

Length and Time Phasing of Assistance

Generally, awards may be issued up to a 3 year maximum. 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.

Formula and Matching Requirements

All awards of financial assistance shall be matched by the recipient on a one dollar to one dollar basis using funds from sources other than the Federal government. Also matching funds must be at least comparable in form (e.g., equity investments, deposits, credit union shares, loans or grants).

Note:
A formula may be based on population, per capita income, and other statistical factors. Applicants are informed whether there are any matching requirements to be met when participating in the cost of a project. In general, the matching share represents that portion of the project costs not borne by the Federal government. Attachment F of OMB Circular No. A-102 (Office of Management and Budget) sets forth the criteria and procedures for the evaluation of matching share requirements which may be cash or in-kind contributions made by State and local governments or other agencies, institutions, private organizations, or individuals to satisfy matching requirements of Federal grants or loans.

Cash contributions represent the grantees' cash outlay, including the outlay of money contributed to the grantee by other public agencies, institutions, private organizations, or individuals. When authorized by Federal regulation, Federal funds received from other grants may be considered as the grantees' cash contribution.

In-kind contributions represent the value of noncash contributions provided by the grantee, other public agencies and institutions, private organizations or individuals. In-kind contributions may consist of charges for real property and equipment, and value of goods and services directly benefiting and specifically identifiable to the grant program. When authorized by Federal legislation, property purchased with Federal funds may be considered as grantees' in-kind contribution.

Maintenance of effort (MOE) is a requirement contained in certain legislation, regulations, or administrative policies stating that a grantee must maintain a specified level of financial effort in a specific area in order to receive Federal grant funds, and that the Federal grant funds may be used only to supplement, not supplant, the level of grantee funds.

Post assistance requirements...

Reports

The type and schedule of reports is specified in the Notice of Funding Availability and in the agreeement governing the award.

Note: This section indicates whether program reports, expenditure reports, cash reports or performance monitoring are required by the Federal funding agency, and specifies at what time intervals (monthly, annually, etc.) this must be accomplished.

Audits

See the Notice of Funding Availability.

Note: This section discusses audits required by the Federal agency. The procedures and requirements for State and local governments and nonprofit entities are set forth in OMB Circular No. A-133. These requirements pertain to awards made within the respective State's fiscal year - not the Federal fiscal year, as some State and local governments may use the calendar year or other variation of time span designated as the fiscal year period, rather than that commonly known as the Federal fiscal year (from October 1st through September 30th).

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.

Note: This section indicates the record retention requirements and the type of records the Federal agency may require. Not included are the normally imposed requirements of the General Accounting Office. For programs falling under the purview of OMB Circular No. A-102, record retention is set forth in Attachment C. For other programs, record retention is governed by the funding agency's requirements.

Regulations...

Authorization

Public Law 103-325, 12 U.S.C. 4701 et. seq.

Note: This section lists the legal authority upon which a program is based (acts, amendments to acts, Public Law numbers, titles, sections, Statute Codes, citations to the U.S. Code, Executive Orders, Presidential Reorganization Plans, and Memoranda from an agency head).

Regulations, Guidelines, And Literature

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

Contact information...

Web Sites
Regional Or Local Office

Not applicable.

Note: This section lists the agency contact person, address and telephone number of the Federal Regional or Local Office(s) to be contacted for detailed information regarding a program such as: (1) current availability of funds and the likelihood of receiving assistance within a given period; (2) pre-application and application forms required; (3) whether a pre-application conference is recommended; (4) assistance available in preparation of applications; (5) whether funding decisions are made at the headquarters, regional or local level; (6) application renewal procedures (including continuations and supplementals) or appeal procedures for rejected applications; and (7) recently published program guidelines and material. However, for most federal programs, this section will instruct the reader to consult the so-called Appendix IV of the Catalog due to the large volume of Regional and Local Office Contacts for most agencies. This information is provided in Additional Contact Information (see below).

Headquarters Office

Ms. Louisa Quittman, CDFI Program Manager, Community Development Financial Institution Fund, 601 13th Street, NW., Suite 200 South, Washington, DC 20005. Telephone: (202) 622-6355, Fax: (202) 622-7754.

Note: This section lists names and addresses of the office at the headquarters level with direct operational responsibility for managing a program. A telephone number is provided in cases where a Regional or Local Office is not normally able to answer detailed inquiries concerning a program. Also listed are the name(s) and telephone number(s) of the information contact person(s) who can provide additional program information to applicants.

Additional Contact Information (Appendix IV)

Due to the large volume of regional and local office contacts for most agencies, full contact information is also provided separately here in a PDF format: