Form CDFI 0009 CDFI 0009 Native American CDFI Assistance Program FY 2008 Applicat

Initiatives for Expanding Native Opportunity

Native American CDFI Assistance Program FY 2008 Application

Initiatives for Expanding Native Opportunity

Native American CDFI Assistance Program FY 2008 Application

Pending Renewal OMB No. 1559-0025

Application Approval Number is pending from the Office of Management and Budget. Application is considered DRAFT until this number is renewed.

CDFI-0001

Paperwork Reduction Act Notice

This submission requirements package is provided to Applicants for awards under the CDFI Program. The Estimated average burden associated with this collection of information is 50 hours per respondent, depending on individual circumstances. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Department of the Treasury, Community Development Financial Institutions Fund, 601 Thirteenth Street, N.W., Suite 200-South, Washington, DC 20005.

All materials are available on the CDFI Fund Website: www.cdfifund.gov.

Catalog of Federal Domestic Assistance Number: 21.020

FY 2008 NACA Program

Combined Application for FA and / or TA

Table of Contents

Introduction and Instructions

Application Eligibility Factors 4

Application Materials and Deadlines 8

Application Review and Awardee Selection 10

Contacting the Fund 12

Application Checklist 14

Part I: Comprehensive Business Plan

General Guidance 16

Matching Funds (FA Applicants Only) 17

Technical Assistance Proposal 22

Activities Level Chart Categories 30

Executive Summary 31

Market Analysis 33

Business Strategy 35

Community Development Performance and Effective Use 37

Management 40

Financial Health and Viability 43

Application Charts

1. Matching Funds Data Chart 48

2. Matching Funds Retained Earnings Calculators 49
   (B1 - Non-Regulated CDFIs, B2 - Credit Unions, and B3 - Bank/Thrifts/Holding Companies)

3. TA Budget Chart 52

4. Activities Level Chart 53

5. Community Development Impact Chart 54

6. Financial Data Input Chart 55
   (F1 for Non-Regulated, F2 for Credit Unions, and F3 for Bank/Thrifts/Holding Companies)

7. Loan Portfolio Quality Chart 61

8. Equity Investment Portfolio Valuation Chart 61

Part II: Applicant Type Questionnaire

Applicant Type Questionnaire 62

Part II: Legal Certifications

Environmental Review Form 64

Assurances and Certifications 65

501(c)(4) Questionnaire 67

Introduction And Instructions

NOTE: Capitalized terms (other than titles) are defined in the Notice of Funds Availability (NOFA) for the FY 2008 funding round, the CDFI Program Regulations, or the CDFI Fund Program Glossary, which may be downloaded from the Fund’s website at www.cdfifund.gov. Certain terms used throughout the Application have meanings unique to the NACA Program. Applicants should make sure that they are familiar with these meanings by consulting the NOFA, regulations, and glossary.

CDFI Fund: Mission and Programs

The mission of the Community Development Financial Institutions Fund (the Fund) is to expand the capacity of financial institutions to serve populations and communities lacking adequate access to Financial Products and Financial Services. The Fund achieves its mission by directly investing in and supporting Community Development Financial Institutions (CDFIs), Community Development Entities (CDEs), and other financial institutions through the following programs and initiatives:

• CDFI Program (includes Financial Assistance (FA) and Technical Assistance (TA)).

• Bank Enterprise Award (BEA) Program.

• New Markets Tax Credit (NMTC) Program.

• Native Initiatives.

Information on the Fund’s programs can be found on the Fund’s website at www.cdfifund.gov. From the home page, click on “What We Do” then “Information for Applicants.” Click on the link for the various programs of interest.

The Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. §§ 4701 et seq.) (the Act) authorizes the Fund to promote economic revitalization and community development through investment in and assistance to CDFIs through the CDFI Program. As of the date of publication of this Application, no funds have been appropriated for the FY 2008 funding round of the NACA Program. Awards will be subject to the appropriation of funds for the FY 2008 funding round.

The Fund’s Native Initiatives

Pursuant to the Act, in 2001, the Fund completed and published the Native American Lending Study (the Study), which identified significant barriers to lending and investment in Native Communities throughout the country and strategies for overcoming those barriers. One of the barriers identified by the Study is that there are few CDFIs and other financial institutions serving Native Communities. Since CDFIs are important tools for developing self-sustaining economies in many underserved communities, the Fund seeks to assist Native Communities to create CDFIs that will Primarily Serve Native communities as well as to strengthen CDFIs already primarily serving those communities. Primarily Serves is defined as 50% or more of an Applicant’s activities being directed to a Native Community. For the purposes of the CDFI Fund’s Native Initiatives, a Native CDFI is defined as a CDFI that Primarily Serves a Native Community.

The Fund’s Native Initiatives consist of two principle efforts: (1) direct funding through the Native American CDFI Assistance (NACA) Program; and (2) training and technical assistance through the Expanding Native Opportunity initiatives; Native Community Financing Initiative, Native IDA (Individual Development Account) Initiative; and the Native Financial Skills and Enterprise Initiatives.

• NACA Program: Through the NACA Program, the Fund provides (i) Financial Assistance (FA) and/or Technical Assistance (TA) awards to Native CDFIs and entities that can be certified as Native CDFIs at time of Application; (ii) TA only awards to entities that propose to become Native CDFIs generally within two years; and (iii) TA only awards to “Sponsoring Entities” (e.g., Native organizations, Tribal organizations) that propose to create separate legal entities that will become Native CDFIs generally within three years.

• Native Communities Financing Initiative: The Fund has contracted with the Opportunity Finance Network and its subcontractor, the First Nations Oweesta Corporation (Oweesta), to provide two training courses for Native organizations and Native communities in developing CDFIs. Participants are eligible to receive follow-up TA from OFN and Oweesta. The Fund strongly encourages organizations interested in becoming or creating a Native CDFI to participate in this program. For more information, see the Initiatives for Expanding Native Opportunity page of the Fund’s website: www.cdfifund.gov.

• Native IDA Initiative: The Fund has contracted with the Corporation for Enterprise Development and its subcontractors, Oweesta and the First Nations Development Institute to offer a comprehensive training and TA program to help Native organizations and Native Communities design, implement, and sustain IDAs. The Native IDA Initiative combines 3-day training institutes with ongoing customized follow-up TA to participants.

• Native Financial Skills and Enterprise Initiatives: The Fund has contracted with Oweesta to provide a series of “train-the-trainer” courses in financial literacy based on the successful Building Native Communities curriculum. The contract also provides for Native CDFI-focused training and technical assistance, including entrepreneurship development in Native Communities.

Fiscal Year 2008 CDFI Program

For fiscal year 2008, the Fund released a NOFA and Application for Applicants seeking FA and/or TA. The key component for applying for either award type is the submission of the Comprehensive Business Plan (CBP). A single Application allows an Applicant seeking either or both types of awards to submit a single CBP. The deadline for the FY 2008 funding round is Wednesday, December 19, 2007.

Funding for Financial Assistance (FA)

Financial Assistance funds can be requested for Financing Capital, Loan Loss Reserves, Capital Reserves, and/or Operations.  These funds are intended to offer flexible financial support for Native CDFIs to achieve the strategies outlined in their Comprehensive Business Plans.  The most popular use of these funds is for direct financing of the Applicant's financial products.  Awardees may also use FA funds to cover staff costs or other operating expenses, restore or increase loan loss reserves, or otherwise strengthen the Awardee’s capital structure, e.g., by increasing net assets. 

Note: Applicants should be aware that successful Awardees will be required to demonstrate that the equivalent of at least 85% of the total Financial Assistance award amount has been deployed in Financial Products, Financial Services, and/or Development Services over the three year reporting period.

Only a certified Native CDFI may receive an FA award. The Fund provides FA in the form of grants, loans, Equity Investments (including, in the case of Insured Credit Unions, Secondary Capital accounts), deposits, and Insured Credit Union Shares. The form of the FA is based on the type of Matching Funds the Applicant demonstrates it has available (in-hand, firmly committed, or to be raised (for certain Applicant types explained further under the Eligibility section below)). The Fund will match the size and form of the assistance provided by the non-federal source. For example, an Applicant demonstrating Matching Funds in the form of a 10-year, 2% loan for $200,000 will receive a 10-year, 2% loan from the Fund, if it is approved for an FA award. The reporting period for an FA award is approximately 3 years as specified in each Awardee’s Assistance Agreement.

Funding for Technical Assistance (TA)

Technical Assistance funds can be requested to strengthen the capacity of the Native CDFI Applicant, help an Applicant that has not yet been certified to achieve its status as a certified Native CDFI, or assist a Sponsoring Entity to create an Emerging Native CDFI. TA awards are grant funds and do not require a corresponding matching fund source. TA grants can be used to cover operating expenses such as personnel salaries and fringe benefits, training, travel, professional services, material and supplies, equipment, and other costs. A detailed description of the TA categories and related application requirements can be found in Part I of this application under “Technical Assistance Proposal.” The reporting period for a TA grant is approximately 2 years, as specified in each Awardee’s Assistance Agreement.

Applicants can choose to apply for FA and TA together, FA only, or TA only.

TIP The Fund will not make an award over the requested amount. Applicants are advised to consider organizational needs and projected costs carefully in developing the award request.

Application Eligibility Factors

There are several factors that determine whether an organization is eligible to apply under the FY 2008 funding round. The information below explains these factors and which type of funding (FA vs. TA) an organization is eligible to apply for based on its certification and compliance status.

Certification Status

Only a certified Native CDFI is eligible to receive FA from the Fund. The Fund, however, may award and disburse a TA award to an entity not certified as a Native CDFI. The entity must demonstrate that it has a reasonable plan to become certified by December 31, 2010. For purposes of this Application, the Fund refers to such an Applicant as an “Emerging Native CDFI.” Also for purposes of this Application, the Fund refers to an Applicant that is not certified – but that currently meets all seven certification requirements – as a “Certifiable Native CDFI.” An Applicant that plans to create a separate legal entity that will seek certification as a Native CDFI is considered a “Sponsoring Entity” for the purposes of this Application.

Even if the Fund finds an Emerging Native CDFI or Certifiable Native CDFI eligible to receive an award, such an organization will not be certified as a Native CDFI until it submits a CDFI Certification Application and the Fund determines that the organization meets each of the requirements for certification. For details concerning the requirements to become a certified Native CDFI refer to the CDFI Program Regulations and CDFI Certification Application available from the Fund’s website.

Required eligibility materials depend on the Applicant’s certification status (Certified, Certifiable, Emerging, or Sponsoring Entity) and whether it is seeking FA. Failure to submit the required eligibility materials in the specified timeframe may result in the funding and/or certification applications being deemed incomplete and rejected without further review. Applicants are eligible to apply for FA and/or TA as follows:

Applicant Type	Eligible Funding	What to Submit
Certified Native CDFIs Any certified Native CDFI whose certification has not expired and that has not been notified by the Fund that its certification has been terminated.	FA and / or TA	Certification of Material Event Form Submit the Certification of Material Event Form to the Fund by Wednesday, December 5, 2007, in accordance with instructions on the Fund’s website. The Form and related guidance are available on the Fund’s website at www.cdfifund.gov.
Certifiable Native CDFIs For purposes of this Application, a Certifiable Native CDFI is an entity from which the Fund receives a complete CDFI Certification Application no later than December 5, 2007 evidencing that the Applicant meets the requirements to be certified as a Native CDFI. Note: The Fund will only certify as a Native CDFI an entity that submits a CDFI Certification Application that the Fund determines meets each certification requirement.	FA and / or TA	If seeking FA: CDFI Certification Application Certifiable Native CDFIs seeking FA must submit a CDFI certification application to the Fund by Wednesday, December 5, 2007. The CDFI Certification Application is available on the Fund’s website at www.cdfifund.gov. If seeking TA Only: Applicant Type Questionnaire Part II of this Application. Certifiable Native CDFIs seeking TA Only may submit a CDFI certification application – but are not required to do so.
Emerging Native CDFIs For purposes of this Application, an Emerging Native CDFI is an entity that demonstrates to the Fund that it has a reasonable plan to be certified as a Native CDFI by December 31, 2010.	TA Only	Applicant Type Questionnaire Part II of this Application
Sponsoring Entities For the purposes of this Application, a Sponsoring Entity is an entity that proposes to create a separate legal entity (generally within three years) that will become certified as a Native CDFI. A Sponsoring Entity may include any of the following: (a) A Tribe, Tribal entity, Alaska Native Village, Village Corporation, Regional Corporation, Non-Profit Regional Corporation/Association, or Inter-Tribal or Inter-Village organization; (b) an organization whose primary mission is to serve a Native Community including, but not limited to an Urban Indian Center, Tribally Controlled Community College, community development corporation (CD), training or education organization, or Chamber of Commerce, and that primarily serves (meaning, at least 50 percent of its activities are directed toward serving) a Native Community.	TA Only	Applicant Type Questionnaire Part II of this Application

TIP The difference between a Certifiable Native CDFI and an Emerging Native CDFI:

• A Certifiable Native CDFI meets all seven certification requirements at the time it submits the CDFI Certification Application. Therefore, the Fund will certify such an entity upon its confirmation that the entity meets the certification requirements.

• An Emerging Native CDFI, on the other hand, does not meet all certification requirements at time of Application (either for certification or funding). Therefore, the Fund will not certify such an entity a CDFI.

Entities with CDFI Certification Applications Currently Pending with the Fund: An Applicant seeking TA (either solely or in conjunction with FA) that has a CDFI Certification Application pending with the Fund – but has not received notification that it has been certified – is highly recommended to also submit the Applicant Type Questionnaire (Part II of this Application). If such Applicant is not certified as a CDFI based on the pending CDFI Certification Application, the narrative responses required in the Questionnaire will allow the Fund to better determine if the Applicant qualifies as an Emerging CDFI and is therefore eligible to be considered for the TA portion of the Application.

Legal Entity

At the time an entity submits its Application, it must be a duly organized and validly existing legal entity under the laws of the applicable jurisdiction (including a Tribal jurisdiction), in which it is incorporated or otherwise established.

Prior Fund Awardees or Allocatees

Success (or failure) in a prior funding round is not indicative of success (or failure) under this Application. However, previous compliance and timeliness of reporting does play a factor – and (in certain instances) can make an Applicant ineligible for consideration for an award. Prior Fund Awardees are eligible to apply under this NACA Program Application, but with some limitations:

• $5 Million Funding Cap. The Fund is generally prohibited from obligating more than $5 million in assistance, in the aggregate, to any one organization and its Affiliates during any three-year period. In general, the period extends back three years from the date that the Fund signs a Notice of Award issued to an Awardee under this NOFA. While applying these criteria to determine eligibility for this funding round, the Fund will count any assistance with a Notice of Award dated between July 31, 2005 and July 31, 2008 (which is the anticipated date that the Fund will issue Notices of Award for the FY 2008 funding round).

• Failure to Meet Reporting Requirements. The Fund will not consider an Application if the Applicant, or an entity that Controls the Applicant, is Controlled by the Applicant or shares common management officials with the Applicant (as determined by the Fund), is a prior Fund Awardee or Allocatee under any Fund program and is not current on the reporting requirements set forth in a previously executed Assistance, Allocation or Award Agreement(s), as of the Application deadline. The Fund only acknowledges the receipt of reports that are complete. As such, incomplete reports or reports that are lacking required elements are not recognized as having been received.

• Pending Resolution of Noncompliance. If an Applicant is a prior Awardee or Allocatee under any Fund program and if: (i) it has submitted complete and timely reports to the Fund that demonstrate noncompliance with a previous Assistance, Allocation or Award Agreement; and (ii) the Fund has yet to make a final determination as to whether the entity is in default of its previous Assistance, Allocation or Award Agreement, the Fund will consider the Application submitted to this funding round pending full resolution, in the sole determination of the Fund, of the noncompliance. Further, if another entity that Controls the Applicant, is Controlled by the Applicant or shares common management officials with the Applicant (as determined by the Fund), is a prior Fund Awardee or Allocatee and if such entity: (i) has submitted complete and timely reports to the Fund that demonstrate noncompliance with a previous Assistance, Allocation or Award Agreement; and (ii) the Fund has yet to make a final determination as to whether the entity is in default of its previous assistance, allocation, or award agreement, the Fund will consider the Application submitted to this funding round pending full resolution, in the sole determination of the Fund, of the noncompliance.

• Default Status. The Fund will not consider an Application submitted by an Applicant that is a prior Fund Awardee or Allocatee under any Fund program if, as of the applicable Application deadline of this Application, the Fund has made a final determination that such Applicant is in default of a previously executed Assistance, Allocation or Award Agreement(s). Further, an entity is not eligible to apply for an award if, as of the applicable Application deadline, the Fund has made a final determination that another entity that Controls the Applicant, is Controlled by the Applicant or shares common management officials with the Applicant (as determined by the Fund), is a prior Fund Awardee or Allocatee under any Fund program and has been determined by the Fund to be in default of a previously executed Assistance, Allocation or Award Agreement(s).

• Termination in Default. The Fund will not consider an application submitted by an Applicant that is a prior Fund Awardee or Allocatee under any Fund program if: (i) the Fund has made a final determination that such Applicant’s prior award or allocation terminated in default of a previously executed assistance, allocation or award agreement(s); and (ii) the final reporting period end date for the applicable terminated assistance, allocation or award agreement(s) falls within the 12-month period prior to the application deadline. Further, an entity is not eligible to apply for an award pursuant to this NOFA if: (i) the Fund has made a final determination that another entity that Controls the Applicant, is Controlled by the Applicant or shares common management officials with the Applicant (as determined by the Fund), is a prior Fund Awardee or Allocatee under any Fund program whose award or allocation terminated in default of a previously executed assistance, allocation or award agreement(s); and (ii) the final reporting period end date for the applicable terminated assistance, allocation or award agreement(s) falls within the 12-month period prior to the application deadline.

• Undisbursed Balances. The Fund will not consider an Application submitted by an Applicant that is a prior Fund Awardee under any Fund program if the Applicant has a balance of undisbursed funds under said prior award(s), as of the Application deadline. Further, an entity is not eligible to apply for an award if another entity that Controls the Applicant, is Controlled by the Applicant or shares common management officials with the Applicant (as determined by the Fund), is a prior Fund Awardee under any Fund program, and has a balance of undisbursed funds under said prior award(s), as of the Application deadline. In a case where another entity that Controls the Applicant, is Controlled by the Applicant or shares common management officials with the Applicant (as determined by the Fund), is a prior Fund Awardee under any Fund program, and has a balance of undisbursed funds under said prior award(s), as of the Application deadline, the Fund will include the combined awards of the Applicant and such Affiliated entities when calculating the amount of undisbursed funds. See NOFA for details on how undisbursed funds are calculated.

• Exception for Applicants Impacted by Hurricanes Katrina or Rita. Please note that the provisions above for “Failure to Meet Reporting Requirements” and “Undisbursed Balances” do not apply to any Applicant that has an office located in, or that provides a significant volume of services or financing to residents of and/or businesses located in, a county that is within a “major disaster area” as declared by the FEMA as a result of Hurricanes Katrina or Rita. Said requirements are waived for those Applicants for this funding round.

TIP Any Applicant that is a prior Fund Awardee or Allocatee should:

• Comply with all requirements specified in Assistance, Allocation, and/or Award Agreement(s).

• Ensure that all required reports are submitted by the deadlines specified in the Assistance, Allocation, and/or Award Agreement(s) governing said prior awards.

• Contact the Fund to ensure that all necessary actions are underway for the disbursement or deobligation of any outstanding balance of said prior award(s). All outstanding reports, disbursement, or compliance questions should be directed to the Grants Manager.

• Ensure that any outstanding Matching Funds on a prior Award are in-hand and a complete disbursement request is submitted to the Fund’s Grants Manager at least 10 business days prior to the Application deadline.

Application Materials and Deadlines

Grants.Gov Submission Requirement

The CDFI Fund is required to accept NACA Program Applications only through Grants.gov, the official Federal government-wide E-grant website, in compliance with Public Law 106-107 and Section 5(a) of the Federal Financial Assistance Management Improvement Act.

Downloading Templates and Other Application Material

Detailed instructions for submitting the application through Grants.gov are included in the document titled Grants.Gov Instructions FY2008, available on the CDFI Program page of the Fund’s website. The link to that page is accessible from the “What We Do” –> “Information for Applicants” link path. To download the complete application package, including application, Excel chart workbook, and MS Word templates for completing the various submission documents, go to www.Grants.gov, click on “Apply for Grants” and search for the package using the CDFI Fund’s CFDA Number: 21.020.

Grants.Gov Registration

Applicants must have either an individual or organization account registered with Grants.gov in order to submit a CDFI Fund application through the system. The one-time registration process involves several steps and will take several days to complete. Applicants are encouraged to start the registration process as early as possible. Detailed registration instructions can be directly found by accessing the “Get Registered” screen from the Grants.Gov home page. We recommend downloading Grants.gov’s 2-page version of the instructions for “Get Started Now…” located at: http://www.grants.gov/section910/Grants.govRegistrationBrochure.pdf

Submission Deadlines

The Grants.Gov Instructions FY2008 document includes a table listing each Application component, the format of preparation, and how it is submitted (either as an electronic attachment via Grants.gov or as a paper attachment). The deadlines are as follows:

• Electronic Attachments: “Sign and Submit Application” button within the Grants.gov provided software must be clicked by 5:00 p.m. Eastern Time (ET) on Wednesday, December 19, 2007.

• Paper Attachments: must be received by BPD (at the address specified below) by 5:00 p.m. ET on Friday, December 21, 2007:

CDFI Fund Grants Manager

CDFI Program

Bureau of Public Debt

200 Third Street

Parkersburg, WV 26101-5312

(304) 480-6088

• Paper attachments received in the BPD offices designated above after 5:00 p.m. ET on Friday, December 21, 2007 will be rejected.

• Paper attachments, faxes, and emails will not be accepted at the Fund’s offices in Washington, DC.

Applicants are advised to allow at least 3 business days (i.e., not Saturday or Sunday) for overnight delivery to BPD’s offices in West Virginia. Allow even longer if using first class postal mail delivery.

Ensuring that the Application Is Complete

Complete Versus Incomplete Applications: A complete Application is one that includes all required material listed on the Application Checklist. Some items – if missing or incomplete – will result in the immediate rejection of the entire Application. Any Application missing the SF 424 a valid EIN will immediately be rejected. No Applicant will be given an opportunity to provide a missing SF 424 or missing EIN after the Application deadline.

The Fund will allow two business days for an Applicant to submit the following items if missing or incomplete:

• IRS Documentation of the Applicant’s EIN.

• Provide a hard copy (to BPD) of Internal Revenue Service (IRS) documentation as evidence the Applicant itself (i.e., not its parent or Affiliate) has been assigned its own unique EIN.

• Dun and Bradstreet Data Universal Numbering System (DUNS) Number.

• Any entity applying for Federal assistance is required to have a DUNS number.

• To obtain this number, call 1-866-705-5711 or visit www.DNB.com.

• Emerging Native CDFI Eligibility Questionnaire.

• Applicant Type Questionnaire.

• Environmental & Legal Certifications.

• Certification of Material Events Form.

• Signature Page with original signature.

TIP Do not wait until the last minute to obtain a DUNS or EIN documentation. The Fund strongly encourages Applicants to allow sufficient time to obtain the necessary numbers or documentation. If either the DUNS or EIN documentation is missing from the initial paper submission of the Application materials, the 2-days allowed by the Fund to submit these items may not be sufficient time to obtain them. It is always better to ensure that the initial Application submission contains all required items and documentation.

Application Review and Awardee Selection Process

After an Application is submitted, the Fund will determine whether it was submitted by the deadline and is complete. If the Application is determined to be complete, the Fund will then determine whether it meets the basic eligibility requirements described above. If the Application is found to be eligible, it will receive a two-part substantive review in accordance with the criteria and procedures described in the NOFA and this Application.

Application Scoring

The Fund will evaluate the CBP on a 100-point scale with certain points assigned for each of the five sections. TA Only Applications are reviewed and scored by a single reviewer while Applications for FA are reviewed and scored initially by a team of three readers. In the case of an Applicant that has previously received funding from the Fund through any Fund program, after the readers establish the base score, the Fund will deduct points for:

• The Applicant’s noncompliance with any active award or award that terminated in calendar year 2007 in meeting its performance goals, financial soundness covenants (if applicable), reporting deadlines, and other requirements set forth in the assistance or award agreement(s) with the Fund during the Applicant’s two complete fiscal years prior to the Application deadline, generally FY 2006 and FY 2007;

• The Applicant’s failure to make timely loan payments to the Fund during the Applicant’s two complete fiscal years prior to the Application deadline (if applicable);

• Performance on any prior Assistance Agreement as part of the overall assessment of the Applicant’s ability to carry out its Comprehensive Business Plan; and

• FA deobligated from a FY 2005, FY 2006 or FY 2007 award (for FA Applicants) if:

• The amount of deobligated funds is at least $200,000; and

• The deobligation occurred subsequent to the expiration of the period of funds availability (generally, after September 30th following the year in which the award was made).

After the compliance scoring, Applications will receive follow-up reviews (including an assessment of available Matching Funds) performed by a single reviewer (typically a Fund staff person). An Applicant must receive a minimum score in each evaluation criteria to move forward for the follow-up review. The purpose of the follow-up review is to determine the appropriate award amount based on the first phase readers’ comments, score, and available Matching Funds (For TA Only Applicants, the compliance scoring actually happens after the follow-up review).

As part of the review process, the Fund may contact the Applicant by telephone, e-mail, or through an on-site visit for the purpose of obtaining clarifying or confirming Application information. The Applicant may be required to submit additional information to assist the Fund in its evaluation process. Such requests must be responded to within the time parameters set by the Fund. Further information on the review process is detailed in the NOFA.

Application Ranking and Awardee Selection

Once the follow-up review is completed, the Fund will rank Applications by their scores, from highest to lowest, based on each Applicant’s scores for all five criteria categories added together. The Fund selects Awardees from the top of the ranking list until it runs out of available funds. The Fund ranks TA only Applicants separately from Applicants for FA.

Awardee Notification

For the FY 2008 funding round, the Fund will notify Applicants selected to receive an award by late June 2008. The Fund notifies Applicants of award decisions (positive or negative) via e-mail to the designated Authorized Representative. An Applicant selected for an award will access the Notice of Award through its myCDFIFund account (see more information below). By logging into the organization account the Awardee will be able to download (and print) a Notice of Award, which contains the general terms and conditions underlying the Fund's provision of assistance, including the signing of an Assistance Agreement. Only the Applicant’s myCDFIFund Account Administrator can access a Notice of Award.

MyCDFIFund Accounts

MyCDFIFund account is the primary vehicle through which the CDFI Fund communicates with its constituent Awardees and Applicants. It allows users to update contact information, including address and emails as staff changes occur. MyCDFIFund, as opposed to Grants.gov, is managed and controlled by the CDFI Fund. Data submitted through Grants.gov does not automatically create a myCDFIFund account for applicants. Applicants must establish a personal and organization account by clicking on the link that reads “Log onto myCDFI Fund” from the Fund’s website, www.cdfifund.gov. All application decisions are communicated through emails established in the myCDFIFund accounts. Because an Applicant will be notified via e-mail, it is essential that the email addresses identified in the SF 424 and Signature page documents are the same as the ones provided in the myCDFIFund account. If an Applicant’s e-mail system has a spam blocker function, please ensure that the Fund’s main email addresses ([email protected], [email protected], [email protected]) are listed as acceptable sources. Otherwise, the award notification email may never be received.

Organizations Not Selected for Funding

The Fund generally rejects or declines an Application at one of three phases. First, at the Application deadline phase, the Fund will reject an Application if it is received late. Second, at the completeness and eligibility review phase, the Fund will reject an Application received on time – if it is found to be incomplete or ineligible. The Fund will notify an Applicant declined for one or both of these reasons via email usually within a month of the Application deadline. Third, at the Application review stage, the Fund may decline an Applicant that satisfies the eligibility and completeness requirements for substantive reasons (i.e., low position on the ranking list relative to available funds or a low score resulting from a poorly presented CBP). The Fund will notify an Applicant declined for substantive reasons via email shortly after awards are announced (usually by late June 2008).

Award Closing and Reporting

Upon notification, all Awardees must print, sign, and return the Notice of Award. Within several months, the Fund will contact the Awardee to begin the closing process, which includes entering into an Assistance Agreement. FA Awardees will enter into a three-year Assistance Agreement and TA Awardees will enter into a two-year Assistance Agreement. The Assistance Agreement is a contract that outlines the terms of the award including expectations for the Awardee to provide reports and remain in compliance. Once the Assistance Agreement has been signed, the Fund will authorize the award disbursement. The Fund disburses FA awards based on the Matching Funds documentation in hand at the time of award closing. The Fund disburses TA awards in one lump sum upon closing.

The Fund will collect information, on at least an annual basis, from all Awardees, including: (i) annual reports related to, among other matters, Awardee compliance with the performance goals and measures as set forth in the Assistance Agreement; (ii) audited or reviewed Financial Statements; (iii) uses of FA and Matching Funds; and (iv) such other information as the Fund may require, including transaction level data. The Fund reserves the right, in its sole discretion, to modify these reporting requirements if it determines it to be appropriate and necessary; however, such reporting requirements will be modified only after due notice to the Awardee.

Contacting the CDFI Fund

The Fund will respond to questions between the hours of 9:00 a.m. and 5:00 p.m. ET, through Monday, December 17, 2007 (two business days before the Application deadline). The Fund will not respond to phone calls or e-mail inquiries that are received after 5:00 p.m. ET on Monday, December 17, 2007, until after the funding Application deadline of Wednesday, December 19, 2007. NOTE: These are not toll-free numbers.

Main Office:	(202) 622-8662 (202) 622-7754 (fax)	www.cdfifund.gov	General inquiries; phone numbers for individual Fund staff; access to myCDFIFund and program webpage.
Program Support:	(202) 622-6355	[email protected]	CBP questions, how to complete tables, certification.
Grants Management Support	(202) 622-8226 (202) 622-9625 (fax)	[email protected]	Application deadlines; Application submission requirements; completing the Signature Page or Environmental Review Form; Questions regarding EIN Documentation, DUNS, disbursements, and Notices of Awards.
Compliance and Monitoring Support	(202) 622-8226 (202) 622-9625 (fax)	[email protected]	Status of compliance with other awards including outstanding reports.
IT Support	(202) 622-2455	[email protected]	Registering and creating accounts on myCDFIFund.
Legal Support	If you have any questions or matters that you believe require response by the Fund’s Office of Legal Counsel, please refer to the document titled “How to Request a Legal Review“, found on the Fund’s web site at www.cdfifund.gov.

Contacting the Fund Regarding Native CDFI Certification: The Fund will respond to questions and provide support concerning Native CDFI certification related to this NOFA between the hours of 9:00 a.m. and 5:00 p.m. ET, through Monday, December 3, 2007. The Fund will not respond to questions or provide support concerning CDFI certification, related to this NOFA, that are received after 5:00 p.m. ET on Monday, December 3, 2007, until after the deadline for submitting such applications. The CDFI Certification Application and other information regarding Native CDFI certification may be obtained from the Fund’s website at http://www.cdfifund.gov.

Application Checklist

Application Component	Prepare In…	Submit via…	TA Only Applicants vs. FA Applicants
Standard Form (SF) 424	Grants.gov Online Form	Grants.gov and Mail to BPD	Both TA Only Applicants and FA Applicants: Complete form online and send hard copy to BPD as cover page to paper attachments.
Documentation of EIN	Paper	Mail to BPD	Both TA Only Applicants and FA Applicants: Documentation from the IRS of their own unique EIN.
Signature Page	myCDFIfundOnline Form	Mail to BPD	Both TA Only Applicants and FA Applicants: Complete form online and send hard copy to BPD.
Environmental Review Form 501 (c)(4) Certification Assurances and Certifications	MS Word Templates	Grants.gov upload under Attachments	Both TA Only Applicants and FA Applicants: Environmental Review Form and the 501(c)(4) Certification (if applicable): Complete MS Word Templates. Assurances and Certifications: Electronic Signature on the SF 424 certifies this form – it is not necessary to submit a separate copy.
Applicant Type Questionnaire	MS Word	Grants.gov upload under Attachments	Both TA Only Applicants and FA Applicants: Complete MS Word template.
Comprehensive Business Plan (Narrative)	MS Word	Grants.gov upload under Attachments	Both TA Only Applicants and FA Applicants: Complete MS Word template.
Application Charts	MS Excel	Grants.gov upload under Attachments	Both TA Only Applicants and FA Applicants: Complete all applicable charts in the Excel Workbook.
Matching Funds Documentation	Paper	Mail to BPD	FA Applicants: Mail original and one copy of Matching Funds documentation to BPD address above.
Financial Statements	Paper	Mail to BPD	Both TA Only Applicants and FA Applicants: Mail original and four copies to BPD address above.
Organizational Chart & Resumes	MS Word	Grants.gov upload under Attachments	Both TA Only Applicants and FA Applicants: Upload or mail original and four copies to BPD address above.
Scope of Work Statements	MS Word	Grants.gov upload under Attachments	TA Applicants (Professional Service Costs Only): Upload or mail original and four copies to BPD address above.

Important Deadlines

• Certification Application: Received at the Fund by Wednesday, December 5, 2007

• Certification of Material Events Form: Received at the Fund by Wednesday, December 5, 2007

• Electronic Attachments: Grants.Gov submission by 5:00pm ET, Wednesday, December 19, 2007

• Paper Attachments: Received at BPD offices by Friday, December 21, 2007

Incomplete Applications: Applications received after the submission deadlines noted above and/or missing any of the items listed below will be considered incomplete and immediately rejected from consideration for an award without an opportunity to rectify:

• SF 424  EIN  Substantially incomplete CBP section of the Application

part I:

Comprehensive Business Plan

WHO MUST COMPLETE THIS SECTION?

• All Applicants

IS THERE ANYTHING IN THIS SECTION THAT WILL CAUSE MY APPLICATION TO BE REJECTED IF I MISS IT?

• The Applicant will use the specified MS Word template provided in the application documents available from Grants.gov to respond to the CBP questions. An Applicant will be able to submit the CBP document even if there are no responses to the questions or the responses are incomplete. However, the lack of information will prevent reviewers from completing their evaluation. Therefore, if the Fund determines that there is insufficient information in the CBP section to evaluate the Application, it will not forward it for review. No Applicant will be provided an opportunity to provide supplemental information for the CBP.

THINGS TO NOTE:

• Be sure to pay close attention to the Tips as well as the questions.

• The charts are all in a single MS Excel workbook. An electronic version of this Excel file is included in the application documents available from Grants.gov.

• The completed Excel Workbook and completed MS Word CBP template will be submitted electronically through Grants.gov.

General Guidance

The CBP includes an Executive Summary, TA Proposal (if applicable), and five key sections, each of which includes several subcomponents. The maximum points available for each section are as follows:

Comprehensive Business Plan (CBP) Sections	Applicants
Executive Summary	Not Scored
Market Analysis	25 points
Business Strategy	25 points
Community Development Performance and Effective Use	20 points
Management	20 points
Financial Health and Viability	10 points
Technical Assistance Proposal	Not Scored

Charts and Attachments

The charts and attachments required to complement and supplement the CBP narrative are detailed within each section of the CBP. Make sure the charts and all attachments are submitted appropriately.

Matching Funds (FA Applicants Only)

Matching Funds are required for all FA awards. In accordance with the NOFA, the Fund will not consider for FA funding any Applicant that has no Matching Funds in-hand or committed as of the Application deadline. Matching Funds are not required for TA grants.

• Matching Funds Window: Matching Funds In-Hand (received), or Firmly Committed, on or after January 1, 2006, and on or before March 14, 2009, will be considered when determining Matching Funds eligibility.

• Applicants that do not obtain the projected Matching Funds: The Fund reserves the right to: (1) rescind all or a portion of a FA award and re-allocate the rescinded award amount to other qualified Applicant(s) if an Applicant fails to obtain the required Matching Funds In-Hand by March 14, 2009 (with documentation of such receipt to be received by the CDFI Fund not later than March 31, 2009); or (2) to grant an extension of such Matching Funds deadline, if the Fund deems it appropriate.

• Comparable Form: Matching Funds must be at least comparable in form and value to the FA award provided by the Fund. For example, if an Applicant seeks a FA grant from the Fund, the Applicant must obtain Matching Funds through grants from non-Federal sources that are at least equal to the amount requested from the Fund. For loans or Deposits, the terms will be matched by the Fund to the extent possible and in the sole discretion of the Fund. Thus, if a 10-year loan at 2% interest, with interest only payments is requested from the Fund, the Applicant must match the request with a loan with the same terms. If several loans with different terms and rates are used as Matching Funds for a loan, the Fund will calculate a blended term and rate of the loan portion of the Fund’s FA award.

• Non-Federal Source: Matching Funds must come from sources other than the Federal government and, regardless of the source, consist of non-Federal funds. Community Development Block Grant Program and other funds provided pursuant to the Housing and Community Development Act of 1974, as amended, are considered Federal government funds and cannot be used as Matching Funds.

• Previously Used Matching Funds: Funds used by an Applicant as Matching Funds for a prior award under the CDFI Program or under another Federal grant or award program cannot be used to satisfy the Matching Funds requirement for this FA request. If an Applicant seeks to use as Matching Funds, monies received from an organization that was a prior Awardee under the CDFI Program, the Fund will deem such funds to be Federal funds, unless the funding entity establishes, to the reasonable satisfaction of the Fund, that such funds do not consist, in whole or in part, of CDFI Program funds or other Federal funds. An Applicant using Matching Funds from an Affiliate entity must be able to demonstrate that the Affiliate entity received the same amount from an eligible, non-Affiliate source within the eligible Matching Funds window, described above.

Matching Funds Data Chart

The Matching Funds Data Chart captures information, as of the submission date of the Application, on Matching Funds In-Hand, Firmly Committed, and To Be Raised. The Matching Funds Data Chart is Chart A in the Application Charts Excel Workbook. Before completing the chart, it is highly recommended that the Applicant:

• Carefully read the chart instructions below and the Sample Completed Chart.

• Read the Matching Funds guidance available on the Fund’s website at www.cdfifund.gov.

• Gather all documentation so that dates, amounts, and other data are readily available.

All FA Applicants must complete the chart.

Required Documentation

• Matching Funds In-Hand: For each Matching Funds In-Hand transaction provide a copy of executed documentation evidencing (i) the form of Matching Funds and (ii) that the Matching Funds were disbursed. Acceptable documentation of the form of Matching Funds is as follows:

• Grant: grant transmittal letters; grant agreements; a letter from the match source indicating the grant amount and the purpose of the grant. Signed copy required.

• Loan: promissory notes, loan agreements. Signed copy required.

• Equity Investment: stock certificates, subscription agreements and private placement memoranda. Signed copy required.

• Deposit/Shares: certificates of deposit or share certificates.

• Secondary Capital: secondary capital agreement and the Disclosure and Acknowledgement Statement. Signed copy required.

• Retained Earnings: see special section below describing using Retained Earnings as match.

Acceptable evidence that the Matching Funds were disbursed to the Applicant includes: (1) a copy of the check; (2) a copy of wire transfer transaction; or (3) other disbursement document deemed acceptable by the Fund.

• Matching Funds Firmly Committed: For each source of Matching Funds Firmly Committed, provide written documentation evidencing that the Applicant has entered into or received a legally binding commitment from the Matching Funds source that the Matching Funds have been committed, and are to be disbursed to the Applicant (such as a loan agreement, promissory note, or grant agreement). Matching Funds Firmly Committed documents must be in writing, signed and dated by the funder, indicate that the Matching Funds are for the Applicant, correspond in form to the FA requested (i.e., grant for grant, loan for loan), and provide a date by which the Matching Funds will be disbursed to the Applicant. Commitments may be contingent upon receipt of a Fund FA award, and other contingencies deemed reasonable by the Fund, in its sole discretion.

• To Be Raised: Submit letters of interest from potential funders or documentation demonstrating the likelihood of raising Matching Funds by March 14, 2009.

Small Contributions: If an Applicant has identified more than five small contributions (under $1,000) as Matching Funds, create a list with the name and amount of each donor/contributor. In the Matching Funds Summary Chart, record the total sum of these small contributions as a single entry. Select “Small Contributions” in the “Source of Matching Funds” column. Submit the list and copies of disbursement documents (checks, cover letters and pledge forms). At a minimum, the Fund needs a copy of the check from each individual to find the funds eligible.

TIP – Applicant should observe the following in organizing Matching Funds documents:

• A numbered cover sheet should be provided listing each Matching Funds source, date, and amount

• All Matching Funds documentation should be separated by source with dividers or tabs and numbered in accordance with the cover sheet

• Matching Funds letters and agreements should be attached to related disbursement checks or wire transfer documentation.

• Matching Funds with multiple disbursements should be identified with a notation such as: “Disbursement 3 of 4, original letter or agreement dated June 13, 2006.”

• A list should be provided of small grants ($5,000 or less), which includes the grantor name, date, and amount. All related letters, agreements, checks and wire transfer documentation should be attached to this list.

Using Retained Earnings to Satisfy Matching Funds Requirement

An Applicant may use its Retained Earnings to match a request for a grant from the Fund. An Applicant that proposes to meet all or a portion of its Matching Funds requirements by committing available earnings retained from its operations shall be subject to the restrictions described in this section. Retained Earnings shall be calculated as directed by the Fund in the NOFA, Application, and/or related guidance materials. Retained Earnings accumulated after the end of the Applicant’s most recent fiscal year ending prior to the appropriate Application deadline may not be used as Matching Funds.

If using Retained Earnings as Matching Funds, the Applicant must complete the Retained Earnings Chart appropriate for its organization type. The Matching Funds Retained Earnings Calculators are labeled as worksheets B1, B2, and B3 in the Excel Charts Workbook.

Eligible Retained Earnings for All Applicants Other Than ICUs. For an Applicant other than an Insured Credit Union (ICU), Retained Earnings that may be used for Matching Funds purposes shall consist of:

• The increase in Retained Earnings (meaning, operating income minus operating expenses less any dividend payments) that has occurred over the Applicant’s most recent fiscal year (e.g., Retained Earnings at the end of FY 2003 less Retained Earnings at the end of FY 2002); or

• The annual average of such increases that occurred over the Applicant’s three most recent fiscal years.

• Chart for a For-Profit Applicant: Complete Chart B1 or B3, as appropriate, using the Applicant’s unconsolidated audited Financial Statements.

• Chart for a Non-Profit Applicant (other than an ICU): Complete Chart B1 using the Applicant’s Financial Statements.

Eligible Retained Earnings for ICU Applicants. In the case of an Applicant that is an ICU (including a State-Insured Credit Union), Retained Earnings that may be used for Matching Funds purposes shall consist of:

• Option 1: The increase in Retained Earnings that has occurred over the Applicant’s most recent fiscal year;

• Option 2: The annual average of such increases that has occurred over the Applicant’s three most recent fiscal years; or

• Option 3: The entire Retained Earnings that have been accumulated since the inception of the Applicant, provided that the Applicant increases its Member and/or Non-Member Shares or total loans outstanding by an amount that is equal to the amount of Retained Earnings that is committed as Matching Funds by the end of the Awardee’s second performance period, as set forth in its Assistance Agreement.

Please note that the Fund will assess the likelihood of this increase during its review process.  An award will not be obligated to any applicant that has not demonstrated that they have increased shares or loans by at least 25% of the requested FA award amount between December 31, 2006 and December 31, 2007 as demonstrated by its corresponding NCUA report.

• Chart for an ICU Applicant: Complete Chart B2 using the Applicant’s NCUA 5300 Call Report.

If using Option 3, complete the chart, including the narrative explaining the Applicant’s methodology for increasing its total shares or loans. The Fund will verify the amounts entered in the data portion of the chart using the Applicant's NCUA 5300 Call Report. If the Applicant is chosen to receive an award, the Fund will confirm the projected increase in total member and/or non-member Shares or total loans using the Applicant’s NCUA 5300 Call Report for the appropriate fiscal year. The baseline level of member/nonmember shares or loans outstanding will be calculated as of the Applicant's most recent fiscal year end prior to Application submission.

Instructions for filling out the Matching Funds Summary Chart

The Applicant will identify the Matching Funds by entering one Matching Fund transaction on each row. One transaction is any payment or expected payment. Therefore, if one grant is being distributed in three different installments, the chart should include three different rows – one corresponding to each payment date. If Retained Earnings are being proposed as a source, the Retained Earnings Calculator must be completed and submitted with the Excel Workbook linked to the Application. Follow the instructions below for information on what to enter in each column.

• Name of Source: Name or other identifier for each unique match source.

• Type: Select an option from the dropdown list in the table. See more information about each type (Loan, Grant, etc.) in the Matching Funds Q&A document.

• Amount [3 columns]: Enter the amount under the column corresponding to the status of the match: In-Hand, Committed, or To Be Raised.

• Date: Enter a date corresponding to the status of the match as follows: In-Hand = Final Disbursement Date; Committed = Date on Commitment Letter; To Be Raised = Expected Date of Final Disbursement. All dates must be on or after January 1, 2006, and on or before March 14, 2009.

• Comments & Contact Data: If the Matching Funds are from a state and/or local government agency, the Applicant is required to provide the contact name, title, and phone number of the Matching Funds source in the Comments/Contact column. Use same column for any additional comments relevant to the Matching Funds.

SAMPLE CHART TO BE COMPLETED IN ONLINE APPLICATION

A: Matching Funds Data Chart
Name of Source	Type	Amount In-Hand	Amount Committed	Amount to be Raised	Date	Comments & Contact Data
Fall Fundraiser	Small Contributions	50,000			9/12/2005	123 donations, each less than $1,000.
ABC Foundation	Grant	100,000			8/7/2004	ACH transfer, payment #1 of 2 on $1.5 million commitment.
ABC Foundation	Grant		1,400,000		12/31/2005	ACH transfer, payment #2 of 2 on $1.5 million commitment.
VLL Foundation	Grant			90,000	10/1/2006
Spring Fundraiser	Small Contributions			154,689	4/1/2006
Mars Foundation	Grant		10,000		12/31/2005
McKay Foundation	Loan		50,000		12/1/2005
Nat'l CU Foundation	Secondary Capital	50,000			8/1/2004
Baltimore County Gov't	Grant	85,000			12/20/2004	John Doe, Director; 401-222-2222.
Bank One	Deposits/Shares	1,000,000			4/12/2004
N/A	Retained Earnings	50,000			12/31/2004	See Matching Funds Calculator
Totals		1,335,000	1,460,000	244,689

TECHNICAL ASSISTANCE PROPOSAL

Requirements for Applying for Technical Assistance

Any Applicant applying for a Technical Assistance (TA) grant, either alone or in conjunction with Financial Assistance (FA) award, must complete a Technical Assistance Proposal (TAP), which consists of (1) the TA Budget (Chart C), and (2) a detailed narrative explanation and justification for each requested use. The MS Word template for the CBP responses includes a section for the TAP narrative. The narrative must include the following information:

• An opening paragraph providing a summary of how the requested TA will address the organizational improvements needed to achieve the objectives of the CBP.

• A narrative of each requested TA item entered on the TA Budget (Chart C). Each description must include:

• A detailed description of the requested TA activity,

• How the request will improve the Applicant’s capacity to serve its Target Market and/or become certified as a Native CDFI and, therefore, achieve the objectives of the CBP,

• A detailed explanation of how the Applicant calculated the requested amount, and

• A timeline of when the activity/purchase will be initiated and completed.

If the Applicant has received the requested TA item in the past, a description of how the item further builds the capacity of the applicant is necessary. The Fund will not provide funding for the same activities funded through prior awards without reasonable justification.

Note the following when writing the TAP and the CBP:

• Generally, all TA funds awarded must be used within 24 months of receipt.

• No requested TA funds may be expensed before September 2008

• The Fund will evaluate the TAP for the eligibility and appropriateness of the requested TA.

• If the Applicant identifies a capacity-building need related to any section of the CBP (e.g., if the Applicant requires a market need analysis or a community development impact tracking/reporting system), the Fund will assess its plan to use the TA request to address such need. The Applicant’s plan should be clearly detailed in the CBP or the TAP narrative.

• If the Applicant is not a Certified Native CDFI and requests TA to address certification requirements, it must explain how the requested TA will assist the Applicant in meeting the certification requirement. The Fund will assess the reasonableness of the plan to become certified by December 31, 2010, taking into account the requested TA.

TAP Calculation Methodology and Narrative Justification

A: Personnel (Salary).

• An Applicant may request a TA grant to cover the salary paid or accrued by the organization for services rendered by its permanent staff in carrying out a distinct project or for a set period for the 2-year (for TA Only awards) or 3-year (for FA or FA/TA awards) performance period defined in the assistance agreement. The Fund will only cover salary for duties that are related to the purpose of the Award (including activities related to the Applicant becoming certified as a Native CDFI). Compensation paid for employees engaged in activities funded with a TA grant must be consistent with compensation paid for similar work within the Applicant organization. All personnel designated in the application must have their resumes included. If no specific personnel designation is made for a requested position, a job description is required.

• Calculation Methodology Narrative: The narrative must clearly identify each staff person’s annual salary rate and the percentage of time carrying out CDFI-related activities that will be covered by the TA grant (e.g., 50% of the loan officer’s annual salary for two years). List each position by name and title/position of employee.

• Narrative Justification: The narrative justification must describe how the activities that the identified staff person is expected to carry out within the covered timeframe will build the Applicant’s capacity to serve its Target Market or become certified as a Native CDFI.

• For example, the justification for a request to cover a year’s salary of a lending officer must explain the capacity improvements expected at the end of that year, i.e., quantified increase in lending, development of new lending products, etc.

B: Personnel (Fringe Benefits).

• An Applicant may request a TA grant to cover the fringe benefits paid currently or accrued by the organization for services rendered by its permanent staff in carrying out a distinct project or for a set period for the 2-year (for TA Only awards) or 3-year (for FA or FA/TA awards) performance period defined in the assistance agreement. Fringe benefits are only for the percentage of time devoted to the CDFI-related activities during the performance period. Fringe benefits must be reported separately from salary, but Applicants may use the same narrative justification. Fringe benefits should be based on actual known costs or an established formula. Fringe benefits on overtime hours are limited to FICA, Workman’s Compensation, and Unemployment Compensation. Compensation paid for employees engaged in activities funded with a TA grant must be consistent with that paid for similar work within the Applicant organization.

• Calculation Methodology Narrative: Clearly identify the source of the calculation and which portion will be covered by the TA grant (e.g., 100% of fringe benefits calculated as 35% of the loan officer’s annual salary). Applicants may only request fringe benefits for personnel listed in Budget Category A and the portion covered must correspond to the portion of salary requested for the same time period (e.g., for two years). Fringe benefits should not be included in Budget Category A, Personnel (Salary).

• Narrative Justification: Fringe benefits must be reported separately from salary, but Applicants may use the same narrative justification.

C: Training.

• An Applicant may request a TA grant to acquire external training for its staff, volunteers, or board members in order to increase the effectiveness of its existing and future administrative operations and programs by developing its human capital. Procuring a trainer for in-house training should be requested under Category E (Professional Services). Costs associated with the staff time for providing training to the Applicant’s customers and volunteers should be requested under Budget Category A and B (Personnel). Travel associated with training activities must be requested separately in Budget Category D (Travel).

• Calculation Methodology Narrative: Itemize each training class or course to be funded by the TA grant separately by the name of the training. The computation should include the costs of tuition, fees, training materials, and textbooks. Travel, subsistence, and salary for staff attending the training should be requested under Budget Category A and D (Personnel and Travel), as appropriate.

• Narrative Justification: Training content must be standardized and specific to the needs of the organization (i.e., financial management training for finance staff, loan-underwriting training for lending staff, etc.). Training funds for conferences without specific training content will not be accepted. Examples of eligible training activities include:

• Standardized training in loan underwriting or developmental services for staff.

• Standardized training in CDFI operations for new Board members.

D: Travel.

• An Applicant may request a TA grant to cover travel expenses for staff, consultants, or board members. Allowable travel-related expenses include air or train fare, lodging, mileage, rental cars, taxi and subsistence (e.g., meals). Travel expenses must be reasonable and consistent with the Applicant's designated travel policies. Applicants must designate their travel policy in Chart C. Travel expenses associated with any requested training must be included in this category.

• Calculation Methodology Narrative: Travel expenses must be itemized by purpose in the TA Budget chart. The narrative description of the methodology used to calculate the request must clearly identify the details of the total computation. Travel and meals should be listed separately. Show the number of individuals traveling and the unit costs involved. Identify the location of travel, if known.

• For example: Travel associated with underwriting training for four staff for a total of $3,320 includes the following: Airfare @ $350 each roundtrip + lodging at 125/night for 3 nights + $35/day per diem for 3 days.

• Narrative Justification: Travel expenses must be reasonable and consistent with the Applicant's designated travel policies.

E: Professional Service Costs (Consulting and Contracts).

• An Applicant may request a TA grant to acquire external expertise that will increase its capacity to serve and benefit its Target Market or become certified as a Native CDFI. This category includes two types of Professional Services: consulting and contracts.

E1: Consultants – Engaging an individual with expert knowledge to provide professional services or advice should be requested under Consultants. Resumes of any Consultants to be engaged with the requested TA must be included as attachments to the Application. The total cost of the Consultant’s labor rate (not to exceed the hourly rate equivalent of the ES-4 federal salary) should be requested in this category. All other Consultant expenses should be requested in the relevant cost category.

E2: Contractors – Engaging an individual, company, corporation, or other business entity via a competitive process to procure goods or services should be requested under Contractors. A contractor must be an incorporated business entity. Contractor fees must be inclusive of all expenses related to the delivery of the product or service. A Contractor is not subject to the daily rate cap of the equivalent of the ES-4 federal salary.

• For all Budget Category E2 (Professional Services - Contractors) requests a Statement of Work outlining the specific activities and work product(s) may be included as an attachment to the Application. A sample Statement of Work template is available on the Fund’s website.

• Examples of Professional Service costs include:

• Hiring an individual consultant to develop lending policies and procedures.

• Hiring an individual consultant to develop a market analysis with recommendations for expansion.

• Hiring a company (contractor) to evaluate existing or new financial products or training services.

• Hiring a company (contractor) to deliver training to potential borrowers.

• Calculation Methodology Narrative: The computation must include the vendor name (Consultant or Contractor), if known, product or services to be provided, rate of compensation, and estimated time required. The rate of compensation for a Consultant covered by a TA grant cannot exceed the daily or hourly rate equivalent to the ES-4 federal salary, currently $69.90. Current rates can be found at the Office of Personnel Management (OPM) website (www.opm.gov). Contract fees should be inclusive of all professional service costs (salary, printing, supplies, rent, telephone, etc.) related to the delivery of the product or service.

• Narrative Justification: Requested services should be non-recurring – i.e., distinct projects resulting a delivered product (e.g., a report), product specific, and closely linked to the achievement of the Applicant's CBP. The narrative should indicate whether the Applicant will follow its own written procurement policy or the Federal Acquisition Regulations in seeking and engaging Consultants or Contractors.

F: Materials and Supplies.

• An Applicant may request a TA grant to purchase supplies and/or to produce materials (such as training materials associated with providing developmental services or outreach materials to promote the Applicant’s loan products). Generally, supplies include any materials that are expended or consumed over time. Items requested under materials and supplies must have a value of less than $5,000 per unit. The costs of developing materials should be requested either under Budget Category A or E (Personnel or Professional Service Costs), as appropriate.

• Calculation Methodology Narrative: The narrative description of the calculation must include details on the type of materials or supplies and per unit cost.

• For example, office supplies for a total of $2400 calculated as follows: $100/month for two years.

• Narrative Justification: The narrative should explain how the requested items will be used to build the Applicant’s capacity to serve its Target market or to become certified as a Native CDFI.

G. Equipment and Other Capital Expenditures.

• An Applicant may request TA to acquire new equipment or to enhance existing equipment. Non-expendable, tangible property having a useful life of more than two years and/or an acquisition cost of $5,000 or more per unit are considered Equipment. Expendable items should be requested under "Materials and Supplies" or under "Other." Items costing less than $5,000 may be included if the Applicant's capitalization policy recognizes these as capital assets. For purposes of this Application, Budget Category G (Equipment and Other Capital Expenditures) includes computer hardware, computer software, related peripherals, and office equipment.

• Calculation Methodology Narrative: List non-expendable items that are to be purchased with the TA grant by each individual item. List the unit cost multiplied by the number of units to be purchased under Computation. Peripheral costs less than $250 should be added into the cost of the main item to be purchased (such as the computer or copier). Expendable items should be included in Budget Category F and H (Materials and Supplies and Other Expenses) as appropriate.

• Narrative Justification: Applicants should analyze the cost-benefits of purchasing versus leasing equipment, especially high-cost items and those subject to rapid technical advances. Rented or leased equipment costs should be requested under Budget Category E (Professional Services).

H: Other Expenses.

• An Applicant may request a TA grant to cover direct expenses, such as janitorial, security, rent, reproduction, telephone service, internet service, subscriptions, and utilities. The Applicant must demonstrate that other direct expenses listed in OMB Circular A-122 will enhance its capacity to serve its Target Market and/or to become certified as a Native CDFI. Such activities are subject to approval by the Fund.

• Calculation Methodology Narrative: Clearly explain the basis for the calculation.

• Narrative Justification: Narrative should demonstrate that the requested task or activity will enhance the Applicant’s capacity to serve its Target Market and/or to become certified as a Native CDFI. As with all categories, the Applicant seeking a TA grant in this category must clearly link the expense to the achievement of a capacity building objective.

Areas Needing Improvement and TA Request Questions in CBP

TA awards are provided to support the Applicant’s capacity to achieve the strategies outlined in the Comprehensive Business Plan, including certification. Therefore, in addition to the TAP narrative and the chart, Applicants should link each of the TA requests to some component of the CBP, explaining how the TA will support capacity building for that section. This will be done in the final questions for each CBP section labeled “Address areas needing improvement and, if applicable, justify TA Use requests that will help.” All Applicants must respond to these questions, whether it is requesting TA or not. Their response should include three key components:

• Acknowledge and discuss areas needing improvement or definitively state that no improvements are needed in that CBP component.

• Reference and justify requested TA item from Chart C that will support improvement and strengthen its capacity in that component

• Explain how the areas of improvement are being addressed in ways other than through the requested TA grant.

Note – Do not repeat the justification for each TA request for each CBP question response. If certain TA requests will improve the capacity of more than one CBP section, simply reference the item stating that the detailed justification can be found in the previous CBP TA question.

TA Budget Chart: Instructions and Sample Chart

Follow the instructions on the chart completing one row for each TA request. Insert more rows above the subtotal line if necessary.

C. TA Budget Chart
Identify all items and / or tasks to be financed with the TA grant. A detailed description, justification, and explanation of the calculation methodology for the amount requested for each entry must be included in the TA Proposal (TAP) section of the application. Provide the requested information for each requested use. Complete a separate entry for each individual use. Insert more rows above the appropriate subtotal line if additional rows are needed. Additional instructions (and a sample chart) can be found in the FY 2008 Combined CDFI Program application.
Requested TA may not be expended prior to execution of the Notice of Award
A. Personnel (Salary)
Under Name, list the staff person's name for which salary is requested. Under Position, identify the staff person's title. Under Computation, list the annual salary rate and the percentage to be covered by the requested TA grant (which should correspond to the percentage of time to be devoted to an identified project / task or for carrying out CDFI-related activities as described in the narrative justification). Under Cost, list the total salary amount calculated using the methodology described under Computation. List each staff person on a separate line.
Name	Position			Computation	Cost
John Smith	Executive Director			40% of annual salary of $60,000 for two years for time spent developing marketing plan for new loan product.	48,000
Abby Jones	Loan Officer			50% of annual salary of $45,000 for two years for time spent developing new loan product, underwriting new loan product, and other lending related activities.	45,000
Personnel (Salary) Sub-Total:					$93,000
B. Personnel (Fringe Benefits)
Fringe benefits are for personnel listed in cost category (A). Under Name, list the staff person's name for which fringe benefits are requested. Under Position, identify the staff person's title. Under Computation, identify the source of the calculation, list the annual amount of fringe benefits and the percentage to be covered by the requested TA grant (which should correspond to the percentage of time to be devoted to an identified project / task or for carrying out CDFI related activities as described in the narrative justification). Under Cost, list the total amount of fringe benefits calculated using the methodology described under Computation. List each staff person on a separate line.
Name	Position			Computation	Cost
John Smith	Executive Director			10% of fringe benefits (30% of annual salary of $60,000) for time spent developing marketing plan for new loan product.	1,800
Abby Jones	Loan Officer			50% of fringe benefits (30% of annual salary of $45,000) for two years for time spent developing new loan product, underwriting new loan product, and other lending related activities.	27,000
Personnel (Fringe Benefits) Sub-Total:					$28,800
C. Training
List each training class or course funded by the TA grant separately by the name of the training. Under Name of Training, identify the name of the training event. Under Training Provider, identify the name of the training provider. Under Computation, identify all items to be covered by the TA grant including costs of tuition, fees, training materials, and textbooks (travel, subsistence, and salary for staff attending the training should be reflected in the Travel and Personnel categories). Under Cost, list the total cost computed for each training event calculated using the methodology described under Computation.
Name of Training	Training Provider			Computation	Cost
Homebuyer Counseling Certification Course	NeighborWorks			2 attendees*$1,400 (tuition) + $100 (registration fee)	$3,000
Business Lending Workshops	American Bankers Association			2 attendee * $1,000 (tuition)	$2,000
Training Sub-Total:					$5,000
D. Travel
List each travel expenses by purpose (e.g., consultant travel, staff to training, field interviews, advisory group meetings, etc.). Under Location, identify the location of travel, if known. Under Computation, show the basis of computation. The computation must include: the length of the trip, the number of people traveling, and the unit costs involved (i.e., the cost of transportation, the cost of lodging, and the cost of subsistence). Under Cost, list the total cost of each trip calculated using the methodology described under Computation.
The following type of travel policies will be used by the applicant
Purpose of Travel			Location	Computation	Cost
Homebuyer Counseling Certification Course (NeighborWorks)			Waco, TX	2 attendees * $300 (airfare) + $30 (per diem for 5 days)	$900
Business Lending Workshops (ABA)			New York, NY	1 attendee * $440 (airfare) + $30 (per diem for 4 days)	$560
Jane Smith (Consultant) travel to Applicant's offices for work related to market analysis			Washington, DC	1 attendee * $200 (airfare) + $30 (per diem for 3 days)	$290
Travel Sub-Total:					$1,750
E. Professional Service Costs
The following type of procurement policies will be used by the applicant
Consultant:
Itemize each consultant by task performed or service provided. Under Name of Consultant, enter the name, if known, of the consultant or consulting firm. Please include a professional resume for all consultants in the attachments to the application. Under Task, enter a brief description of the services to be provided. Under Computation, show the basis for the total cost (e.g., hourly or daily fee times estimated time on the project). Consultant fees covered by the TA grant cannot exceed the daily or hourly rate equivalent to the ES-4 federal salary. The current rates can be found at the Office of Personnel Management website at www.opm.gov.
Name of Consultant		Task		Computation	Cost
Jane Smith		Market Analysis		$69.90/hour x 10 hours	$699
Consultant Fees Sub-Total:					$699
Contracts:
Itemize each contract by task performed or service provided. Under Name of Contractor, enter the name, if known, of the company providing the service or product. Under Task, enter a brief description of the services or product to be provided. Under Computation, show the basis for the total cost (e.g., salary plus travel plus other expenses such as supplies).
Name of Contractor		Task		Computation	Cost
National CDFI Consulting Company		Underwriting Policies		($125 per hour (salary) * 30 hours) + $700 (software) + $51 (overhead) + $50 (postage) + $50 (copying)	$5,051
				Contracts Sub-Total:	$5,051
Professional Services Sub-Total:					$5,750
F. Materials and Supplies
List items by type (office supplies, postage, training materials, copying paper, and expendable equipment items less than $5,000, such as books, hand held tape recorders). Under Computation, show the basis for the total cost (i.e., number of units times the per unit value). Under Cost, list the cost calculated under Computation.
Item				Computation	Cost
Printing new marketing postcards and brochures from ABC Printing Co.				$1 per postcard * 1000	$1,000
Full library of Low-Income Housing Tax Credit Lending Guides from the LIHTC Company				$25 per guide * 100 guides	$2,500
Postage for market surveys (for market analysis conducted by Jane Smith)				20 cents * 1000 surveys	$200
Materials and Supplies Sub-Total:					$3,700
G. Equipment and Other Capital Expenditures
List equipment to be purchased with the TA grant by each individual item. Under Item, list the equipment to be purchased. Under Vendor, list the name of the vendor, if known. Under Computation, list the per unit cost times the number of units to be purchased. Peripherals costing less than $250 should be added into the cost of the main item to be purchased (such as the computer or copier). List computer software separately from computer hardware. Under Cost, list the cost calculated under computation.
Item	Vendor			Computation	Cost
New desktop computers	Dell, Inc.			2 computers @ $1000 each	$2,000
Microsoft Office Suite (for two new desktop computers)	Dell, Inc.			2 software packages @ 500 each	$1,000
Portfolio Management Software	Community Lending Software, Inc.			$5,000 software cost + $250 (related peripherals) + $250 (installation) + 500 (training staff)	$6,000
Color Copier	Office Equipment World			1 copier @ $1000	$1,000
Equipment Sub-Total:					$10,000
H. Other Costs
List items by cost category as described in OMB Circular A-122. Under Expense, indicate the cost category from A-122. Under Description, enter a brief explanation of the proposed use to be funded by the TA grant. Under Computation, enter the basis of the computation including all associated direct costs. Under Cost, enter the requested amount obtained using the calculation methodology under Computation.
Expense	Description			Computation	Cost
Memberships, subscriptions, and professional activity costs	Subscription to Community Development Expert Weekly Report			2 year subscription of $1000	$2,000
Other Costs Sub-Total:					$2,000
Summary Totals by Category
Budget Category				Amount
A. Personnel (Salary)				$93,000
B. Personnel (Fringe Benefits)				$28,800
C. Training				$5,000
D. Travel				$1,750
E1. Professional Services-Consultants				$699
E2. Professional Services-Contractors				$5,051
F. Materials / Supplies				$3,700
G. Equipment and Other Capital Expenditures				$10,000
H. Other Costs				$2,000
TOTAL TA Budget				$150,000

Activities Level Chart Categories

Chart D, the Activities Level Chart, is an important supplement to the narrative responses provided in the CBP. This table is provided to clarify the financial product and service selection options in Chart D. Applicants are encouraged to use the activities listed when describing its financial products in its Comprehensive Business Plan. These “Activity” categories are loosely based on the transaction “Purpose” options found in the Community Investment Impact System (CIIS), the Fund’s online data reporting tool. Native CDFIs that successfully receive an FA award are required to report their financing activity through CIIS annually. To learn more about CIIS click on the CIIS link under “What We Do” on the Fund’s website, www.cdfifund.gov.

Business Products: Investments used to finance working capital or non-real estate fixed asset purchases. Commonly financed working capital includes payroll, rent, or utility expenses. Commonly financed fixed assets include machinery and equipment, furniture and fixtures, and leasehold improvements. Select one of the three categories that most accurately identify the type of borrower to whom the product is targeted, and the type of investment made.
Activity Option	Description
Business - Equity Investments	Equity Investments made to support for-profit entities. Intermediaries should use this category for equity investments made to for-profit Native CDFIs.
Business Loans - Community Organizations	Loans supporting non-profit or not-for-profit entities. Intermediaries should use this category for loans and EQ2 investments made to non-profit Native CDFIs.
Business Loans - Non-Micro	Loans supporting non-microenterprise, for-profit entities.
Business Loans – Microenterprise	Loans supporting microenterprise, for-profit entities.
Consumer Loans	Personal (secured or unsecured) loans to one or more individuals for health, education, emergency, credit repair, debt consolidation, or other consumer purposes (including car loans).
Home Purchase – 1st Mortgage	Non-subordinated loans supporting the purchase of a primary residence.
Home Purchase - Subordinate	Subordinated loans supporting the purchase of a primary residence and is not in first position. This includes down-payment assistance loans.
Home Improvement	Loans for the renovation or other improvement of an owner-occupied home, irregardless of lien position.
Real Estate Products: Investments used for any real estate financing. Common real estate uses include acquisition, predevelopment, construction or permanent financing of office, retail, or manufacturing, space. Select one of the three categories which most accurately identifies the type of borrower the product is targeted.
Real Estate-Commercial	Loans or equity investments that support commercial for-profit entities. Select this option for mixed-use real estate combining both commercial and residential use.
Real Estate-AHD	Loans or equity investments that support that support affordable housing development (AHD).
Real Estate-Community Facilities	Loans or equity investments that support community facilities.
Savings/Checking/ Share/Draft Accounts	Deposit accounts offered by regulated financial institutions.
Other	Select this category for any grant programs or other financing not identified above.

Executive Summary

No Points

• Provide a narrative describing the Applicant’s mission, key products and services, community development track record, and impacts to date in its Target Market.

• Include a paragraph stating the exact amount of the total award request. Include a sentence for FA, if requested, which details the exact amount and intended use of funds. The FA total must also be broken out on the Award Budget, a table on the Data Chart within the Excel Workbook.

• Summarize the key elements of the CBP, expected outcomes, and proposed uses of FA and TA, if applicable.

• An Emerging Native CDFI should also discuss plans to become certified as a Native CDFI, particularly focusing on its plans to begin its financing activities, and to begin providing Development Services.

• A Sponsoring Entity should discuss plans to create an Emerging Native CDFI, particularly focusing on its plans to begin a separate legal entity, and projected timeline for developing into a Native CDFI.

  • Complete an Applicant Profile providing the following information (a sample template is provided):

• Organization name

• Certification status – “certified” versus “emerging CDFI”

• Year organization was established

• Major products offered

• Geographic and, if applicable, population-based Target Market(s) served

• Expected use of funds (summarize categories, high cost items, and unique uses).

Sample Template:

Smithtown Loan Fund (SLF) is a certified CDFI established in 1973.   SLF provides microloans and small business training related to childcare and youth development to a Low-Income Targeted Population in Orange County California.  SLF will use the 2007 FA award as lending capital.  It will use the TA grant to 1) obtain consulting services to design two new loan products and related lending policies and procedures; 2) pay for staff training in portfolio management; and 3) purchase computers and presentation technology.

TIP If an Applicant is seeking TA Only, it must generally answer the same questions as an Applicant seeking FA. However, the Fund expects that the response from the TA Only Applicant will be shorter (e.g., 1-2 paragraphs versus 1-2 pages) and have less detail than for an FA Applicant. Please contact the Program staff at the Fund for further clarification.

COMMUNITY PARTNER

The Fund’s statute provides specific conditions for an Applicant’s working with a Community Partner through a Community Partnership. The term “community partner” means an entity that provides loans, equity investments, or Development Services, including a DIHC, an IDI, an ICU, a nonprofit organization, a State or local government agency, a quasi-governmental entity, and an investment company authorized to operate pursuant to the Small Business Investment Act of 1958. The term “community partnership” means an agreement between a CDFI and a Community Partner to provide Development Services, loans, or equity investments to a Target Market.

If the Applicant has a Community Partner, attach the written agreement between the Applicant and the Community Partner. Briefly discuss the role of the Community Partner in delivering products, services, and projects in the Target Market. Describe how the Applicant will ensure quality performance by the Community Partner, how the Community Partner will enhance the likelihood of success of the CBP, and how service to the Target Market will be better performed by a partnership than by the Applicant alone.

TIP The CBP must be written from the Applicant‘s perspective. An Applicant may reference activities of its Affiliates (such as a parent organization) to the extent they are relevant to the Applicant’s ability to carry out its CBP.

Market Analysis

25 points

The Fund will evaluate: (i) the extent and nature of the economic distress within the designated Target Market including the Applicant's understanding of its current and prospective customers; and (ii) the extent of demand for the Applicant’s Financial Products, Development Services, and Financial Services within the designated Target Market.

Charts and Attachments

• Activities Level Chart (Chart D in the Application Charts Excel Workbook)

Narrative

1. Briefly describe the Applicant’s current or proposed Target Market.

• What is the Applicant’s Target Market (i.e., Investment Area, OTP, LITP)? Discuss the extent of economic distress within the designated Target Market including quantitative and qualitative data (e.g., unemployment, poverty, number of families needing housing, etc.).

• Discuss any market opportunities, factors or trends that may influence the Applicant’s ability to deliver its products and services to its Target Market. Provide quantitative and qualitative data on the Target Market context (e.g., population, population shifts, business environment, number of small businesses, largest employers). Illustrate the Applicant’s understanding of its current and prospective customers by discussing the implications.

2. Describe the need for the Native CDFI by providing a sense of the financial marketplace currently available to the community.

• Identify and discuss other sources of Financial Products, Development Services, and/or Financial Services in the Target Market (including state programs, banks, credit unions, other CDFIs, payday lenders, check cashers, pawnshops, rent-to-own merchants, car dealers, etc.).

3. Discuss the demand for the Applicant’s Financial Products, Development Services, and/or Financial Services within the Target Market.

• Discuss and quantify the extent of demand for the Applicant’s Financial Products, Development Services, and/or Financial Services within the current or proposed Target Market. Explain how the Applicant ascertained that there was demand for the Financial Products, Development Services, and/or Financial Services. Discussion should put the level of demand in the context of the broader market and include indicators of demand such as number of inquiries per month and/or the number of Target Market members turned away by other sources.

4. Address areas needing improvement and, if applicable, justify requested TA activities that will help.

• Acknowledge the areas for improvement needed in the Applicant’s Market Analysis capacity by discussing the extent to which the Applicant lacks one of the elements above or is a start up. Include a discussion of how the applicant is trying to improve on those areas.

• If there are requested TA activities that will help to address the Market Analysis deficiencies, reference those items from Chart C and explain how the requested TA will address the deficiencies or strengthen the Applicant’s capacity in the area of Market Analysis.

• Sample Market Analysis Response: Smithtown Loan Fund’s (SLF) Market Analysis capacity needs improvement in understanding the size and diversity of our potential customer base. We have addressed this weakness developing a Statement of Work for a potential consultant to help us conduct research to answer these questions. SLF has also requested the following TA use which will help us implement the market analysis improvements: The $25,000 Professional Service Cost entry will allow us to hire a Contractor to conduct the research needed to understand the size and diversity (population and geographic) of our market. This data is critical for our success in serving our Target Market.

Business Strategy

25 points

The Fund will evaluate the Applicant’s business strategy for addressing market demand and creating community development impact through: (i) its Financial Products, Development Services, and/or Financial Services; (ii) its marketing, outreach, and delivery strategy; and (iii) the extent, quality and nature of coordination with other similar providers of Financial Products and Financial Services, government agencies, and other key community development entities within the Target Market. The Fund will take into consideration whether the Applicant is proposing to expand into a new Target Market.

Charts and Attachments

• Activities Level Chart (Chart D in the Application Charts Excel Workbook)

Narrative

5. Describe the Applicant’s Financial Products and Financial Services.

• List each of the Applicant’s current or proposed Financial Products and/or Financial Services. For each: identify the dollar range, interest rate, terms, and describe the customer profile.

• Discuss how their design or proposed design is appropriate for the Target Market (e.g. flexible underwriting criteria, nontraditional forms of collateral, low down payment requirements, closing costs assistance, etc.).

• Discuss how the Applicant’s current or proposed Financial Products and/or Financial Services are or will be similar or different from other sources within the Target Market.

• If a Type 3 Applicant (Sponsoring Entity) has an existing loan portfolio, then discuss plans to transfer the portfolio to the future Native CDFI.

• If the Applicant is expanding its Financial Products and/or Financial Services, identify the new products and/or services and explain why the Applicant decided to provide such to its Target Market. If the Financial Products and/or Financial Services are to be developed, briefly discuss the Applicant’s development strategy, including timelines, expected deliverables, and progress to date.

• Discuss any activities the Applicant regularly engages in to develop, test, and adapt its Financial Products and/or Financial Services in response to customer needs, demand, and market opportunities.

• Provide an example of a past, current, or anticipated project or initiative and how this project or initiative addresses the current level of needs and demand of the Target Market.

6. Describe the Applicant’s Development Services.

• List each of the Applicant’s current or proposed Development Service offerings. Typical examples include credit and financial counseling, homebuyer classes, business development classes, or project financing consultations for affordable housing development CDFIs. For each: identify the format (i.e., one-on-one vs. group); frequency of offerings, fees/costs, and the system used to evaluate the effectiveness of these offerings.

• Discuss how Development Services are linked to Financial Products and/or Financial Services?

• Who provides (include description of partners) Development Services?

7. Describe the Applicant’s marketing, outreach, and delivery strategy.

• Describe the Applicant’s strategies to deliver and build demand for its current or proposed Financial Products, Development Services, and/or Financial Services to the Target Market.

• Discuss how the Applicant will sustain its delivery mechanisms.

8. Discuss the Applicant’s collaboration, coordination, and partnerships.

• To the extent not previously discussed, describe other collaboration, coordination, and partnerships with other providers of Financial Products, Development Services, and Financial Services (e.g., banks, credit unions, loan funds, CDFIs); local, state and tribal government agencies; and other relevant public and private entities (Affiliates, community organizations, etc.). Illustrate how coordinating enables the Applicant to better serve its Target Market.

• Discuss the extent of community support in the Target Market for the Applicant and its activities.

• Discuss the extent to which the Applicant’s activities are consistent with existing economic, community, and housing development plans adopted by or applicable to the Target Market.

• Discuss the Applicant’s strategy for leveraging assistance from the Fund with support from private sector financial resources and other government programs.

9. Address areas needing improvement and, if applicable, justify requested TA activities that will help.

• Acknowledge the areas for improvement needed in the Applicant’s Business Strategy capacity by discussing the extent to which the Applicant lacks one of the elements above or is a start up. Include a discussion of how the applicant is trying to improve on those areas.

• If there are requested TA activities that will help to address the Business Strategy deficiencies, reference those items from Chart C and explain how the requested TA will address the deficiencies or strengthen the Applicant’s capacity in the area of Business Strategy.

• Sample Business Strategy Response: Smithtown Loan Fund’s (SLF) Business Strategy capacity needs improvement in the marketing and outreach area. We have addressed this weakness by developing a position description for a new “Community Partnership Coordinator.” SLF has requested the following TA use which will help us address this Business Strategy weakness: The $40,000 Personnel – Salary and $12,000 Personnel – Fringe Benefits entries will allow us to hire this new position and thereby create the types of collaborations and partnerships needed to effectively promote our products and services within our defined Target Market.

Community Development Performance and Effective Use

20 points

The Fund will evaluate (i) the Applicant's vision for its Target Market, specific outcomes or impacts for measuring progress towards achieving this vision, and the extent to which this award will allow it to achieve them; (ii) the Applicant's track record in providing Financial Products, Financial Services, and Development Services to the Target Market; (iii) the extent to which proposed activities will benefit the Target Market; (iv) the likelihood of achieving the impact projections, including the extent to which the activities proposed in the Comprehensive Business Plan will expand economic opportunities or promote community development within the designated Target Market by promoting homeownership, affordable housing development, job creation or retention, the provision of affordable financial services, and other community development objectives; and (v) the extent to which the Applicant will maximize the effective use of the Fund’s resources.

If an Applicant has a prior track record of serving Investment Areas(s) or Targeted Population(s), it must demonstrate that (i) it has a record of success in serving said Investment Area(s) or Targeted Population(s) and (ii) it will expand its operations into a new Investment Area or to serve a new Targeted Population, offer more products or services, or increase the volume of its current business.

Charts and Attachments

• Activities Level Chart (Chart D in the Application Charts Excel Workbook)

• Community Development Impacts Chart (Chart E in the Application Charts Excel Workbook)

Narrative

10. Describe the Applicant's community development objectives and how progress toward those objectives is measured.

• Discuss the Applicant’s long-term vision for its Target Market and describe how this award will allow the Applicant to realize it.

• Describe the Applicant’s impacts selected in Chart E. Explain key data the Applicant uses to measure impact over time and how that data is captured.

• Describe the procedures and systems in place (or that will be developed) allowing the Applicant to track the impacts listed in the Community Development Impacts Chart (E).

• Discuss strategies for organizational self-sufficiency and for achieving the long-term vision for the Target Market. The Applicant’s vision should be consistent with – and build from – the described community development impacts.

11. Describe the Applicant's track record in providing Financial Products, Development Services, and/or Financial Services.

• Discuss the Applicant's past activities focusing on those specifically provided to clients in the designated Target Market. As appropriate, utilize historic data from the Activities Level Chart to support the Applicant’s discussion.

• If an Applicant has a prior track record of serving Investment Areas(s) or Targeted Population(s), discuss (i) its record of success in serving said Investment Area(s) or Targeted Population(s) and (ii) whether it will use an award from the Fund to expand its operations into a new Investment Area or to serve a new Targeted Population, offer more products or services, or increase the volume of its current business.

12. Discuss how the requested award will enable the Applicant to build its capacity as a Native CDFI.

• Address the projections and timelines provided in the Activities Level Chart, including: the extent to which the Applicant will increase the volume and/or quality of activities, offer more products or services, and/or expand to serve a new Target Market.

• Explain how all projected figures and timelines were calculated.

TIP The Fund is looking for clearly defined specific outcomes or impacts that will be achieved during the performance period. For example, as a result of the Applicant’s activities, it may successfully increase homeownership opportunities for Low Income residents of the Target Market. In structuring this discussion, keep in mind that outcomes are ultimate goals. Benchmarks or outputs are interim activities or products that lead to the ultimate achievement of the Applicant’s goals.

13. Discuss why the Applicant should receive a government subsidy in the form of a CDFI Fund award given the Fund’s limited resources.

• Describe in detail how the Applicant will use the Fund award. In particular, explain how this award will help the applicant to attract or leverage non-federal support for its work.

• Describe the percentage of federal dollars the applicant has historically depended on and how that percentage has changed over time. Explain which other types of support the applicant has or plans to use such as foundations, traditional banks, corporations, fees for service, etc.

• Provide a timeline for achieving the major objectives of the CBP. including becoming certified as a Native CDFI, if applicable:

• Applicants seeking FA should address: (1) how the Applicant plans to use the FA award (for equity capital, lending capital, to fund loan loss reserves, to fund a new product, etc.); (2) how the FA award will benefit the Applicant; and (3) any leverage that will be created by the FA award in terms of funding or other resources.

14. Prior Awardees. If the Applicant or an Affiliate has received an award under any of the Fund’s programs, discuss the extent to which the Applicant has been successful in utilizing the award(s) to build its capacity. Discuss the extent to which the Applicant has been successful in meeting performance goals and reporting requirements. Additionally, please include the following information:

• Name of the entity that received the award(s) and relationship to the Applicant.

• Previous FA Awardees: At any time during the performance period, did the Awardee fail to meet a performance measure or a financial soundness covenant? If yes:

• What caused the failure?

• How have the issues leading to the failure been addressed/resolved?

• Is the Applicant requesting FA for the same type of activities? If yes, do the projected activity levels coincide with that of the previous award?

• Previous TA Awardees:

• Did the Awardee expend all the TA funds within the 2-year period? If not, why?

• Is the Applicant requesting TA funds for activities previously funded by a TA Award? If yes, identify the activities and state the reasons why?

• If a previous TA award was to assist the Awardee in becoming a certified Native CDFI, but this objective was not achieved, explain why. If the Applicant is again requesting TA Funds to assist in achieving Native CDFI certification, explain why the additional assistance is needed and how the Applicant will achieve certification.

• Has the Applicant and/or any Affiliate previously received a financial award (includes any awards made under the CDFI Program, Native American Programs, and BEA Program) or NMTC Allocation from the CDFI Fund? (Yes or No). If yes, please list all of those previous awards and/or allocations:

Previous Awards
Name of Awardee	EIN of Awardee	Award Control Number	Total Award/Allocation Amount	Award Type

15. Address areas needing improvement and, if applicable, justify requested TA activities that will help.

• Acknowledge the areas for improvement needed in the Applicant’s CD Performance and Effective Use capacity by discussing the extent to which the Applicant lacks one of the elements above or is a start up. Include a discussion of how the applicant is trying to improve on those areas.

• If there are requested TA activities that will help to address the CD Performance and Effective Use deficiencies, reference those items from Chart C and explain how the requested TA will address the deficiencies or strengthen the Applicant’s capacity in the area of CD Performance and Effective Use.

• Sample CD Performance and Effective Use Response: Smithtown Loan Fund’s (SLF) CD Performance and Effective Use capacity needs improvement in data collection, operations, and reporting on our outcomes and successes. We have addressed this weakness by conducting a data assessment to identify our information technology needs to collect, manage, and report on our loan portfolio and community development outcomes. SLF has also requested the following TA uses which will help us implement the data collection and CD Performance and Effective Use capacity improvements: The $20,000 Equipment entry in Chart C will help us purchase XYZ software and the $5,000 Professional Service Cost entry will allow us to hire a Contractor to compile and consolidate our current data and systems into the new software system. Both of these TA requests will support our ability to collect and report data about our products, services, and impacts. This data is critical for our success in serving our Target Market.

Management

20 points

The Fund will evaluate the Applicant’s organizational capacity to achieve the objectives set forth in its Comprehensive Business Plan as well as its ability to use its award successfully and maintain compliance with its Assistance Agreement through an evaluation of: (i) the capacity, skills, size and experience of the Applicant’s current and proposed Governing Board, management team, and key staff; and (ii) the Applicant’s management controls and risk mitigation strategies including policies and procedures for portfolio underwriting and review, financial management, risk management, management information systems.

Charts and Attachments

• Organizational Chart

• Chart should illustrate all positions as of the date of the Application including (i) Governing Board; (ii) management; (iii) all staff including shared or donated staff from other organizations or Affiliates; and (iii) volunteers and consultants who are an integral part of the Applicant’s operations. Show reporting relationships for all positions.

• Up-to-date resumes of Board Members (e.g. Governing Board, advisory board (if applicable), and key committees).

• Up-to-date resumes of all personnel (staff, consultants, and/or contractors) involved in operations.

• Scope of Work documents for “Professional Services - Contractors" requested in the TA Budget.

Narrative

16. Describe the capacity, skills, size and experience of the Applicant’s current and/or proposed Governing Board.

• List the members of the Applicant’s Governing Board, advisory board, and any key committees that are an integral part of the Applicant’s operations (e.g., loan/investment committee, audit committee) or plans to be an integral part of a Native CDFI. If the governing board of the Native CDFI is not yet in place, provide a narrative description of the timeline and plans for developing the Native CDFI’s governing board.

• For each member, provide a brief (one paragraph) description of that individual’s capacity, skills, and experience – especially as it relates to his or her position on the board or committee.

• If the Applicant’s has an Advisory Board, describe its role in advising policies and mission.

17. Describe the capacity, skills, and experience of the Applicant’s current and/or proposed management team and key staff.

• For each member of the management team and any key staff who are integral to implementing the Comprehensive Business Plan (e.g., loan officers or marketing professional) provide a brief (1-2 paragraph) description of: (i) the position held by the individual including role and responsibilities; (ii) the individual’s capacity, skills, and experience as it relates to his or her position; and (iii) the individual’s role in carrying out the Comprehensive Business Plan. A Type 3 Applicant (Sponsoring Entity) should discuss members of the Native CDFI development team (e.g., staff, consultants, volunteers).

• For any vacancies or new positions, describe the status of filling the position and the strategy for doing so, as well as the expected date of filling the position.

18. Describe the Applicant’s underwriting policies and procedures.

• Describe the underwriting process and review criteria for each product. Note whether the Applicant has written, board-approved policies in place and the date the policy was most recently approved or updated by the Governing Board.

• FA Applicants Only: Address the roles and responsibilities for due diligence, initial recommendation, setting the interest rate, determining the risk level, and making the final loan decision.

• FA Applicants Only: Describe the methodology for Write-Off/Charge-Offs of unrecoverable loans. Explain if Applicant does not Write-Off/Charge-Off loans delinquent greater than 120 days.

19. Describe the Applicant’s portfolio monitoring policies and procedures.

• Discuss the Applicant’s methodology for portfolio review, including the role of staff and/or Governing Board and/or committee members. Note whether the Applicant has written, board-approved policies in place and the date the policy was most recently approved or updated by Governing Board.

• FA Applicants Only: Address the types of reports that borrowers or investees are required to submit.

• FA Applicants Only: Describe the frequency of portfolio review (e.g., monthly, quarterly, semi-annual, annual).

• FA Applicants Only: Describe how the Applicant addressed delinquencies and defaults in its portfolio.

• If the Applicant is requesting an award for a new product, explain if policies and procedures have been developed or the timeframe for doing so.

• FA Applicants Only: If Applicant provides Equity Investments:

• Address how the Applicant determines performance (impact) and financial benchmarks with investees.

• Address how the Applicant would be alerted if the investee is experiencing financial and/or managerial difficulties;

• Describe the Applicant’s role in company management and board decisions.

• Describe the types of corrective actions/enforcement/activities that will be taken if benchmarks are not met.

• Discuss how the Applicant re-values its investees. Describe the methodology for portfolio valuation. Discuss if the Applicant revalues its portfolio annually or explain why it does not revalue its investees at least annually.

20. Describe the Applicant’s financial and risk management policies and procedures.

• Discuss the Applicant’s:

• Management of financial accounts;

• System for tracking and reporting on use of funds from public and private sources;

• Methodology for determining liquidity and operating reserves; and

• Process for producing internal and audited Financial Statements.

21. Describe the Applicant’s Management Information Systems (MIS).

• Describe the Applicant’s MIS including software and other technology used for: underwriting, portfolio monitoring, data and impact tracking, developing internal Financial Statements. For each item, provide the name of the current MIS in use and briefly describe the types of reports that are generated or explain the Applicant’s strategy for acquiring and implementing an effective MIS.

• To the extent the Applicant lacks a system or procedure, explain the strategy for acquiring and implementing the appropriate information systems and technology.

22. Discuss the extent to which the Applicant has in place the systems and procedures to ensure ongoing compliance with of a CDFI Fund Assistance Agreement, focusing on the ability to:

• Submit reports in a timely manner based on the applicable reporting periods;

• Report electronically through the Community Investment Impact System (CIIS) on its financial management, institutional level, and transaction level data required to meet the Fund’s annual reporting requirements.

23. Describe any plans in place or being developed for the Applicant to merge with, acquire, or be acquired by another entity.

• Identify the entity and whether it is a certified Native CDFI. Explain the expected timeframe and strategy for the merger, acquisition, and/or operational joint venture and what impact it will have on the Applicant’s staffing, operations and ability to serve its Target Market.

24. Address areas needing improvement and, if applicable, justify requested TA activities that will help.

• Acknowledge the areas for improvement needed in the Applicant’s Management capacity by discussing the extent to which the Applicant lacks one of the elements above or is a start up. Include a discussion of how the applicant is trying to improve on those areas.

• If there are requested TA activities that will help to address the Management deficiencies, reference those items from Chart C and explain how the requested TA will address the deficiencies or strengthen the Applicant’s capacity in the area of Management.

• Sample Management Response: Smithtown Loan Fund’s (SLF) Management capacity needs improvement in data collection, operations, and reporting on our outcomes and successes, which are the same areas as discussed in our Community Development Performance and Effective Use section in question 15 above.

Financial Health and Viability

10 points

The Fund will evaluate the Applicant’s: (i) audited or otherwise prepared Financial Statements; (ii) safety and soundness, including an analysis of the Applicant’s financial services industry ratios (capital, liquidity, deployment and self-sufficiency) and ability to sustain positive net revenue; (iii) projected financial health, including its ability to raise operating support from sources other than the Fund and its capitalization strategy; and (iv) portfolio performance including loan delinquency, loan losses, and loan loss reserves. If an Applicant does not have 100 percent of the required matching funds in-hand (versus committed), the Applicant must demonstrate to the satisfaction of the Fund that it will raise the outstanding balance of matching funds within the time table set forth in the NOFA.

Financial Ratio Minimum Prudent Standards (MPS)
Measure	Non-Regulated CDFIs	Insured Credit Unions	IDIs / DIHCs
Capital Measures the underlying financial strength of an Awardee and whether it has sufficient cushion of assets to cover unexpected losses. The capital ratio identifies the percentage of the Native CDFI’s total assets unencumbered by debt.	Net Asset Ratio > 15% Net Assets divided by Total Assets	Net Worth Ratio > 5% Net Worth divided by Total Assets	Tier 1 Leverage Capital > 7%
Asset-Liability Management Is the structure of the Applicant’s debt appropriate for its financial products?	Current Ratio = 1.25: 1 Current assets divided by current liabilities.	Narrative Only	Narrative Only
Deployment Measures how much of the Applicant’s available funds are lent out or invested.	Deployment Ratio > 50%	Deployment Ratio > 50% Total Loans/Total Shares	Total Loans/Total Deposits > 50%
Self-Sufficiency Measures the percentage of operating costs a Native CDFI can cover with earned revenue.	Self-Sufficiency Ratio = > 40% (non-profit) > 70% (for-profit)	Narrative Only	Narrative Only
Operating Liquidity Measures whether the Applicant has sufficient cash to cover at least 3 months of operating expenses. The operating ratio reports the availability of cash to cover short-term operating expenses.	Operating Liquidity Ratio > 0 Cash and Cash Equivalents that are not restricted in a manner that prevents their use in satisfying obligations represented by operating expenses DIVIDED BY 25% of total operating expenses for the four most recently completed quarters.	Narrative Only	Narrative Only
Earnings Measures whether the Applicant is earning sufficient revenue to cover its expenses.	Net Income > $0 Gross Revenues (including grants or other contributions) less Total Expenses. For-profit Applicants should deduct total pre-tax expenses from Total Revenue.	Return on Assets > 0.75% See return on average assets under Earnings Heading under FPR Ratios Document	Pre-Tax Net Operating Income/Average Assets > 0.65%

TIP Failure to meet any of the historic and/or projected MPS does not necessarily preclude the Applicant from receiving a Financial Assistance and/or Technical Assistance award. However, the Applicant must explain why it believes it is financially sound despite not meeting the MPS.

Charts and Attachments

• Financial Data Input Chart (Chart F1, F2, or F3 in the Application Charts Excel Workbook).

• Chart F summarizes both the historic and projected financial performance of the Applicant. Complete the chart entering data in the green cells only. Yellow cells are formula calculations. View cell comments in Excel for line item definitions. Applicant will enter historic data using its last three years of financial statements and portfolio data, if necessary. Applicant should develop the three years of projected financial information based on portfolio projections, expected revenue, and other business planning information.

• Submit Financial Statements for the Applicant’s three most recently completed fiscal years (or as many years as are available if the Applicant has been in operation less than three years).

• Non-Regulated Applicants: Submit audited or reviewed Financial Statements including any associated Notes to the Financial Statements. If audited or reviewed Financial Statements are not available, submit internally generated balance sheets (statements of financial position) and Income and Expense Statements (statements of activities), and respond to question 25, below.

• Applicants with Affiliate(s): If the audited Financial Statements of the Applicant are consolidated with its Affiliate(s) and do not include separate schedules of the Applicant’s financial position and Income and Expense Statements, submit a separate set of internally generated Financial Statements for the Applicant.

• ICUs, IDIs, and DIHCs: Submit Financial Performance Ratios (FPR) as reported by the Applicant’s appropriate federal regulating agency for the last three completed fiscal years. Regulator reports include the National Credit Union Administration Form 5300, or Uniform Bank Performance Report). Do not submit complete reports, only the financial ratio summary pages.

• Loan Portfolio Quality Chart (Chart G in the Application Charts Excel Workbook).

• Equity Investment Portfolio Valuation Chart (Chart H in the Application Charts Excel Workbook)

Narrative:

25. Describe the type of Financial Statements included with the Application, audited, reviewed, internally prepared.

• If applicable, explain why anything less than the most recent three years of audited Financial Statements were not included. If applicable, explain measures being taken to address any negative findings reported in the audits. Explain any major discrepancies between key financial statement line items and corresponding entries in Chart F.

26. Provide key assumptions underlying the projections for the projected three years (FY 2007-FY 2009) identified in the Financial Data Input Chart. Address the following:

• Explain the basis for the change in outstanding financing during the projected years. For example, is this based on a % increase, if so what percentage. If not based on a percentage increase, what data was used to identify the projection pattern?

• Identify new products or services impacting the outstanding financing figure for the three projected years. These should correspond to products or services on the Activities Level Chart.

• Explain any significant non-earned revenue sources embedded in the chart and the likelihood of those being realized.

• Describe the figures used to determine expenses, i.e., assumptions about new hires, new offices/branches, etc.

• Does the Applicant have sufficient financing capital to meet the current and projected level of demand for its Financial Products and/or Financial Services? (When discussing, refer back to discussion of product demand.)

27. For each Financial Ratio:

• State the Applicant’s ratio result as calculated on the Financial Data Input chart and whether that result meets the Fund’s minimum prudent standard.

• For all ratios, including those where the Fund has not stated a definitive MPS, explain the organization’s expectation or goal for this ratio and how those expectations were developed, e.g., trade association or regulator standards.

• For regulated Applicants, discuss any regulatory constraints or agreements affecting the MPS.

• If the ratio does not meet the MPS add the following to the narrative:

• Explain why the Applicant is financially sound although it does not meet the MPS. Include specific information relative to that ratio. For example, a capital ratio statement may address the Sources and terms of the debt that might mitigate the organization’s financial risk, i.e., (20 different EQ2 investments, the earliest of which is due to roll over in 2020); OR

• Explain how the requested FA and/or TA will help increase the Applicant’s ratio.

• Capital Ratio: Explain why the Applicant’s debts exceed 80% of its total assets and how the organization protects itself from financial risks related to this debt level.

• Earnings Ratio. Explain such factors as unusual losses, plans for preventing such losses in the future, strategy for increasing earnings, and how the requested FA and/or TA will help the Applicant increase its earning potential. The Fund expects Native CDFIs to sustain positive net revenue each year but recognizes the nature of Native CDFI funding sources makes that difficult. The Fund’s MPS is, therefore, based on a three-year time frame.

• Operating Liquidity [Non-Regulated] or Capital Liquidity [Regulated] Ratio. Address the factors affecting the Applicant’s ability to meet its liabilities with off-balance sheet resources or other strategies.

• Self-Sufficiency Ratio. (Not applicable for ICUs, IDIs, and DIHCs.) Describe the Applicant’s strategy and timeline for increasing total earned income and/or decreasing expenses. Explain any inflexible impediments to self-sufficiency and why they are considered inflexible (e.g., product mix or market served discussions.)

28. Portfolio Management Ratios. Review the chart below, which outlines the MPS for each of three portfolio management ratios: Portfolio-at-Risk (PAR), Annual Net Loan Loss Ratio, and Loan Loss Reserves (LLR) or Provision for Losses.

Institution Type	Portfolio-at-Risk (PAR) Ratio	Loan Loss Reserves (LLR) or Provision for Losses
Non-Regulated Entities (Loan Funds)	< 15.00%	Loan Loss Reserves are expected to be no less than half the actual Portfolio-at-risk and no more than one and a half times the actual portfolio at risk: .5 PAR < LLR < 1.5 PAR
Insured Credit Unions	Delinquent Loans/Total Loans < 3.5%	Comparing FY03 and FY04, Applicant’s dollar amount of provision for loan losses changed by at least the same percent and direction as the change in the dollar amount of delinquent loans.
IDIs / DIHCs	Non current Loans & Leases/Total Loans & Leases < 2.0%	Loans & Leases Allowance/Total Loans & Leases > 0.5% PAR

• Applicants will complete the Loan Portfolio Quality Chart (Chart G) and compare their three-year average historical ratios to the MPS above. Use the narrative responses to explain any discrepancies.

• Overall MPS should be based on the product with the largest dollar percentage in your portfolio at the close of your last fiscal year.

• For each portfolio management ratio, the Applicant will address the following results reported in the Loan Portfolio Quality Chart:

• State whether the Applicant met the MPS. For the Delinquency (PAR) Ratio, the narrative should address each product grouping PAR ratio. For Net Loan Loss (NLL) and Loan Loss Reserve (LLR), address the aggregate portfolio result as they compare to the MPS.

• Explain the organization’s expectation or goal for the portfolio ratio and how it was developed, e.g., trade association or regulator standards.

• If the Applicant failed the portfolio MPS, further explain why the Applicant believes it has reasonable risk management despite not meeting the MPS or describe the steps being taken to address this failure.

29. Equity Investor Financial Health [applicable only for Venture Capital Funds]

• Complete the Equity Investment Portfolio Valuation Chart (Chart H) and briefly answer the following questions:

• Describe the terms of the Equity Investments made by the Applicant.

• Explain the Fund’s life cycle and where the Applicant is in that life cycle.

• Describe the Fund’s status in meeting both capitalization and investment goals compared to the original plans.

• Provide a summary of investments including total number, breakout by investment type (i.e., pure equity vs. equity-like), and investment age.

30. Address areas needing improvement and, if applicable, justify requested TA activities that will help.

• Acknowledge the areas for improvement needed in the Applicant’s financial health and viability capacity by discussing the extent to which the Applicant lacks one of the elements above or is a start up. Include a discussion of how the applicant is trying to improve on those areas.

• If there are requested TA activities that will help to address the financial health and viability deficiencies, reference those items from chart C and explain how the requested TA will address the deficiencies or strengthen the Applicant’s capacity in the area of financial health and viability.

• Sample Financial Health and Viability Response: Smithtown Loan Fund’s (SLF) Financial Health and Viability needs improvement in that our capital or net asset ratio does not meet the CDFI Fund’s minimum prudent standard, nor does it meet our internal expectations. We are requesting the following TA Use to strengthen this weakness: The $5,000 Professional Service Cost will allow us to hire a Contractor to help us develop a comprehensive capitalization strategy and plan. The plan will outline the five key markets we should be approaching to build our capital base and the related products and services which will most likely appeal to those markets. The capitalization strategy will serve as the base for building our capital structure which is crucial to continuing our service to our Target Market.

Application Charts

• The DATA FORM is the first worksheet found in the Excel Workbook. It must be completed in its entirety.

• The charts (A-H) are included in this Application for visual reference only. All Application charts are available – and must be submitted – as an Excel file through the Grants.gov system.

• Applicants will complete each chart and save the completed Workbook.

• Applicants must upload the completed Excel workbook into the online interface via Grants.gov by the application deadline.

• Applicant should print and retain a hard copy of all charts submitted for future reference. Applicant should NOT submit hard copies to BPD.

• Excel tip: To print all worksheets in a workbook choose “Print” then in the “Print What” box in the lower left corner select the radio button for “Entire Workbook.”

C. TA Budget Chart
Identify all items and / or tasks to be financed with the TA grant. A detailed description, justification, and explanation of the calculation methodology for the amount requested for each entry must be included in the TA Proposal (TAP) section of the application. Provide the requested information for each requested use. Complete a separate entry for each individual use. Insert more rows above the appropriate subtotal line if additional rows are needed. Additional instructions (and a sample chart) can be found in the FY 2008 Combined CDFI Program application.
Requested TA may not be expended prior to execution of a Notice of Award
A. Personnel (Salary)
Under Name, list the staff person's name for which salary is requested. Under Position, identify the staff person's title. Under Computation, list the annual salary rate and the percentage to be covered by the requested TA grant (which should correspond to the percentage of time to be devoted to an identified project / task or for carrying out CDFI-related activities as described in the narrative justification). Under Cost, list the total salary amount calculated using the methodology described under Computation. List each staff person on a separate line.
Name	Position	Computation	Cost
Personnel (Salary) Sub-Total:			$0
B. Personnel (Fringe Benefits)
Fringe benefits are for personnel listed in cost category (A). Under Name, list the staff person's name for which fringe benefits are requested. Under Position, identify the staff person's title. Under Computation, identify the source of the calculation, list the annual amount of fringe benefits and the percentage to be covered by the requested TA grant (which should correspond to the percentage of time to be devoted to an identified project / task or for carrying out CDFI related activities as described in the narrative justification). Under Cost, list the total amount of fringe benefits calculated using the methodology described under Computation. List each staff person on a separate line.
Name	Position	Computation	Cost
Personnel (Fringe Benefits) Sub-Total:			$0

Partial view of TA Chart – See complete chart in Application, Section I

F1: Financial Data Input Chart - Non-Regulated Applicant

F1: Financial Data Input Chart - Non-Regulated Applicant

F2: Financial Data Input Chart – Credit Union Applicants

F2: Financial Data Input Chart – Credit Union Applicants

F3: Financial Data Input Chart – Bank/Thrift/Holding Companies

F3: Financial Data Input Chart – Bank/Thrift/Holding Companies

PArt II:

Applicant type questionnaire

1. Are 50% or more of the Applicant’s activities directed toward a Native Community (i.e., Indian Reservation, Alaska Native Village, or Hawaiian Home Land; or Native American, Alaska Native, or Native Hawaiian individuals, families, or businesses)? If YES, then attach a narrative describing how the Applicant verifies that its activities are so targeted. (Suggested length: up to ½ page). Proceed to Question 2. If NO, then the Applicant is not eligible to apply for the NACA Program.	Yes No
2. Is the Applicant a Certified Native CDFI? If YES, then Applicant is Type 1 (Certified Native CDFI) and is eligible to apply for TA and FA. Required eligibility materials: signed Certification of Material Events form. Applicant may stop questionnaire here. If NO, then proceed to Question 3 to determine Applicant type.	Yes No
3. Does the Applicant currently meet all six certification tests and: Did Applicant submit a CDFI Certification Application by TBD; or Does it have a CDFI Certification Application pending with the Fund? If YES to either, then Applicant is Type 1 (Certifiable Native CDFI) and is eligible to apply for TA and FA. Required eligibility materials: signed Certification of Material Events form. Applicant my stop questionnaire here. If NO, then proceed to Question 4 to determine Applicant type.	Yes No
4. Is the Applicant in existence legally (incorporated or chartered) and planning to seek certification for itself within a reasonable timeframe (generally within two years of receiving an award)? If YES, then Applicant is Type 2 (Emerging Native CDFI) and is eligible to apply for TA only. Applicant my stop questionnaire here. If NO, then proceed to Question 5 to determine Applicant type.	Yes No
5. Does the Applicant plan to form a separate legal entity within three years of receiving an award that will primarily serve a Native Community and become certified within a reasonable timeframe? If YES, then Applicant is Type 3 (Sponsoring Entity) and is eligible to apply for TA only. Applicant may stop questionnaire here. If NO, then Applicant is not eligible to apply for the NACA Program.	Yes No

Part III:

Environmemtal and Legal Certifications

WHO MUST COMPLETE THIS SECTION:

• ALL APPLICANTS

IS THERE ANYTHING IN THIS SECTION THAT MAY CAUSE MY APPLICATION TO BE REJECTED IF I MISS IT?

• Failure to submit required forms.

THINGS TO NOTE:

• In certain cases, the Fund will allow a limited window of two (2) business days to submit some piece of missing documentation including a missing Environmental Review Form.

Environmental Review Form

Applicant Name:

The Fund’s environmental review requirements are set forth in 12 CFR Part 1815. The Applicant should review such regulations carefully before completing this section. In order to assure compliance with those regulations and other requirements related to the environment, the Applicant shall provide the following information:

	YES	NO
Are there any actions proposed in the Application that do not constitute a “categorical exclusion” as defined in 12 CFR 1815.110?
If YES, would any of these actions normally require an environmental impact statement (see 12 CFR 1815.108)?
Are there any activities proposed in the Application that involve:
Historical or archeological sites listed on the National Register of Historic Places or that may be eligible for such listing?
Wilderness areas designated or proposed under the Wilderness Act?
Wild or scenic rivers proposed or listed under the Wild and Scenic Rivers Act?
Critical habitats of endangered or threatened species?
Natural landmarks listed on the National Registry of Natural Landmarks?
Coastal barrier resource systems?
Coastal Zone Management Areas?
Sole Source Aquifer Recharge Areas designated by EPA?
Wetlands?
Flood plains?
Prime and unique farmland?
Properties listed or under consideration for listing on the Environmental Protection Agency’s List of Violating Facilities?

If YES to any of the above questions, attach a detailed description of each action, clearly identifying the category in which the action falls.

NOTIFICATION

As stated in 12 CFR 1815.105, if the Fund determines that the Application proposes actions which require an environmental assessment or an environmental impact statement, any approval and funding of the Application will be contingent upon:

1. The Applicant supplying to the Fund all information necessary for the Fund to perform or have performed any required environmental review;

2. The Applicant not using any Fund Financial Assistance to perform any of the proposed actions in the Application requiring an environmental review until approval is received from the Fund; and

3. The outcome of the required environmental review.

In addition, as stated in 12 CFR 1815.106, if the Fund determines that an Application, or any part thereof, is not sufficiently definite to perform a meaningful environmental review prior to approval of the Application, final approval and funding of the Application shall require supplemental environmental review prior to the taking of any action directly using Fund Financial Assistance for any action that is not a categorical exclusion.

Assurances And Certifications

Signing the certification on SF 424 certifies that the Applicant will comply with the Assurances and Certifications listed below if an award is made. Certain of these Assurances and Certifications may not be applicable to the Applicant. An Applicant may not modify any of the Assurances and Certifications.

A. Standard Form 424B: Assurances -- Non-Construction Programs

As the duly authorized representative of the Applicant, I certify that the Applicant:

1. Has the legal authority to apply for Federal assistance, and the institutional, managerial and financial capability (including funds sufficient to pay the non-Federal share of project costs) to ensure proper planning, management and completion of the project described in this Application.

2. Will give the awarding agency, the Comptroller General of the United States, and if appropriate, the State, through any authorized representative, access to and the right to examine all records, books, papers, or documents related to the award; and will establish a proper accounting system in accordance with generally accepted accounting standards or agency directives.

3. Will establish safeguards to prohibit employees from using their positions for a purpose that constitutes or presents the appearance of personal or organizational conflict of interest, or personal gain.

4. Will initiate and complete the work (activities in Application) within the applicable time frame after receipt of approval of the awarding agency.

5. Will comply with the Intergovernmental Personnel Act of 1970 (42 U.S.C. 4728-4763) relating to prescribed standards for merit systems for programs funded under one of the nineteen statutes or regulations specifies in Appendix A of OPM’s Standards for a Merit System of Personnel Administration (5 CFR 900, Subpart F).

6. Will comply with all Federal statutes relating to nondiscrimination. These include but are not limited to: (a) Title VI of the Civil Rights Act of 1964 (P.L.88-352) which prohibits discrimination on the basis of race, color or national origin; (b) Title IX of the Education Amendments of 1972, as amended (20 U.S.C.1681-1683, 1685-1686), which prohibits discrimination on the basis of sex; (c) Section 504 of the Rehabilitation Act of 1973, as amended (29 U.S.C.794), which prohibits discrimination on the basis of handicaps; (d) the Age Discrimination Act of 1975, as amended (42 U.S.C.6101-6107), which prohibits discrimination on the basis of age; (e) the Drug Abuse Office and Treatment Act of 1972 (P.L. 92-255), as amended, relating to nondiscrimination on the basis of drug abuse; (f) the Comprehensive Alcohol Abuse and Alcoholism Prevention, Treatment and Rehabilitation Act of 1970 (P.L.91-616), as amended, relating to nondiscrimination on the basis of alcohol abuse or alcoholism; (g) Sections 523 and 527 of the Public Health Service Act of 1912 (42 U.S.C. 290 dd-3 and 290 ee-3), as amended, relating to confidentiality of alcohol and drug abuse patient records; (h) Title VIII of the Civil Rights Act of 1968 (42 U.S.C.3601 et seq.), as amended, relating to nondiscrimination in the sale, rental or financing of housing; (i) any other nondiscrimination provisions in the specific statute(s) under which Application for Federal assistance is being made; and (j) the requirements of any other nondiscrimination statutes which may apply to the Application.

7. Will comply, or has already complied, with the requirements of Titles II and III of the Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970 (P.L. 91-646) which provide for fair and equitable treatment of persons displaced or whose property is acquired as a result of Federal or federally assisted programs. These requirements apply to all interests in real property acquired for project purposes regardless of Federal participation in purchases.

8. Will comply with the provisions of the Hatch Act (5 U.S.C.1501-1508 & 7324-7328) which limit the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

9. Will comply, as applicable, with the provisions of the Davis-Bacon Act (40 U.S.C. 276a to 276a-7), the Copeland Act (40 U.S.C. 276c and 18 U.S.C. 874), and the Contract Work Hours and Safety Standards Act (40 U.S.C. 327-333), regarding labor standards for federally assisted construction subagreements.

10. Will comply, if applicable, with flood insurance purchase requirements of Section 102(a) of the Flood Disaster Protection Act of 1973 (P.L. 93-234) which requires recipients in a special flood hazard area to participate in the program and to purchase flood insurance if the total cost of insurable construction and acquisition is $10,000 or more.

11. Will comply with environmental standards which may be prescribed pursuant to the following: (a) institution of environmental quality control measures under the National Environmental Policy Act of 1969 (P.L.91-190) and Executive Order 11514; (b) notification of violating facilities pursuant to EO 11738; (c) protection of wetlands pursuant to EO 11990; (d) evaluation of flood hazards in floodplains in accordance with EO 11988; (e) assurance of project consistency with the approved State management program developed under the Coastal Zone Management Act of 1972 (16 U.S.C. 1451et seq.); (f) conformity of Federal actions to State Implementation Plans under Section 176(c) of the Clear Air Act of 1955, as amended (42 U.S.C. 7401 et seq.); (g) protection of underground sources of drinking water under the Safe Drinking Water Act of 1974, as amended, (P.L.93-523); and (h) protection of endangered species under the Endangered Species Act of 1973, as amended, (P.L.93-205).

12. Will comply with the Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271 et seq.) related to protecting components or potential components of the national wild and scenic rivers system.

13. Will assist the awarding agency in assuring compliance with Section 106 of the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470), EO 11593 (identification and protection of historic properties), and the Archaeological and Historic Preservation Act of 1974 (16 U.S.C. 469a-1 et seq.).

14. Will comply with P.L. 93-348 regarding the protection of human subjects involved in research, development, and related activities supported by this award of assistance.

15. Will comply with the Laboratory Animal Welfare Act of 1966 (P.L. 89-544, as amended, 7 U.S.C. 2131 et seq.) pertaining to the care, handling, and treatment of warm blooded animals held for research, teaching, or other activities supported by this award of assistance.

16. Will comply with the Lead-Based Paint Poisoning Prevention Act (42 U.S.C. 4801 et seq.) which prohibits the use of lead based paint in construction or rehabilitation of residence structures.

17. Will cause to be performed the required financial and compliance audits in accordance with the Single Audit Act of 1984.

18. Will comply with all applicable requirements of all other Federal laws, executive orders, regulations and policies governing this program.

B. Additional Certifications

In addition to the assurances and certifications provided by the Applicant pursuant to OMB Standard Form 424B, the Applicant hereby assures and certifies that:

1. It is duly organized and validly existing under the laws of the jurisdiction in which it was incorporated or otherwise established, and is (or within 30 days will be) authorized to do business in any jurisdiction in which it proposes to undertake activities specified in this Application;

2. Its Board of Directors (or similar governing body) has by proper resolution or similar action authorized the filing of this Application, including all understandings and assurances contained herein, and directed and authorized the person identified as the authorized representative of the Applicant to act in connection with this Application and to provide such additional information as may be required;

3. It will comply with all applicable requirements of the Community Development Banking and Financial Institutions Act of 1994 (the Act) [12 U.S.C. 4701 et seq.], regulations implementing the Act and all other applicable Department of the Treasury regulations and implementing procedures (and any regulations or procedures which are later promulgated to supplement or replace them);

4. It will comply, as applicable and appropriate, with the requirements of OMB Circulars (e.g., A-110 and A-133) and any regulations and circulars which are later promulgated to supplement or replace them, including standards for fund control and accountability;

5. It has not knowingly and willfully made or used a document or writing containing any false, fictitious or fraudulent statement or entry as part of this Application or any related document, correspondence or communication. (The Applicant and its authorized representative should be aware that, under 18 U.S.C. 1001, whoever knowingly and willfully makes or uses such document or writing shall be fined or imprisoned for not more than five years, or both); and

6. The information in this Application, and in these assurances and certifications in support of the Application, is true and correct to the best of the Applicant’s knowledge and belief and the filing of this Application has been duly authorized.

C. Certification Regarding Debarment, Suspension, and Other Responsibility Matters -- Primary Covered Transactions: Instructions for Certification

1. By signing and submitting this Application, the prospective primary participant (the Applicant) is providing the certification set out below.

2. The inability of a person to provide the certification required below will not necessarily result in the denial of participation in this covered transaction. The prospective Applicant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the Fund’s determination whether to enter into this transaction (approval and funding of the Application). However, failure of the Applicant to furnish a certification or an explanation shall disqualify such person from participation in this transaction.

3. This certification is a material representation of fact upon which reliance is placed when the Fund determines to enter into this transaction. If it is later determined that the Applicant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the Fund may terminate this transaction for cause or default.

4. The Applicant shall provide immediate written notice to the Fund if at any time the Applicant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

5. The terms “covered transactions,” “debarred,” “suspended,” “ineligible,” “lower tier covered transaction,” “participant,” “person,” “primary covered transaction,” “principal,” “proposal”, and “voluntarily excluded,” as used in this clause (certification), have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. You may contact the Fund for assistance in obtaining a copy of those regulations (31 CFR part 19).

6. The Applicant agrees by submitting this Application that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the Fund.

7. The Applicant further agrees by submitting this Application that it will include the clause titled “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion-Lower Tier Covered Transaction,” to be provided by the Fund, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions (see 31 CFR part 19, Appendix B).

8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the Nonprocurement List.

9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the Fund may terminate this transaction for cause or default.

4. Certification Regarding Debarment, Suspension, and Other Responsibility Matters -- Primary Covered Transactions

1. The prospective primary participant (the Applicant) certifies to the best of its knowledge and belief, that it and its principals:

1. are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from covered transactions by any Federal department or agency;

2. have not within a three-year period preceding this Application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property;

3. are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and

4. Have not within a three-year period preceding this Application had one or more public transactions (Federal, State or local) terminated for cause or default.

2. Where the Applicant is unable to certify to any of the statements in this certification, such Applicant shall attach an explanation to this proposal.

E. Certification Regarding Drug-Free Workplace Requirements

1. The Applicant certifies that it will provide a drug-free workplace by:

1. publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession, or use of a controlled substance is prohibited in the Applicant’s workplace and specifying the actions that will be taken against employee for violations of such prohibition;

2. establishing a drug-free awareness program to inform employees about:

1. the dangers of drug abuse in the workplace;

2. the Applicant’s policy of maintaining a drug-free workplace;

3. any available drug counseling, rehabilitation, and employee assistance program;

4. the penalties that may be imposed upon employees for drug abuse violations occurring in the workplace

3. making it a requirement that each employee to be engaged in the performance of the award be given a copy of the statement required by subparagraph (a);

4. notifying the employee in the statement required by subparagraph (a) that, as a condition of employment in such grant, the employee will:

1. abide by the terms of the statement; and

2. notify the employer of any criminal drug use statute conviction for a violation occurring in the workplace no later than five calendar days after such conviction;

5. notifying the granting agency in writing, within ten calendar days after receiving notice of a conviction under subparagraph (d) (ii) from an employee or otherwise receiving actual notice of such conviction;

6. taking one of the following actions, within 30 days of receiving notice under subparagraph (d)(ii), with respect to any employee who is so convicted:

1. taking appropriate personnel action against such an employee, up to and including termination, consistent with the requirements of the Rehabilitation Act of 1973, as amended; or

2. requiring such employee to participate satisfactorily in a drug abuse assistance or rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency; and

7. making a good faith effort to continue to maintain a drug-free workplace through implementation of subparagraphs (a), (b), (c), (d), (e), and (f).

2. The Applicant may insert in the space provided below the site(s) for the performance of work (activities carried out by the Applicant) to be done in connection with the award (Place of Performance (Street Address, City, County, State and zip Code)):

Not Applicable

F. Certification Regarding Lobbying

1. The Applicant certifies, to the best of its knowledge and belief, that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the Applicant, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Application, the undersigned shall complete and submit Standard Form LLL, “Disclosure Form to Report Lobbying, “ in accordance with its instructions; and

3. The Applicant shall require that the language of this certification be included in the award documents for all subawards of all tiers (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

2. This certification is a material representation of fact upon which reliance is placed when this transaction is made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

501(C)(4) Questionnaire

This questionnaire is necessary for the Fund to determine whether an Applicant with a 501(c)(4) designation from the IRS is eligible to receive an award from the Fund (see 12 C.F.R. § 1805.200(a)(3)). Please read all definitions before responding to the questions and continue to refer to such definitions in responding to this questionnaire. If the answer to any question is yes, please describe in detail the facts and circumstances, subject matter, date(s), names and titles of all individuals and their employers and their organizations on a separate sheet(s) of paper. The Fund reserves the right to seek follow-up responses from an Applicant. Failure to complete this questionnaire and, if applicable, respond timely to follow-up questions, will delay the Fund’s processing of the Application, and may result in the disqualification of the Application from further consideration. After submitting responses to this questionnaire, the Applicant is under a continuing obligation to: (1) supplement its responses upon a change in circumstances; and (2) revise or modify its responses within 10 business days of having actual or constructive knowledge that the responses previously submitted and certified are no longer complete, accurate, or true. You may call the Fund’s Office of Legal Counsel at (202) 622-8662 if you have any questions about this form.

Scope: The scope of this questionnaire is limited to activities on or after January 1, 1996.

Questions

Has any officer, employee, director, partner, proprietor, or board member contacted1 a Covered Executive Branch Official2 with regard to the formulation, modification, or adoption of Federal legislation (including legislative proposals)	 Yes  No
Has any officer, employee, director, partner, proprietor, or board member contacted a Covered Executive Branch Official with regard to the formulation, modification, or adoption of a Federal rule, regulation, Executive Order, or any other program, policy, or position of the United States Government?	 Yes  No
Has any officer, employee, director, partner, proprietor, or Board member contacted a Covered Executive Branch Official with regard to the administration or execution of a Federal program or policy (including the negotiation, award, or administration or a Federal contract, grant, loan, permit, or license)?	 Yes  No
Has any officer, employee, director, partner, proprietor, or Board member contacted a Covered Executive Branch Official with regard to the nomination or confirmation of a person for a position subject to confirmation by the United States Senate?	 Yes  No
Has any officer, employee, director, partner, proprietor, or Board member engaged in efforts supporting and coordinating the contact by others of a Covered Executive Branch Official including preparation and planning activities, research and other background work that was intended, at the time performed, for a purpose described in Questions 1-4?	 Yes  No
Has any officer, employee, director, partner, proprietor, or Board member contacted a Covered Executive Branch Official with regard to the formulation, modification, or adoption of Federal legislation (including legislative proposals)?	 Yes  No
Has any officer, employee, director, partner, proprietor, or Board member contacted a Covered Executive Branch Official with regard to the formulation, modification, or adoption of a Federal rule, regulation, Executive Order, or any other program, policy, or position of the United States Government?	 Yes  No
Has any officer employee, director, partner, proprietor, or Board member contacted a Covered Executive Branch Official with regard to the administration or execution of a Federal program or policy (including the negotiation, award, or administration of a Federal contract, grant, loan, permit, or license)?	 Yes  No
Has any officer, employee, director, partner, proprietor, or Board member contacted a Covered Executive Branch Official with regard to the nomination or confirmation of a person for a position subject to confirmation by the United States Senate?	 Yes  No
Has any officer, employee, director, partner, proprietor, or Board member engaged in efforts supporting and coordinating the contact by others of a Covered Legislative Branch Official3 including preparation and planning activities, research and other background work that was intended, at the time performed, for a purpose described in Questions 6-9?	 Yes  No

Signature

Signing the certification on SF 424 certifies that the answers to the 501(c)(4) Questionnaire and the written explanations attached thereto are true, accurate, and complete to the best of its information, knowledge, and belief and that, since January 1, 1996, the Applicant has not engaged in Lobbying Activities as defined in Section 3 (7) of the Lobbying Disclosure Act of 1995, P.L. 104-65, as amended.

“Contacted” means any oral or written communication including an electronic communication.

² “Covered executive branch official” means: (a) the President; (b) the Vice President; (c) any officer or employee, or any other individual functioning in the capacity of such an officer or employee, in the Executive Office of the President; (d) any officer or employee serving in an Executive Level I-V position, a “Schedule C” position, or any official in a Senior Executive Service position; (e) any member of the uniformed services serving at grade 0-7 or above; or (f) any officer or employee serving in a position of a confidential, policy-determining, policy-making, or policy-advocating character.

3 “Covered legislative branch official” means: (a) a member of Congress; (b) an elected officer of either House of Congress; and (c) any employee of the House or Senate, including employees of Members, committees, leadership and working groups or caucuses organized to provide legislative services or other assistance to Members of Congress.