CDFI 0020 2008 NMTC Program Allocation Application

NMTC Program

New Markets Tax Credit

Allocation Application

2008 Application

Community

Development

Financial

Institutions

Fund

OMB Approval No. 1559-0016

CDFI-0020

Paperwork Reduction Act Notice.

This submission requirements package is provided to applicants to apply for an allocation of New Markets Tax Credits (NMTC) under the NMTC Program. Applicants are not required to respond to this collection of information unless it displays a currently valid OMB control number. The estimated average burden associated with this collection of information is 90 hours per applicant. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Program Manager, NMTC Program, Community Development Financial Institutions Fund, 601 13th Street, NW, Suite 200 South, Washington, DC 20005.

Table of Contents

Applicant Instructions i

Assurances and Certifications i

Applicant Information 1

Part I: Business Strategy 1

A. Products, Services, and Investment Criteria 1

B. Prior Performance 1

C. Projected Business Activities 1

D. Non-Metropolitan Counties 1

E. Investments in Unrelated Entities 1

Part II: Community Impact 1

A. Targeting the Use of QLICIs 1

B. Economic Impacts – Prior Performance 1

C. Economic Impacts - Projections 1

Part III: Management Capacity 1

Part IV: Capitalization Strategy 1

A. Investor Strategy 1

B. Sources and Uses of Capital 1

C. Flow of Allocations 1

Exhibit A: Track Record of Activities 1

Table A1: Track Record of Loans/Investments to Non-Real Estate Businesses 1

Table A2: Track Record of Loans/Investments to Real Estate Businesses 1

Table A3: Track Record of Loans/Investments to Other CDEs 1

Table A4: Track Record of Loan Purchases from Other CDEs 1

Exhibit B: Projected Activities 1

Table B1: Projected Loans/Investments to Non-Real Estate QALICBs (Estimated) 1

Table B2: Projected Loans/Investments to Real Estate Businesses (Estimated) 1

Table B3: Projected Loans/Investments in Other CDEs (Estimated) 1

Table B4: Projected Loan Purchases from Other CDEs (Estimated) 1

Table B5: Projected Financial Counseling and Other Services to Businesses and Entrepreneurs in Low-Income Communities (Estimated) 1

Exhibit C: Community Impact 1

Table C1: Historic Community Impacts (cumulative 2003-2007) 1

Table C2: Projected Community Impacts (cumulative 2009-2013) 1

Exhibit D: Staff and Board Qualifications 1

Table D1: Experience Deploying Capital or Financial Counseling and Other Services 1

Table D2: Experience Raising Capital 1

Table D3: Asset and Risk Management Experience 1

Table D4: Program Compliance Experience 1

Table D5: Low-Income Community Representatives on the Applicant’s Board 1

Table D6: Consultants and unaffiliated organizations providing services to the Applicant 1

Exhibit E: Investor Strategy 1

Table E1: Identification of Investments and Investor Commitments 1

Table E2: Track Record of Raising Capital from Investors 1

Exhibit F. Fees and Flow of Allocations 1

Table F1: Summary of Compensation and Profits 1

Table F2: Schedule for Issuing QEIs (Estimated) 1

Glossary of Terms 1

Applicant Instructions

• Read the relevant New Markets Tax Credit (NMTC) Program publications prior to completing the Allocation Application. For information on the 2008 NMTC Program allocation round, read the Notice of Allocation Availability (NOAA) and the Community Development Financial Institutions Fund’s (the Fund’s) document titled “NMTC Allocation Application Q&A Document.” For tax related information on the NMTC Program, read the final regulations issued by the Internal Revenue Service (26 CFR 1.45D-1) and related guidance. For information on Community Development Entity (CDE) certification, read the Fund’s document titled “CDE Certification Q&A Document.” All of these documents are available on the Fund’s website at www.cdfifund.gov. The Fund’s Q&A documents are periodically updated, so continue to check the website on a regular basis.

• Consult the Glossary of Terms when completing the Allocation Application. All terms and phrases that are in Capitalized Italics in the Allocation Application are defined in the Glossary of Terms.

• If the Applicant has not been certified as a CDE by the Fund, it must submit its CDE Certification Application to the Bureau of Public Debt (BPD, the entity that is handling intake of applications on behalf of the Fund) so that it is Postmarked on or before February 1, 2008. The CDE Certification Application is available on the Fund’s website at www.cdfifund.gov. Organizations whose CDE Certification Applications are not received at BPD in a timely fashion will be considered ineligible for NMTC Allocations in the 2008 round of the program. An Applicant that is a Community Development Financial Institution (CDFI) or Specialized Small Business Investment Company (SSBIC) does not need to submit a CDE Certification Application to BPD, but must register as a CDE on the Fund’s website by 5:00 pm, Eastern Time, on February 1, 2008.

TIP: The Fund cannot process a CDE Certification Application unless each entity seeking certification as a CDE: (a) is a legal entity, and is a domestic corporation or partnership for federal tax purposes; and (b) has a valid and distinct Employer Identification Number (EIN). Applicants or Subsidiary Applicants that have applied for, but not yet received, an EIN as of the date of the Authorized Representative’s signature on the Allocation Application will not be accepted. For more information on EINs and applying for an EIN, refer to the CDE Certification Q&A Document on the Fund’s website at www.cdfifund.gov.

TIP: The term “Postmarked,” as used throughout this document, is defined by 26 CFR 301. 7502-1. In general, the Fund will require a Postmarked date that is on or before the applicable deadline. The document must be in an envelope or other appropriate wrapper, properly addressed and deposited in the U.S. mail. The document may be delivered by the United States Postal Service or any other private delivery service designated by the Secretary of the Treasury. For more information on designated delivery services, please see IRS Notice 2002-62.

• Carefully read the Allocation Application and the NOAA to determine whether the Applicant has the requisite eligibility, capacity, experience, and skills to compete for and administer a NMTC Allocation. Be sure also to review carefully the Assurances and Certifications provided in this document. By signing this Allocation Application, the Applicant is certifying to the truth, completeness, and correctness of this Allocation Application, including the items listed in the Assurances and Certifications.

• If the Fund determines that any portion of the application is incorrect in any material respect, the Fund reserves the right, in its sole discretion, to reject the application.

• As the Applicant prepares the Allocation Application, assume that the Fund’s Allocation Application reviewers are learning about the organization for the first time, even if the organization has previously submitted an application to the Fund under this or any of the other Fund programs.

• A start-up organization that does not have a track record of raising capital or offering products and services may reference the activities of its Controlling Entity in certain areas of the Allocation Application. However, a start-up may not reference the activities of individuals, including principals or board members, to demonstrate such track record. The activities and experiences of individuals may be addressed in the Management Capacity section.

• The term Applicant refers to the CDE applying for a NMTC Allocation as well any other Subsidiary entities, whether already formed or in the process of formation, which may receive a transfer of all or a part of a NMTC Allocation from the Applicant. To the extent practicable, the Applicant may respond to each question in this Allocation Application collectively on behalf of all such entities. If responses vary for separate entities, be sure to clearly articulate which entity is being referenced in the narrative and tables.

• Be sure to keep each narrative brief. Please note that each narrative text response has a maximum character length of either 3,000 characters (which, depending on font size, is about 1/2 of a page) or 10,000 characters (which, depending on font size, is about 2 pages). These character maximums include spaces, punctuation, and special characters. All text that exceeds the maximum set for a narrative text response (which is noted at the end of each question) will be truncated at the character limit.

DO NOT SUBMIT THIS ALLOCATION APPLICATION

• Use the online application: This version of the Allocation Application is a read-only version. Any organization interested in applying for a NMTC Allocation from the Fund is expected to submit an online Allocation Application. Applicants may access the online Allocation Application as soon as it is made available by logging in through myCDFI Fund on the Fund's website at www.cdfifund.gov. Applicants who have not already done so are encouraged to register a user account through myCDFI Fund as soon as possible. Please contact the Fund's IT Help Desk at (202) 622-2455 or [email protected] if you are having problems registering under myCDFI Fund. The online Allocation Application must be received no later than 5:00 pm, Eastern Time, on March 12, 2008. Complete instructions regarding the electronic submission requirements will be posted on the Fund's website at www.cdfifund.gov when the online Allocation Application is made available.

• Required investor letters: An Applicant that has received commitment letters or letters of interest from investors is required to submit attachments validating the following information: name of investor, dollar amount of equity sought or obtained (or dollar amount of debt, in the case of an investor partnership using debt capital), status of the investment request (e.g., funds received, Commitment of funds, Letter of Interest/Intent). If the documents do not contain such information and validate the information entered in Table E1 or are missing altogether, the Applicant could lose points under the Capitalization Strategy section. For examples of acceptable documentation for the required information, refer to the Fund’s NMTC Allocation Application Q&A Document.

• Submitting attachments and signature pages: All Applicants will be required to submit an original signature page with the Authorized Representative’s signature and applicable attachments (Letters of Interest/Intent, Commitment letters and organizational charts). Applicants will be required to submit one original and four copies of the signature page and each attachment. All copies of the signature page and attachments must be submitted in one package/envelope. The signature page and applicable attachments must be sent to BPD, Postmarked no later than March 17, 2008. All documents must be submitted by mail to:

Bureau of Public Debt

CDFI Grants Management

ATTN: NMTC Program

200 Third Street, A2-G

Parkersburg, WV 26106

Phone: (304) 480 - 6088 (to be used for shipping labels for overnight delivery services)

If a signature page with the correct signature is not received, with a Postmark, by the applicable deadline, the entire Allocation Application will be rejected without further review. If the attachments are not postmarked and received by the applicable deadline, then they will not be given consideration as part of the review process. Only those attachments requested by the Fund will be considered as part of the review process. Furthermore, the Fund will not accept any revisions or amendments to an application or the attachments once they have been submitted for review.

• Each Applicant should expect that if it receives a NMTC Allocation, information provided in this Allocation Application will be used to determine the terms of an Allocation Agreement.

• The contents of this Allocation Application are consistent with the Internal Revenue Code Section 45D (the Code) and the NMTC Program Income Tax Regulations. In the event of any inconsistency between the contents of this Allocation Application and the Code or the NMTC Program Income Tax Regulations, the provisions of the Code and the NMTC Program Income Tax Regulations shall govern.

TIP: If you have programmatic questions about the contents of this Allocation Application, you may contact the Fund by mail at 601 13^th Street, NW, Suite 200 South, Washington, DC 20005, by e-mail at [email protected], by telephone at (202) 622-6355, by facsimile at (202) 622-7754, or visit the Fund’s website at www.cdfifund.gov. If you require information technology assistance in using the online Allocation Application, please call (202) 622-2455 or email [email protected].

The Fund will provide programmatic and information technology support related to the Allocation Application between 9:00 am and 5:00 pm, Eastern Time, through March 10, 2008. The Fund will not respond to phone calls or emails concerning the Allocation Application that are received after 5:00 pm, Eastern Time, on March 10, 2008, until after the Allocation Application deadline of March 12, 2008.

Assurances and Certifications

Except for paragraphs 10, 11, 12 and 13 below, the inability of the Applicant to provide the General Certifications (section A, below) will render the Applicant ineligible to apply for a NMTC Allocation. If the Applicant cannot provide the General Certifications in paragraphs 10, 11, 12 and 13, the Applicant must submit a written explanation. The Fund will consider the explanation provided and determine, in its sole discretion, whether the Applicant is eligible to apply for a NMTC Allocation. If the Applicant cannot provide any of the other General Certifications, it should not submit an Allocation Application.

The inability of the Applicant to provide the Certification Regarding Debarment, Suspension, and Other Responsibility Matters (section B, below) will not necessarily result in the denial of participation in this “covered transaction.” The Applicant must submit an explanation of why it cannot provide the Certification Regarding Debarment, Suspension, and Other Responsibility Matters. The Certification or explanation will be considered in connection with the Fund’s determination whether to enter into this transaction (meaning, approval of the Allocation Application and entering into an Allocation Agreement). However, failure of the Applicant to furnish either the Certification or an explanation will disqualify the Applicant from participation in said transaction.

A. General Certifications

As the Authorized Representative of the Applicant, I hereby assure and certify that:

1. The Applicant is duly organized and validly existing under the laws of the jurisdiction in which it was incorporated or otherwise established.

2. The Applicant has the legal authority to apply for a NMTC Allocation, and the institutional, managerial, and financial capability to ensure proper use of such allocation as described in this Allocation Application and in accordance with IRC §45D and the NMTC Program Income Tax Regulations, and all applicable Department of the Treasury regulations and guidance documents.

3. The Applicant’s governing body (e.g., Board of Directors) has by proper resolution or similar action authorized the signing and filing of this Allocation Application, including all understandings and assurances contained herein, and directed and authorized me as the Authorized Representative of the Applicant to act in connection with this Allocation Application and to provide such additional information as may be required.

4. The Applicant will give the Department of the Treasury, the Comptroller General of the United States, and if appropriate, the State of the Applicant’s incorporation, through any Authorized Representative, access to and the right to examine all records, books, papers, or documents related to the provision of a NMTC Allocation; and will establish a proper accounting system in accordance with generally accepted accounting standards; Office of Management and Budget (OMB) regulations, guidelines, and circulars; and Department of the Treasury regulations and directives.

5. The Applicant will establish safeguards to prohibit employees from using their positions for purposes that constitute or present personal or organizational conflicts of interest, or personal gain, either real or perceived.

6. The Applicant will comply with all applicable requirements of Title I, subtitle C, section 121 of the Community Renewal Tax Relief Act of 2000, as enacted by section 1(a)(7) of the Consolidated Appropriations Act, 2001 (Public Law No. 106-554, December 21, 2000), and as amended, regulations implementing the NMTC Program and all other applicable Department of the Treasury regulations, guidance, and implementing procedures (and any regulations or procedures which are later promulgated to supplement or replace them).

7. The Applicant will comply, as applicable and appropriate, with the requirements of OMB Circulars and any regulations and circulars which are later promulgated to supplement or replace them, including standards for fund control and accountability.

8. The Applicant will comply with all applicable requirements of all other Federal laws, executive orders, regulations, and policies governing the NMTC Program.

9. The Applicant 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 Allocation Application or any related document, correspondence, or communication. The Applicant and its Authorized Representative are 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.

10. The Applicant and its officers, directors, owners, partners, and key employees: (a) have not within a three-year period preceding the date of this Allocation Application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense; (b) have not within a three-year period preceding the date of this Allocation Application been convicted of or had a civil judgment rendered against them for 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; or (c) have not within the three-year period preceding the date of this Allocation Application been found liable in any civil legal action involving creditor’s claims of greater than $500,000.

11. The Applicant and its officers, directors, owners, partners, and key employees: (a) have not within a three-year period preceding the date of this Allocation Application been indicted for or charged with the commission of fraud or a criminal offense; (b) have not within a three-year period preceding the date of this Allocation Application been indicted for or charged with the 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; (c) 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 paragraphs 11(a) and 11(b) of this certification; or (d) have not within the three-year period preceding the date of this Allocation Application been the subject of any formal investigation or disciplinary proceeding by a government agency, regulatory body, or professional association in connection with any matter which may have a material adverse effect on the Applicant or its financial condition or the Applicant’s ability to carry out the authorized uses of a NMTC Allocation.

12. Any other person or entity that Controls the Applicant (other than the Applicant’s officers, directors, owners, partners, and key employees): (a) has not within a three-year period preceding the date of this Allocation Application been indicted, charged with or convicted of, or had a civil judgment rendered against it for commission of fraud or a criminal offense; (b) has not within a three-year period preceding the date of this Allocation Application been indicted, charged with or convicted of, or had a civil judgment rendered against it for 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; (c) is 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 paragraphs 12(a) and 12(b) of this certification; (d) has not within the three-year period preceding the date of this Allocation Application been the subject of any formal investigation or disciplinary proceeding by a government agency, regulatory body, or professional association in connection with any matter which may have a material adverse effect on the Applicant or its financial condition or the Applicant’s ability to carry out the authorized uses of a NMTC Allocation; or (e) has not within the three-year period preceding the date of this Allocation Application been found liable in any civil legal action involving creditor’s claims of greater than $500,000.

13. The Applicant has never been delinquent on amounts due to the Internal Revenue Service or on any debts owed to Federal, State, or local government.

14. The Applicant has never filed for bankruptcy.

NOTE: Where the Applicant is unable to certify to one or more of the statements in paragraphs 10, 11, 12 or 13 of the General Certifications, the Applicant must attach a written explanation to this Allocation Application.

___ Check here if the Applicant is submitting a written explanation.

B. Certification Regarding Debarment, Suspension, and Other Responsibility Matters — Primary Covered Transactions

1. This Certification is a material representation of fact upon which reliance is placed when the Fund enters into an Allocation Agreement with the Applicant. If it is later determined that the Applicant knowingly rendered an erroneous or false Certification, the Fund may terminate, in its sole discretion, the Notice of Allocation and the Allocation Agreement for cause or default.

2. The Applicant must provide immediate written notice to the Fund if at any time the Applicant learns that this Certification was erroneous or false when submitted or has become erroneous or false by reason of changed circumstances.

3. 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 Certification, have the meanings set out in the Definitions and Coverage sections of the rules implementing Executive Order 12549. The Applicant may contact the Fund for assistance in obtaining a copy of those regulations (31 CFR part 19).

4. The Applicant agrees that, by submitting this Allocation Application, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the Fund.

5. The Applicant further agrees that, by submitting this Allocation Application, it will include the Certification 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).

6. 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 proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous or false. 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 List of Parties Excluded from Federal Procurement and Non-procurement Programs. See www.epls.gov for more information.

7. 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 hereby required. 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.

8. Except for transactions authorized under paragraph 4 above, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, 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, in its sole discretion, the Notice of Allocation and the Allocation Agreement for cause or default.

C. Certification Regarding Debarment, Suspension, and Other Responsibility Matters – Primary Covered Transactions

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

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

• have not within a three-year period preceding this Allocation Application been convicted of or had a civil judgment rendered against them for: (i) 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; or (ii) 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;

• 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

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

NOTE: Where the Applicant is unable to certify to one or more of the statements in the Certification Regarding Debarment, Suspension, and Other Responsibility Matters, the Applicant must attach a written explanation to this Allocation Application.

____ Check here if the Applicant is submitting a written explanation.

Applicant Information

1. Applicant NMTC Allocation Request

Total dollar amount of NMTC Allocation requested in this Allocation Application:

$__________

2. Applicant Information¹:

(a) Applicant Name:
(b) Applicant Employer Identification Number:

(c) Structure of the Applicant (check all that apply):

___ For-profit	___ Credit Union
___ Non-profit	___ Publicly Traded Company
___ Small Business Investment Company	___ Government-Controlled entity
___ Specialized Small Business Investment Company	___ Faith-Based Institution
	___ Minority-owned or Controlled
___ New Market Venture Capital Company	___ Tribal Entity
___ Certified CDFI	___ Thrift, Bank or Bank Holding Company
	___ Real Estate Development Company

(d) Is the Applicant a domestic corporation or partnership for federal tax purposes? (If the Applicant is not a domestic corporation or partnership for federal tax purposes, it is not eligible to apply for a NMTC Allocation):

____ Domestic Corporation

____ Domestic Partnership

5. Applicant’s date of incorporation or formation (month/day/year): _________

(f) Applicant’s total assets as of the date of this Allocation Application: $_________

(g) Applicant’s fiscal year end (month/day/): ________

(h) Does the Applicant have any Affiliates that are applying for a NMTC Allocation in the 2008 round? (check one): ___ Yes ___ No

TIP: The answer to question 2(h) must be “No.”  An Applicant and its Affiliates may collectively submit only one application for NMTC Allocations under this round of the NMTC Program.  If separate applications are received from multiple Affiliated entities, the Fund reserves the right to reject all such applications. For the purposes of this requirement, in addition to assessing whether applicants meet the definition of the term “Affiliate” found in the Allocation Application, the Fund will consider: (i) whether the activities described in applications submitted by separate entities are, or will be, operated or managed as a common enterprise that, in fact or effect, could be viewed as a single entity; and (ii) whether the business strategies and/or activities described in applications submitted by separate entities are so closely related that, in fact or effect, they could be viewed as substantially identical applications. In such cases, the Fund reserves the right either to reject all applications received from all such entities or to select a single application as the only one that will be considered for an allocation. For more information regarding these requirements, please review the Allocation Application Q&A Document on the Fund’s website at www.cdfifund.gov. If you have questions about whether two entities are affiliated, you should contact the Fund well in advance of the 2008 NMTC Allocation Application due date.

3. Controlling Entity Information:

TIP: An Applicant may only designate an organization as a Controlling Entity that meets the definition of Controlling Entity set forth in the NOAA and the Glossary of Terms and that currently controls the day-to-day management and operations (including investment decisions) of the Applicant. Individuals cannot be deemed to be Controlling Entities. The Allocation Application does not allow for more than one Controlling Entity. Therefore, entities with more than one Controlling Entity will need to select one Controlling Entity to list in the application to assist in demonstrating track record and in completing the related exhibits. An Applicant may identify the parent organization/company of its parent as its Controlling Entity to demonstrate an organizational track record, provided that the relationship between the “grandparent” and the Applicant conforms to the Fund’s definition of a Controlling Entity. Should the Applicant receive a NMTC Allocation, the entity that is designated as the Controlling Entity below will need to continue in that capacity throughout the term of the Allocation Agreement with the Fund.

Is the Applicant designating a Controlling Entity? ____ Yes _____ No

Not applicable. No Controlling Entity.

(a) Controlling Entity Name:
(b) Controlling Entity Employer Identification Number:

(c) Structure of the Controlling Entity (check all that apply):

___ For-profit	___ Credit Union
___ Non-profit	___ Publicly Traded Company
___ Small Business Investment Company	___ Government-Controlled entity
___ Specialized Small Business Investment Company	___ Faith-Based Institution
	___ Minority-owned or Controlled
___ New Market Venture Capital Company	___ Tribal Entity
___ Certified CDFI	___ Thrift, Bank or Bank Holding Company
	___ Real Estate Development Company

(d) Total assets of Controlling Entity: $

4. Applicant Mailing Information:

Mailing address (provide nine-digit zip code):

Address for overnight deliveries (if different from mailing address, include 9-digit zip code):

5. Authorized Representative Information:

Name, title, and mailing address, if different from Applicant:

Telephone number:		Fax number:
E-mail address:

6. Contact Person Information (if different from Authorized Representative):

Name, title, and mailing address, if different from Applicant:

Telephone number:		Fax number:
E-mail address:

7. Has the Applicant already been certified as a CDE by the Fund or submitted a CDE Certification Application?

___ Yes. CDE Certification Control Number: ______________________________

___ No

TIP: An Applicant’s CDE Certification Application must be sent to the Bureau of Public Debt (the entity that is handling intake of applications on behalf of the Fund), Postmarked no later than February 1, 2008 to be considered for a NMTC Allocation in the 2008 round. The CDE Certification Application is available on the Fund’s website at www.cdfifund.gov. The Fund cannot process a CDE Certification Application unless each entity seeking certification as a CDE: a) is a legal entity and is a domestic corporation or partnership for federal tax purposes; and b) has a valid and distinct EIN. An Applicant that is a CDFI or SSBIC does not need to submit a CDE Certification Application, but must register as a CDE on the Fund’s website on or before 5:00 pm, Eastern Time, on February 1, 2008.

8. The following descriptive information will be used by the Fund to develop profiles for its Allocatees. Such profiles will be shared with the general public via the Fund’s website or other public materials/forums.

   1. Briefly describe the Applicant’s business strategy (including geographic markets; products and services). Suggested length 4-5 sentences. (Maximum Response Length: 3,000 characters)

      
      

      
      

   2. Briefly describe how the Applicant will utilize its NMTC Allocation to enhance or improve its current activities. Suggested length 4-5 sentences. (Maximum Response Length: 3,000 characters)

TIP: For Question 8b, the Applicant should specifically indicate the extent to which its NMTC Allocation will be used to: offer more favorable rates or preferential terms on its loan or investments products; target activities to areas of higher distress than currently served by the Applicant; engage in new product offerings; and/or increase the provision of products and services to Low-Income Communities. Please refer to the Fund’s NMTC Allocation Application Q&A Document (available at www.cdfifund.gov) for a sample response to Question 8 of this Allocation Application.

9. Identify the type of service area that the Applicant will serve (check one). The service area identified here must be consistent with (i.e., identical to or a subset of) the service area identified by the Applicant in its CDE Certification Application and approved by the Fund:

	National service area
	Multi-state service area
	Statewide (or territory-wide) service area
	Local service area (e.g., neighborhoods, cities, a county or contiguous counties, or metropolitan areas) within a state or territory

TIP: An Applicant serving a metropolitan area that crosses multiple states (e.g., the Washington, D.C. or Philadelphia metropolitan areas) should check “Multi-state service area.”

10. Identify the particular geographical areas that the Applicant will serve. An Applicant that is serving a national service area must identify the 7 states with the largest amount of projected activities:

State(s):
County(ies):

11. Estimate the percentage of activities, by dollar amount, that will be directed to each of the following markets. The total percentage should add up to 100% of the NMTC Allocation amount.

	% Major urban areas (Counties in metropolitan area with a population equal to or greater than 1 million, including both central city and surrounding suburbs)
	% Minor Urban areas (Counties in metropolitan area with a population less than 1 million, including both central city and surrounding suburbs)
	% Non-metropolitan counties

12. Please indicate the Applicant’s predominant anticipated financing activity (check only one):

    ____ Business financing
    ____ Real estate financing: (check only one accompanying sub-category)
    ____ Retail	____ Office Space
    ____ Industrial/Manufacturing	____ For-sale housing
    ____ Community Facilities	____ Mixed-use (housing,
    ____ Hospitality/Tourism	commercial, or retail)
    ____ Financing of other CDEs
    ____ Loan purchase from other CDEs
    ____ Financial Counseling and Other Services

13. Estimate how long this Allocation Application form took to complete: ________ hours

TIP: For the purpose of estimating hours, Applicants should focus only on the amount of time it took to complete the questions asked in this application. Other activities that are carried out in the normal course of business and are only indirectly related to the completion of this application (e.g., securing investor commitments; developing a business strategy or marketing plan; etc.) should not be included in this estimation. In the electronic on-line application form, you will not be able to answer this question until all other application questions are complete.

By signing this Allocation Application, the Applicant makes the Assurances and Certifications, set forth in the Assurances and Certifications (pages vi-ix) of the Allocation Application, which Assurances and Certifications are made a part hereof and will continue in effect until the Applicant enters into an Allocation Agreement with the Fund.

I hereby certify that all of the information that the Applicant has provided in this Allocation Application and in the Assurances and Certifications in support of this Allocation Application is true, correct, and complete. The execution and submission of this Allocation Application has been duly authorized by the governing body of the Applicant.

Applicant Name:
Authorized Representative Signature:
Name (print)				Title
Date:

Part I: Business Strategy

Total Maximum Points for Part I: 25 points, plus up to 10 additional “priority points” available under sub-sections B and D.

TIP: An Applicant will score well in this section to the extent it can articulate, with specificity, its strategy to use a NMTC Allocation and can describe a strong, relevant track record, including a track record of serving Low-Income Communities. Included in this section is the ability to earn “priority points” for meeting the statutory priorities of: 1) investing in Unrelated entities; and/or 2) demonstrating a track record of serving Disadvantaged Businesses or Communities. Refer to the NOAA for further information on the statutory priorities.

A. Products, Services, and Investment Criteria

TIP: For the purposes of completing the Business Strategy section and all relevant exhibits, real estate refers to the development or leasing of a specific real estate project or projects, usually through special purpose entities established for that purpose. Investments in real estate businesses (development, management or other) in support of general business operations (as opposed to a specified project or projects) are considered non-real estate business transactions.

Transactions with businesses that are involved in all other types of business activities should be classified as non-real estate business transactions regardless of: 1) how the business intends to use the proceeds of the transaction; or 2) whether the business intends to use any real estate owned as collateral for a loan. For example, if an Applicant provided a loan to a childcare provider for the purpose of purchasing the property where the childcare center would be housed, the Applicant would categorize this loan as a non-real estate business transaction. However, if the Applicant provided a loan to a development company for the purpose of building a childcare center, and the organization’s primary business is the development of community facilities, this loan would be considered a real estate business transaction.

Notwithstanding the above, loans or investments made to special purpose entities that are principally owned by a non-real estate QALICB, and that were set up specifically to lease property back to the QALICB such that the QALICB is the principal user of the property, may be classified as either a “real estate QALICB” or a “non-real estate QALICB”, at the discretion of the CDE.

14. Please indicate the types of Qualified Low-Income Community Investments (QLICIs) in which the Applicant intends to engage (check all that apply), and what percentage of allocations (by dollar amount) will be used for each activity. (Percentages for a-e should add up to 100%):

(a) ___ % Investments in, or loans to, non-real estate QALICBs.

Loans/investments will be used to support: (these two percentages should add up to 100%)

	Business operations ____%
	Real estate development or acquisition of property to be used in operating the business ____%

(b) ___ % Investments in, or loans to, QALICBs whose principal activities involve the development or rehabilitation of real estate.

(c) ___ % Investments in, or loans to, other CDEs.

Please indicate the percentage of each activity (by dollar amount) in which the final recipient CDEs intend to engage, using the proceeds of the NMTC investments provided by the Applicant. Percentages should add up to 100%:

	% Origination of loans, investment of capital, or equity to non-real estate QALICBs.

	% Origination of loans, investment of capital, or equity to QALICBs whose principal activities involve the development or rehabilitation of real estate.
	% Financial Counseling and Other Services.

(d) ___ % Purchases of loans from other CDEs.

(e) ___ % Financial Counseling and Other Services.

	In conjunction with financing (check, if applicable)
	As a discrete line of business (check, if applicable)

TIP: An Applicant will score well under the Products, Services, and Investment Criteria sub-section to the extent that it will deploy debt or equity capital, or offer products and services which: 1) are designed to meet the needs of underserved markets; 2) are flexible or non-traditional in form; and 3) focus on customers or partners that typically lack access to conventional sources of capital.

15. Provide an executive summary of the Applicant’s overall business strategy for use of its NMTC Allocation. Be sure to provide the following: (Maximum Response Length: 3,000 characters)

• A brief summary of the Applicant’s geographic market

• A brief summary of the types of projects and/or borrowers the Applicant will target

• A brief summary of the products that the Applicant will offer, including both financial products and technical assistance

• A brief summary of how the NMTCs will enhance the Applicant’s product offerings

TIP: Note that Question #15 is meant to be a summary of the Applicant’s overall business strategy, thus it is not necessary to provide detailed discussion of items that will be specifically covered in detail in other parts of the Business Strategy section.

TIP: If an Applicant intends to utilize its NMTC Allocation to engage solely in either the purchase of loans from other CDEs or in the provision of Financial Counseling and Other Services, and not in the origination of loans or equity, it should skip Question #16(a) and (b) .

16. Describe the Flexible or non-traditional products, rates or terms that the Applicant intends to offer:

(a) Check all of the flexible or non-traditional products, rates or terms that the Applicant intends to offer (check all that apply):

1. ____	Equity Investments
2. ____	Equity Equivalent terms and conditions
3. ____	Debt with equity features (e.g., debt with royalties; debt with warrants; convertible debt)
4. ____	Subordinated debt
5. ____	Below market interest rates
6. ____	Lower than standard origination fees
7. ____	Longer than standard period of interest-only loan payments
8. ____	Higher than standard loan to value ratio
9. ____	Longer than standard amortization period
10. ____	More flexible borrower credit standards
11. ____	Non-traditional forms of collateral
12. ____	Lower than standard debt service coverage ratio
13. ____	Loan loss reserve requirements that are less than standard

2. For each item checked above, and for each major product line offered by the Applicant, provide a brief description of the rates and/or terms that will be offered and explain how these rates and terms compare with what is typically offered by the Applicant and typically offered in the marketplace. (Maximum Response Length: 3,000 characters)

(c) For an Applicant that indicated under Question 14c that it intends to finance other CDEs, describe the strategy by which the Applicant will ensure that those CDEs will pass along the NMTC benefits to their QALICB borrowers in the form of more favorable rates or terms. (Maximum Response Length: 3,000 characters)

TIP: For each item checked in Question #16a, the Applicant should provide a distinct and unique narrative description. Applicants that use the same narrative text for each item checked will not be scored as favorably. To the extent the Applicant indicates a range of offerings within an item listed above (e.g., interest rates from 100 bps to 500 bps below market), it should describe what circumstances would dictate the specific rates or terms, and how often the best rates and terms would be offered.

17. Choose one of the following options. (check only one)

The Applicant will commit that 100% of its QLICIs will:

___ (a) be provided in the form of equity; equity-equivalent financing; debt with interest rates at least 50% below market; or debt that otherwise satisfies at least 5 indicia of flexible or non-traditional rates and terms, as listed in Question 16.

___ (b) be provided in the form of equity; equity-equivalent financing; debt with interest rates at least 33% below market; or debt that otherwise satisfies at least 4 indicia of flexible or non-traditional rates and terms, as listed in Question 16.

___ (c) be provided in the form of equity; equity-equivalent financing; debt with interest rates at least 25% below market; or debt that otherwise satisfies at least 3 indicia of flexible or non-traditional rates and terms, as listed in Question 16.

___ (d) be provided in the form of equity; equity-equivalent financing; debt with interest rates at least 15% below market; or debt that otherwise satisfies at least 2 indicia of flexible or non-traditional rates and terms, as listed in Question 16.

___ (e) None of the above.

TIP: Applicants will score better to the extent they commit to provide equity or equity-equivalent financing; greater interest rate reductions on their debt; and/ or a higher number of flexible/non-traditional rates and terms. An Applicant that checks one of the options a-d in Question #17 above should be aware that this commitment will be a condition of its Allocation Agreement with the CDFI Fund.

18. For an Applicant that indicated under Question #14d above that it plans to purchase qualifying loans from other CDEs:

1. Will the Applicant require the CDE from which it purchases loans to reinvest all or a portion of the proceeds from the loan sales in QLICIs?

___ Yes ___ No

If yes, identify the percentage: _____%; and briefly describe the Applicant’s mechanisms for enforcing this requirement: (Maximum Response Length: 3,000 characters)

TIP: An Applicant purchasing loans from other CDEs generally will not score favorably in the Business Strategy section unless it indicates, in Question #18a, that it will require the CDE from which it purchases loans to reinvest at least 60% of the proceeds from the loan sales in QLICIs. The higher the percentage identified in Question #18a, the better the Applicant will score under the Business Strategy section. However, if the Applicant receives a NMTC Allocation, it will be required to meet the percentage identified above, and such requirement will be a term of its Allocation Agreement.

2. Describe the extent to which the Applicant intends to: a) purchase loans at terms and/or with conditions that would not be possible without the benefit of a NMTC Allocation; and/or b) offer better rates or terms to the selling CDEs than would otherwise be possible without the benefit of a NMTC Allocation. (Maximum Response Length: 3,000 characters)

B. Prior Performance

TIP: An Applicant that can demonstrate (either on its own or through a Controlling Entity) a strong, successful track record of providing products, services, or FCOS similar to those that it intends to deploy with Qualified Equity Investment (QEI) proceeds will score well under this sub-section. Only the organizational track record of the Applicant or the Controlling Entity may be referenced. The track records of principals, board members and other management individuals are not relevant for this sub-section. There will be an opportunity to discuss individual qualifications in the Management Capacity section of this application.

TIP: The NMTC Program legislation requires the Fund to give priority in the selection of Applicants to any Applicant that has a track record of successfully providing capital or technical assistance to Disadvantaged Businesses or Communities. An Applicant may receive up to five “priority points” for demonstrating such a track record. An Applicant’s responses to Questions #19 and #20 will be the determining factor in this rating. Only the organizational track record of the Applicant or the Controlling Entity may be referenced. Do not refer to the track record of individuals (e.g., staff, principals, consultants) associated with the Applicant or its Controlling Entity.

19. Does the Applicant, or its Controlling Entity, have a track record of financing or otherwise facilitating the types of QLICI activities checked in Question #14?

____ Yes (complete Questions #19a-d) ____ No

TIP: The Applicant may reference, in the Tables in Exhibit A and in the narrative in Question #19, loans or Equity Investments that the Applicant (or its Controlling Entity) has itself originated and for which it has capital at risk; as well as any other activities (e.g., loan packaging; project development) in which the Applicant or its Controlling Entity may have participated.

1. If yes, complete Tables A1-A4, as applicable for the types of QLICI activities in which the Applicant or its Controlling Entity has engaged.

TIP: If an Applicant intends to utilize its NMTC Allocation to engage in the provision of FCOS as a discrete line of business, and not in the purchase or origination of loans or Equity Investments, it need not complete Tables A1-A4. It must include, however, in its narrative response below to Question #19b, the number of businesses/entrepreneurs to which the Applicant has provided counseling or other services in the last five years.

2. If yes, provide a narrative discussion of the organization’s track record for each type of QLICI activity identified (including FCOS), referencing data included in Tables A1-A4 as appropriate. Be as specific as possible with respect to which activities were undertaken by the Applicant, as opposed to its Controlling Entity or other Affiliates. This narrative must also include a discussion of the delinquency/default rates over the past five years for each major product line, in comparison to a stated industry average for the Applicant’s peer group. (Maximum Response Length: 10,000 characters)

2. If yes, describe more specifically the Applicant’s, or its Controlling Entity’s, experiences in, and strategies for, targeting such activities to Disadvantaged Businesses and Communities. Be sure to indicate how long the Applicant has been serving Disadvantaged Businesses and Communities: (Maximum Response Length: 3,000 characters)

20. Does the Applicant, or Controlling Entity, have a track record of successfully providing products and services that would not qualify as QLICI activities (e.g., financing residential rental housing, loan guarantees, loan packaging services, general real estate development) but are similar to the proposed NMTC activities?

___ Yes ___ No

1. If yes, describe the Applicant’s track record with such transactions and how it relates to the proposed QLICI activities: (Maximum Response Length: 10,000 characters)

   
   

   
   

   
   

2. Approximately, what percentage of these activities were directed to Disadvantaged Businesses or Communities? ____%

3. Describe more specifically the Applicant’s, or its Controlling Entity’s, experiences in providing such activities to Disadvantaged Businesses and Communities. Be sure to indicate how long the Applicant, or its Controlling Entity, has been serving Disadvantaged Businesses and Communities: (Maximum Response Length: 3,000 characters)

C. Projected Business Activities

TIP: Projected activities must be consistent with an Applicant’s request for a NMTC Allocation. An Applicant that has a readily identifiable set of business activities in which it will engage in the near term will score well under this sub-section, as will an Applicant that can demonstrate an effective strategy for locating qualifying activities.

21. Complete Tables B1-B5, as applicable, according to the types of QLICI activities in which the Applicant intends to engage, and indicate whether the Applicant will use the proceeds of its QEIs to (check one):

(a)

____ Support a single project, business or portfolio purchase that has already
been identified (must be listed in Question #22 below)

____ Support a discrete number of QLICIs that have already been identified
(must be listed in Question #22 below)

____ Support a general pipeline of QLICIs that may or may not have been
identified at the time of submission of this Application

22. If the Applicant identified in Question #21 that it intends to use its QEI proceeds solely in support of a single QLICI, or a discrete number of identified QLICIs:

    1. Identify the specific QLICI(s) (including execution of contracts to deliver FCOS):

TIP: An Applicant that indicates that its application is in support of a single activity or a discrete list of QLICIs as listed in Question 21 will likely be required to close such transactions, as a condition of receipt of a NMTC Allocation, and such requirement will be a term of the Allocation Agreement.

Name of Transaction	Total Project Cost $	Amount of NMTC Financing $	Projected Closing Date	Address1	Census Tract
TOTAL	$

¹Provide full address, including street address (no P.O. Boxes), city, state, and a 9-digit zip code.

2. Describe the feasibility and current status of each transaction (e.g., fully negotiated and committed, in preliminary discussions, etc.), the anticipated dates for project financing (including total project cost and NMTC financing) and completion, and the risks that may preclude the project from being completed within the timeframes identified: (Maximum Response Length: 10,000 characters)

23. If the Applicant identified in Question #21 that it intends to support a general pipeline of activities that may or may not yet be identified, provide narrative below to describe: (Maximum Response Length: 10,000 characters)

• The information or data used to develop the activity projections in Exhibit B (e.g., historical levels of activity; letters of interest from borrowers; current referrals);

• The number and dollar amount of transactions that have already been identified, for which underwriting is completed or underway;

• Sample transactions in the Applicant’s pipeline. Be sure to indicate the total project cost and provide an estimate of the amount of QLICI investment for each transaction;

• The Applicant’s strategy for identifying potential borrowers, investees, or other customers, including the extent to which the Applicant will be utilizing community alliances or strategic partners to source transactions;

• The extent to which the Applicant intends to invest interest, dividends or other profits received from QLICIs into additional QLICIs, and the timeline for doing so.

24. Indicate whether the Applicant intends to use its NMTC Allocation to achieve either of the following. Check each that apply, and provide narrative as required for each item checked:

____(a) Increase the volume of its activities. Describe and quantify the increase in activities in comparison to what the Applicant (or its Controlling Entity) has provided over the past five years. Be sure to correlate the volume increase described below to the applicable Tables in Exhibit A: (Maximum Response Length: 3,000 characters)

____(b) Undertake activities of greater financial risk. Describe and quantify additional financial risk associated with the proposed projects/pipeline to be undertaken with a NMTC Allocation.  Be sure to compare the risk of the Applicant's proposed projects/pipeline compared to the Applicant's (or its Controlling Entity's) financing activities that have not involved a NMTC Allocation.  You may use examples of a past project and/or a proposed project to illustrate how the Applicant will use a NMTC Allocation to finance projects with greater financial risk: (Maximum Response Length: 3,000 characters)

D. Non-Metropolitan Counties

TIP: As provided for in Section 102(b)(6) of the Tax Relief and Health Care Act of 2006 (Pub. L. 109-432), and described further in the NOAA and the Q&A document that accompanies this application, the CDFI Fund will ensure that: (i) at least 20% of all QLICIs made by allocatees under the 2008 allocation around are invested in Non-Metropolitan Counties; and (ii) a proportionate number of “Rural CDEs” (as defined in the CY2008 NOAA) receive allocation awards.

Applicants are therefore required to provide two target estimates below: the percentage of QLICIs that they estimate would be provided to Non-Metropolitan Counties as a part of their normal course of business (i.e., minimum commitment); and the maximum percentage of QLICIs that the Applicant is willing to commit to providing to Non-Metropolitan Counties (i.e., maximum commitment). At the discretion of the CDFI Fund, the Applicant may be required to deploy a percentage of its allocation at or above the minimum indicated in Question 25(b), but not more than the percentage indicated in Question 25 (c); and such requirement shall become a condition of its Allocation Agreement with the CDFI Fund.

An Applicant that responds “Yes” to Question 25(a) (and provides appropriate supporting narrative) and commits to a figure of 50% or greater in response to Question 25(c) may be deemed to be a “Rural CDE”, and may be eligible to receive special consideration for a NMTC Allocation in accordance with the process outlined in the NOAA.

25. a. Have at least 50% of the Applicant’s total activities (financing or otherwise) over the past five years been directed to Non-metropolitan counties?

______ yes ______ no

b. What is the minimum percentage of QLICIs that the Applicant anticipates will be deployed in Non-metropolitan counties as part of its ordinary course of business?

______%

c. What is the maximum percentage of QLICIs that the Applicant is willing to commit to deploy in Non-metropolitan counties?

______ %

d.  If the response to Q.25 (c) above is greater than zero percent, briefly describe the Applicant’s five-year track record of providing or facilitating QLICI and non-QLICI related activities (e.g., rental housing, loan guarantees, loan packaging services, general real estate development, etc.) in Non-metropolitan counties. Be sure to indicate, both in real dollars and as a percentage of the Applicant’s overall activities, the amount of loans, investments or related activities the Applicant has undertaken in Non-metropolitan counties; referencing the tables in Exhibit A as appropriate (Maximum Response Length: 3,000 characters).

5. If the response to Question 25(c) above is greater than zero percent, to the extent not discussed elsewhere in the application, discuss the Applicant’s strategy for serving Non-Metropolitan Counties. (Maximum Response Length: 10,000 characters)

• Discuss how the Applicant intends to identify potential borrowers, investees, or other customers, including the extent to which the Applicant will be utilizing community alliances or strategic partners to source transactions.

• Indicate the number and dollar amount of transactions that have already been identified in Non-Metropolitan Counties, for which underwriting is completed or underway.

• Provide sample transactions in the Applicant’s Non-metropolitan pipeline.  Be sure to indicate the total project cost and provide an estimate of the amount of QLICI investment for each transaction.

• Discuss the key challenges to undertaking NMTC activities in Non-metropolitan Counties and how the Applicant proposes to overcome those challenges.

E. Investments in Unrelated Entities

TIP: The NMTC Program legislation requires the Fund to give priority to Applicants that intend to use “substantially all” of their QEI proceeds to make investments in one or more businesses in which persons Unrelated to the Applicant hold the majority equity interest. An Applicant planning to invest substantially all of its QEI proceeds in Unrelated entities will be awarded five additional points. An Applicant that receives priority points under this sub-section will be required, in its Allocation Agreement, to invest substantially all of its QEI proceeds in Unrelated entities. Please refer to the NMTC Allocation Application Q&A document for more information about what is considered an Unrelated entity transaction.

26. (a) Does the Applicant intend to use substantially all of the proceeds of its QEIs to make QLICIs in one or more businesses in which persons Unrelated to the Applicant hold the majority equity interest?

______ yes ______ no

(b) Briefly describe any notable relationships, financial or otherwise, that the Applicant, its Affiliates, or staff will have with projects that are financed with its QLICIs. Be sure to discuss whether any of said entities or persons: (Maximum Response Length: 3,000 characters)

• Will own more than one percent of the interest in the QALICB and, if so, the anticipated ownership interest;

• Will serve as the developer or general contractor on any projects financed in whole or in part by the QLICI;

• Will be lessees at projects financed in whole or in part by the QLICIs; or

• Will otherwise receive direct financial benefits from the preferential rates and terms offered by the Applicant, as discussed in Question 16.

TIP: Applicants that indicated in Question 26(b) that they have a significant ownership interest in, or other relationship with, the projects financed with its QLICIs should be sure to distinguish, as appropriate in various questions throughout the application, the degree to which: 1) NMTCs will be used to finance projects that would not likely have otherwise been financed; and/or 2) significant benefits (financial or otherwise) will be provided to other non-affiliated end-users (e.g., businesses, residents) in the low-income communities.

Part II: Community Impact

Total Maximum Points for Part II: 25 points

TIP: The Fund will review the extent to which the Applicant’s strategy will have positive community development and economic impact on a community. An Applicant will generally score well under this section to the extent that: a) it is working in particularly economically distressed or otherwise underserved communities; and b) it shows demonstrable community development and economic impact.

A. Targeting the Use of QLICIs

27. Applicant targeting of QLICI activities: Indicate the percentage of total QLICIs (based on dollar amounts) that will be used to finance activities in one or more of the geographic areas identified below. ____ %

(a) Check all areas likely to be served by the Applicant: (check all that apply):

1. ___­_	[30% POVERTY] Census tracts with poverty rates greater than 30%.
2. ____	[60% MEDIAN FAMILY INCOME] Census tracts with, if located within a non-Metropolitan Area, median family income that does not exceed 60% of statewide median family income, or, if located within a Metropolitan Area, median family income that does not exceed 60% of the greater of the statewide median family income or the Metropolitan Area median family income.
3. ____	[1.5 UNEMPLOYMENT RATE] Census tracts with unemployment rates at least 1.5 times the national average.
4. ____	[25% POVERTY/70% MEDIAN FAMILY INCOME/1.25 UNEMPLOYMENT RATE] Census tracts with one of the following: (i) poverty rates greater than 25%; or (ii) if located within a non-Metropolitan Area, median family income that does not exceed 70% of statewide median family income, or, if located within a Metropolitan Area, median family income that does not exceed 70% of the greater of the statewide median family income or the Metropolitan Area median family income; or (iii) unemployment rates at least 1.25 times the national average.
5. ____	[FEDERAL ECONOMIC DEVELOPMENT ZONES] Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities.
6. ____	[SBA HUB ZONES] SBA designated HUB Zones to the extent QLICIs will support businesses that obtain HUB Zone certification by the SBA.
7. ____	[BROWNFIELDS] Brownfield sites as defined under 42 U.S.C. 9601(39).
8. ____	[HOPE VI REDEVELOPMENT] Areas encompassed by a HOPE VI redevelopment plan.
9.____	[FEDERAL NATIVE AREAS] Federally designated Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority.
10.____	[ARC/DRA AREAS] Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority.
11. ____	[COLONIAS AREAS] Colonias areas as designated by the U.S. Department of Housing and Urban Development.
12.____	[FEDERAL MEDICALLY UNDERSERVED AREAS] Federally designated medically underserved areas, to the extent QLICI activities will result in the support of health related services.
13.____	[TARGETED POPULATIONS] As permitted by IRS and related CDFI Fund guidance materials, projects serving Targeted Populations to the extent that: (a) such projects are located in non-metropolitan areas; or (b) such projects are 60% owned by low-income persons (LIPs); or (c) at least 60% of employees are LIPs; or (d) at least 60% of customers are LIPs.
14.	[HIGH MIGRATION] High Migration Rural County.
15. ____	[STATE/LOCAL ECONOMIC ZONES] Enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities.
16. ____	[NON-METROPOLITAN COUNTIES]
17. ____	[FEMA DISASTER AREAS] Counties for which the Federal Emergency Management Agency (FEMA) has: issued a “major disaster declaration” and made a determination that such County is eligible for both “individual and public assistance”; provided that the initial investment will be made within 24 months of the disaster declaration.
18. ____	[TRADE ADJUSTMENT ASSISTANCE] Businesses certified by the Department of Commerce as eligible for assistance under the Trade Adjustment Assistance for Firms (TAA) Program.

(b) Will the Applicant commit to providing at least 75% of its QLICIs (in terms of aggregate dollar amounts) in areas that are either: (1) characterized by at least one of items 1-3 on the above list for each QLICI; or (2) characterized by at least two of items 4-18 on the above list for each QLICI?

_____Yes _____No

TIP: An Applicant that checks “yes” above will be scored more favorably. Note that, if the Applicant receives a NMTC Allocation, it will be required to meet the percentage figure identified above, and such requirement will be a term of its Allocation Agreement. Also note that if the Applicant checks “no” above, the Applicant will be held, in its Allocation Agreement, to the percentage entered at the beginning of Question 27.

2. Discuss how the Applicant will identify QLICIs in these particularly economically distressed or otherwise underserved communities: (Maximum Response Length: 3,000 characters)

B. Economic Impacts – Prior Performance

TIP: An Applicant that can demonstrate a successful track record of community impact resulting from its transactions will generally score more favorably under this question. Such a track record must be supported with data tracked or monitored by the Applicant or its Controlling Entity.

27. Does the Applicant, or its Controlling Entity, have a track record of successfully providing the types of QLICI activities checked in Question #14 and/or a track record of providing related financing (e.g., financing of rental housing; loan guarantees; loan packaging services or general real estate development)?

___Yes ___ No:

If Yes:

1. Complete Table C1 and discuss the methodology and assumptions used to populate the selected fields in Table C1 (e.g., tracking of historical data; general estimates based upon industry standards, etc.): (Maximum Response Length: 3,000 characters)

2. Describe, citing examples of projects that the Applicant has financed or otherwise facilitated in the past five years, what particular efforts were made to provide benefits (e.g., higher wage jobs; affordable housing; goods and services) to Low-Income Persons and residents of Low-Income Communities. (Maximum Response Length: 3,000 characters)

C. Economic Impacts - Projections

TIP: Applicants that can quantify and support specific indicators for expected community development impact for Low-Income Persons or residents of Low-Income Communities, over and above general economic impacts in Low-Income Communities, will score more favorably under this section.

27. Complete Table C2 and provide a narrative response to the following items: (Maximum Response Length: 10,000 characters)

• Describe the basis for the projections in Table C2 (e.g., historical levels of impact; assumptions based upon industry standards; assumptions based upon specific market research).

• Discuss, citing specific examples as necessary, how the QLICIs described in the Business Strategy section will result in the impacts quantified in Table C2.

30. Will the Applicant’s QLICIs described in the Business Strategy section achieve one or more of the following impacts?

(a) Check the impacts that the Applicant proposes to achieve. (check all that apply)

1. ____	[CREATE OR MAINTAIN JOBS] Create or maintain jobs for Low-Income Persons or residents of Low-Income Communities.
2. ____	[INCREASE WAGES] Increase wages or incomes for Low-Income Persons or residents of Low-Income Communities.
3. ____	[FINANCE OR ASSIST LIC BUSINESSES] Finance or assist businesses owned by residents of, or otherwise committed to remain in, the Low-Income Communities.
4. ____	[FINANCE OR ASSIST MINORITY OR WOMEN OWNED BUSINESSES] Finance or assist minority- or women-owned businesses, or businesses owned by Low-Income Persons.
5. ____	[FINANCE OR ASSIST COMMUNITY BENEFIT BUSINESSES OR REAL ESTATE PROJECTS] Finance or assist businesses (including non-profit organizations) or real estate projects that provide childcare, health care, educational or other benefits to Low-Income Persons or residents of Low-Income Communities.
6. ____	[FACILITATE WEALTH-CREATION OR ASSET ACCUMULATION] Facilitate wealth-creation or asset accumulation (such as home ownership) by Low-Income Persons or residents of Low-Income Communities.
7. ____	[PROVIDE GOODS AND SERVICES] Provide goods and services to Low-Income Persons or residents of Low-Income Communities.
8. ____	[CREATE ENVIRONMENTALLY SUSTAINABLE OUTCOMES] Create environmentally sustainable outcomes.
9. ____	[FINANCE REAL ESTATE BUSINESSES WHICH REDUCE RENT AND PROVIDE MORE FLEXIBLE LEASES] Facilitate or assist real estate businesses which will provide rent reductions, more flexible credit standards or lease provisions to businesses owned by Low-Income Persons or residents of Low-Income Communities, or that provide goods and services to Low-Income Persons or residents of Low-Income Communities.
__10.____	[OTHER] Other – provide description in narrative.

(b) For each item checked in Question 30(a):

(i) Quantify and describe the impacts the Applicant hopes to achieve relative to the QLICIs described in the Business Strategy section (e.g., number of jobs created for Low-Income Persons and what types of jobs): (Maximum Response Length: 3,000 characters)

(ii) Describe the methodologies and assumptions used to derive the Applicant’s estimates and how the data will be collected going forward: (Maximum Response Length: 3,000 characters)

TIP: Those Applicants that clearly identify and quantify impacts from the list of impacts in Question 30, and provide supporting discussion of the methodologies used to derive those projections and how data will be collected going forward will be scored more favorably.

TIP: Question 30 differs from Question 29 in that Question 30 asks the Applicant to discuss more specific community development impact, as opposed to the more general economic development impact solicited from Question 29. It may be effective for the Applicant to provide examples of how previous transactions have achieved the types impacts the Applicant expects to achieve with a NMTC Allocation.

(c) If the Applicant’s activities are directed to developing or rehabilitating rental or for-sale housing, will the Applicant commit to providing at least 20% of developed units as affordable housing units, (i.e. affordable to persons with income less than 80% of AMI)?

Yes _____ No _____ N/A ______

TIP: An Applicant that checks “yes” in Question 30(b) above will be scored more favorably, and this requirement may become a term of its Allocation Agreement.

30. Describe the extent to which the Applicant has actively engaged and fostered partnerships with Low-Income community stakeholders. Be sure to specifically address: (Maximum Response Length: 10,000 characters)

• The degree to which the Applicant has consulted with residents, civic organizations and institutions, businesses, and government officials to formulate the Applicant’s business plan, products and projected investments.

• If the Applicant intends to support a single or discrete number of QLICIs, whether these projects were identified as a result of government or other community planning process.

• Whether the basis for approving investments includes an analysis of the tangible benefits to the Low-Income community.

32. Discuss the extent to which the Applicant’s proposed QLICIs described in the Business Strategy section are expected to result in additional private investment beyond the initial project in the Low-Income Community (LIC). To the extent possible, provide examples where the Applicant’s investments in the past have spurred additional investment into LICs by expansion or creation of new businesses. (Maximum Response Length: 3,000 characters)

Part III: Management Capacity

Total Maximum Points for Part III: 25 points

33. Attach organizational chart(s) that depict the following:

• The Applicant’s relationship to its Controlling Entity and any Affiliate or Subsidiary entities (if applicable); and

• The Applicant’s staffing structure, including key board committees.

TIP: Be sure to refer to the Applicant Instructions for information regarding the submission of these documents.

33. Experience Deploying Capital or Financial Counseling and Other Services:

TIP: The Fund expects the Applicant’s personnel to have relevant experience given the types of activities the Applicant intends to pursue with its NMTC Allocation – particularly in situations where the Applicant (or its Controlling Entity) lacks prior organizational performance in deploying capital or related services. An Applicant that can also demonstrate that its personnel has experience working in Low-Income Communities will score particularly well.

• Complete Table D1. Be sure to identify only those personnel, board members, or consultants that will have a key role in locating, underwriting, and approving investments, and/or in providing Financial Counseling and Other Services.

• To the extent that it is not clear from Table D1, please describe:

(a) The roles, responsibilities, and experience of key personnel, board members, and consultants in providing capital or Financial Counseling and Other Services to Low-Income Communities. (Maximum Response Length: 3,000 characters)

(b) How the Applicant will manage the addition of NMTC activities into its current portfolio of activities, including whether additional staff will need to be hired. (Maximum Response Length: 3,000 characters)

33. Experience Raising Capital:

TIP: The Applicant should augment the information provided under Part IV: Capitalization Strategy by focusing on the roles of specific personnel in carrying out the Applicant’s Capitalization Strategy. An Applicant that has secured relatively few investor Commitments must demonstrate, through the experience and expertise of its personnel, that it has the ability to raise investor capital. An Applicant whose staff has experience raising capital from profit-motivated investors will score particularly well.

• Complete Table D2. Be sure to identify only those personnel, board members, or consultants that will have a key role in raising capital for the Applicant.

• To the extent that it is not clear from Table D2, please describe the roles, responsibilities, and experience of key personnel, board members, and consultants in raising capital from third-party sources. Be sure to distinguish between raising capital from profit-motivated investors; from government or philanthropic sources of capital; or using tax credits as an incentive: (Maximum Response Length: 3,000 characters)

33. Asset and Risk Management Experience:

TIP: Each Applicant must demonstrate that it has the capacity to manage assets and the risks of these assets. An Applicant that has experienced staff and established systems to manage the informational and performance aspects of administering assets or pools of assets will score well under this sub-section.

• Complete Table D3. Be sure to identify only those personnel, board members, or consultants that will have a key role in managing the Applicant’s assets and risk.

• Discuss how the Applicant’s systems and procedures will ensure sound asset and risk management. Specifically, describe:

  1. The roles, responsibilities, and skills of key personnel, board members, or consultants in managing the Applicant’s assets and risk, to the extent that it is not clear from Table D3. (Maximum Response Length: 3,000 characters)

     
     

     
     

  2. How the Applicant will manage the addition of NMTC activities into its current portfolio of activities, including whether additional staff will need to be hired. (Maximum Response Length: 3,000 characters)

     
     

     
     

  3. The Applicant’s infrastructure (e.g., management information systems) to support the Applicant’s asset and risk management procedures. (Maximum Response Length: 3,000 characters)

33. Program Compliance Experience:

TIP: Each Allocatee must have the capacity to remain in compliance with NMTC Program requirements. An Applicant will score well to the extent that it can: 1) demonstrate experience with similar regulatory compliance requirements, including compliance under other tax credit programs; and 2) articulate a specific strategy for ensuring that its NMTC-related investments will qualify at the time of investment and throughout the 7-year NMTC investment period.

• Complete Table D4. Be sure to identify only those personnel, board members, or consultants that will have a key role in fulfilling the NMTC Program compliance requirements for the Applicant.

• Discuss how the Applicant’s systems and procedures (e.g., portfolio monitoring, reporting, investment/re-investment strategies) will ensure ongoing compliance with NMTC Program requirements. Specifically, be sure to indicate how the Applicant will ensure that: (Maximum Response Length: 10,000 characters)

  • At least 85% of the proceeds of the QEIs are invested in QLICIs in accordance with the NMTC Program Income Tax Regulations. If the Applicant is providing loans or investments to another CDE, how will it ensure that the secondary CDE fulfills its investment requirements?

  • The businesses that the Applicant invests in are QALICBs, in accordance with the NMTC Program Income Tax Regulations. If purchasing a portfolio of loans, how will the Applicant ensure that it purchases loans that are QLICIs?

  • Payments of, or for, capital, equity, or principal by its borrowers or investees are re-invested into QLICIs within applicable reinvestment periods. If providing loans to or investments in another CDE, how will it ensure that the secondary CDE fulfills its re-investment requirements?

33. Community Accountability:

TIP: All CDEs are required to maintain accountability to Low-Income Communities. An Applicant that can articulate meaningful involvement with Low-Income Community decision-makers will score well under this sub-section.

• Complete Table D5.

• How will Low-Income Community representatives to the Governing or Advisory Board be directly involved in the design, implementation or monitoring of the Applicant’s business strategy? Provide narrative that addresses the following: (Maximum Response Length: 10,000 characters)

  • The process by which these individuals or their organizations will solicit feedback from Low-Income Community stakeholders on matters relevant to the Applicant’s proposed use of a NMTC allocation.

  • The role, formal or otherwise, these individuals or their organizations played in formulating and approving the Applicant’s projected investments listed in this application, whether investments are for a discrete number of projects or a general pipeline, and general investment parameters or decisions.

  • The role, formal or otherwise, these individuals or their organizations will have in approving future investment parameters or decisions?

33. Complete Table D-6.

Briefly describe the role that outside consultants  and/or unaffiliated organizations, if any, have had in completing this application or will have in the administration of a NMTC allocation (e.g. capital raising, asset management, legal services, etc.).  Be sure to indicate the percentage of the total anticipated work that will be undertaken by outside experts (e.g. "Joe Smith, XYZ Company, will be contracted to assist with 50% of the compliance-related activities.")  (Maximum response 3,000 characters).

33. If the Applicant, or its Controlling Entity, is an insured financial institution that receives Community Reinvestment Act (CRA) ratings from regulators, please indicate the CRA ratings that it has received over the past five years. If the most recent CRA rating is less than “Outstanding”, describe: 1) the conditions or circumstances that led to the rating; 2) the steps the institution is taking to achieve an “Outstanding” rating; and 3) the role that the NMTC can play in enabling the institution to achieve an “Outstanding” rating. (Maximum Response Length: 3,000 characters)

33. Answer the following questions regarding the Applicant’s (or the Controlling Entity’s) financial health. Indicate if the responses are (check one):

____ For the Applicant (if it has incurred operating expenses).

____ For the Controlling Entity (if the Applicant has not yet incurred operating expenses).

____ Not applicable (neither the Applicant nor the Controlling Entity has incurred operating expenses).

1. Have the financial statements for the last complete fiscal year been independently audited or is an audit underway? ___ Yes ___ No

If no, please explain why and what steps the Applicant, or its Controlling Entity, is taking to obtain audited financials in the future: (Maximum Response Length: 3,000 characters)

2. Have any of the Applicant’s, or its Controlling Entity’s, completed auditor reports within the past three years (or, if shorter, for the period from inception) indicated any of the following:

1. An opinion other than unqualified? ___ Yes ___ No

2. A going-concern paragraph? ___ Yes ___ No

3. Repeated findings of reportable conditions? ___ Yes ___ No

4. Material weaknesses in internal control? ___ Yes ___ No

5. If yes to any of the above, indicate the fiscal years of the occurrences and describe the circumstances and corrective action being taken: (Maximum Response Length: 3,000 characters)

3. Have the entity’s financial statements shown positive net income (or if a non-profit, positive change in net assets) for each of the last 3 years, or if in business for less than 3 years, for the period of time it has operated?

____ Yes ____ No

If no, please explain and describe when the entity expects to achieve profitability. Non-profit organizations should provide an explanation if annual contributions and revenues do not exceed expenditures: (Maximum Response Length: 3,000 characters)

4. Has the entity ever filed for bankruptcy or otherwise defaulted on financial obligations to a third party? ___ Yes ___ No

If yes, please explain the circumstances, indicate the fiscal year in which they occurred, and describe the corrective action being taken: (Maximum Response Length: 3,000 characters)

CDFI Fund Award Status:

TIP: Receipt of a prior award or allocation through any of the Fund's programs will not affect the likelihood of an Applicant receiving a NMTC Allocation in this round. The Fund will examine the compliance status of Applicants (or their Affiliates) that have previously received Fund awards or allocations. Refer to the NMTC 2008 NOAA for additional information regarding this and other requirements pertaining to Applicant eligibility under the 2008 round.

42. Has the Applicant and/or any of its Affiliates previously received a financial award (not including a NMTC Allocation) from the CDFI Fund?

____ Yes ____ No

If yes, please list the award(s) in the table. The Applicant may use additional space as necessary:

Name of Awardee:
EIN:
Award control number:
Total award amount:

Name of Awardee:
EIN:
Award control number:
Total award amount:

43. NMTC Allocation Status:

Has the Applicant and/or any of its Affiliates received an NMTC Allocation from the Fund in a prior allocation round?

____ Yes ____ No

If yes, please list the allocation(s) in the table. The Applicant may use additional space as necessary:

Name of Allocatee:
EIN:
Award control number:
Total allocation amount:

Name of Allocatee:
EIN:
Award control number:
Total allocation amount:

43. If the Applicant answered yes to Question #43, briefly explain the status of its previous Allocation award(s). Be sure to address:

1. The number and dollar amount of QEIs issued on each award and the number and dollar amount of QLICIs made with each award. (Maximum Response Length: 3,000 characters)

   
   

   
   

2. The types of transactions that have been financed to date with NMTC proceeds, with particular emphasis on how NMTC proceeds were used to finance transactions that would not likely otherwise have occurred, and any community impact or benefits that were generated as a result of the transaction. (Maximum Response Length: 10,000 characters)

   
   

   
   

3. Whether the activities undertaken with the NMTC dollars were consistent (with respect to product offerings; markets served; rates and terms; etc) with the business strategy presented in the relevant Allocation Application. If the activities were not consistent with the relevant Allocation Application, describe the inconsistencies. (Maximum Response Length: 3,000 characters)

TIP: An Applicant that has received (or whose Affiliates have received) a NMTC Allocation under a previous allocation round is NOT eligible to receive allocations under this allocation round unless the prior-year allocatee has met certain minimum threshold requirements regarding the issuance of its QEIs. Be sure to review the 2008 NOAA to become familiar with these requirements.

TIP: The Fund will review transaction-level data submitted by Applicants that are prior year Allocatees through the Community Investment Impact System (CIIS) and may seek additional information from Applicants, to determine whether activities and the QLICIs made were consistent with the transactions and activities proposed in the relevant prior-year Allocation Application(s).

43. Other than those activities already identified and discussed under Question #44, has the Applicant and/or any of its Affiliates: i) made a QEI into a CDE (or subsidiary of a CDE) that received a NMTC allocation in a prior round; or ii) assumed Control of a CDE that received a NMTC allocation in a prior round?

____ Yes ____ No

If yes, please provide responses to the following:

(a) List the allocation(s) and total QEIs invested per allocation in the table. The Applicant may use additional space as necessary.

Name of Allocatee:
Award control number:
Total QEI amount invested:

Name of Allocatee:
Award control number:
Total QEI amount invested:

(b) Discuss the types of transactions that have been financed to date with QEI proceeds, with particular emphasis on how QEI proceeds were used to finance transactions that would not likely otherwise have occurred, and any community impact or benefits that were generated as a result of the transactions: (Maximum Response Length: 10,000 characters)

TIP: Applicants and/or any Affiliates that have shared Control of a CDE (or subsidiary of a CDE) that is a prior round Allocatee should answer “yes” to Question #45 and provide requested responses.

TIP: Applicants providing responses to Question #45 need only make one entry per Allocatee, per award for which the Applicant has provided QEIs regardless of the number of individual QEIs made to that Allocatee under a single award. For example, if an Applicant has made 10 QEIs in Allocatee X under its second round allocation, then the Applicant would provide the aggregate amount of those 10 QEIs in its response to Question #45.

Part IV: Capitalization Strategy

Total Maximum Points for Part IV: 25 points

A. Investor Strategy

TIP: An Applicant that demonstrates a high level of investor commitment will score well under this sub-section. Additionally, the Fund expects consistency between the Applicant’s request for a NMTC Allocation, the degree of investor interest, and the Applicant’s strategy to deploy its QEI proceeds in QLICIs. As the NMTC Program legislation seeks to encourage private sector capital investments in underserved markets, an Applicant will score well if it can identify how existing investors will increase their investments in these markets or describe a strategy to locate new investors for such investments. If an Applicant is seeking investments from investors that have not yet provided Commitments, the Applicant may score well to the extent it has a reasonable strategy for obtaining such Commitments.

46. Complete Tables E1-2. Pay particular attention to the TIPs and instructions at the beginning of Exhibit E prior to completing these Tables.

TIP: Applicants completing Table E1 are required to submit, along with their applications, documentation demonstrating proof of investor interest (e.g., proof of QEI issuance; Commitment letters; Letters of Interest/Intent). Investor letters should identify whether the investor will make a direct investment in the CDE or into a partnership. Be sure to follow the directions in the Applicant Instructions section for information regarding the submission of these documents.

47. Describe the track record of the Applicant (or its Controlling Entity) in raising capital, particularly equity capital at market or near-market rates. Reference information provided in Table E2 as appropriate: (Maximum Response Length: 3,000 characters)

TIP: In Question 47, refer only to the organizational track record of the Applicant or its Controlling Entity. Do not refer to the track record of individuals (e.g., staff, principals, consultants) associated with the Applicant or its Controlling Entity. There is an opportunity to discuss individual qualifications in the Management Capacity section of this application.

47. Discuss the Applicant’s strategy for securing NMTC investor Commitments, referencing information provided in Table E1 as appropriate. Be sure to address: (Maximum Response Length: 10,000 characters)

• The Applicant’s timeline for securing investments from investors that have signed Letters of Interest/Intent, any risks that may preclude the Applicant from closing such investments, and how the Applicant is mitigating such risks.

• The Applicant’s strategy for identifying additional investors, including the extent to which the Applicant will be utilizing community alliances or strategic partners to raise investment capital.

• If the Applicant is using a third-party investment banker to raise capital, describe whether a contract is in place, the terms (actual or proposed) of the contract, and the progress to date that the banker has made in securing Commitments from investors. Do NOT list these investment bankers in Table E1.

• The extent to which the Applicant’s investors or potential investors are new to community development investing or are increasing their community development related investments.

47. Investment Partnerships

1. Does the Applicant intend to secure investments from partnership entities that will leverage non-Equity Investments (e.g., debt, grant dollars) from outside of the partnership to increase the tax credit yield for members of the partnership?

_____Yes _____ No

TIP: Applicants that answer yes to Question 49 are required to submit, along with their applications, documentation demonstrating proof of the interest of the equity investors and debt providers in the partnership entities (e.g., letter indicating intent of equity or debt investor to provide capital to the partnership entity that will provide the QEI to the Applicant). Be sure to follow the directions in the Applicant Instructions section for information regarding the submission of these documents.

(b) If yes, describe, for each such investor partnership: (Maximum Response Length: 3,000 characters)

● The progress made to date with respect to securing Commitments from the underlying equity investors and the non-equity providers, including whether or not these parties have provided commitment letters or letters of interest/intent.

● The Applicant’s strategy for identifying additional sources of capital should the initially identified equity investors or non-equity providers fall through.

(c) The percentage of equity versus non-equity investments for all such investor partnerships based on the Applicant NMTC Allocation Request.

___________% Equity Investments

___________% Non-Equity Investments

47. Will one or more of the Applicant’s current or prospective investor(s) originate or otherwise identify transactions in which the Applicant will invest?

_____ Yes _____ No

47. Will the Applicant receive any QEIs from Affiliates?

_____ Yes _____ No

47. If the answer to either Question 50 or 51 above is yes, provide narrative detailing: (Maximum Response Length: 3,000 characters)

• The name of each such investor;

• The role of each investor with respect to locating, underwriting, and approving each investment;

• Whether each investor offers similar products or services already; and

• If applicable, the extent to which the Applicant will offer products with more favorable rates or terms than those currently offered by the investor and/or will target its activities to areas of greater economic distress than those currently targeted by the investor.

TIP: If the Applicant has obtained or plans to obtain investments from organizations that also will identify or originate transactions for the Applicant or organizations that are Affiliated with the Applicant, it will score well if: a) the Applicant’s transactions are more targeted in some way to areas of greater economic distress than those areas that investors are already reaching with their investments or loan originations; or b) the Applicant’s products and services are offered with more favorable rates or terms than those offered by the investor.

47. The NMTC creates an economic benefit that can be shared among the investor, the CDE, the QLICI, and end-users (e.g., businesses, residents) in the Low-Income Communities. (Maximum Response Length: 10,000 characters)

• Quantify as best you can, for each of your planned investment types, how the economic benefits of the NMTC Allocation will be apportioned amongst
a) the investors, through economic returns; b) the QLICI investees/borrowers, through lower costs of capital; and c) the Applicant, through fees or economic returns.

• • Indicate how the end-users in the Low-Income Communities will benefit from the NMTCs (e.g., lower rents for lessees in a commercial property; reduced costs for daycare at a childcare facility). Be as specific as possible in your narrative describing how the economic subsidy provided by the NMTCs will benefit the communities in which the investment(s) will be made. Be sure to reference related market benchmarks or practices where applicable.

TIP: The Fund would expect Applicants to quantify this information to the extent practicable, and to be able to demonstrate that there is an appropriate sharing between the investor, CDE, and borrowers/investees. Please refer to the 2008 NMTC Allocation Application Q & A Document for further guidance.

B. Sources and Uses of Capital

TIP: In this sub-section, the Fund seeks to understand both how efficiently the Applicant will use QEI proceeds and how well it is leveraging other sources of financing in conjunction with the activities undertaken with its QEI proceeds. An Applicant that intends to invest/re-invest more than 85% of its QEI proceeds in QLICIs will generally score well, provided that the Applicant can reasonably demonstrate that it has other mechanisms in place to support its costs of operations.

47. Will more than 85% of the QEI proceeds be invested/re-invested in QLICIs?

____ Yes ____ No If yes, what percentage: ______%.

TIP: The higher the percentage indicated in Question #54, the better the Applicant will score under the Capitalization Strategy section. However, if the Applicant receives a NMTC Allocation, it will be required to meet the percentage identified above, and such requirement will be a term of its Allocation Agreement. See the Allocation Application Q&A for a discussion of compliance issues related to reinvestments.

47. How will the Applicant finance its cost of operations? Provide a narrative that addresses the following: (Maximum Response Length: 3,000 characters)

• The estimated total annual cost of operations of the Applicant and a description of the sources of funds to support the operating costs.

• A description of the proportion of operating costs that will be covered by internally generated funds versus contributed operating revenue.

• If the Applicant will rely on contributed operating revenue from a parent or affiliated organization, discuss that contributing organization’s obligation to make such contributions, its track record in raising cash or in-kind contributions, and its strategy to secure on-going funds.

47. Complete Table F1. Be sure to list all sources of compensation and profits that the Applicant and/or its Affiliates (including, if applicable, investment partnership funds) will charge to (or receive from) its borrowers, investors, or other parties involved in the NMTC transactions.

    1. Referencing the information in Table F-1 as appropriate, briefly describe the types and amount of all sources of compensation and profits that will be collected (whether at the front-end, back-end or during the compliance period), and how such sources compare to what is typically earned in the marketplace. (Maximum Response Length: 3,000 characters)

(b) Provide a brief description of how these monies will be utilized by the Applicant and/or its Affiliates (e.g. to fund program operations; to fund reserves; to support additional investments in low-income communities; as a source of profit sharing for the Applicant or its Affiliates; etc.) (Maximum Response Length: 3,000 characters)

C. Flow of Allocations

TIP: Applicants have five years from the date they enter into an Allocation Agreement with the Fund to issue all of their QEIs. An Applicant that is likely to issue QEIs early in this five-year period will score well under this sub-section. Applicants receiving NMTC Allocations will be held to the schedule identified in Table F2, and such requirement will be a term of their Allocation Agreements.

57. Complete Table F2. Provide a narrative that describes how the Applicant determined the total amount of Allocation authority requested in this application, and the likely outcomes if the Applicant were not to receive its full request: (Maximum Response Length: 3,000 characters)

58. Minimum Request Amounts

(a) Is there an absolute minimum amount below which the Applicant would be unwilling to accept a NMTC Allocation?

______ Yes ______ No

If yes, provide the amount $_______. Describe how this amount was determined. Be sure to address why the Applicant could not administer a smaller award: (Maximum Response Length: 3,000 characters)

TIP: At the conclusion of the Fund’s review process, if the Applicant is recommended to receive less than the minimum amount of allocation authority identified in Question #58a, the Fund will not provide a NMTC Allocation to the Applicant. An Applicant with a high minimum allocation request will need to demonstrate that it can raise and deploy the capital requested in a timely manner; that it will likely achieve significant community impacts or production innovations; and that it could not successfully implement its business strategy without this minimum allocation amount.

Exhibit A: Track Record of Activities

Instructions for Exhibit A: Applicants must complete the tables in Exhibit A for any QLICI activities for which the Applicant has a track record. An Applicant must provide information for the past five years or for as many years as the Applicant has been in operation if it has been in operation for fewer than five years. An Applicant may choose to rely upon the track record of its Controlling Entity.

TIPs for Exhibit A:

1. Where indicated in Tables A1 and A2, include the types of QLICIs the Applicant (or Controlling Entity) has itself originated in rows 3 and 4. Include all other financing from any source in row 5. The Applicant may discuss in Question 19 any role the Applicant (or Controlling Entity) played in leveraging or facilitating financing it did not originate.

2. Do not combine the activities of the Applicant and the Controlling Entity. If an Applicant would like to discuss the track record of both, the Applicant must chose one to present in the tables, and discuss both in the narratives to Questions #19 and #20. The narratives should clearly distinguish between the track records of both entities.

3. Tables A1-4 in should be mutually exclusive. Applicants should not enter the same data in more than one Table in Exhibit A.

4. Refer to the TIP in Question #14 regarding how to classify “real estate” vs. “non-real estate” QALICBs.

The Tables in Exhibit A reflect the activities of (check one): ____Applicant _____Controlling Entity

Table A1: Track Record of Loans/Investments to Non-Real Estate Businesses
Calendar Year(s)		2003	2004	2005	2006	2007	Totals (2003-2007)	Totals to Disadvantaged Businesses and Communities (2002- 2007)	Totals to Non-metropolitan Counties (2003-2007)
1	Total # businesses financed
2	Total $ amount of financing from all sources	$	$	$	$	$	$	$	$
3	$ Amount of debt financing provided by Applicant	$	$	$	$	$	$	$	$
4	$ Amount of equity financing provided by Applicant	$	$	$	$	$	$	$	$
5	$ Amount of financing provided by other sources (including owner equity)	$	$	$	$	$	$	$	$

Table A2: Track Record of Loans/Investments to Real Estate Businesses
Calendar Year(s)		2003	2004	2005	2006	2007	Totals (2003-2007)	Totals to Disadvantaged Businesses and Communities (2003- 2007)	Totals to Non-metropolitan Counties (2003-2007)
1	Total # businesses financed
2	Total $ amount of financing from all sources	$	$	$	$	$	$	$	$
3	$ Amount of debt financing provided by Applicant	$	$	$	$	$	$	$	$
4	$ Amount of equity financing provided by Applicant	$	$	$	$	$	$	$	$
5	$ Amount of financing provided by other sources (including owner equity)	$	$	$	$	$	$	$	$

TIP: In Table A3, the term CDE also may include other similar community-based organizations that may meet CDE certification criteria.

Table A3: Track Record of Loans/Investments to Other CDEs
Calendar Year(s)		2003	2004	2005	2006	2007	Totals (2003-2007)	Totals to Disadvantaged Businesses and Communities (2003- 2007)	Totals to Non-metropolitan Counties (2003-2007)
1	Total # CDEs financed
2	Total $ amount of financing	$	$	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$	$	$

TIP: In Table A4, the term CDE also may include other similar community-based organizations that may meet CDE certification criteria.

Table A4: Track Record of Loan Purchases from Other CDEs
Calendar Year(s)		2003	2004	2005	2006	2007	Totals (2003-2007)	Totals to Disadvantaged Businesses and Communities (2003- 2007)	Totals to Non-metropolitan Counties (2003-2007)
1	Total # of loans purchased
2	Total $ amount of loans purchased	$	$	$	$	$	$	$	$

Exhibit B: Projected Activities

Instructions for Exhibit B: All Applicants must complete the tables in Exhibit B based on the QLICI activities checked in Question #14.

TIPs for Exhibit B:

1. If the Applicant intends to transfer all or part of its NMTC Allocation to its Subsidiaries, combine the activities of the Applicant and its Subsidiaries. Only include those activities to be carried out by the Applicant and its Subsidiaries relating to equity raised with NMTCs.

2. Only include amounts the Applicant (or its Subsidiaries) will itself originate (e.g., do not include participation amounts that will be originated by third-parties). The Applicant may separately discuss amounts it will leverage or facilitate in narrative to Question 22 or Question 23, but should clearly distinguish these amounts and should not include them in the tables in Exhibit B.

3. The data included in the tables in Exhibit B, in the aggregate, should not exceed the Applicant’s total allocation request unless the Applicant intends to invest interest, dividends, or other profits received from QEI proceeds into additional QLICIs. If the Applicant is pursuing such a strategy of reinvestment, it should be further described in the narrative to Question 22 or Question 23, and listed separately in lines 5-8 of Tables B1, B2, and B4; lines 5-6 of Table B4; and line 4 of Table B5. Do not consolidate reinvestment data into lines 1-4, where the Applicant should only discuss original QLICIs.

4. Refer to the TIP in Question #14 regarding how to classify “real estate” vs. “non-real estate” QALICBs.

5. To the extent the Applicant intends to issue QEIs and originate QLICIs in 2008 (in accordance with applicable IRS rulings regarding the issuance of QEIs prior to notification of a NMTC Allocation), such QLICIs should be reported under activities in 2009. Any QLICIs to be made beyond 2013 should be consolidated into 2013.

Table B1: Projected Loans/Investments to Non-Real Estate QALICBs (Estimated)
Calendar Year(s)		2009	2010	2011	2012	2013	Total
1	Total # transactions to be financed
2	Total $ amount of financing	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$
5	Total # of reinvestment transactions
6	Total $ amount of reinvested financing	$	$	$	$	$	$
7	$ Amount of reinvested financing (debt)	$	$	$	$	$	$
8	$ Amount of reinvested financing (equity)	$	$	$	$	$	$

Table B2: Projected Loans/Investments to Real Estate Businesses (Estimated)
Calendar Year(s)		2009	2010	2011	2012	2013	Total
1	Total # transactions to be financed
2	Total $ amount of financing	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$
5	Total # of reinvestment transactions
6	Total $ amount of reinvested financing	$	$	$	$	$	$
7	$ Amount of reinvested financing (debt)	$	$	$	$	$	$
8	$ Amount of reinvested financing (equity)	$	$	$	$	$	$

Table B3: Projected Loans/Investments in Other CDEs (Estimated)
Calendar Year(s)		2009	2010	2011	2012	2013	Total
1	Total # transactions to be financed
2	Total $ amount of financing	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$
5	Total # of reinvestment transactions
6	Total $ amount of reinvested financing	$	$	$	$	$	$
7	$ Amount of reinvested financing (debt)	$	$	$	$	$	$
8	$ Amount of reinvested financing (equity)	$	$	$	$	$	$

Table B4: Projected Loan Purchases from Other CDEs (Estimated)
Calendar Year(s)		2009	2010	2011	2012	2013	Total
1	Total # selling CDEs
2	Total # of loan portfolios purchased
3	Total # of loans purchased
4	Total $ amount of loan purchases	$	$	$	$	$	$
5	Total # of loans purchased via reinvested financing
6	Total $ amount of loans purchased via reinvested financing	$	$	$	$	$	$

Table B5: Projected Financial Counseling and Other Services to Businesses and Entrepreneurs in Low-Income Communities (Estimated)
Calendar Year(s)		2009	2010	2011	2012	2013	Total
1	Total # of businesses/entrepreneurs served through counseling or other services
2	Total estimated hours spent counseling or providing other services per year
3	Total $ amount to be spent on counseling or providing other services	$	$	$	$	$	$
4	Total $ amount of reinvestment to be spent on counseling or providing other services	$	$	$	$	$	$

Exhibit C: Community Impact

Instructions for Table C1: All Applicants with a track record of successfully providing the types of QLICI activities checked in Question 14 and/or a track record of providing non-QLICI activities (e.g., financing of rental housing; loan guarantees; loan packaging services or general real estate development) must complete this table. An Applicant may rely upon the track record of its Controlling Entity.

All Applicants should be sure to distinguish, in the second and third column of Table C1, the amount of financing that the Applicant provided from the amount of financing that was provided by the borrower or by third party entities. An Applicant that has not engaged in any QLICI type activities historically (i.e. an Applicant that checked “no” to Question 19) may still complete Table C1, provided that it indicated in Question 20 that it has engaged in related transactions.

Table C1: Historic Community Impacts (cumulative 2003-2007)
This table reflect the activities of (check one): _____Applicant _____Controlling Entity
		# of projects	$ Amount of Applicant Financing	$ Amount of Financing from Other Sources	Permanent1 FTE2 Jobs Created or Maintained3	Pre-development or Construction1 FTE2 Jobs Created or Maintained3	Square Feet of Space Developed or Rehabilitated	# of Housing Units Developed or Rehabilitated	# of Clients Served
1	Non-Real Estate QALICBs		$	$
2	Real Estate QALICBs (total)		$	$
2a	Commercial4		$	$
2b	Housing		$	$
3	Loans/Investments in CDEs5		$	$
4	Purchase of loans from CDEs6		$	$
5	FCOS		$	$

¹ A permanent job is one that is at least 24 months in duration. Pre-development or construction jobs are short-term jobs (i.e., under 24 months in duration) that result from real estate projects or financing.

² A full time equivalent (FTE) is at least a 35-hour workweek.

³ A maintained job is a job that exists at the business at the time the business was financed.

⁴ Includes office, industrial, retail, mixed-use (housing + other), community facilities, hospitality and infrastructure.

⁵ Entities making loans/investments in other CDEs should calculate the impacts that will be obtained by the QALICB that ultimately receives the financing.

Instructions for Table C2: All Applicants that project generating community impact as a result of NMTC activities discussed in the Business Strategy section must complete this table.

Table C2: Projected Community Impacts (cumulative 2009-2013)
		# of projects	$ Amount of NMTC Financing	$ Amount of Financing from Other Sources	Permanent1 FTE2 Jobs Created or Maintained3	Pre-development or Construction1 FTE2 Jobs Created or Maintained3	Square Feet of Space Developed or Rehabilitated	# of Housing Units Developed or Rehabilitated	# of Clients Served
1	Non-Real Estate QALICBs		$	$
2	Real Estate QALICBs (total)		$	$
2a	Commercial4		$	$
2b	For-sale housing		$	$
3	Loans/Investments in CDEs5		$	$
4	Purchase of loans from CDEs6		$	$
5	FCOS		$	$

¹ A permanent job is one that is at least 24 months in duration. Pre-development or construction jobs are short-term jobs (i.e., under 24 months in duration) that result from real estate projects or financing.

² A full time equivalent (FTE) is at least a 35-hour workweek.

³ A maintained job is a job that exists at the business at the time the business was financed.

⁴ Includes office, industrial, retail, mixed-use (housing +other), community facilities, hospitality and infrastructure.

⁵ Entities making loans/investments in other CDEs should calculate the impacts that will be obtained by the QALICB that ultimately receives the financing.

⁶ Entities purchasing loans from other CDEs should calculate the impacts that will be obtained via the investment of QLICI proceeds by the selling CDE.

Exhibit D: Staff and Board Qualifications

Instructions for Table D1: All Applicants must complete Table D1. An Applicant may list personnel and board members that also appear in Tables D2-4, but be sure that this Table describes the individuals’ specific qualifications, experience, and track record as it pertains to their role with the Applicant in deploying capital or Financial Counseling and Other Services. In Table D1, an Applicant may include any consultants that will assist in deploying capital or services. Such Applicants must name the particular individual who will assist the Applicant; identify the firm the consultant is employed by; clearly describe what his/her role will be with the Applicant; and describe his/her experience in such a role. Additionally, in the responsibilities column, the Applicant should discuss the terms and/or current status of the consultant’s contract for services. (All narrative responses in Table D1 have a maximum length of 3,000 characters)

Table D1: Experience Deploying Capital or Financial Counseling and Other Services
Name	Firm	Title at Firm	Yrs. with (or years providing services to) the Applicant	Role with Applicant	Description of Responsibilities with Applicant in Deploying Capital or Services	Hrs. per week with Applicant in this Capacity	Description of Individual’s Qualifications
				Governing board (GB) chair GB member on loan/investment committee Other GB member Advisory board member ED or equivalent CFO or equivalent Dir. of lending/investing or equivalent Other key management Loan/investment officer or equivalent Compliance officer Other finance staff Contracted consultant Other (specify):______________

Instructions for Table D2: All Applicants must complete Table D2. An Applicant may list personnel and board members that also appear in Tables D1, D3, and D4, but be sure that this Table describes the individuals’ specific qualifications, experience, and track record as it pertains to their role with the Applicant in raising capital. In Table D2, an Applicant may include any consultants or third-party investment brokers that will assist in raising capital. Such Applicants must name the particular individual who will assist the Applicant; identify the firm the consultant is employed by; clearly describe what his/her role will be with the Applicant; and describe his/her experience in such a role. Additionally, in the responsibilities column, the Applicant should discuss the terms and/or current status of the consultant’s contract for services. (All narrative responses in Table D2 have a maximum length of 3,000 characters)

Table D2: Experience Raising Capital
Name	Firm	Title at Firm	Yrs. with (or years providing services to) the Applicant	Role with Applicant	Description of Responsibilities with Applicant in Raising Capital	Hrs. per week with Applicant in this Capacity	Relevant Experience Raising Capital (check all that apply)	Description of Individual’s Qualifications	Total Amount of Capital Raised in Past Five Years ($$)
				Governing board (GB) chair GB member on loan/investment committee Other GB member Advisory board member ED or equivalent CFO or equivalent Dir. of lending/investing or equivalent Other key management Loan/investment officer or equivalent Compliance officer Other finance staff Contracted consultant Other (specify):_______			Profit-motivated investors Non-profit or governmental entities Using tax credits as an incentive Not applicable

Instructions for Table D3: All Applicants must complete Table D3. An Applicant may list personnel and board members that also appear in Tables D1, D2, and D4, but be sure that this Table describes the individuals’ specific qualifications, experience, and track record as it pertains to their role with the Applicant in asset and risk management. In Table D3, an Applicant may include any consultants that will assist in managing assets and risk. Such Applicants must name the particular individual who will assist the Applicant; identify the firm the consultant is employed by; clearly describe what his/her role will be with the Applicant; and describe his/her experience in such a role. Additionally, in the responsibilities column, the Applicant should discuss the terms and/or current status of the consultant’s contract for services. (All narrative responses in Table D3 have a maximum length of 3,000 characters)

Table D3: Asset and Risk Management Experience
Name	Firm	Title at Firm	Yrs. with (or years providing services to) the Applicant	Role with Applicant	Description of Responsibilities with Applicant in Managing Assets and Risk	Hrs. per week with Applicant in this Capacity	Description of Individual’s Qualifications	Total Assets Under Management in Past Five Years ($$)
				Governing board (GB) chair GB member on loan/investment committee Other GB member Advisory board member ED or equivalent CFO or equivalent Dir. of lending/investing or equivalent Other key management Loan/investment officer or equivalent Compliance officer Other finance staff Contracted consultant Other (specify):_______

Instructions for Table D4: All Applicants must complete Table D4. An Applicant may list personnel and board members that also appear in Tables D1-3, but be sure that this Table describes the individuals’ specific qualifications, experience, and track record as it pertains to their role with the Applicant in managing NMTC Program compliance. In Table D4, an Applicant may include any consultants that will assist in program compliance. Such Applicants must name the particular individual who will assist the Applicant; identify the firm the consultant is employed by; clearly describe what his/her role will be with the Applicant; and describe his/her experience in such a role. Additionally, in the responsibilities column, the Applicant should discuss the terms and/or current status of the consultant’s contract for services. (All narrative responses in Table D4 have a maximum length of 3,000 characters)

Table D4: Program Compliance Experience
Name	Firm	Title at Firm	Yrs. with (or years providing services to) the Applicant	Role with Applicant	Description of Responsibilities with Applicant in NMTC Program Compliance	Hrs./week with Applicant in this Capacity	Relevant Experience Monitoring Compliance (check all that apply)	Description of Individual’s Qualifications
				Governing board (GB) chair GB member on loan/investment committee Other GB member Advisory board member ED or equivalent CFO or equivalent Dir. of lending/investing or equivalent Other key management Loan/investment officer or equivalent Compliance officer Other finance staff Contracted consultant Other (specify):_______			NMTC Program Other tax credit programs Other governmental programs Foundation Other (specify): __________ Not applicable

Instructions for Table D5: All Applicants must complete Table D5. An Applicant should list each Low-Income Community representative on its Governing or Advisory Board. An Applicant should not list all board members – only those that represent Low-Income Communities. Responses should be consistent with the data provided in the Applicant’s CDE Certification Accountability Chart. However, an Applicant may include any new members have that joined the board since the time of submission of the Applicant’s CDE Certification Application. (All narrative responses in Table D5 have a maximum length of 3,000 characters)

Table D5: Low-Income Community Representatives on the Applicant’s Board
Board Member Name	Firm	Title at Firm	Advisory or Governing Board Member?	Yrs. on Board	Indicate how the individual is Representative of Low-Income Communities? 1	Describe the individual’s qualifications as an LIC representative, including related LIC community affiliations or experiences.
			Advisory Governing		Resident Small business owner Employee or board member of a non-Affiliated community-based or charitable organization Religious leader whose congregation is based in a Low-Income Community Employee of a governmental agency or department that principally serves Low-Income Communities An elected official (or works for one) whose constituency is comprised principally of residents of Low-Income Communities Other (specify):________________

Instructions for Table D6: An Applicant that has used or plans to use consultants to prepare its NMTC application or assist the Applicant in carrying out any aspect of its NMTC program must complete Table D6. The Applicant should list each consultant for which a contract or other service agreement has been executed or is planned. The Applicant should be sure to include in Table D6 consultants listed in Tables D1 – D4.

Table D6: Consultants and unaffiliated organizations providing services to the Applicant
Consultant Name (if a specific individual is providing services)	Title at Firm	Firm	Area of NMTC Support (Check all that apply)
			____ NMTC Application Preparation/Review ____ Capital-raising ____ Sourcing or loan underwriting ____ Asset management ____ Loan Servicing ____ NMTC Program Compliance ____ Provision of services to QALICBs/residents (including FCOS) ____ Community Outreach ____ Legal Services ____ Other _______________

Exhibit E: Investor Strategy

TIPs for Exhibit E:

1. Applicants completing Table E1 are required to submit, along with their applications, documentation demonstrating proof of investor interest (e.g., proof of QEI issuance; Commitment letters; Letters of Interest/Intent). For examples of acceptable documentation for the required information, refer to the Fund’s NMTC Allocation Application Q&A Document. Be sure to refer to the Applicant Instructions for information regarding the submission of these documents.

2. If an Applicant received a previous NMTC Allocation, it should not include in Table E1 investors that provided QEIs pursuant to the Applicant’s previous NMTC Allocation Awards unless such investors are providing new QEIs and/or Commitments distinct from the QEIs or Commitments pertaining to the Applicant’s previous NMTC Allocation Awards.

Instructions for Table E1: In Table E1, Applicants should only list the names of actual or prospective investors that have provided Equity Investments (in accordance with applicable IRS rulings regarding the issuance of QEIs prior to notification of an allocation), Commitments, or Letters of Interest/Intent in connection with a potential NMTC Allocation. To the extent an Applicant has or intends to secure investments from partnership entities that will leverage non-Equity Investments (e.g., debt, grant dollars), such investments should be separately reported under “Type of Investment”. If an Applicant plans to engage an investment banker (or other third party) to raise equity capital on the Applicant’s behalf, DO NOT INCLUDE such third party organizations in this table.

Table E1: Identification of Investments and Investor Commitments
	Name of Investor	Type of Investment1	Using Leverage Structure?	Unrelated Entity?	Previous Investor?2	Total Funding Provided from 2003-2007 (if previous investor)	Dollar Amount Sought	Status of Request3	Estimated or Actual Date for Receipt of Funds
1			Yes/No	Yes/No	Yes/No	$	$
2			Yes/No	Yes/No	Yes/No	$	$
3			Yes/No	Yes/No	Yes/No	$	$
4			Yes/No	Yes/No	Yes/No	$	$
5	TOTAL	N/A	N/A	N/A	N/A	$	$	N/A	N/A

¹ Debt, equity, or grant.

² A previous investor is any investor that has invested in the Applicant , its Controlling Entity, or any Subsidiary entities since 2003.

³ Funds have been received; investor provided Commitment; investor issued Letter of Interest/Intent.

Table E2: Track Record of Raising Capital from Investors
This table reflect the activities of (check one): _____Applicant _____Controlling Entity
Calendar Year(s)		2003	2004	2005	2006	2007	Total
1	Total # of investments
2	Total $ amount of investments	$	$	$	$	$	$
3	Total # of grants1
4	Total $ amount of grants2	$	$	$	$	$	$
5	Total # of below market rate loans1
6	Total $ amount of below market rate loans2	$	$	$	$	$	$
7	Total # of market rate loans1
8	Total $ amount of market rate loans2	$	$	$	$	$	$
9	Total # of Equity Investments1
10	Total $ amount of Equity Investments 2	$	$	$	$	$	$

¹ Values should be a subset of Line 1.

² Values should be a subset of Line 2.

Exhibit F. Fees and Flow of Allocations

Instructions for Table FI:

1. All Applicants must complete Table F1.

2. Applicants must list any and all fees and other sources of compensation and profits that the Applicant and/or its Affiliates (including, if applicable, investment partnership funds) will charge to (or receive from) its borrowers, investors or other parties involved in the NMTC transactions.

3. The figures provided in the table should be basis points, aggregated over the life of investment.

Examples: An Applicant that retains 3% of its QEIs would list 300 basis points in the “Total” column that corresponds to Row 1. An Applicant that charges a 1% origination fee would list 100 basis points in the “Total” column that corresponds to Row 2. An Applicant that charges a .5% annual asset fee for the each year of the seven-year compliance period would list 350 basis points (7 year compliance * 50 basis points) in the “Total” column that corresponds to Row 3. An Applicant that charges a 5% “success fee” at the back-end of the deal would list 500 basis points in the “Total” column that corresponds to Row 4.

4. In Columns 2-4, Applicants are to indicate the amount (in basis points) of the Total fees/revenues that will be charged to various parties. In each row, the sum of the entries in Columns 2-4 should equal the corresponding entry in Column 1.

Example: An Applicant that charges a commitment fee of 1% to both the investor and to the borrower would put 200 basis points in Row 2, Column 1; 100 basis points in Row 2, Column 2; 100 basis points in Row 2, Column 3; and 0 basis points in Row 2, Column 4.

Table F1: Summary of Compensation and Profits
		Total Amount (Basis Points)	Total Amount charged to Investors	Total Amount charged to Borrowers or Investees	Total Amount charged to Other Entities (e.g., subsidiary CDEs, etc.)
1	QEI proceeds retained by the CDE1
2	Front-End sources of compensation and profits2
3	Ongoing sources of compensation and profits3
4	Back-End sources of compensation and profits4
5	Other sources of compensation and profits5
	Total

¹ The “Total Amount” is the inverse of the figure provided in Question 54, expressed as basis points.

² Front-End includes any and all revenue charged prior to or during the close of each transaction (i.e., origination fees, brokerage fees, legal fees, closing costs, guarantee fees, etc.).

³ Ongoing includes any and all revenue collected throughout the allocation compliance period (i.e., asset management, compliance, etc.), with the exception of ordinary interest payments paid by borrowers and discussed in Question 16.

⁴ Back-End includes any and all revenue collected at the time of the investment exit (i.e., success, residuals, exit, carried interest, etc.).

⁵ Indicate any other additional sources of revenue charged to investors, borrowers, or other entities.

Table F2: Schedule for Issuing QEIs (Estimated)
	Calendar Year (s)	2009	2010	2011	2012	2013	Total
1	Total $ amount of QEIs to be Issued	$	$	$	$	$	$
2	Percent of total NMTC Allocation	%	%	%	%	%	100%

Instructions for Table F2: All Applicants must complete Table F2.

Glossary of Terms

Affiliate	Any legal entity that Controls, is Controlled by, or is under common Control with, the Applicant.
Allocatee	An Applicant that receives a NMTC Allocation.
Allocation Agreement	An agreement to be entered into by the Fund and a CDE, relating to the NMTC Allocation, pursuant to IRC §45D(f)(2).
Applicant	Any legal entity that is applying to the Fund for the receipt of a NMTC Allocation. This term includes any Subsidiary of the applicant, which may receive a transfer of all or part of a NMTC Allocation from the applicant.
Allocation Application	The application form, issued by the Fund pursuant to a Notice of Allocation Availability (NOAA), to be completed and submitted by an Applicant in order to be considered for a NMTC Allocation.
Assistance Agreement	A written agreement between the Fund and an entity receiving assistance under the CDFI Program and Native American CDFI Development (NACD) Program specifying the terms and conditions of assistance including, without limitation, performance and financial soundness goals, if applicable. See 12 CFR §1805.104(f).
Authorized Representative	An officer, or other individual, who has the actual authority to sign for and make representations on behalf of the Applicant. This person will also be the primary point of contact for the Applicant.
CDE Certification Application	The application form, issued by the Fund, to be completed and submitted by an entity in order to be certified as a CDE.
Commitment	A document in which an investor commits to make an investment in the Applicant in a specified amount and on specified terms.
Community Development Entity (CDE)	Under IRC §45D(c)(1), any domestic corporation or partnership if: The primary mission of the entity is serving, or providing investment capital for, Low-Income Communities or Low-Income Persons; The entity maintains accountability to residents of Low-Income Communities through their representation on any governing board of the entity or on any advisory board to the entity; and The entity is certified by the Fund as a CDE. Specialized Small Business Investment Companies (SSBICs) and Community Development Financial Institutions (CDFIs) are deemed to be CDEs in the manner set forth in Guidance published by the Fund (66 Federal Register 65806, December 20, 2001).
Community Development Financial Institution (CDFI)	An entity that has been certified by the Fund as meeting the criteria set forth in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702). For further details, refer to the CDFI Program regulations set forth at 12 CFR 1805.201.
Community Investment Impact System (CIIS)	A web-based data collection system that CDFIs and CDEs will use to submit their Institution-Level Reports and Transaction-Level Reports to the Fund.
Control	Control is defined as: Ownership, control, or power to vote more than 50 percent of the outstanding shares of any class of voting securities of any entity, directly or indirectly or acting through one or more other persons; Control in any manner over the election of a majority of the directors, trustees, or general partners (or individuals exercising similar functions) of any other entity; or Power to exercise, directly or indirectly, a controlling influence over the management policies or investment decisions of another entity, as determined by the Fund.
Controlling Entity	An entity that Controls an Applicant.
Disadvantaged Business	A business that is (a) located in a Low-Income Community; or (b) is owned by a Low-Income Person; or (c) a business that has inadequate access to investment capital.
Disadvantaged Community	This term has the same meaning as a Low-Income Community.
Equity Equivalent Loan	A loan that has certain equity-like provisions, including required principal and interest payments only from cash flow and a flexible maturity date. Note that the definition of this term under the CDFI Program and NMTC Program is more flexible than the definition of the same term under the Bank Enterprise Award (BEA) Program.
Equity Investment	Under IRC §45D(b)(6) and the NMTC Program Income Tax Regulations, Equity Investment means any stock (other than nonqualified preferred stock as defined in IRC §351(g)(2)) in an entity that is a corporation and any capital interest in an entity that is a partnership.
Financial Counseling and Other Services	Advice provided by a CDE relating to the organization or operation of a trade or business. See 26 CFR 1.45D-1(d)(7).
High Migration Rural County	Any county which, during the 20 year period ending with the year in which the most recent census was conducted, has a net out-migration of inhabitants from the county of at least 10 percent of the population of the county at the beginning of such period. See IRC §45D(e)(5).
Letter of Interest/Intent	A document in which an investor expresses a preliminary interest in making an investment in the Applicant.
Low-Income Community	Under IRC §45D(e)(1), any population census tract if: The poverty rate for such tract is at least 20 percent, or (a) In the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or (b) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income. With respect to IRC §45D(e)(1)(B), possession-wide median family income shall be used (in lieu of statewide income) in assessing the status of census tracts located within a possession of the United States. Under IRC §45D(e)(2), Targeted Populations will also be treated as Low-Income Communities. See IRS Notice 2006-60. Under IRC §45D(e)(3), in the case of an area that is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of determining poverty areas) shall be used for purposes of defining poverty rates and median family incomes. See IRC §45D(e) for additional criteria.
Low-Income Person	Any individual having an income, adjusted for family size, of not more than: For metropolitan areas, 80 percent of the area median family income; and For non-metropolitan areas, the greater of (a) 80 percent of the area median family income or (b) 80 percent of the statewide non-metropolitan area median family income.
Minority-Owned or Controlled	A business that is more than 50% owned or controlled by one or more persons who are members of minority ethnic group. If the business is a for-profit concern, more than 50% of its owners must be minorities; if the business is a non-profit concern, more than 50% of its board of directors must be minorities (or its Chief Executive Officer, Executive Director, General Partner or Managing Member must be a minority).
New Markets Venture Capital Company (NMVCC)	An entity designated as a NMVCC by the Small Business Administration under the New Markets Venture Capital Company Program. See 13 CFR 108.10 for more information.
Non-Metropolitan Counties	Counties not designated as a metropolitan statistical area including Consolidated Metropolitan Statistical Areas (CMSAs) and Primary Metropolitan Statistical Areas (PMSAs) in accordance with OMB Bulletin No. 99-04 (Revised Statistical Definitions of Metropolitan Areas (MAs) and Guidance on Uses of MA Definitions) and based on 2000 Census data.
Notice of Allocation	Notification to the Allocatee from the Fund which informs the Allocatee of its receipt of a NMTC Allocation subject to the terms and conditions set forth in the notice (see applicable NOAA).
Notice of Allocation Availability (NOAA)	A document published by the Fund in the Federal Register that provides specific guidance on how a CDE may apply for a NMTC Allocation, the competitive procedure through which such allocations will be made, and the actions that will be taken by the Fund to ensure that proper allocations are made to appropriate entities. The NOAA published in conjunction with the 2008 Allocation Application will only apply to the 2008 allocation year.
NMTC Allocation	An allocation of tax credit authority pursuant to the New Markets Tax Credit Program.
NMTC Program Income Tax Regulations	The regulations promulgated by the Internal Revenue Service which provide guidance for taxpayers claiming the New Markets Tax Credit under IRC §45D. See 26 CFR 1.45D-1 for more information.
Postmark	As defined by 26 CFR 301.7502-1. In general, the Fund will require a postmark date that is on or before the applicable deadline. The document must be in an envelope or other appropriate wrapper, properly addressed and deposited in the U.S. mail. The document may be delivered by the United States Postal Service or any other private delivery service designated by the Secretary of the Treasury. For more information on designated delivery services, please see IRS Notice 2002-62, 2002-2 C.B.574
Qualified Active Low-Income Community Business (QALICB)	Under IRC §45D(d)(2), any corporation (including a non-profit corporation) or partnership if for any taxable year: At least 50 percent of total gross income of such entity is derived from the active conduct of a qualified business within any Low-Income Community; A substantial portion of the use of the tangible property of such entity (whether owned or leased) is within any Low-Income Community; A substantial portion of the services performed for such entity by its employees are performed in any Low-Income Community; Less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to collectibles (as defined in IRC §408(m)(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of such business; and Less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property (as defined in IRC §1397C(e)). Please refer to the NMTC Program Income Tax Regulations at 26 CFR 1.45D-1(d)(4) for more information.
Qualified Equity Investment (QEI)	Under IRC §45D(b)(1), any Equity Investment in a CDE if: Such investment is acquired by the investor at its original issue (directly or through an underwriter) solely in exchange for cash; Substantially all of such cash is used by the CDE to make QLICIs; and The investment is designated for purposes of IRC §45D by the CDE as a QEI. QEI also includes an Equity Investment purchased from a prior holder, to the extent provided in IRC §45D(b)(4). QEI does not include any Equity Investment issued by a CDE more than five years after the date the CDE receives a NMTC Allocation. Please refer to the NMTC Program Income Tax Regulations at 26 CFR 1.45D-1(c) and related Internal Revenue Service notices for more information.
Qualified Low-Income Community Investments (QLICI)	Under IRC §45D(d)(1), a QLICI is: Any capital or Equity Investment in, or loan to, any QALICB (as defined in IRC§45D(d)(2)); The purchase from a CDE of any loan made by such entity that is a QLICI; Financial Counseling and Other Services to businesses located in, and residents of, Low-Income Communities; and Any Equity Investment in, or loan to, any CDE. Please refer to the NMTC Program Income Tax Regulations at 26 CFR 1.45D-1(d)(1) for more information.
Small Business Investment Company (SBIC)	An entity defined in 15 USC 662(3).
Specialized Small Business Investment Company (SSBIC)	An entity defined in IRC §1044(c)(3).
Subsidiary	Any legal entity that is owned or Controlled directly or indirectly by an Applicant. This term includes series funds, which are separate investment funds Controlled by an Applicant.
Targeted Population	As defined in 12 U.S.C. 4702(20) and 12 C.F.R. 1805.201, the term “targeted population” means individuals, or an identifiable group of individuals, including an Indian Tribe, who (A) are Low-Income Persons; or (B) otherwise lack adequate access to loans or investments.
Unrelated	Persons who are not related within the meaning of IRC §267(b) or IRC §707(b)(1).

1 For the purposes of Questions #2-7 in this Applicant Information section, the term Applicant shall only apply to the entity applying for a NMTC Allocation, and not to Subsidiary entities that may receive a transfer of all or part of a NMTC Allocation.