Form CDFI 0020 CDFI 0020 2009 NMTC Allocation Application

Community
Development
Financial
Institutions
Fund

NMTC Program
New Markets Tax Credit
Allocation Application

2009 Application

OMB Approval No. 1559-0016
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 170 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 ................................................................................. iii
Assurances and Certifications....................................................................vi
Applicant Information ................................................................................. 1
Part I: Business Strategy............................................................................ 7
A. Products, Services, and Investment Criteria .................................................................. 7
B. Prior Performance ........................................................................................................ 11
C. Projected Business Activities ....................................................................................... 13
D. Non-Metropolitan Counties .......................................................................................... 15
E. Investments in Unrelated Entities................................................................................. 16

Part II: Community Impact........................................................................ 18
A. Targeting the Use of QLICIs......................................................................................... 18
B. Economic Impacts – Prior Performance........................................................................ 20
C. Economic Impacts - Projections.................................................................................... 21

Part III: Management Capacity................................................................. 25
Part IV: Capitalization Strategy ................................................................ 33
A. Investor Strategy .......................................................................................................... 33
B. Sources and Uses of Capital......................................................................................... 36
C. Flow of Allocations ........................................................................................................ 37

Exhibit A: Track Record of Activities ........................................................ 38
Table A1: Track Record of Loans/Investments to Non-Real Estate Businesses............... 39
Table A2: Track Record of Loans/Investments to Real Estate Businesses....................... 40
Table A3: Track Record of Loans/Investments to Other CDEs ......................................... 41
Table A4: Track Record of Loan Purchases from Other CDEs ......................................... 41

Exhibit B: Projected Activities................................................................... 42
Table B1: Projected Loans/Investments to Non-Real Estate QALICBs (Estimated) ......... 43
Table B2: Projected Loans/Investments to Real Estate Businesses (Estimated).............. 43
Table B3: Projected Loans/Investments in Other CDEs (Estimated) ................................ 44
Table B4: Projected Loan Purchases from Other CDEs (Estimated) ................................ 44
Table B5: Projected Financial Counseling and Other Services to Businesses and
Entrepreneurs in Low-Income Communities (Estimated) .................................. 45

Exhibit C: Community Impact................................................................... 46
2009 NMTC Allocation Application
CDFI Fund – Form 1559-00160

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Table C1: Historic Community Impacts (cumulative 2004-2008)....................................... 46
Table C2: Projected Economic Development Impacts (cumulative 2010-2014)................ 47

Exhibit D: Staff and Board Qualifications ................................................. 48
Table D1: Experience Deploying Capital or Financial Counseling and Other Services..... 48
Table D2: Experience Raising Capital ............................................................................... 49
Table D3: Asset and Risk Management Experience ......................................................... 50
Table D4: Program Compliance Experience ..................................................................... 51
Table D5: Low-Income Community (LIC) Representatives on the Applicant’s Board ....... 52
Table D6: Consultants and Unaffiliated Organizations Providing Services to the Applicant53

Exhibit E: Investor Strategy...................................................................... 54
Table E1: Identification of Investments and Investor Commitments.................................. 55
Table E2: Track Record of Raising Capital from Investors................................................ 56

Exhibit F. Fees and Flow of Allocations ................................................... 57
Table F1: Summary of Compensation and Profits............................................................. 58
Table F2: Schedule for Issuing QEIs (Estimated).............................................................. 58

Glossary of Terms.................................................................................... 59

2009 NMTC Allocation Application
CDFI Fund – Form 1559-00160

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Applicant Instructions
•

Read the relevant New Markets Tax Credit (NMTC) Program publications prior to completing the
Allocation Application. For information on the 2009 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 taxrelated 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 March 3, 2009. 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 2009 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 March 3,
2009.
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.

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CDFI Fund – Form 1559-00160

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•

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 a 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 as 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 2,000, 5,000 or 10,000 characters (which, depending on font size,
will range from about 1/3 of a page to 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 April 8, 2009. 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.

2009 NMTC Allocation Application
CDFI Fund – Form 1559-00160

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•

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 April 10, 2009. 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 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 13th Street, NW, Suite 200 South, Washington, DC 20005,
by e-mail at [email protected], by telephone at (202) 622-6355, by facsimile at (202) 6227754, 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 e-mail
[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 April 6, 2009. The Fund will
not respond to phone calls or emails concerning the Allocation Application that are
received after 5:00 pm, Eastern Time, on April 6, 2009, until after the Allocation Application
deadline of April 8, 2009.

2009 NMTC Allocation Application
CDFI Fund – Form 1559-00160

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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.

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CDFI Fund – Form 1559-00160

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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
that 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 that 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.

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CDFI Fund – Form 1559-00160

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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 if 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.

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CDFI Fund – Form 1559-00160

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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.

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CDFI Fund – Form 1559-00160

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Applicant Information
1.

Applicant NMTC Allocation Request
Total dollar amount of NMTC Allocation requested in this Allocation Application:
$__________

2.

Applicant Information 1:

(a) Applicant Name:
(b) Applicant Employer Identification Number:
(c) Structure of the Applicant (check all that apply):
___ For-profit
___ Non-profit
___ Small Business Investment Company

___ Credit Union
___ Publicly Traded Company
___ Government-Controlled entity

___ Specialized Small Business
Investment Company
___ New Market Venture Capital
Company
___ Certified CDFI

___ Faith-Based Institution
___ Minority-owned or Controlled
___ Tribal Entity
___ 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
(e) 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
2009 round? (check one): ___ Yes ___ No

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.
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CDFI Fund – Form 1559-0016

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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 2009 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
(a) Controlling Entity Name:
(b) Controlling Entity Employer Identification Number:
(c) Structure of the Controlling Entity (check all that apply):
___ For-profit
___ Non-profit
___ Small Business Investment Company

___ Credit Union
___ Publicly Traded Company
___ Government-Controlled entity

___ Specialized Small Business
Investment Company
___ New Market Venture Capital
Company
___ Certified CDFI

___ Faith-Based Institution
___ Minority-owned or Controlled
___ Tribal Entity
___ Thrift, Bank or Bank Holding Company
___ Real Estate Development Company

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CDFI Fund – Form CDFI 0020

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(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

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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 March 3, 2009 to be considered for a NMTC Allocation in the 2009 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 March 3, 2009.

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.
(a) Briefly describe the Applicant’s business strategy (including geographic markets;
products and services). Suggested length 4-5 sentences. (Maximum Response
Length: 2,000 characters)

(b) 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: 2,000 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.

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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 seven 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 percent 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
____ Industrial/Manufacturing
____ Community Facilities
____ Hospitality/Tourism
____ Financing of other CDEs
____ Loan purchase from other CDEs

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

____ Financial Counseling and
Other Services

____ Office Space
____ For-sale housing
____ Mixed-use (housing,
commercial, or retail)

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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:

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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.

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.

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

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(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
percent.
% 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)

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: 10,000
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 Questions #16 and #17.
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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. ____
2. ____
3. ____

Equity Investments
Equity Equivalent terms and conditions
Debt with equity features (e.g., debt with royalties; debt with warrants;
convertible debt)

4. ____
5. ____
6. ____
7. ____
8. ____
9. ____
10. ____
11. ____
12. ____
13. ____

Subordinated debt
Below market interest rates
Lower than standard origination fees
Longer than standard period of interest-only loan payments
Higher than standard loan-to-value ratio
Longer than standard amortization period
More flexible borrower credit standards
Non-traditional forms of collateral
Lower than standard debt service coverage ratio
Loan loss reserve requirements that are less than standard

(b)

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:
2,000 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: 2,000 characters)

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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 percent of its QLICIs will:
___ (a) be provided in the form of equity; equity-equivalent financing; debt with
interest rates at least 50 percent 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 percent 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 percent 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 percent 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 equityequivalent 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:
(a) 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: 2,000
characters)

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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 percent 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.

(b) 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: 2,000 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 #19(a)-(c)

____ 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.

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

(b) 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)

(c) 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: 5,000
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) but are similar to the proposed NMTC activities?
___ Yes

___ No

(a) If yes, describe the Applicant’s track record with such transactions and how it relates to
the proposed QLICI activities: (Maximum Response Length: 5,000 characters)

(b) Approximately, what percentage of these activities were directed to Disadvantaged
Businesses or Communities? ____%
(c) 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: 5,000
characters)

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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):
____ Support a single project, business or portfolio purchase that has already
been identified (must be listed in Question #22)
____ Support a discrete number of QLICIs that have already been identified
(must be listed in Question #22)
____ 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:
(a) 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.

Total
Project
Name of
Transaction Cost $

Amount of
NMTC
Financing $

TOTAL

$

$

1

Projected
Closing Date

Address1

Census Tract

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

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(b) 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.

24.

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.

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: 5,000
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: 5,000 characters)

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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. 109432), 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 percent of all QLICIs made by allocatees under the
2009 allocation around are invested in Non-Metropolitan Counties; and (ii) a proportionate number of
“Rural CDEs” (as defined in the CY2009 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 percent 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 percent 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 (or its Controlling Entity’s) five-year track record of providing or facilitating
QLICI and non-QLICI related activities (e.g., rental housing) 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: 2,000 characters)

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e. If the response to Question 25(c) above is greater than zero percent, and only 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 that answers “Yes”
to Question #26(a) 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 will be financed with its QLICIs. Be sure to
discuss whether any of said entities or persons: (Maximum Response Length: 2,000
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.

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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.

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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. ____
2. ____

3. ____
4. ____

5. ____
6. ____
7. ____
8. ____
9.____
10.____
11. ____

[30% POVERTY] Census tracts with poverty rates greater than 30
percent.
[60% MEDIAN FAMILY INCOME] Census tracts with, if located within a
non-Metropolitan Area, median family income that does not exceed 60
percent of statewide median family income, or, if located within a
Metropolitan Area, median family income that does not exceed 60
percent of the greater of the statewide median family income or the
Metropolitan Area median family income.
[1.5 UNEMPLOYMENT RATE] Census tracts with unemployment rates
at least 1.5 times the national average.
[25% POVERTY/70% MEDIAN FAMILY INCOME/1.25
UNEMPLOYMENT RATE] Census tracts with one of the following: (i)
poverty rates greater than 25 percent; or (ii) if located within a nonMetropolitan Area, median family income that does not exceed 70
percent of statewide median family income, or, if located within a
Metropolitan Area, median family income that does not exceed 70
percent 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.
[FEDERAL ECONOMIC DEVELOPMENT ZONES] Federally designated
Empowerment Zones, Enterprise Communities, or Renewal
Communities.
[SBA HUB ZONES] SBA designated HUB Zones to the extent QLICIs
will support businesses that obtain HUB Zone certification by the SBA.
[BROWNFIELDS] Brownfield sites as defined under 42 U.S.C. 9601(39).
[HOPE VI REDEVELOPMENT] Areas encompassed by a HOPE VI
redevelopment plan.
[FEDERAL NATIVE AREAS] Federally designated Native American or
Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by
the appropriate Tribal or other authority.
[ARC/DRA AREAS] Areas designated as distressed by the Appalachian
Regional Commission or Delta Regional Authority.
[COLONIAS AREAS] Colonias areas as designated by the U.S.
Department of Housing and Urban Development.

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12.____
13.____

14.
15. ____
16. ____
17. ____

18. ____

(b)

[FEDERAL MEDICALLY UNDERSERVED AREAS] Federally
designated medically underserved areas, to the extent QLICI activities
will result in the support of health related services.
[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 percent owned by low-income persons (LIPs);
or (c) at least 60 percent of employees are LIPs; or (d) at least 60% of
customers are LIPs.
[HIGH MIGRATION] High Migration Rural County.
[STATE/LOCAL ECONOMIC ZONES] State Enterprise zone programs,
or other similar state/local programs targeted towards particularly
economically distressed communities.
[NON-METROPOLITAN COUNTIES]
[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.
[TRADE ADJUSTMENT ASSISTANCE] Businesses certified by the
Department of Commerce as eligible for assistance under the Trade
Adjustment Assistance for Firms (TAA) Program.

Will the Applicant commit to providing at least 75 percent 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.

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

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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.

28.

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?
___Yes

___ No:

If Yes:
(a) Complete Table C1 and discuss the methodology and assumptions used to populate
the selected fields in Table C1: (Maximum Response Length: 5,000 characters)

(b) 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:
5,000 characters)

TIP: With respect to Questions 28(a), 29 and 30(b)(ii):
In discussing Methodology and Assumptions, the Applicant should discuss how data was collected and
utilized to derive the reported impacts. Specifically, the Applicant should describe the source of the data
(e.g., tracking of past activities of the Applicant; general estimates based upon industry standards); as well
as the values, including industry sources and standards, used to derive and/or verify the reasonableness of
the impacts that it has tracked or has estimated.

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C. Economic Impacts - Projections
29.

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

Describe the methodology and assumptions used to derive the projections in Table C2

•

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

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 of impacts that they expect to achieve with a NMTC Allocation.
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.

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 LowIncome 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.

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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 LowIncome 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: 2,000 characters)

(ii)

To the extent not discussed elsewhere, describe the methodologies and
assumptions used to derive the Applicant’s estimates and how the data will
be collected going forward: (Maximum Response Length: 5,000 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 and assumptions used to derive such
projections and how data will be collected going forward, will be scored more favorably.

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(c)

If the Applicant’s activities, as described in the Business Strategy, include using
NMTC dollars to finance projects that would result in developing or rehabilitating
rental or for-sale housing, will the Applicant commit to providing at least 20 percent
of developed units as affordable housing units, (i.e. affordable to persons with
income less than 80 percent of AMI)?
Yes _____
(i)

No _____

N/A ______

If no, please explain why the Applicant is unable to commit to providing at
least 20 percent of developed units as affordable housing units. (Maximum
Response Length: 2,000 characters)

TIP: An Applicant that checks “yes” in Question 30(c) above will be scored more favorably
and this requirement may become a term of its Allocation Agreement.
If Applicant checks No or N/A, it will score more favorably to the extent that its response to
Q 30 (c )(i) is consistent with the description of its projected NMTC activities.
Please note that this includes activities directed to the development or rehabilitation of ALL
housing, for example Mixed-Use projects should be included.

TIP: The Applicant will score more favorably to the extent that its response to Q.30C is
consistent with the projected activities described in the Business Strategy Section.

31. 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.

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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: 5,000
characters)

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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.

34.

Experience Deploying Capital or Financial Counseling and Other Services:
TIP: The Fund expects the Applicant’s personnel to have relevant experience in 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 LowIncome Communities. (Maximum Response Length 2,000 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: 2,000 characters)

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35.

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.

36.

•

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: 2,000 characters)

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:

(a) 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: 2,000 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: 2,000 characters)

(c) The Applicant’s infrastructure (e.g., management information systems) to support the
Applicant’s asset and risk management procedures. (Maximum Response Length:
2,000 characters)

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37.

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 NMTCrelated investments will qualify at the time of investment and throughout the 7-year NMTC
investment period.

38.

•

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)
o

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?

o

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?

o

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?

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 decisionmakers 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)

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39.

o

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.

o

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).

o

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

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 percent of the compliancerelated activities.") (Maximum Response Length 2,000 characters).

40.

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: 2,000 characters)

41.

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).

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(a) 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: 2,000
characters)

(b) If yes, 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: 2,000 characters)

(c) Have the Applicant’s, or its Controlling Entity’s financial statements shown positive net
income (or if a non-profit, positive change in net assets) for each of the last three
years, or if in business for less than three years, for the period of time it has operated?
____ Yes

____ No

If no, please explain and describe when the entity expects to achieve profitability. Nonprofit organizations should provide an explanation if annual contributions and revenues
do not exceed expenditures: (Maximum Response Length: 2,000 characters)

(d) Has the Applicant, or its Controlling 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:
2,000 characters)

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42.

CDFI Fund Award Status:
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:

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44.

If the Applicant answered yes to Question #43, briefly explain the status of its previous
Allocation award(s). Be sure to address:
(a) 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: 2,000
characters)

(b) 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)

(c) 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: 5,000 characters)

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.
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 NMTC 2009 NOAA for additional information
regarding this and other requirements pertaining to Applicant eligibility under the 2009 round.

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).

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45.

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.

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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: 2,000 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.

48.

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.

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49.

•

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, including the Applicant.

•

The extent to which the Applicant’s investors or potential investors are increasing
their community development related investments, including those to the Applicant.

Investment Partnerships
(a)

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 and complete Table E1 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)

(c)

If yes, describe, for each such investor partnership: (Maximum Response Length:
2,000 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.

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

50.

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

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

_____ No

Page 34

51.

Will the Applicant receive any QEIs from Affiliates?
_____ Yes

52.

_____ No

If the answer to either Question 50 or 51 above is yes, provide narrative detailing:
(Maximum Response Length: 2,000 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.

53.

The NMTC creates an economic benefit that can be shared among the investor, the CDE,
the QALICBI, 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 QALICB 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 Low-Income
Communities in which the investment(s) will be made. Be sure to reference related
market benchmarks or practices where applicable.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 35

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.

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 percent 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.

54.

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.

55.

56.

How will the Applicant finance its cost of operations? Provide a narrative that addresses
the following: (Maximum Response Length: 5,000 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.

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.
(a) Referencing the information in Table F1 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

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 36

to what is typically earned in the marketplace. (Maximum Response Length: 2,000
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: 2,000 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: 2,000
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: 2,000 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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 37

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, at its discretion, may choose to rely upon the track
record of its Controlling Entity. In order to list the track record of the Controlling Entity in Exhibit A, the Applicant must
designate a Controlling Entity in Question 3.
TIPs for Exhibit A:
1) Where indicated in Tables A1 and A2, enter the dollar amount of debt financing provided by the Applicant (or Controlling Entity)
in row 2a. In row 2b, enter the dollar amount of equity financing provided by the Applicant (or Controlling Entity). Enter all
financing from other sources in row 3. Rows 2 and 6 will automatically calculate based on your entries in rows 2a, 2b and 3.
The Applicant may discuss in Question 19 the role the Applicant (or Controlling Entity) played in leveraging or facilitating
financing it did not originate.
2) For the purpose of completing Tables A1, A2 and A3, the Applicant must choose to either include its own track record or that of
its Controlling Entity’s. If the Applicant chooses to use its own track record it may not include its Controlling Entity’s activities.
However, if the information reflects the activities of the Controlling Entity, it may include, in the aggregate, the track record of all
and any subsidiaries of the Controlling Entity, including the Applicant. The Applicant may discuss track records of both the
Applicant and Controlling Entity in the narratives to Questions #19 and #20. The narratives should clearly distinguish between
the track records of each entity.
3) Tables A1-4 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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 38

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)
1
2
2a
2b
3

4

Total # businesses financed
Total $ amount of financing
provided by the Applicant
$ Amount of debt financing
provided by Applicant
$ Amount of equity financing
provided by Applicant
$ Amount of financing provided
by other sources (including
QALICB owner equity)
Total $ amount of financing from
all sources

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

2004

2005

2006

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

2007

2008

$

$

$

$

$
$
$

Totals (2004-2008)

Totals to
Disadvantaged
Businesses and
Communities
(2004- 2008)

Totals to Nonmetropolitan
Counties
(2004-2008)

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Page 39

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

Calendar Year(s)
1
2
2a
2b
3.
4

Total # businesses financed
Total $ amount of financing
provided by the Applicant
(a) $ Amount of debt financing
provided by the Applicant
(b) $ Amount of equity financing
Provided by the Applicant
Total $ Amount provided by other
sources (including QALICB owner
equity)
Total $ amount financing from all
sources

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

2004

2005

2006

2007

2008

Totals (2004-2008)

Totals to
Disadvantaged
Businesses and
Communities
(2004- 2008)

Totals to Nonmetropolitan
Counties
(2004-2008)

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$
$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$
$

$

$

$

$

Page 40

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)
1
Total # CDEs financed
2
Total $ amount of financing
3
$ Amount of financing (debt)
4
$ Amount of financing (equity)

2004

2005

2006

2007

2008

Totals (2004-2008)

Totals to
Disadvantaged
Businesses and
Communities
(2004- 2008)

$
$
$

$
$
$

$
$
$

$
$
$

$
$
$

$
$
$

$
$
$

Totals to Nonmetropolitan
Counties
(2004-2008)

$
$
$

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)
1

Total # of loans purchased

2

Total $ amount of loans purchased

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

2004

$

2005

$

2006

$

2007

$

2008

$

Totals (2004-2008)

Totals to
Disadvantaged
Businesses and
Communities
(2004- 2008)

$

$

Totals to Nonmetropolitan
Counties
(2004-2008)

$
Page 41

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 thirdparties). 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
B3; 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 2009 (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 2010. Any QLICIs to be made beyond 2014
should be consolidated into 2014.

TIP: Table B1-B5 should be consistent with the information provided in Q14.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 42

Table B1: Projected Loans/Investments to Non-Real Estate QALICBs (Estimated)
Calendar Year(s)
Total # transactions to be financed
1
2
2a
2b

2010

Total $ amount of financing
$ Amount of financing (debt)
$ Amount of financing (equity)

3

Total # of reinvestment transactions

4

Total $ amount of reinvested financing

2011

2012

2013

2014

Total

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

4a

$ Amount of reinvested financing (debt)

$

$

$

$

$

$

4b

$ Amount of reinvested financing (equity)

$

$

$

$

$

$

2014

Total

Table B2: Projected Loans/Investments to Real Estate Businesses (Estimated)
Calendar Year(s)
Total # transactions to be financed
1
Total $ amount of financing
2
$ Amount of financing (debt)
2a
$ Amount of financing (equity)
2b
Total # of reinvestment transactions
3
Total $ amount of reinvested financing
4
$ Amount of reinvested financing (debt)
4a
$ Amount of reinvested financing (equity)
4b
2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

2010

2011

2012

2013

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$
Page 43

Table B3: Projected Loans/Investments in Other CDEs (Estimated)
Calendar Year(s)
Total # transactions to be financed
1
Total $ amount of financing
2
$ Amount of financing (debt)
2a
$ Amount of financing (equity)
2b
Total # of reinvestment transactions
3
Total $ amount of reinvested financing
4
$ Amount of reinvested financing (debt)
4a
$ Amount of reinvested financing (equity)
4b

2010

2011

2012

2013

2014

Total

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Table B4: Projected Loan Purchases from Other CDEs (Estimated)
Calendar Year(s)
1
2

2010

2011

2012

2013

2014

Total

Total # selling CDEs
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

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

$

$

$

$

$

$

$

$

$

$

$

$

Page 44

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

Total $ amount of reinvestment to be spent
on counseling or providing other services

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

2010

2011

2012

2013

2014

Total

$

$

$

$

$

$

$

$

$

$

$

$

Page 45

Exhibit C: Community Impact
Instructions for Table C1: All Applicants with a track record of successfully financing or facilitating 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) must complete this table. An Applicant
may, at its discretion, rely upon the track record of its Controlling Entity. In order to list the track record of the Controlling Entity in
Exhibit C, the Applicant must designate a Controlling Entity in Question 3. If the information reflects the Controlling Entity, the
information may include, in aggregate, track record(s) of any subsidiaries and affiliates of the 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 or
Controlling Entity provided from the amount of financing that was provided by the borrower or by third party entities. An Applicant or
Controlling Entity 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 2004-2008)
This table reflect the activities of (check one):

# of
projects

1
2
2a
2b
3
4
5

Non-Real Estate businesses
Real Estate businesses (total)
Commercial4
Housing
Loans/Investments in CDEs5
Purchase of loans from CDEs6
FCOS

_____Applicant

$ Amount of
Applicant
Financing

$ Amount of
Financing
from Other
Sources

$
$
$
$
$
$
$

$
$
$
$
$
$
$

_____Controlling Entity
Permanent1
FTE2 Jobs
Created or
Maintained3

Predevelopment or
Construction1
FTE2 Jobs
Created or
Maintained3

Square Feet
of Space
Developed or
Rehabilitated

# of Housing
Units
Developed or
Rehabilitated

# of
Clients
Served

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 were obtained by the business that ultimately received the financing.
6
Entities purchasing loans from other CDEs should calculate the impacts that were obtained via the investment of the proceeds by the selling CDE.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 46

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 Economic Development Impacts (cumulative 2010-2014)

# of
projects

1
2
2a
2b
3
4
5

Non-Real Estate QALICBs
Real Estate QALICBs (total)
Commercial4
For-sale housing
Loans/Investments in CDEs5
Purchase of loans from CDEs6
FCOS

$ Amount
of NMTC
Financing

$
$
$
$
$
$
$

$ Amount
of
Financing
from
Other
Sources

1

Permanent
FTE2 Jobs
Created or
Maintained3

Predevelopment
or
Construction1
FTE2 Jobs
Created or
Maintained3

Square Feet
of Space
Developed or
Rehabilitated

# of Housing
Units
Developed or
Rehabilitated

# of
Clients
Served

$
$
$
$
$
$
$

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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 47

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 2,000 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
• Governing board (GB) chair
• GB member on loan/investment
•
•
•
•
•
•
•
•
•
•
•

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Description of
Responsibilities with
Applicant in Deploying
Capital or Services

Hrs. per
week with
Applicant
in this
Capacity

Description of
Individual’s
Qualifications

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):______________

Page 48

Instructions for Table D2: All Applicants must complete Table D2. An Applicant may list personnel and board members who 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 2,000
characters)

Table D2: Experience Raising Capital

Name

Firm

Title at
Firm

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Yrs. with
(or years
providing
services
to) the
Applicant

Role with Applicant
• 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):_______

Description of
Responsibilities
with Applicant in
Raising Capital

Hrs. per
week with
Applicant in
this
Capacity

Relevant Experience
Raising Capital
(check all that apply)
• Profit-motivated
investors
• Non-profit or
governmental
entities
• Using tax credits as
an incentive
• Not applicable

Description of
Individual’s
Qualifications

Total
Amount of
Capital
Raised in
Past Five
Years ($$)

Page 49

Instructions for Table D3: All Applicants must complete Table D3. An Applicant may list personnel and board members who 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 who 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 2,000 characters)

Table D3: Asset and Risk Management Experience

Name

Firm

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Title at
Firm

Yrs. with
(or years
providing
services
to) the
Applicant

Role with Applicant
• 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):_______

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 ($$)

Page 50

Instructions for Table D4: All Applicants must complete Table D4. An Applicant may list personnel and board members who 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 2,000 characters)

Table D4: Program Compliance Experience

Name

Firm

Title at
Firm

Yrs. with
(or years
providing
services
to) the
Applicant

Role with Applicant
• Governing board (GB)
chair

• GB member on
•
•
•
•
•
•
•
•
•
•
•

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

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):_______

Description of
Responsibilities
with Applicant
in NMTC
Program
Compliance

Hrs./week with
Applicant in this
Capacity

Relevant
Experience
Monitoring
Compliance
(check all that
apply)
• NMTC
Program
• Other tax
credit
programs
• Other
governmental
programs
• Foundation
• Other
(specify):
__________
• Not applicable

Description of
Individual’s
Qualifications

Page 51

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 2,000 characters)

Table D5: Low-Income Community (LIC) Representatives on the Applicant’s Board
Board
Member
Name

Firm

Title at Firm

Advisory or
Governing
Board
Member?
• Advisory
• Governing

Yrs. on
Board

Indicate how the individual is
Representative of Low-Income
Communities?
• Resident
• Small business owner
• Employee or board member of a non-Affiliated

Describe the individual’s
qualifications as an LIC
representative, including
related LIC community
affiliations or experiences.

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):________________

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 52

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 all consultants even those already 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)

Firm

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Title at 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 _______________

Page 53

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.
3) In Table E2, an Applicant may, at its discretion, rely upon the track record of its Controlling Entity. In order to list the track record of

the Controlling Entity in Table E2, the Applicant must designate a Controlling Entity in Question 3. If the information reflects the
Controlling Entity, it may include in aggregate the track record of all subsidiaries and affiliates of the Controlling Entity.

Instructions for Table E1: In Table E1, Applicants should only list the names of actual or prospective investors who 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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 54

Table E1: Identification of Investments and Investor Commitments

Name of
Investor

Type of
Investment1

1
2
3
4
1

5

TOTAL

N/A

Using
Leverage
Structure
?
Yes/No
Yes/No
Yes/No
Yes/No

Unrelated
Entity?
Yes/No
Yes/No
Yes/No
Yes/No

Previous
Investor?2
Yes/No
Yes/No
Yes/No
Yes/No

N/A

N/A

N/A

Total Funding
Provided from 20042008 (if previous
investor)
$
$
$
$
$

Dollar
Amount
Sought

Status of
Request3

Estimated
or Actual
Date for
Receipt of
Funds

N/A

N/A

$
$
$
$
$

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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 55

Table E2: Track Record of Raising Capital from Investors
This table reflect the activities of (check one):
Calendar Year(s)
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

_____Applicant

_____Controlling Entity
2004

2005

2006

2007

2008

Total

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

$

Values should be a subset of Line 1.
2
Values should be a subset of Line 2.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 56

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 percent of its QEIs would list 300 basis points in the “Total” column that corresponds to Row 1. An Applicant
that charges a 1 percent 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 percent “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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 57

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.)

QEI proceeds retained by the
CDE1
Front-End sources of
compensation and profits2
Ongoing sources of
compensation and profits3
Back-End sources of
compensation and profits4
Other sources of compensation
and profits5
Total

1
2
3
4
5
1

The “Total Amount” is the inverse of the figure provided in Question 54, expressed as basis points.
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.
2

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

Table F2: Schedule for Issuing QEIs (Estimated)
1
2

Calendar Year (s)
Total $ amount of QEIs to be Issued
Percent of total NMTC Allocation

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

2010

2011

$

2012

$
%

2013

$
%

2014

$
%

$
%

Total
$
% 100%

Page 58

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).

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.

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.

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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 59

Community Development
Entity (CDE)

Under IRC §45D(c)(1), any domestic corporation or
partnership if:
(1) The primary mission of the entity is serving, or
providing investment capital for, Low-Income
Communities or Low-Income Persons;
(2) 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
(3) 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

Defined as:
(1) Ownership, authority, 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; or
(2) Authority 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
(3) Power to exercise, directly or indirectly, 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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 60

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 1.45D1(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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 61

Low-Income Community

Under IRC §45D(e)(1), any population census tract if:
(1) The poverty rate for such tract is at least 20
percent, or
(2) (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:
(1) For metropolitan areas, 80 percent of the area
median family income; and
(2) 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

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

A business that is more than 50 percent 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 percent of its owners must be
minorities; if the business is a non-profit concern, more
than 50 percent of its board of directors must be minorities
(or its Chief Executive Officer, Executive Director, General
Partner or Managing Member must be a minority).

Page 62

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 2009 Allocation Application will only
apply to the 2009 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

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 63

Qualified Active Low-Income
Community Business
(QALICB)

Under IRC §45D(d)(2), any corporation (including a nonprofit corporation) or partnership if for any taxable year:
(1) 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;
(2) A substantial portion of the use of the tangible
property of such entity (whether owned or leased) is
within any Low-Income Community;
(3) A substantial portion of the services performed for
such entity by its employees are performed in any
Low-Income Community;
(4) 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
(5) 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:
(1) Such investment is acquired by the investor at its
original issue (directly or through an underwriter)
solely in exchange for cash;
(2) Substantially all of such cash is used by the CDE to
make QLICIs; and
(3) 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.

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 64

Qualified Low-Income
Community Investments
(QLICI)

Under IRC §45D(d)(1), a QLICI is:
(1) Any capital or Equity Investment in, or loan to, any
QALICB (as defined in IRC§45D(d)(2));
(2) The purchase from a CDE of any loan made by
such entity that is a QLICI;
(3) Financial Counseling and Other Services to
businesses located in, and residents of, LowIncome Communities; and
(4) 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).

2009 NMTC Allocation Application
CDFI Fund – Form CDFI 0020

Page 65