Form CDFI Form 0020 CDFI Form 0020 2011 NMTC Application

8

NMTC Program

New Markets Tax Credit

Allocation Application

2011 Application

5

85

Community

Development

Financial

Institutions

Fund

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 249 hours per Applicant. Comments concerning the accuracy of this burden estimate and suggestions for reducing this burden should be directed to the Program Manager, NMTC Program, Community Development Financial Institutions Fund, 601 13th Street, NW, Suite 200 South, Washington, DC 20005.

Table of Contents

Applicant Instructions i

Assurances and Certifications i

Applicant Information 1

Part I: Business Strategy 1

A. Products, Services, and Investment Criteria 1

B. Prior Performance 1

C. Projected Business Activities 1

D. Non-Metropolitan Counties 1

E. Investments in Unrelated Entities 1

Part II: Community Impact 1

A. Targeting the Use of QLICIs 1

B. Community Development Outcomes – Prior Performance and Projections 1

Part III: Management Capacity 1

Part IV: Capitalization Strategy 1

A. Investor Strategy 1

B. Sources and Uses of Capital 1

Part V: Information Regarding Previous Awards 1

Exhibit A: Track Record of Activities 1

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

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

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

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

Exhibit B: Projected Activities 1

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

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

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

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

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

Exhibit C: Staff and Board Qualifications 1

Table C1: Management Capacity 1

Table C2: Low Income Community Accountability 1

Exhibit D: Asset Management 1

Table D1: Investment Portfolio 1

Exhibit E: Investor Strategy 1

Table E1: Identification of Investments and Investor Commitments 1

Table E2: Track Record of Raising Capital from Investors 1

Exhibit F. Fees and Flow of Allocations 1

Table F1: Summary of Compensation and Profits 1

Table F2: Schedule for Issuing QEIs (Estimated) 1

Glossary of Terms 1

Applicant Instructions

• Read the relevant New Markets Tax Credit (NMTC) Program publications prior to completing the Allocation Application. For information on the 2011 NMTC Program allocation round, read the Notice of Allocation Availability (NOAA) and the Community Development Financial Institutions Fund’s (the CDFI Fund’s) document titled “NMTC Allocation Application Q&A Document.” For tax related information on the NMTC Program, read the final regulations issued by the Internal Revenue Service (26 CFR 1.45D-1) and related guidance. For information on Community Development Entity (CDE) certification, read the CDFI Fund’s document titled “CDE Certification Q&A Document.” All of these documents are available on the CDFI Fund’s website at www.cdfifund.gov. The CDFI 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 CDFI 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 CDFI Fund) so that it is Postmarked on or before June 22, 2011. The CDE Certification Application is available on the CDFI 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 2011 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 CDFI Fund’s website by 5:00 pm, Eastern Time, on June 22, 2011.

TIP: The CDFI 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 CDFI 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 CDFI 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 CDFI Fund determines that any portion of the application is incorrect in any material respect, the CDFI Fund reserves the right, in its sole discretion, to reject the application.

• As the Applicant prepares the Allocation Application, assume that the CDFI 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 CDFI Fund under this or any of the other CDFI Fund programs.

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

• The term Applicant refers to the CDE applying for a NMTC Allocation as well 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 1,000, 2,000, 3,000, 5,000, 8,000 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 CDFI 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 CDFI 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 CDFI 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 July 20, 2011. Complete instructions regarding the electronic submission requirements will be posted on the CDFI Fund's website at www.cdfifund.gov when the online Allocation Application is made available.

• Required Investor Letters: Applicants completing Table E1 are required to submit commitment letters or letters of interest from investors per the TIPs for Exhibit E. Please upload these documents electronically through the Applicant’s myCDFI Fund account. In doing so, an Applicant is also 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 CDFI Fund’s NMTC Allocation Application Q&A Document.

• Submitting Signature Pages and Required Documents: All Applicants will be required to upload signature pages and other documents (Letters of Interest/Intent, Commitment letters and organizational charts) electronically through their myCDFI Fund accounts. An Applicant will be instructed on how to upload the aforementioned signature page and other documents (i.e., attachments) at the time the Applicant submits its Allocation Application. All attachments must be uploaded by 5:00 pm, Eastern Time, on July 22, 2011. If the attachments are not received by the applicable deadline, they will not be given consideration as part of the review process. Only those attachments requested by the CDFI Fund will be considered as part of the review process. Furthermore, the CDFI Fund will not accept any revisions or amendments to an application or the attachments once they have been submitted for review.

• Part V - Information Regarding Previous Awards: All Applicants are required to complete Part V of the Allocation Application. Applicants who have not received previous NMTC Allocations or who have not received other CDFI Fund Awards (i.e. FA-TA, CMF, BEA) will simply need to respond “No” to Questions 44 and 45 and not respond to Question 46. Applicants who have not made QEIs into previous Allocatees or assumed Control of previous Allocatees should respond “No” to Question 47. Part V relocates questions that had been located in the Management Strategy section of past Applications. Please note that Part V is not specifically scored as part of the Phase I review process, and is only considered if the Applicant is ranked highly enough to proceed to Phase II of the Application review process.

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

The CDFI Fund will provide programmatic and information technology support related to the Allocation Application between 9:00 am and 5:00 pm, Eastern Time, through Monday, July 18, 2011. The CDFI Fund will not respond to phone calls or emails concerning the Allocation Application that are received after 5:00 pm, Eastern Time, on Monday, July 18, 2011, until after the Allocation Application deadline of July 20, 2011.

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 CDFI 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 CDFI Fund’s determination whether to enter into this transaction (meaning, approval of the Allocation Application and entering into an Allocation Agreement). However, failure of the Applicant to furnish either the Certification or an explanation will disqualify the Applicant from participation in said transaction.

A. General Certifications

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

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

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

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

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

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

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

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

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

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

10. The Applicant and its officers, directors, owners, partners, and key employees: (a) have not within a three-year period preceding the date of this Allocation Application been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense; (b) have not within a three-year period preceding the date of this Allocation Application been convicted of or had a civil judgment rendered against them for violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; or (c) have not within the three-year period preceding the date of this Allocation Application been found liable in any civil legal action involving creditor’s claims of greater than $500,000.

11. The Applicant and its officers, directors, owners, partners, and key employees: (a) have not within a three-year period preceding the date of this Allocation Application been indicted for or charged with the commission of fraud or a criminal offense; (b) have not within a three-year period preceding the date of this Allocation Application been indicted for or charged with the violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; (c) are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraphs 11(a) and 11(b) of this certification; or (d) have not within the three-year period preceding the date of this Allocation Application been the subject of any formal investigation or disciplinary proceeding by a government agency, regulatory body, or professional association in connection with any matter which may have a material adverse effect on the Applicant or its financial condition or the Applicant’s ability to carry out the authorized uses of a NMTC Allocation.

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

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

14. The Applicant has never filed for bankruptcy.

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

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

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

1. This Certification is a material representation of fact upon which reliance is placed when the CDFI 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 CDFI 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 CDFI 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 CDFI 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 CDFI 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 CDFI Fund, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions (see 31 CFR part 19, Appendix B).

6. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous or false. A participant may decide the method and frequency by which it determines the eligibility of its principals. Each participant may, but is not required to, check the List of Parties Excluded from Federal Procurement and Non-procurement Programs. See www.epls.gov for more information.

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

8. Except for transactions authorized under paragraph 4 above, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the CDFI Fund may terminate, in its sole discretion, the Notice of Allocation and the Allocation Agreement for cause or default.

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

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

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

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

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

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

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

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

Applicant Information

1. Applicant NMTC Allocation Request

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

$__________

2. Applicant Information:¹

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

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

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

(d) Is the Applicant Minority-owned or Minority-controlled? ____ Yes _____ No

(e) If the Applicant is a federally-regulated thrift, bank, bank holding company, or credit union, provide the name of the Applicant’s primary federal regulator and FDIC/NCUA Certification Number.

Name of Primary Regulator: __________________ Certification Number: _________

(f) 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

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

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

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

(j) Does the Applicant have any Affiliates that are applying for a NMTC Allocation in the 2011 round? (check one): ___ Yes ___ No

TIP: The answer to question 2(j) 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 CDFI 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 CDFI 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 CDFI 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 NOAA or Allocation Application Q&A Document on the CDFI Fund’s website at www.cdfifund.gov. If you have questions about whether two entities are affiliated, you should contact the CDFI Fund well in advance of the 2011 NMTC Allocation Application due date.

TIP: An Applicant may only designate an organization as a Controlling Entity that meets the definition of Controlling Entity set forth in the Glossary of Terms. 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 CDFI 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 CDFI Fund.

TIP: The Controlling Entity Representative is required to affirm, through submission of a signature page, that it is indeed the Controlling Entity of the Applicant and supports the Applicant’s Allocation Application.

3. Controlling Entity Information:

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

(d) Is the Controlling Entity Minority-owned or Minority-controlled? ____ Yes _____ No

(e) If the Controlling Entity or an Affiliate is a federally-regulated thrift, bank, bank holding company, or credit union, provide the name of the Controlling Entity’s or Affiliate’s primary federal regulator and FDIC/NCUA Certification Number.

Name of Primary Regulator: __________________ Certification Number: _________

(f) 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. Applicant and Controlling Entity Contact Information

(a) Applicant Authorized Representative Information:

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

Telephone number:		Fax number:
E-mail address:

(b) Controlling Entity Representative Information:

Name, title, and mailing address:

Telephone number:		Fax number:
E-mail address:

(c) Application Contact Person Information:

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

Telephone number:		Fax number:
E-mail address:

TIP: In Question 5(c), the Applicant should provide contact information for the individual who the CDFI Fund should contact with questions relating to the Applicant’s 2011 NMTC Application.

(d) Public Contact Person Information:

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

Telephone number:		Fax number:
E-mail address:

TIP: If the Applicant should receive an NMTC Allocation, the contact information listed in response to Q. 5(d) will be released to the public as part of the CDFI Fund’s Award Announcement and included in other reports made available to the public..

6. CDE Certification Information:

(a) Has the Applicant already been certified as a CDE by the CDFI Fund or submitted a CDE Certification Application?

___ Yes. CDE Certification Control Number: ______________________________

___ No

(b) By the stated deadline in the 2011 NOAA, is the Applicant filing a service area amendment in connection with this application?

____ Yes ____ No

TIP: An Applicant’s CDE Certification Application must be sent to the Bureau of Public Debt (the entity that is handling intake of applications on behalf of the CDFI Fund), Postmarked no later than June 22, 2011 to be considered for a NMTC Allocation in the 2011 round. The CDE Certification Application is available on the CDFI Fund’s website at www.cdfifund.gov. The CDFI 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 CDFI Fund’s website on or before 5:00 pm, Eastern Time, on June 22, 2011. CDE service area amendment requests will not be considered for purposes of this application unless filed by the deadline stated in the 2011 NOAA.

7. Identify the type of service area that the Applicant will serve (check one). The service area identified here must be identical to the service area identified by the Applicant in its CDE Certification Application and approved by the CDFI 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.”

TIP: If the Applicant would like to focus their investments in this Allocation Application on a subset of their certified service area, it may discuss this in its narrative response to Question 20. However, it should designate its entire certified service area (or its entire service area for which certification or a service area amendment is pending) in responding to Questions 7 and 8.

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

State(s):
County(ies):

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

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

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

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

11. Executive Summary:

(a) Provide a summary of the Applicant’s business strategy including the following: (Maximum Response Length: 5,000 characters)

• A brief summary of the Applicant’s service area, including the specific needs or problems that it intends to address with NMTC.

• A brief summary of the types of projects and/or borrowers the Applicant will target and address why is NMTC important for the identified projects and/or borrowers.

• 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 #11(a) is meant to be a brief summary of the Applicant’s overall business strategy, thus it is not necessary to provide a detailed discussion of items that will be specifically covered in detail in other parts of the Business Strategy section.

NOTE:

The CDFI Fund will generate an automatically generate Allocatee profile based on the responses to certain questions contained in the Allocation Application. Such profiles will be shared with the general public via the CDFI Fund’s website or other public materials/forums. To see what information will be contained in this profile, please see Question 14 in the 2011 Application Q&A document.

12. 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 CDFI 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:

By signing this Allocation Application, the Controlling Entity certifies that it is indeed the Controlling Entity of the Applicant and supports this Allocation Application.

Controlling Entity Name:
Controlling Entity Representative Signature:
Name (print)				Title
Date:

Part I: Business Strategy

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

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, financing provided to real estate businesses refers to entities whose predominant business activity is the development (including construction of new facilities and rehabilitation/enhancement of existing facilities), management or leasing of real estate.

Transactions with businesses whose predominant business activity includes all other types of business activities should be classified as non-real estate businesses 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 transaction. However, if the Applicant provided a loan to a real estate development company whose predominant business is the development of community facilities, for the purpose of building a childcare center, this loan would be considered financing a real estate transaction.

Notwithstanding the above, loans or investments made to a special purpose entity that is controlled by or under common control with an operating company (whose predominant business activity is not the development of real estate), and that was set up specifically to lease the property back to the operating company such that the operating company 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.

The CDFI Fund reserves the right, through the Allocation Agreement, to approve an Applicant to engage in both real estate and non-real estate investments, even if the Applicant indicates in response to Q. 13 that it intends to engage in only one of these activities. This option would not apply to Applicants who indicate that they plan to engage exclusively in investments in, or loans to, other CDEs, purchases of loans from other CDEs, or Financial Counseling and Other Services.

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.

13. 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 by dollar amount)

____%	Business operations (including working capital, inventory or equipment purchase)
____%	Real estate development or acquisition of property to be used in operating the business

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

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

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

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 #14 and #15.

14. Products, rates and terms that the Applicant intends to offer:

(a) Select the products the Applicant intends to offer (check all that apply):

i. ____	Equity Investments
ii. ____	Equity Equivalent terms and conditions, including debt with equity features (e.g., debt with royalties; debt with warrants; convertible debt)
iii. ____	Senior debt
iv. ____	Subordinated debt

TIP: For each item checked in Question #14(a), 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.

2. For each major product line checked above, describe which of the following flexible or non-traditional features the Applicant intends to offer. Include 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. Also, provide an example of how the product will be used (alone or in conjunction with non-NMTC sources of financing) for each product line checked above. (Maximum Response Length: 5,000 characters):

• Below market interest rates (or rate of return in the case of equity investments):

• 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:

(c) For an Applicant that indicated under Question 13(c) 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)

15. 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 14.

___ (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 14.

___ (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 14.

___ (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 14.

___ (e) None of the above.

TIP: Applicants will score better to the extent they commit to provide equity or equity-equivalent financing; greater interest rate reductions on their debt; and/or a higher number of flexible/non-traditional rates and terms. An Applicant that checks one of the options a-d in Question #15 above should be aware that this Commitment will be a condition of its Allocation Agreement with the CDFI Fund.

Please refer to the Application Q&A document for guidance on how to calculate below market interest rates.

16. Based on the Applicant’s prospective products as described in Question 14 above:

To the extent there is any tax credit equity remaining at the end of the seven-year compliance period, indicate the overall percentage of allocation amount that is anticipated to be apportioned amongst QALICBs, investors, the Applicant or its Affiliates. To the extent QALICBs will be able to acquire a portion of the QLICI through a put/call option at the end of the seven-year credit period, describe the terms and conditions associated with this option. (Maximum Response Length: 3,000 characters)

17. For an Applicant that indicated under Question #13(d) above that it plans to purchase qualifying loans from other CDEs:

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

___ Yes ___ No

If yes, identify the percentage: _____%; and briefly describe the Applicant’s mechanisms for enforcing this requirement:

(Maximum Response Length: 2,000 characters)

TIP: An Applicant purchasing loans from other CDEs generally will not score favorably in the Business Strategy section unless it indicates, in Question #17(a), that it will require the CDE from which it purchases loans to reinvest at least 75% percent of the proceeds from the loan sales in QLICIs. The higher the percentage identified in Question #17(a), the better the Applicant will score under the Business Strategy section. However, if the Applicant receives a NMTC Allocation, it will be required to meet the percentage identified above, and such requirement will be a term of its Allocation Agreement.

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

(Maximum Response Length: 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 record of the Controlling Entity may include the activities of any subsidiaries of the Controlling Entity, including the Applicant. 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.

18. Does the Applicant, or its Controlling Entity, have a track record of financing or otherwise facilitating the types of QLICI activities checked in Question #13?

____ Yes (complete Questions #18(a)-(b) ____ No

TIP: The NMTC Program legislation requires the CDFI 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 #18-19 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.

TIP: The Applicant may reference, in the Tables in Exhibit A and in the narrative in Question #18(b), loans or Equity Investments that the Applicant (or its Controlling Entity) has itself originated and for which it has capital at risk (direct financing). The track record of the Applicant can be included in the track record of the Controlling Entity if the Applicant is a subsidiary of the Controlling Entity.

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 #18(b), the number of businesses/entrepreneurs to which the Applicant has provided counseling or other services in the last five years.

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

2. 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. Focus the discussion specifically on the Applicant’s or its Controlling Entity’s experience targeting Disadvantaged Businesses and Communities. (Maximum Response Length: 10,000 characters)

• Be as specific as possible with respect to which activities were undertaken by the Applicant, as opposed to its Controlling Entity or other Affiliates.

• Be sure to discuss whether the data in Exhibit A refers to the Applicant’s, Controlling Entity’s or Affiliates’ direct financing (i.e. its own capital at risk) versus indirect financing (e.g., loan packaging, project development, etc).

• Be sure to indicate how long the Applicant or its Controlling Entity has been serving Disadvantaged Businesses and Communities.

19. 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

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

   
   

   
   

   
   

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

C. Projected Business Activities

TIP: Projected activities should 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.

TIP: Applicants that plan to finance a single or discrete number of investments are expected to provide a greater level of detail about their planned transactions in order to score well in comparison to those Applicants intending to fund a general pipeline.

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 #20 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.

20. Projected NMTC Investments

(a) Complete Tables B1-B5, as applicable, according to the types of QLICI activities in which the Applicant intends to engage.

(b) Please indicate if the Applicant plans to finance:

● A single or discrete number of investments

● A general pipeline of activities

(c) Please describe the Applicant’s planned investments:

Single or discrete number of investments: If the Applicant intends to invest in one or a few discrete projects only, describe the feasibility and current status of each transaction (e.g., fully negotiated and committed, in preliminary discussions, etc.), the location of the project, 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.

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

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

• Transactions that represent the type(s) of NMTC investments that the Applicant intends to make. 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 in Low-Income Communities.

• 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.

21. 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:

TIP: An Applicant may select only one of the below and still score favorably to the extent the Applicant can articulate how NMTCs will enable it to take greater risk and/or provide capital to LICs that would be unlikely but for an NMTC Allocation.

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

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

D. Non-Metropolitan Counties

TIP: As provided for in Section 102(b)(6) of the Tax Relief and Health Care Act of 2006 (Pub. L. 109-432), and described further in the NOAA and the Q&A document that accompanies this application, the CDFI Fund has established the goal that: (i) 20% of all QLICIs made by Allocatees under the 2011 allocation around are invested in Non-Metropolitan Counties; and (ii) a proportionate number of “Rural CDEs” (as defined in the CY2011 NOAA) receive allocation awards.

Applicants are therefore required to provide two target estimates below: a minimum percentage of QLICIs the Applicant is willing to commit to provide to Non-Metropolitan Counties; and the maximum percentage of QLICIs that the Applicant is willing to commit to providing to Non-Metropolitan Counties. 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 22(b), but not more than the percentage indicated in Question 22(c); and such requirement shall become a condition of its Allocation Agreement with the CDFI Fund.

An Applicant that responds “Yes” to Question 22(a) (and provides appropriate supporting narrative) and commits to a figure of 50 percent or greater in response to Question 22(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.

An Applicant that: i) makes a minimum commitment of 25 percent or greater in response to Question 22(b), ii) has a track record of serving Non-Metropolitan Counties and a strong strategy for deploying NMTC investments in these communities; iii) and is ranked highly enough to be considered for an allocation may receive a larger NMTC Allocation than would otherwise be the case, regardless of designation as a “Rural CDE.”

In accordance with the 2011 NOAA, in the event the CDFI Fund adds additional Rural CDEs to the Allocatee pool in order to achieve the targeted percentage of investment in Non-Metropolitan Counties, Applicants that commit to providing at least 20% of their QLICIs in Non-Metropolitan Counties will not be subjected to award reductions, and therefore may receive a larger NMTC allocation award than may have otherwise been the case.

22. (a) Have at least 50 percent of the Applicant’s (or Controlling Entity’s) total financing activities over the past five years, as shown in Exhibit A, been directed to Non-Metropolitan Counties?

______ Yes ______ No

(b) What is the minimum percentage of QLICIs that the Applicant is willing to commit to deploy in Non-Metropolitan Counties?

______%

(c) What is the maximum percentage of QLICIs that the Applicant is willing to commit to deploy in Non-Metropolitan Counties?
(Note: this value must be equal to or greater than the value for 22(b).)

______ %

(d)  If the response to Q.22(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. (Maximum Response Length: 2,000 characters)

5. If the response to Question 22(c) above is greater than zero percent, and only to the extent not discussed elsewhere in the application, discuss the Applicant’s strategy for deploying QLICIs in Non-Metropolitan Counties. (Maximum Response Length: 5,000 characters)

• 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 CDFI 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 #23 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.

23. 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

24. Notable Relationships. Describe any potential situations in which the Applicant, its Affiliates or its personnel (persons involved in identifying projects or making investment decisions on behalf of the Applicant, including governing or advisory board), will receive financial benefits from the QALICBs financed with the Applicant’s QLICIs.

1. Will the Applicant, its Affiliates or its personnel own more than a 1% interest in the QALICB? _____Yes ____No

2. Will the Applicant, its Affiliates or its personnel provide professional services (developer, real estate agent, property manager, or general contractor) for the QALICB? _____Yes ____No

3. Will the Applicant, its Affiliates or its personnel be lessees at property developed with the QLICI? _____Yes ____No

(d) Will the Applicant, its Affiliates or its personnel be a party to a real estate transaction financed with the QLICI? _____Yes _____No

(e) Are there other financial benefits that the Applicant, its Affiliates or its personnel may receive, but are not included in items a-d above? _____Yes _____No

For items a-e above for which “Yes” was selected, describe such situations:

(Maximum Response Length: 2,000 characters)

(f) Discuss how such relationships will create benefits (i.e. cost savings, lower fees) for end users, such as QALICBs, tenant businesses, or residents of Low-Income Communities. (Maximum Response Length: 2,000 characters)

Part II: Community Impact

Total Maximum Points for Part II: 25 points

TIP: The CDFI Fund will review the extent to which the Applicant’s strategy will have positive community development outcomes. 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; b) it shows demonstrable community development outcomes; and c) it demonstrates meaningful engagement with community stakeholders when vetting potential NMTC investments.

A. Targeting the Use of QLICIs

25. Identify all of the areas likely to be served by the Applicant (check all that apply):

1. ____	[SEVERE DISTRESS] Census tracts with poverty rates greater than 30 percent; OR 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; OR Census tracts with unemployment rates at least 1.5 times the national average.
2. _____	[NON-METROPOLITAN COUNTIES] Qualifying census tracts that are located in counties not contained within a Metropolitan Statistical Area (MSA), as defined in OMB Bulletin No. 99-04, with respect to the 2000 Census data.
3. ____	[TARGETED POPULATIONS] As permitted by IRS and related CDFI Fund guidance materials, projects serving Targeted Populations to the extent that: (a) such projects are 60% owned by low-income persons (LIPs); or (b) at least 60% of employees are LIPs; or (c) at least 60% of customers are LIPs.
4. ____	[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 non-Metropolitan 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.
5. ____	[FEDERAL ECONOMIC DEVELOPMENT ZONES] Federally designated Empowerment Zones, Enterprise Communities, or Renewal Communities.
6. ____	[SBA Designated HUB ZONES] to the extent QLICIs will support businesses that obtain HUB Zone certification by the SBA.
7. ____	[BROWNFIELDS] Brownfield sites as defined under 42 U.S.C. 9601 (39).
8. ____	[HOPE VI REDEVELOPMENT] Areas encompassed by a HOPE VI redevelopment plan.
9. ____	[FEDERAL NATIVE AREAS] Federally designated Native American or Alaskan Native areas, Hawaiian Homelands, or redevelopment areas by the appropriate Tribal or other authority.
10. ____	[ARC/DRA AREAS] Areas designated as distressed by the Appalachian Regional Commission or Delta Regional Authority.
11. ____	[COLONIAS AREAS] as designated by the U.S. Department of Housing and Urban Development.
12. ____	[FEDERAL MEDICALLY UNDERSERVED AREAS] Federally designated medically underserved areas, to the extent QLICI activities will result in the support of health related services.
13. ____	[STATE/LOCAL ECONOMIC ZONES] State Enterprise zone programs, or other similar state/local programs targeted towards particularly economically distressed communities
14. ____	[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.
15. ____	[TRADE ADJUSTMENT ASSISTANCE] Businesses certified by the Department of Commerce as eligible for assistance under the Trade Adjustment Assistance for Firms (TAA) Program.
16. ____	[FOOD DESERTS] Census tracts identified as Food Deserts by the US Department of Agriculture Economic Research Service (USDA-ERS), to the extent QLICI activities will increase access to fresh and healthy food.

TIP: Applicants can find a complete list of the Food Desert census tracts identified by the USDA-ERS at the website: http://apps.ams.usda.gov/fooddeserts/foodDeserts.aspx.

(a) 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 4-16 on the above list for each QLICI?

_____Yes _____No

TIP: An Applicant that checks “Yes” to Q. 25(a) above will generally 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.

(b) Discuss how the Applicant will identify QLICIs in areas marked by the specific indicators of higher distress selected in 25(a) above. In particular, please describe:

• The outreach strategies that are used to locate potential investments in these areas of higher distress.

• Examples (if available) of how the Applicant has used these strategies to identify high impact investments in areas of higher distress.

(Maximum Response Length: 5,000 characters)

B. Community Development Outcomes – Prior Performance and Projections

TIP: An Applicant will score well in this section to the extent that it has a track record of producing meaningful quantitative and qualitative community impacts similar to those expected to be achieved, demonstrates significant quantitative and qualitative outcomes will result from investments, and clearly articulates its methodology and assumptions used in both tracking data and documenting outcomes going forward. The evaluation will not be based on the sheer number of outcomes selected.

26. Community Development Outcomes

(a) Select the impact/outcomes the Applicant expects to achieve as a result of the projected QLICIs described in the Business Strategy. Select all that apply. For every outcome selected, please:

• Quantify, to the extent possible, the Applicant’s projected community development outcomes.

• Explain how the Applicant estimated the potential outcomes that would result from receiving an NMTC Allocation

• To the extent the Applicant has a track record of achieving such outcomes in past investments, please describe and compare past outcomes with projected outcomes.

(Maximum Response Length: 5,000 characters)

1.	____	JOB CREATION. Quantify, as best as possible, the number of direct jobs (either in the aggregate or on average at each project financed) that will be created or maintained through the Applicant’s QLICIs. Be sure to discuss both temporary jobs (e.g., construction) and permanent jobs. Describe how these projections compare to what the Applicant has historically achieved.
2.	____	QUALITY OF JOBS. Discuss the extent to which the Applicant’s investments will result in opportunities for Low-Income Community residents to build wealth, receive living wages (e.g., the minimum hourly wage necessary for an individual to meet basic needs, including housing, nutrition, daily living expenses and other incidentals such as clothing for an extended period of time), and employment benefits (e.g., health insurance, retirement benefits, employee stock ownership, etc).
3.	____	JOBS ACCESSIBLE TO LOW-INCOME PERSONS OR RESIDENTS OF LOW-INCOME COMMUNITIES. Discuss the Applicant’s strategy for targeting jobs to Low Income Persons or residents of Low-Income Communities, as well as opportunities for training and advancement.
4.	____	GOODS & SERVICES TO LOW-INCOME COMMUNITIES. Describe the extent to which the Applicant’s NMTC investment strategy seeks to increase the provision of goods or services to residents of Low-Income Communities or Low-Income Persons (e.g., access to social services, educational opportunities, health care, retail, etc).
5.	____	FINANCING MINORITY BUSINESSES. Describe the extent to which the Applicant will focus its NMTC investments on Minority-owned or Minority-controlled businesses, including (in the case or real estate QALICBs) developers, project-sponsors or contractors/subcontractors that are Minority-Owned or Minority-Controlled.
6.	____	FLEXIBLE LEASE RATES. To the extent the Applicant is financing real estate QALICBs, describe the efforts the Applicant will make to ensure that tenant-businesses, specifically locally-owned businesses, Minority-owned or Minority-controlled businesses and non-profit organizations, will receive rent reductions or be able to purchase their properties.
7.	____	HOUSING UNITS. Describe the extent to which the Applicant will provide housing opportunities to Low-Income Persons or residents of Low-Income Communities; the extent to which housing will be offered in areas of high housing need, including communities with high concentrations of vacancies or foreclosures; and/or the extent to which the housing development adheres to principles of “smart growth”, including transit-oriented development.
8.	____	ENVIRONMENTALLY SUSTAINABLE OUTCOMES. Describe the extent to which the Applicant will finance projects which remediate environmental contamination (including addressing environmental health in Low-Income Communities); meet LEED certification standards; and/or directly support the production or distribution of renewable energy resources (e.g., biomass, hydro, geothermal, solar, wind, etc.).
9.	____	HEALTHY FOOD FINANCING. Describe the extent to which the Applicant will finance projects that increase access to fresh and healthy food for Low-Income Persons or Low-Income Communities. Indicate how the Applicant will identify and target areas that are Food Deserts or otherwise have demonstrated lack of access to fresh and healthy food.
10.	____	OTHER. In the space provided, please describe any other community impacts that the Applicant hopes to achieve. [Applicants will be able to enter up to two community impacts in this section of the electronic Allocation Application.]

(b) Describe how the Applicant will track and document the community impacts it expects to achieve as a result of receiving an NMTC Allocation. To the extent the Applicant has a track record monitoring these types of community impacts, please describe. (Maximum Response Length: 5,000 characters)

TIP: If Applicant checks “No” or “N/A” in Question #26(c), it may still score favorably to the extent that its response is consistent with the description of its projected NMTC activities. Please note that Question #26(c) includes activities directed to the development or rehabilitation of ALL housing, including mixed-use projects.

(c) If the Applicant’s NMTC activities, as described in the Business Strategy section or in Item 7 above, 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. (e.g., affordable to persons with income less than 80 percent of AMI)?

____Yes _____ No N/A ______

(i) 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: As part of a federal interagency initiative, the CDFI Fund is seeking to track the anticipated amount of healthy food financing investments made in Food Deserts. This information is being collected and will be tracked for informational purposes. The Applicant will not be held to the commitments made in 26(d) below, nor will the information provided in 26(d) affect the scoring of the application. .

(d) If the Applicant responded “Yes” to Item 9 in 26(a), what percentage and dollar amount of the Applicant’s NMTC activities will focus on healthy food financing in Food Deserts (assuming the Applicant receives its full requested award amount)?

________% Minimum

$________ Estimated Total Dollar Invested

________ Estimated Number of Projects to Be Financed

27. Community Accountability and Involvement

1. Please indicate how the Applicant, prior to approving an investment, ensures that an investment into a project or business is supported by and beneficial to the community surrounding it. (Maximum Response Length: 5,000 characters)

• Describe the Applicant’s process for analyzing the potential benefits to Disadvantaged Business and Communities and the extent to which the Applicant’s Advisory Board and/or members of LICs participate in this process.

• Discuss the Applicant’s process for determining if a proposed investment aligns with community priorities and how this process affects investment decisions.

• To the extent possible, provide examples of the Applicant’s track record of community engagement.

2. What percentage of the Applicant’s NMTC investments associated with this Allocation Application have been or will be identified or evaluated by the process described in part (a) above?

_____%

28. Additional Investment

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)

Part III: Management Capacity

Total Maximum Points for Part III: 25 points

29. Organizational Chart and Key Personnel

(a) Submit 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. All attachments must be submitted online through the Applicant’s myCDFI Fund account.

(b) Complete Table C1. Identify all personnel, including consultants and Board members (if applicable) that will have a key role in:

• Deploying Capital - locating, underwriting, and approving investments, and/or in providing Financial Counseling and Other Services;

• Raising Capital from Investors – including raising tax credit equity and leveraged debt if the Applicant will use the leveraged investment model;

• Asset and Risk Management;

• NMTC Program Compliance.

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

TIP: The CDFI 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 have experience working in Low-Income Communities will score particularly well.

(a) Describe the collective roles, responsibilities, and experience of key personnel, consultants and board members in providing capital to Low-Income Communities and Financial Counseling and Other Services, if applicable. The Applicant should reference information from Table C1 as necessary. (Maximum Response Length 5,000 characters)

(b) Describe 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)

31. Asset and Risk Management Experience:

TIP: Each Applicant must demonstrate that it has the capacity to manage assets and the risks associated with assets. An Applicant that has experience successfully managing an investment portfolio, has experienced staff, and established systems and plans to manage the informational and performance aspects of administering assets or pools of assets will score well under this sub-section.

1. Describe the collective roles, responsibilities, and experience of key personnel, consultants and board members in managing the Applicant’s assets and risk. The Applicant should reference information from Table C1 as necessary. (Maximum Response Length 5,000 characters)

   
   

   
   

2. Describe 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) For the Applicant (or Controlling Entity), complete Table D1 (Investment Portfolio) and discuss the Applicant’s (or Controlling Entity’s) delinquency rate(s) as of March 31, 2011 for its major product lines as well as its default rate (write-offs) over the past 3 years for each major product line. Also:

(Maximum Response Length 10,000 characters)

• Describe the trends in delinquencies and write-offs and defaults as shown in Table D1. Be sure to explain the reasons for any negative results such as an increase in delinquencies or any unusual spikes in write-offs or loan restructurings that have occurred. If the Applicant, or its Controlling Entity, is a regulated financial institution, please compare delinquency and default rates with the appropriate peer group.

• For each major product line, describe how the Applicant (or Controlling Entity) monitors financial assets. Be sure to explain how the organization identifies assets at greater risk (such as use of a risk rating system for a loan portfolio) and how the organization responds when assets are at greater risk.

• Indicate if the Applicant (or Controlling Entity) has written asset management and collection policies and whether it has ever deviated from those policies in the past five years.

• Address the Applicant's strategy for minimizing defaults and managing delinquencies to mitigate against write-downs or write-offs going forward.

TIP: Delinquency rate means the percentage of loans and mandatory dividend payments, on a dollar basis, that were 90 days past due (i.e., the combined dollar amount of principal, mandatory dividend, and interest payments 90 days or more past due divided by the total dollar amount of loans and equity investments outstanding).

(d) Discuss any delinquent, defaulted, or impaired loans or equity investments from prior NMTC investments. Please note the total value of each investment, as well as the total number of days delinquent or the amount charged off. Please discuss how the Applicant’s strategies for managing these troubled investments. (Maximum Response Length 5,000 characters)

32. Program Compliance Experience:

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

(a) Describe the collective roles, responsibilities, and experience of key personnel, consultants and board members in managing the Applicant’s regulatory and tax compliance. The Applicant should reference information from Table C1 as necessary. (Maximum Response Length 5,000 characters)

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

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

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

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

33. Low-Income Community Representation:

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

• Complete Table C2.

• Describe how Low-Income Community representatives to the Governing or Advisory Board will be directly involved in the design, implementation or monitoring of the Applicant’s business strategy. Provide a narrative that addresses the following: (Maximum Response Length: 5,000 characters)

  • The number and percentage of Low-Income Community representatives on the Applicant’s Advisory and Governing Boards.

  • The role, formal or otherwise, these individuals or their organizations played in formulating and approving the Applicant’s pipeline of investments.

  • The role, specific to the Applicant’s Governing Board, these individuals have in approving investment parameters or decisions.

34. 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)

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

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

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

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

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

Please provide fiscal year end date for the last completed independent audit (mm/dd/yyyy). If no audit has been completed or is underway for the last complete fiscal year, 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)

2. 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)

3. 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 the circumstances, indicate the fiscal year in which this occurred, and describe the corrective action being taken: (Maximum Response Length: 2,000 characters)

4. Is the Applicant (or Controlling Entity) aware of any non-compliance issues cited since the issuance of its most recent audited financial statements or Management’s Annual Report on Internal Controls Over Financial Reporting?

____ Yes ____ No

If Yes, please explain the circumstances and describe the corrective action being taken: (Maximum Response Length: 2,000 characters)

(e) Does the Applicant or its Controlling Entity expect to achieve profitability (or in the case of non-profit organizations a positive change in net assets) in each of the next three years? Yes_____ No______

If No, please explain any anticipated negative results and describe how operations will likely be impacted: (Maximum Response Length: 2,000 characters)

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 and/or a strong strategy for raising capital will score well under this sub-section. Additionally, the CDFI 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. 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.

36. Complete Tables E1-2 and describe the track record of the Applicant (or its Controlling Entity) raising capital from third-party sources, particularly equity capital at market or near-market rates. 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. Reference information provided in Table C1 as appropriate: (Maximum Response Length: 5,000 characters)

TIP: Applicants completing Table E1 are required to submit, along with their applications, documentation demonstrating proof of investor interest (e.g., 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.

TIP: While Table E2 must contain data only of the Applicant (or its Controlling Entity) and the track record of the Applicant (or its Controlling Entity) must be discussed in Question 36, the Applicant may refer in the narrative to the qualifications and five-year capital-raising track record of individuals (e.g., staff, principals, consultants) listed in Table C1 for organizations other than the Applicant (or its Controlling Entity).

37. Investment Partnerships

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

_____Yes _____ No

(b) If yes, provide 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

38. Investment Strategy

(a) Has the Applicant provided investor Commitments or Letters of Intent/Interest for investors listed in Table E1?

_____Yes _____ No

2. TIP: Applicants that answer Yes to Question #38(a) 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 (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.

   If yes, discuss the Applicant’s strategy for securing investments from alternative investors in the event that the investors listed in Table E1 are unable or unwilling to make the anticipated investments. If the Applicant intends to secure investments from partnership entities that will leverage non-Equity investments (e.g., debt, grant dollars) be sure to address the strategy for identifying and securing both Equity investments and non-Equity investments. (Maximum Response Length: 5,000 characters)

(c) If no, discuss the Applicant’s strategy for securing NMTC investor Commitments: (Maximum Response Length: 8,000 characters)

• The Applicant’s strategy for identifying additional equity investors or non-equity providers (if utilizing a partnership model), including the extent to which the Applicant will be utilizing community alliances or strategic partners to raise investment capital.

• The Applicant’s timeline for securing investments from equity investors and/or partnerships if the Applicant answered yes to Question #37(a) and, any risks that may preclude the Applicant from closing such investments, and how the Applicant is mitigating such risks.

• 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.

39. (a) Will one or more of the Applicant’s current or prospective investor(s) originate or

otherwise identify transactions in which the Applicant will invest?

____ Yes _____ No

(b) Will the Applicant receive any QEIs from Affiliates?

_____ Yes _____ No

(c) If the answer to (a) or (b) is yes, provide narrative detailing: (Maximum Response Length: 2,000 characters)

• The name of each such equity investor or non-equity provider;

• The role of each equity investor or non-equity provider with respect to locating, underwriting, and approving each investment;

• Whether each equity investor or non-equity provider 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 equity investor or non-equity provider and/or will target its activities to areas of greater economic distress than those currently targeted by the equity investor or non-equity provider.

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.

40. Distribution of Benefits:

Quantify as best you can, for each of your planned investment types, how the economic benefits of the NMTC Allocation will be apportioned amongst:

(i) the investors, through economic returns;

(ii) the QALICB investees/borrowers, through lower costs of capital;

(iii) the Applicant (or its subsidiaries), through fees or economic returns.

(Maximum Response Length: 5,000 characters)

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

41. 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 #42, 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.

42. 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 to what is typically earned in the marketplace. Please indicate how fees will vary for different product types or different investment types and discuss the key factors that determine the fees for a specific transaction. (Maximum Response Length: 5,000 characters)

(b) Does the Applicant anticipate investing in projects with more than one CDE as a co-investor?

______ Yes ______ No

If “Yes”, please describe any means the Applicant expects to employ to minimize costs to the borrower/investee associated with these multi-CDE transactions. (Maximum Response Length: 3,000 characters)

(c) Provide a brief description of how the Applicant and/or its Affiliates will finance its cost of operations and if it will use the proceeds discussed in (a) for such purposes. 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 an Affiliate organization, discuss that contributing organization’s obligations to make such contributions, its track record in raising cash or in-kind contributions, and its strategy to secure on-going funds.

• To what extent the Applicant will require its borrowers to pay transaction costs.

TIP: Applicants have five years from the date they enter into an Allocation Agreement with the CDFI 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.

43. 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: 1,000 characters)

TIP: At the conclusion of the CDFI Fund’s review process, if the Applicant is recommended to receive less than the minimum amount of allocation authority identified in Question #44a, the CDFI 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 outcomes or production innovations; and that it could not successfully implement its business strategy without this minimum allocation amount.

Part V: Information Regarding Previous Awards

Information in Part V (previously located in the Management Strategy section of past Allocation Applications) is not specifically scored during the Phase I process of the Application review. Information provided in this section is considered during the Phase II process of the Application review. For more information on the NMTC Application review process, please consult the 2011 NOAA.

44. 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:
Award control number:
Total award amount:

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

45. NMTC Allocation Status:

Has the Applicant and/or any of its Affiliates received an NMTC Allocation from the CDFI 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:
Award control number:
Total allocation amount:

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

TIP: Applicants should only list NMTC Allocations that have been directly awarded to the Applicant and/or any of its Affiliates. Do include information on NMTC Allocations awarded to CDEs if the Applicant’s only relationship to that CDE is through a QEI made into the CDE by the Applicant or an Affiliate of the Applicant.

46. If the Applicant answered Yes to Question #45, briefly explain the status of its previous Allocation award(s). Be sure to address:

1. The number and dollar amount of QEIs issued on each award and the number and dollar amount of QLICIs made with each award. (Maximum Response Length: 2,000 characters)

   
   

   
   

2. If the Applicant has made QLICIs: describe the types of transactions that have been financed to date. The Applicant must discuss:

• the three projects that received the largest investments (and may describe additional projects),

• for each project identified, describe how NMTC proceeds were used to finance transactions that would not likely otherwise have occurred,

• any community outcomes or benefits that were generated as a result of the transaction, and

• the fees charged as part of each investment

(Maximum Response Length: 10,000 characters)

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

TIP: Receipt of a prior award or allocation through any of the CDFI Fund's programs will not affect the likelihood of an Applicant receiving a NMTC Allocation in this round. The CDFI Fund will examine the compliance status of Applicants (or their Affiliates) that have previously received CDFI 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 2011 NOAA for additional information regarding this and other requirements pertaining to Applicant eligibility under the 2011 round.

TIP: The CDFI 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).

(d) To the extent the Applicant’s past transactions have been structured to allow QALICBs to acquire a portion of the QLICI through a put/call option at the end of the seven-year compliance period, please quantify the value of investment acquired by the QALICBs at the end of the seven-year compliance period both as a dollar amount and as a percentage of total QLICIs. (Maximum Response Length: 2,000 characters)

47. Other than those activities already identified and discussed under Question #46, 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: 5,000 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 #48 and provide requested responses.

TIP: Applicants providing responses to Question #48 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 #48.

Exhibit A: Track Record of Activities

Instructions for Exhibit A: Applicants must complete the tables in Exhibit A for any QLICI-like 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 18 any 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 #18 and #19. The narratives should clearly distinguish between the track records of each entity.

3. The Applicant must distinguish between direct financing completed by the Applicant or its Controlling Entity, as indicated in Table(s) A-1 and A-2, Row 2 and financing provided by third party sources, entered in Table(s) A-1 and A-2, Row 3.

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

5. Refer to the TIP at Part I A (before Question #13) regarding how to classify “real estate” vs. “non-real estate” QALICBs.

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

Table A1: Track Record of Loans/Investments to Non-Real Estate Businesses
Calendar Year(s)		2006	2007	2008	2009	2010	Totals (2006-2010)	Totals to Disadvantaged Businesses and Communities (2006- 2010)	Totals to Non-metropolitan Counties (2006-2010)
1	Total # businesses financed
2	Total $ amount of direct financing provided by the Applicant to non-real estate businesses	$	$	$	$	$	$	$	$
	(a) $ Amount of debt financing provided by Applicant	$	$	$	$	$	$	$	$
	(b) $ Amount of equity financing provided by Applicant	$	$	$	$	$	$	$	$
3	$ Amount of financing provided by other sources (including QALICB owner equity) to non-real estate businesses	$	$	$	$	$	$	$	$
4	Total $ amount of financing from all sources	$	$	$	$	$	$	$	$

Table A2: Track Record of Loans/Investments to Real Estate Businesses
Calendar Year(s)		2006	2007	2008	2009	2010	Totals (2006-2010)	Totals to Disadvantaged Businesses and Communities (2006- 2010)	Totals to Non-metropolitan Counties (2006-2010)
1	Total # businesses financed
2	Total $ amount of direct financing provided by the Applicant	$	$	$	$	$	$	$	$
	(a) $ Amount of debt financing provided by the Applicant	$	$	$	$	$	$	$	$
	(b) $ Amount of equity financing Provided by the Applicant	$	$	$	$	$	$	$	$
3	Total $ Amount provided by other sources (including QALICB owner equity)	$	$	$	$	$	$	$	$
4	Total $ amount financing from all sources	$	$	$	$	$	$	$	$

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)		2006	2007	2008	2009	2010	Totals (2006-2010)	Totals to Disadvantaged Businesses and Communities (2006- 2010)	Totals to Non-Metropolitan Counties (2006-2010)
1	Total # CDEs financed
2	Total $ amount of financing	$	$	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$	$	$

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

Table A4: Track Record of Loan Purchases from Other CDEs
Calendar Year(s)		2006	2007	2008	2009	2010	Totals (2006-2010)	Totals to Disadvantaged Businesses and Communities (2006- 2010)	Totals to Non-Metropolitan Counties (2006-2010)
1	Total # of loans purchased
2	Total $ amount of loans purchased	$	$	$	$	$	$	$	$

Exhibit B: Projected Activities

Instructions for Exhibit B: All Applicants must complete the tables in Exhibit B based on the QLICI activities checked in Question #13.

TIPs for Exhibit B:

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

2. Only include amounts the Applicant (or its Subsidiaries) will itself originate (e.g., do not include participation amounts that will be originated by third-parties). The Applicant may separately discuss amounts it will leverage or facilitate in the narrative to Question 20, 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 20, 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 #13 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 2011 (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 2011. Any QLICIs to be made beyond 2016 should be consolidated into 2016.

TIP: Table B1-B5 should be consistent with the information provided in Q13.

Table B1: Projected Loans/Investments to Non-Real Estate QALICBs (Estimated)
Calendar Year(s)		2012	2013	2014	2015	2016	Total
1	Total # transactions to be financed
2	Total $ amount of financing	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$
5	Total # of reinvestment transactions
6	Total $ amount of reinvested financing	$	$	$	$	$	$
6(i)	$ Amount of reinvested financing (debt)	$	$	$	$	$	$
6(ii)	$ Amount of reinvested financing (equity)	$	$	$	$	$	$

Table B2: Projected Loans/Investments to Real Estate Businesses (Estimated)
Calendar Year(s)		2012	2013	2014	2015	2016	Total
1	Total # transactions to be financed
2	Total $ amount of financing	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$
5	Total # of reinvestment transactions
6	Total $ amount of reinvested financing	$	$	$	$	$	$
6(i)	$ Amount of reinvested financing (debt)	$	$	$	$	$	$
6(ii)	$ Amount of reinvested financing (equity)	$	$	$	$	$	$

Table B3: Projected Loans/Investments in Other CDEs (Estimated)
Calendar Year(s)		2012	2013	2014	2015	2016	Total
1	Total # transactions to be financed
2	Total $ amount of financing	$	$	$	$	$	$
3	$ Amount of financing (debt)	$	$	$	$	$	$
4	$ Amount of financing (equity)	$	$	$	$	$	$
5	Total # of reinvestment transactions
6	Total $ amount of reinvested financing	$	$	$	$	$	$
6(i)	$ Amount of reinvested financing (debt)	$	$	$	$	$	$
6(ii)	$ Amount of reinvested financing (equity)	$	$	$	$	$	$

Table B4: Projected Loan Purchases from Other CDEs (Estimated)
Calendar Year(s)		2012	2013	2014	2015	2016	Total
1	Total # selling CDEs
2	Total # of loan portfolios purchased
3	Total # of loans purchased
4	Total $ amount of loan purchases	$	$	$	$	$	$
5	Total # of loans purchased via reinvested financing
6	Total $ amount of loans purchased via reinvested financing	$	$	$	$	$	$

Table B5: Projected Financial Counseling and Other Services to Businesses and Entrepreneurs in Low-Income Communities (Estimated)
Calendar Year(s)		2012	2013	2014	2015	2016	Total
1	Total # of businesses/entrepreneurs served through counseling or other services
2	Total estimated hours spent counseling or providing other services per year
3	Total $ amount to be spent on counseling or providing other services	$	$	$	$	$	$
4	Total $ amount of reinvestment to be spent on counseling or providing other services	$	$	$	$	$	$

Exhibit C: Staff and Board Qualifications

Instructions for Tables C1 and C2: The Applicant should complete Table C1 and Table C2 in their entirety. Please note that Table C1 allows the Applicant to identify key personnel that have experience in multiple management areas. For each narrative response in Questions #30-32 and their corresponding sub sections, reference and discuss the combined management experience of all individuals listed in Table C1 as it relates to the Applicants management capacity in that given area.

Table C1: Management Capacity
Firm	Title at Firm	Type of activity with Applicant in each Capacity ( Check all that apply)	Yrs. with (or years providing services to) the Applicant	Position with Applicant (Check all that apply)	Description of Individuals Qualifications
		__ NMTC Application Preparation/Review __ Capital-raising __ Capital deployment __ Sourcing or loan underwriting __ Asset management __ Loan servicing __ NMTC Program compliance __ Provision of services to QALICBs/residents (including FCOS) __ Community Outreach __ Legal services __ Other: _____________		__ Governing board (GB) chair __ GB member on loan/investment committee __ Other GB member __ Advisory board member __ Executive Director or equivalent __ Chief Financial Officer 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):______________

Table C2: Low Income Community Accountability
Board Member Name	Firm	Title at Firm	Advisory or Governing Board Member?	Yrs. on Board	Indicate how the individual is Representative of Low-Income Communities?	Describe the individual’s qualifications as an LIC representative, including related LIC community affiliations or experiences.
			__ Advisory __ Governing		__ Resident __ Small business owner __ Employee or board member of a non-Affiliated community-based or charitable organization __ Religious leader whose congregation is based in a Low-Income Community __ Employee of a governmental agency or department that principally serves Low-Income Communities __ An elected official (or works for one) whose constituency is comprised principally of residents of Low-Income Communities __ Other (specify):________________

Exhibit D: Asset Management

Instructions for Table D1: For each of the past three fiscal years, indicate the total number and dollar amount of loans and equity investments outstanding to both Non Real Estate and Real Estate businesses. For each fiscal year end, report the percentage of loans and mandatory dividend payments, on a dollar basis, that were 90 days past due (e.g., the combined dollar amount of principal, mandatory dividend, and interest payments 90 days or more past due / the total dollar amount of loans and equity investments outstanding at fiscal year end). Also enter the percentage of write-offs of loans and equity investments (e.g., the total amount of capital written off during the year / the total amount outstanding at year-end). If the Applicant (or Controlling Entity) has not made loans to either non-real estate or real estate businesses, check the corresponding “N/A” box. If the Applicant has no delinquencies or write-offs, select the box labeled “No delinquencies or write-offs.”

The information in Table D1 reflect the activities of (check one): ____Applicant _____Controlling Entity

Table D1: Investment Portfolio
Fiscal Year(s)		FYE 2008	FYE 2009	FYE 2010
1.	Non Real Estate Business Loans& Equity Investments Delinquent or written-off  N/A
2.	# of loans & equity investments outstanding
3.	Total $ Amount of loans & equity investments outstanding	$	$	$
4.	Delinquency rate associated with non-real estate businesses	____%	____%	____%
5.	Total $ amount of write-offs of loans & equity investments to non-real estate businesses	$	$	$
6.	Real Estate Businesses Loans & Equity Investments Delinquent or written-off  N/A
7.	# of loans & equity investments outstanding
8.	Total $ amount of loans & equity investments outstanding	$	$	$
9.	Delinquency rate associated with real estate businesses	____%	____%	____%
10.	Total $ amount of write-offs of loans & equity investments to real estate businesses	$	$	$

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 CDFI 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.

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

Table E1: Identification of Investments and Investor Commitments
	Name of Investor	Type of Investment1	Using Leverage Structure?	Unrelated Entity?	Previous Investor?2	Total Funding Provided from 2006-2010 (if previous investor)	Dollar Amount Sought	Status of Request3	Estimated or Actual Date for Receipt of Funds
1			Yes/No	Yes/No	Yes/No	$	$
2			Yes/No	Yes/No	Yes/No	$	$
3			Yes/No	Yes/No	Yes/No	$	$
4			Yes/No	Yes/No	Yes/No	$	$
5	TOTAL	N/A	N/A	N/A	N/A	$	$	N/A	N/A

¹ Debt, equity, or grant.

² A previous investor is any investor that has invested in the Applicant, its Controlling Entity, or any Subsidiary entities since 2004.

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

Table E2: Track Record of Raising Capital from Investors
This table reflect the activities of (check one): _____Applicant _____Controlling Entity
Calendar Year(s)		2006	2007	2008	2009	2010	Total
1	Total # of investments
2	Total $ amount of investments	$	$	$	$	$	$
3	Total # of grants1
4	Total $ amount of grants2	$	$	$	$	$	$
5	Total # of below market rate loans1
6	Total $ amount of below market rate loans2	$	$	$	$	$	$
7	Total # of market rate loans1
8	Total $ amount of market rate loans2	$	$	$	$	$	$
9	Total # of Equity Investments1
10	Total $ amount of Equity Investments 2	$	$	$	$	$	$

¹ Values should be a subset of Line 1.

² Values should be a subset of Line 2.

Exhibit F. Fees and Flow of Allocations

Instructions for Table F1:

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, for each range, in the table should be basis points, aggregated over the life of the investment.

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

4. Applicants are required to provide the anticipated maximum, average and minimum fees for each category. The maximum and minimum fees may represent different fees charged with different product lines or for different types of investment. The average columns should provide the Applicant’s best calculation of what the average fees will be across the entire NMTC Allocation.

Example: An Applicant anticipates charging a 200 basis point (bps) back-end fee for its subordinate debt transactions and a 300 bps back-end fee for its equity transactions. The Applicant anticipates that about 75% of its NMTC investments will be subordinate debt and that about 25% will be equity. Thus, the average back-end fee would be 200*.75 + 300*.25 = 225 bps. Alternatively, an Applicant may retain 200 bps of the QEI proceeds for investments into Real Estate QALICBs and 400 bps of the QEI proceeds for investments into Non-Real Estate QALICBs. Their NMTC portfolio will be 50% Real Estate QALICBs and 50% Non-Real Estate QALICBs. Thus, the average amount of QEI proceeds retained would be 200*.5 + 400*.5 = 300 bps.

5. In top Column 1 (Total Amount) and Sub-Colum 1 (Average – Low – High), 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 (Charged to Investors – Charged to Borrowers – Charged to Other Entities) and Sub-Columns (Average – Low – High) should equal the corresponding entry in Column 1 and Sub-Colum 1 (Average – Low – High).

Example: An Applicant that charges an average Commitment fee of 1% to both the investor and to the borrower would put 200 basis points in Row 2, Column 1, Sub-Column 1 Average; 100 basis points in Row 2, Column 2, Sub-Column 2 Average; 100 basis points in Row 2, Column 3, Sub-Column 3 Average; and 0 basis points in Row 2, Column 4, Sub-Column Average

Table F1: Summary of Compensation and Profits

Total Amount (Basis Points)

Charged to Investors

Charged to Borrowers or Investees

Charged to Other Entities (e.g., subsidiary CDEs, etc.)

Average

Low

High

Average

Low

High

Average

Low

High

Average

Low

High

1

QEI proceeds retained by the CDE1

2

Front-End sources of compensation and profits2

3

Ongoing sources of compensation and profits3

4

Back-End sources of compensation and profits4

5

Other sources of compensation and profits5

Total

¹ The “Total Amount” is the inverse of the figure provided in Question 42 expressed as basis points.

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

³ Ongoing includes any and all revenue collected throughout the allocation compliance period (i.e., asset management, compliance, interest rate spread etc.), with the exception of ordinary interest payments passed through to investors. .

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.

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

Table F2: Schedule for Issuing QEIs (Estimated)
	Calendar Year (s)	2012	2013	2014	2015	2016	Total
1	Total $ amount of QEIs to be Issued	$	$	$	$	$	$
2	Percent of total NMTC Allocation	%	%	%	%	%	100%

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 CDFI Fund and a CDE, relating to the NMTC Allocation, pursuant to IRC §45D(f)(2).
Allocation Application	The application form, issued by the CDFI 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 CDFI 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.
Application Contact Person	The individual that the CDFI Fund may contact during the course of the Allocation Application review with questions or requests for additional information regarding the Allocation Application.
Assistance Agreement	A written agreement between the CDFI 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 CDFI Fund, to be completed and submitted by an entity in order to be certified as a CDE.
Commitment	A document in which an investor commits to make an investment in the Applicant in a specified amount and on specified terms.
Community Development Entity (CDE)	Under IRC §45D(c)(1), any domestic corporation or partnership if: The primary mission of the entity is serving, or providing investment capital for, Low-Income Communities or Low-Income Persons; The entity maintains accountability to residents of Low-Income Communities through their representation on any governing board of the entity or on any advisory board to the entity; and The entity is certified by the CDFI 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 CDFI Fund (66 Federal Register 65806, December 20, 2001).
Community Development Financial Institution (CDFI)	An entity that has been certified by the CDFI 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 CDFI Fund.
Control	Control is defined as: Ownership, control, or power to vote more than 50 percent of the outstanding shares of any class of voting securities of any entity, directly or indirectly or acting through one or more other persons; or Control in any manner over the election of a majority of the directors, trustees, or general partners (or individuals exercising similar functions) of any other entity; or Power to exercise, directly or indirectly, a controlling influence over the management policies or investment decisions of another entity, as determined by the CDFI Fund.
Controlling Entity	An entity that Controls an Applicant. When describing past activities of the Controlling Entity, the activities of the Applicant may be considered as part of the track record of the Controlling Entity.
Controlling Entity Representative	An officer, or other individual, who has the actual authority to sign for and make representations on behalf of the Controlling Entity. This person will also be the primary point of contact for the Controlling Entity, should the CDFI Fund need to confirm representations made about the relationship between the Applicant and Controlling Entity.
Disadvantaged Business	A business that is (a) located in a Low-Income Community; or (b) is owned by a Low-Income Person; or (c) a business that has inadequate access to investment capital.
Disadvantaged Community	This term has the same meaning as a Low-Income Community.
Equity Equivalent Loan	A loan that has certain equity-like provisions, including required principal and interest payments only from cash flow and a flexible maturity date. Note that the definition of this term under the CDFI Program and NMTC Program is more flexible than the definition of the same term under the Bank Enterprise Award (BEA) Program.
Financial Counseling and Other Services (FCOS)	Advice provided by a CDE relating to the organization or operation of a trade or business. See 26 CFR 1.45D-1(d)(7).
Food Desert	A census tract with a substantial share of residents who live in low-income areas that have low levels of access to a grocery store or healthy, affordable food retail outlet. Census tracts qualify as food deserts if they meet low-income and low-access thresholds: 1. They qualify as "low-income communities", based on having: a) a poverty rate of 20 percent or greater, OR b) a median family income at or below 80 percent of the area median family income; AND 2. They qualify as "low-access communities", based on the determination that at least 500 persons and/or at least 33% of the census tract's population live more than one mile from a supermarket or large grocery store (10 miles, in the case of non-metropolitan census tracts).
FTE	A full time equivalent (FTE) is at least a 35-hour work week.
Letter of Interest/Intent	A document in which an investor expresses a preliminary interest in making an investment in the Applicant.
Low-Income Community	Under IRC §45D(e)(1), any population census tract if: The poverty rate for such tract is at least 20 percent, or (a) In the case of a tract not located within a metropolitan area, the median family income for such tract does not exceed 80 percent of statewide median family income, or (b) in the case of a tract located within a metropolitan area, the median family income for such tract does not exceed 80 percent of the greater of statewide median family income or the metropolitan area median family income. With respect to IRC §45D(e)(1)(B), possession-wide median family income shall be used (in lieu of statewide income) in assessing the status of census tracts located within a possession of the United States. Under IRC §45D(e)(2), Targeted Populations will also be treated as Low-Income Communities. See IRS Notice 2006-60. Under IRC §45D(e)(3), in the case of an area that is not tracted for population census tracts, the equivalent county divisions (as defined by the Bureau of the Census for purposes of determining poverty areas) shall be used for purposes of defining poverty rates and median family incomes. See IRC §45D(e) for additional criteria.
Low-Income Person	Any individual having an income, adjusted for family size, of not more than: For metropolitan areas, 80 percent of the area median family income; and For non-metropolitan areas, the greater of (a) 80 percent of the area median family income or (b) 80 percent of the statewide non-metropolitan area median family income.
Minority-owned or Minority-controlled	Minority-owned for-profit entity: A for-profit entity that is not a MDI and that has at least 51 percent of its equity ownership interest being owned by individuals who identify themselves as Black American, Asian American, Hispanic American, or Native American. Minority-controlled not-for-profit entity: A not-for-profit entity with at least 51 percent of its Board of Directors comprised of individuals who identify themselves as Black American, Asian American, Hispanic American, or Native American. Minority Depository Institution (MDIs): An entity that is designated by the FDIC as a Minority Depository Institution.
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 CDFI 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 CDFI 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 CDFI Fund to ensure that proper allocations are made to appropriate entities. The NOAA published in conjunction with the 2011 Allocation Application will only apply to the 2011 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 CDFI 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
Public Contact Person	The individual that will field public inquiries (i.e. from potential QALICBs) if the Applicant is selected to receive an NMTC Allocation. This contact information will be published as part of the Award Announcement for the NMTC Allocation round and available to the public in the CDFI Fund’s monthly QEI Issuance Report.
Qualified Active Low-Income Community Business (QALICB)	Under IRC §45D(d)(2), any corporation (including a non-profit corporation) or partnership if for any taxable year: At least 50 percent of total gross income of such entity is derived from the active conduct of a qualified business within any Low-Income Community; A substantial portion of the use of the tangible property of such entity (whether owned or leased) is within any Low-Income Community; A substantial portion of the services performed for such entity by its employees are performed in any Low-Income Community; Less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to collectibles (as defined in IRC §408(m)(2)) other than collectibles that are held primarily for sale to customers in the ordinary course of such business; and Less than 5 percent of the average of the aggregate unadjusted bases of the property of such entity is attributable to nonqualified financial property (as defined in IRC §1397C(e)). Please refer to the NMTC Program Income Tax Regulations at 26 CFR 1.45D-1(d)(4) for more information.
Qualified Equity Investment (QEI)	Under IRC §45D(b)(1), any Equity Investment in a CDE if: Such investment is acquired by the investor at its original issue (directly or through an underwriter) solely in exchange for cash; Substantially all of such cash is used by the CDE to make QLICIs; and The investment is designated for purposes of IRC §45D by the CDE as a QEI. QEI also includes an Equity Investment purchased from a prior holder, to the extent provided in IRC §45D(b)(4). QEI does not include any Equity Investment issued by a CDE more than five years after the date the CDE receives a NMTC Allocation. Please refer to the NMTC Program Income Tax Regulations at 26 CFR 1.45D-1(c) and related Internal Revenue Service notices for more information.
Qualified Low-Income Community Investments (QLICI)	Under IRC §45D(d)(1), a QLICI is: Any capital or Equity Investment in, or loan to, any QALICB (as defined in IRC§45D(d)(2)); The purchase from a CDE of any loan made by such entity that is a QLICI; Financial Counseling and Other Services to businesses located in, and residents of, Low-Income Communities; and Any Equity Investment in, or loan to, any CDE. -Income Communities; and Any Equity Investment in, or loan to, any CDE. Please refer to the NMTC Program Income Tax Regulations at 26 CFR 1.45D-1(d)(1) for more information.
Small Business Investment Company (SBIC)	An entity defined in 15 USC 662(3).
Specialized Small Business Investment Company (SSBIC)	An entity defined in IRC §1044(c)(3).
Subsidiary	Any legal entity that is owned or Controlled directly or indirectly by an Applicant. This term includes series funds, which are separate investment funds Controlled by an Applicant.
Targeted Population	As defined in 12 U.S.C. 4702(20) and 12 C.F.R. 1805.201, the term “targeted population” means individuals, or an identifiable group of individuals, including an Indian Tribe, who (A) are Low-Income Persons; or (B) otherwise lack adequate access to loans or investments.
Unrelated	Persons who are not related within the meaning of IRC §267(b) or IRC §707(b)(1).

1 For the purposes of Questions #2-6 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.