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CDFI Fund Announces More Than $18.6 Million in Bank Enterprise Awards for Investment in Low-Income Communitieshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=268CDFI Fund Announces More Than $18.6 Million in Bank Enterprise Awards for Investment in Low-Income Communities<p> <b>Washington –</b> Today, the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced more than $18.6 million in awards to 102 FDIC-insured financial institutions serving economically distressed communities across the nation. These funds, awarded under the fiscal year (FY) 2016 round of the Bank Enterprise Award Program (BEA Program), will support community and economic development activities in census tract areas where at least 30 percent of the population lives at or below the national poverty level and where the unemployment rate is at least 1.5 times the national average. The award recipients were selected after a comprehensive review of 116 applications requesting $145.6 million in funding.</p><p>“I applaud the banks and thrifts being awarded today for increasing their lending, investing and vital financial services in low-income communities across the nation,” said CDFI Fund Director Annie Donovan. "Through both direct investment and by supporting Community Development Financial Institution partners, these institutions are making a real difference in highly distressed communities across the nation.”</p><p>Today’s awards will build on efforts to increase investments in underserved communities. Collectively, during the one-year assessment period, these 102 depository institutions increased their loans and investments in distressed communities by $285.5 million; increased their loans, deposits, and technical assistance to Community Development Financial Institutions (CDFIs) by $41 million; increased their equity and equity-like loans and grants to CDFIs by $8.8 million; and increased the provision of financial services in highly distressed communities by $3.5 million. </p><p>The more than $18.6 million awarded under the FY 2016 round of the BEA Program today will be re-invested into distressed communities and CDFIs by BEA Program award recipients. </p><p> <b>Related Materials</b></p><ul><li><p> <a href="/Documents/REVISED%20FINAL%202016%20BEA%20Award%20Book%20%20updated%20091817.pdf">2016 BEA Program Award Book</a></p></li><li><p> <a href="/awards/state-awards/Pages/default.aspx" target="_blank">Searchable Awards Database</a></p></li></ul><p> <b>About the BEA Program </b></p><p>The Bank Enterprise Award Program (BEA Program) rewards FDIC-insured depository institutions for making investments in certified CDFIs as well as in the most distressed communities in the country. In order to receive an award, these banks and thrifts must demonstrate an increase in their investments with at least 30% of their residents having incomes less than the national poverty level and 1.5 times the unemployment rate. The BEA awards help offset some of the risk associated with investing in these distressed communities and provide an incentive to invest. The greater the loan increase, the greater the award. Since its inception in 1994, the BEA Program has awarded grants totaling over $447 million. </p><p>For more information about the BEA Program, please view the <a href="/Documents/CDFI7205_FS_BEA_updatedJan2016.pdf">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/bea">www.cdfifund.gov/bea</a>.  </p><p> <b>About the CDFI Fund</b></p><p>Since its creation in 1994, the CDFI Fund has awarded more than $2.3 billion to CDFIs, community development organizations, and financial institutions through the Community Development Financial Institutions Program, the Native American CDFI Assistance Program, and the BEA Program. In addition, the CDFI Fund has allocated $50.5 billion in tax credit allocation authority to Community Development Entities through the New Markets Tax Credit Program, closed guaranteed bonds in the amount of $1.1 billion through the CDFI Bond Guarantee Program, and awarded more than $171 million through the Capital Magnet Fund. </p><p>To learn more about the CDFI Fund and its programs, please view the <a href="/Documents/CDFI_Brochure%20Updated%20Mar2017.pdf">Fact Sheet </a>or visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.  </p> 2017-08-17T04:00:00ZPress Releases268
Update for Capital Magnet Fund Applicants: AMIS Application Now Availablehttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=266Update for Capital Magnet Fund Applicants: AMIS Application Now Available<p>The Application for the fiscal year (FY) 2017 round of the Capital Magnet Fund is now available in the Community Development Financial Institutions Fund’s (CDFI Fund) Awards Management Information System (AMIS). In order to be able to complete their FY 2017 Application in AMIS, applicants must have submitted a valid SF-424 through Grants.gov by July 28, 2017. </p><p>The CDFI Fund encourages all applicants to complete their Applications as early as possible to avoid last-minute problems. All FY 2017 Capital Magnet Fund Applications must be submitted through AMIS by <b>5:00 p.m. Eastern Time (ET) on Thursday, August 31, 2017.</b></p><p> <b>How to Start a Capital Magnet Fund Application in AMIS</b></p><p>To create a CMF Application in AMIS, follow these steps:</p><ol><li><p>Log-in to AMIS.</p></li><li><p>Open your Organizational Profile.</p></li><li><p>Navigate to the Program Profile section and open the CMF Program Profile.</p></li><li><p>Complete the required information in the CMF Program Profile (if necessary).</p></li><li><p>Click “New CMF Application” in the Funding Application section.</p></li><li><p>Enter the requested information and click “Save.” You will then be able to see the whole Application. You will be able to go back and edit any Application information before you Submit. </p></li></ol><p> <b>Need Help? Updated Guidance and Webinars Available</b></p><p>The CDFI Fund has posted additional Application guidance materials to its website, including an updated Frequently Asked Questions document. The training manual for the AMIS Application will be available on the website later this week. All of the 2017 Application guidance, pre-recorded modules, and presentations are available at <a href="http://www.cdfifund.gov/cmf">www.cdfifund.gov/cmf</a> under “How to Apply Step 2: Apply.” </p><p>The CDFI Fund has also scheduled two additional webinars for FY 2017 Capital Magnet Fund applicants on <b>August 14 and August 15, 2017</b> to provide a live demo of how to navigate and enter data into the AMIS Application. See the <a href="/programs-training/Programs/cmf/Pages/apply-step.aspx" target="_blank">CDFI Fund’s website </a>for information regarding how to access the webinars. </p><p>No prior registration is necessary to join the webinars. Requests for reasonable accommodations under section 504 of the Rehabilitation Act should be directed to Michael Jones at 202-653-0300 no later than 48 hours before the webinars begin. The recordings of the AMIS webinars will be posted to the CDFI Fund’s website a few days after they are conducted.</p><p> <b>Questions</b></p><p>Please direct any questions to the Capital Magnet Fund Help Desk via an AMIS Service Request, by e-mail to <a href="mailto:cmf@cdfi.treas.gov" target="_blank">cmf@cdfi.treas.gov</a>, or by calling 202-653-0421 (please note: this is not a toll-free number). The CDFI Fund will stop taking questions about the Application at <b>5:00 p.m. ET on Tuesday, August 29, 2017. </b></p><p>To learn more about the CDFI Fund and its programs, please visit <a href="http://www.cdfifund.gov/">www.cdfifund.gov</a>.  </p>2017-08-08T04:00:00ZUpdates266
CDFI Fund Releases Application Demand for 2017 Round of NMTC Programhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=267CDFI Fund Releases Application Demand for 2017 Round of NMTC Program<p>The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) announced today that it received a total of 230 applications under the 2017 round of the New Markets Tax Credit Program (NMTC Program). The NMTC Program encourages economic development in low-income and distressed communities by making tax credit allocations available to Community Development Entities (CDEs) for targeted investments in eligible areas. </p><p>The CDEs that applied under the 2017 round are headquartered in 42 states, the District of Columbia, Puerto Rico, and Guam. The applicants requested an aggregate total of $16.2 billion in NMTC allocation authority, over four-and-a-half times the $3.5 billion in authority available for the 2017 round.</p><p>The NMTC Program was established by Congress in December of 2000 and permits individual and corporate taxpayers to receive a credit against federal income taxes for making qualified equity investments in CDEs. The credit provided to the investor totals 39 percent of the cost of the investment and is claimed over a seven-year period. Substantially all of the taxpayer's investment must in turn be used by the CDE to make qualified investments in low-income communities. Successful applicants are selected only after a competitive application and rigorous review process that is administered by the CDFI Fund. </p><p>Through the first thirteen rounds of the NMTC Program, the CDFI Fund has made 1,032 awards totaling $50.5 billion in tax credit allocation authority. This $50.5 billion includes $3 billion in Recovery Act Awards and $1 billion of special allocation authority to be used for the recovery and redevelopment of the Gulf Opportunity Zone. </p><p>For more information about the NMTC Program, visit the CDFI Fund’s website at <a href="http://www.cdfifund.gov/nmtc" target="_blank">www.cdfifund.gov/nmtc</a>.  </p> 2017-08-08T04:00:00ZUpdates267
New Markets Tax Credit Program Compliance Report Releasedhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=265New Markets Tax Credit Program Compliance Report Released<p> <b>Washington –</b> A new, independent report on the federal New Markets Tax Credit Program (NMTC Program) was released today by Summit Consulting LLC (Summit). The Compliance Review of New Markets Tax Credit Program report (the NMTC Report) was commissioned by the U.S. Treasury Department’s Community Development Financial Institutions Fund (CDFI Fund). It examines whether the recipients of New Markets Tax Credits (NMTCs) have complied with NMTC Program requirements, and whether the recipients’ NMTC investment activities have aligned with the objectives of the NMTC Program, among other questions.</p><p>“The report released today demonstrates that New Markets Tax Credits are being used as Congress intended: to attract private investment into projects in economically distressed communities,” said Annie Donovan, Director of the CDFI Fund. “It also documents the ways that Community Development Entities (CDEs) that utilize the program are meeting and generally exceeding NMTC Program requirements.”</p><p>In addition, the NMTC Report addresses questions and recommendations posed by the Government Accountability Office (GAO) regarding the distribution of benefits among the NMTC Program’s stakeholders, investors’ rates of return, and the role that other public investments play in NMTC investments. The NMTC Report has four main sections, each examining a different topic and presenting the results of Summit’s quantitative analysis and its key findings and recommendations. Among the report’s key findings for each of the four sections are:</p><ol><li><p>CDE Compliance with NMTC Allocation Agreements</p><ul><li><p>All projects reviewed by Summit comply with the corresponding Allocation Agreement.</p></li><li><p>CDEs often go beyond compliance requirements, providing more flexible capital and investing in more highly distressed areas than the NMTC Program requires.</p></li></ul></li><li><p>Distribution of Overall NMTC Program Benefits</p><ul><li><p>The flexible financing provided by CDEs reduces the net cost of capital for borrowers.</p></li><li><p>Fees and other charges do not appear to significantly affect the cost of capital for low-income community businesses.</p></li><li><p>Investor returns appear to be driven more by a market for tax credits than by specific project risks, with median investor returns for the sample of 9.1 percent.</p></li></ul></li><li><p>Degree of Public Investment in NMTC Transactions</p><ul><li><p>In its evaluation of the depth of public investment in NMTC projects utilizing two methodologies it developed, Summit found that approximately two-thirds of the projects reviewed received public funding commensurate with financing gaps or industry benchmarks for capitalization rates.</p></li><li><p>Summit’s analysis of the remaining one-third of the projects revealed that projects located in highly distressed areas may need more public funding to attract private investment, to enhance community benefits, or to support initial project operating costs.</p></li></ul></li><li><p>CDE Best Practices </p><ul><li><p>Many CDEs use a rigorous project selection process that includes a “but-for” analysis, community benefit considerations, and advisory board involvement.</p></li></ul></li></ol><p> <b>Related Links:</b></p><ul><li><p> <a href="/Documents/Summit%20-%20Compliance%20Review%20of%20New%20Markets%20Tax%20Credit%20Program%20-%20August%20Date%20-%20508%20Compliant.pdf" target="_blank">Compliance Review of New Markets Tax Credit Program – Full Report</a></p></li></ul><p>For more information about the CDFI Fund and its programs, please visit <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a> or view the CDFI Fund’s <a href="/Documents/CDFI_Brochure%20Updated%20Mar2017.pdf" target="_blank">Fact Sheet</a>.</p>2017-08-01T04:00:00ZPress Releases265

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