CDFI News

 

 

Update for Capital Magnet Fund Applicantshttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=201Update for Capital Magnet Fund Applicants<p>The Community Development Financial Institutions Fund (CDFI Fund) has released an updated Frequently Asked Questions (FAQ) document on its website, <a href="http://www.cdfifund.gov/cmf" target="_blank">www.cdfifund.gov/cmf</a>, to assist potential applicants to the fiscal year (FY) 2016 round of the Capital Magnet Fund. Topics updated in the FAQ include affordability requirements, use of Capital Magnet Fund funds with other CDFI Fund program funds, providing Capital Magnet Fund funds to Limited Liability Corporations or Limited Partnerships, and other important topics.</p><p>The updated FAQ document can be found on the Capital Magnet Fund website at <a href="http://www.cdfifund.gov/cmf" target="_blank">www.cdfifund.gov/cmf</a>, under How to Apply Step 2: Apply. </p><p><b>Upcoming AMIS Technical Webinars</b></p><p>There are two application webinars scheduled for March 1 and March 3, 2016 to walk through the electronic application for the Capital Magnet Fund in the CDFI Fund’s Awards Management Information System (AMIS). Full details about those webinars and how to join can be found on the Capital Magnet Fund website at <a href="http://www.cdfifund.gov/cmf" target="_blank">www.cdfifund.gov/cmf</a>, under How to Apply Step 2: Apply. There, potential applicants can also view the training presentation from the application webinars the CDFI Fund held in February. </p><p><b>Reminder about Deadlines</b></p><ul><li><p>The deadline for submission of the Capital Magnet Fund application materials due through Grants.gov is 11:59 p.m. Eastern Time (ET) on Wednesday, March 16, 2016.</p></li><li><p>The deadline for submission of the Capital Magnet Fund application materials due through the CDFI Fund’s Award Management Information System (AMIS) is 11:59 p.m. ET on Wednesday, March 30, 2016.</p></li><li><p>The CDFI Fund will stop taking questions about the application at 5:00 p.m. ET on Monday, March 28, 2016. </p></li><li><p>The CDFI Fund will stop providing technical assistance about submitting the application through AMIS at 5:00 p.m. ET on Wednesday, March 30, 2016.</p></li></ul><p><b>Questions</b></p><p>Please direct any questions about the FY 2016 Capital Magnet Fund round to the CDFI Fund’s Help Desk at 202-653-0421, or <a href="mailto:cmf@cdfi.treas.gov">cmf@cdfi.treas.gov</a>. For more information about the CDFI Fund, please visit <a href="http://www.cdfifund.gov/cmf" target="_blank">www.cdfifund.gov/cmf</a>.  </p> 2016-02-26T05:00:00ZUpdates201
Update for CDFI and NACA Program Applicants: Electronic Application Now Availablehttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=199Update for CDFI and NACA Program Applicants: Electronic Application Now Available<p>The electronic applications for the fiscal year (FY) 2016 round of the CDFI Program and NACA Program are now available in the Community Development Financial Institutions Fund (CDFI Fund)’s Awards Management Information System (AMIS). </p><p>All applicants must be registered in SAM.gov, Grants.gov, and AMIS to apply for funding. Previous applicants should confirm that their existing accounts for each system are active and up-to-date as soon as possible in order to avoid potential Standard Form-424 (SF-424) and/or application submission problems. New applicants are encouraged to begin the registration process now. Registration guidance for SAM.gov and Grants.gov can be found on the websites for those systems. Registration guidance for AMIS can be found at <a href="https://amis.cdfifund.gov/">https://amis.cdfifund.gov/</a>.   </p><p>The CDFI Fund <b>strongly recommends</b> that the instructions and application timelines are reviewed closely by both first-time and repeat applicants and that applicants give themselves adequate time to submit their applications using AMIS.</p><p>To assist potential applicants, the CDFI Fund has provided three additional guidance documents—a Quick Start Guide, an Application Evaluation Document, and the FY 2016 Frequently Asked Questions for the CDFI Program and NACA Program application—on its website. All of the guidance documents are available on the CDFI Fund’s website, <a href="http://www.cdfifund.gov/cdfi">www.cdfifund.gov/cdfi</a>, under Step 2: Apply and <a href="http://www.cdfifund.gov/native">www.cdfifund.gov/native</a>, under Step 2: Apply. There, applicants can also find information about upcoming in-person workshops, live webinars, other presentations about the FY 2016 CDFI Program and NACA Program funding rounds, and AMIS application submission process. </p><p>In addition, the CDFI Fund will be providing a comprehensive instruction manual to help guide applicants through the technical aspects of using AMIS to complete their applications. The “AMIS Training Manual for CDFI and NACA Program Applications” will be available on the CDFI Fund’s website in the coming days. In the meantime, applicants should use the guidance documents that are currently available, particularly the Quick Start Guide, to begin the application process.</p><p> <b>Reminder about Deadlines</b></p><ul><li><p>The deadline for submission of the SF-424 electronically through Grants.gov is 11:59 p.m. Eastern Time (ET) on Friday, March 18, 2016.</p></li><li><p>The deadline for submission of the CDFI Program and NACA Program applications electronically through AMIS is 11:59 p.m. ET on Monday, April 18, 2016. </p></li><li><p>The CDFI Fund will stop taking questions about the application at 5:00 p.m. ET on Friday, April 15, 2016. </p></li></ul><p>Please view the CDFI Fund’s website at <a href="http://www.cdfifund.gov/cdfi">www.cdfifund.gov/cdfi</a> and <a href="http://www.cdfifund.gov/native">www.cdfifund.gov/native</a> for full details about the CDFI Program and NACA Program and how to apply to the FY 2016 application round. Please direct any questions to the CDFI Program and Native Initiatives Help Desk at (202) 653-0421 (Option 1) or <a href="mailto:cdfihelp@cdfi.treas.gov">cdfihelp@cdfi.treas.gov</a>. </p> 2016-02-23T05:00:00ZUpdates199
Remarks by Deputy Assistant Secretary Milano at the National Federation of Community Development Credit Unions' 5th Annual CDFI Credit Union Roundtablehttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=200Remarks by Deputy Assistant Secretary Milano at the National Federation of Community Development Credit Unions' 5th Annual CDFI Credit Union Roundtable<p>Good afternoon and thank you, for inviting me to participate in today’s panel. I’m very excited Cathie asked me to speak today about how Treasury is working to increase financial access and opportunity for all Americans. Community development credit unions are integral to the mission of the CDFI Fund. As full service financial institutions, you offer not only vitally needed credit, but banking services in areas that have been traditionally underserved. And for that I applaud and thank you.</p><p>In my role as Deputy Assistant Secretary for Small Business, Community Development, and Affordable Housing, it is my job to support the priorities of Treasury Secretary Lew through our community development and small business programs and partnerships. Last month, at one of the country’s largest convenings dedicated to financial empowerment, Treasury Secretary Lew reinforced the Administration’s desire to continue our progress in connecting the millions of Americans who are currently excluded from our financial system to make sure that they have the tools they need to cash a paycheck, save for an unexpected expense, and build a secure financial future. </p><p>According to the FDIC’s National Survey of Unbanked and Underbanked Households, 1 in 13 households in the United States were unbanked in 2013. This proportion represented nearly 9.6 million households. So how do we do this? How do we connect people to the financial products and services they need? </p><p>First, every community that needs a CDFI should have access to one. One way to achieve this is through partnerships like the Treasury/ NCUA partnership Bill just talked about. The agreement signed by Treasury and NCUA sets a very ambitious goal to double the number of CDFI-certified low-income credit unions by the end of this year. We plan to do this by working together to streamline the application process for low-income credit unions to be certified as CDFIs by enabling credit unions to use the data already collected by the NCUA as part of the CDFI certification process, rather than having to collect it again, so you can spend more time serving your customers and less time filling in paperwork. This will streamline the process for applying for certification and accessing CDFI Fund programs.</p><p>But why should we stop there? Well, we shouldn’t. That’s why Treasury is also exploring this model with the bank regulators to help more community banks serving low-income communities become CDFIs. With CDFI certification, financial institutions can access training and competitive award programs provided by the CDFI Fund, and these resources can aid these institutions’ capacity to provide under-served communities with access to safe and affordable financial services. </p><p>But expanding our reach to more communities is just one piece of the puzzle. We also need to make our programs work better for CDFIs and the populations they serve. That’s why Annie and I are also working to make some common sense changes to the CDFI Program to help our resources go even further. </p><p>The CDFI Fund has awarded more than $2 billion in grant funding to local community financial institutions all over the country. This money is leveraged many times over by CDFIs to create an even greater impact in the communities they serve. While we are proud of the work the CDFI Fund has achieved, we recognize that there is still more work ahead to reach individuals who lack access to financial services in so many communities in our country.</p><p>The CDFI Program is the primary way the CDFI Fund builds the capacity of CDFIs to serve low-income people and communities that lack access to financial products and services. Generally, financial assistance awards may be used by CDFIs to develop or support a number of activities including: commercial facilities that promote revitalization, community stability, or job creation or retention; businesses that provide jobs for low-income people or enhance the availability of products and services to low-income people; community facilities; housing that is principally affordable to low income people; and the provision of basic financial services. However, over the last 20 years, we’ve found that program funding has primarily been used to support community development lending and real-estate backed projects. </p><p>While that part of community development is vital and important, we need to emphasize the many ways CDFI Program funding can be used to fulfill the intent of the statute and assist all CDFIs to serve their investment areas or target populations. That’s why we are revamping the Fiscal Year 2017 application in order to foster a more diverse pool of applicants and uses of funds. </p><p>The CDFI Fund will implement a number of changes to the CDFI Program that will encourage greater diversity in the use of financial assistance awards, specifically those that increase the availability and utilization of banking services for unbanked and underbanked populations. Lending and retail financial services create and promote financial inclusion for individuals and small businesses and we want to make sure that all types of CDFI programs and services are supported with program funding. </p><p>In addition, Treasury has the ability to encourage institutions to work together toward a common goal of strengthening our communities. The CDFI Fund statute specifies that community partnerships can be formed to expand lending and investment into low income areas. We are emphasizing that mechanism of the program by raising awareness that CDFIs can partner with retail financial institutions to offer much-needed services. We are also emphasizing the ways awards can be used for financial inclusion. We hope that with outreach and training, community partnerships between CDFIs, non-profits, community organizations and even mainstream financial institutions will be formed in order to increase the depth and reach of CDFIs. </p><p>Finally, I’ll mention the President’s 2017 budget. This year’s budget proposes a new Small Dollar Loan program to help all CDFIs – banks, loan funds and credit unions - address the issue of predatory lending in their communities and provide an alternative to payday lenders. This program will provide grants to CDFIs to establish loan loss reserves and provide technical assistance to establish small dollar loan programs. This support will make it easier for these institutions to provide safe and affordable alternatives to predatory lenders. </p><p>Thank you for your continued support of the CDFI Fund and I look forward to continuing to work with the NFCDCU and the NCUA to engage your industry in this important work. </p><p><i>Jessica Milano is the Deputy Assistant Secretary for Small Business, Community Development, and Housing at the U.S. Department of the Treasury.</i></p> 2016-02-22T05:00:00ZSpeeches200
CDFI Fund Opens FY 2016 Funding Round for CDFI Program and NACA Programhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=198CDFI Fund Opens FY 2016 Funding Round for CDFI Program and NACA Program<p>Today the U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) opened the fiscal year (FY) 2016 funding round for the Community Development Financial Institutions Program (CDFI Program) and Native American CDFI Assistance Program (NACA Program). </p><p>Congress appropriated the CDFI Fund $190.5 million in FY 2016 in Financial Assistance (FA) and Technical Assistance (TA) awards to be divided as follows: $153 million for CDFI Program awards; $22 million for Healthy Food Financing Initiative Financial Assistance (HFFI-FA) awards; and $15.5 million for NACA Program awards. </p><p>The awards will support Community Development Financial Institutions (CDFIs) providing affordable financing and related services to low-income communities and populations that lack access to credit, capital, and financial services. </p><p> <b>CDFI Program Overview </b></p><p>Through the CDFI Program, the CDFI Fund invests in and builds the capacity of CDFIs to serve low-income people and communities lacking adequate access to affordable financial products and services. The CDFI Fund invests in certified CDFIs by providing Financial Assistance awards to applicants that have demonstrated the financial and managerial capacity to deliver financial products and services to a low-income target market and to leverage additional resources effectively. Through Technical Assistance grants, the CDFI Fund enables certified CDFIs and emerging entities working toward CDFI certification to build their capacity as lending institutions. For additional details about eligibility, application requirements, and available funding under the CDFI Program, please view the CDFI Program Notice of Funding Availability (NOFA).</p><p> <b>NACA Program Overview </b></p><p>In 2004, the CDFI Fund introduced the NACA Program, which was specifically designed to encourage the creation and strengthening of CDFIs that primarily serve Native American, Alaska Native, and Native Hawaiian communities (Native Communities). Organizations funded serve a wide range of Native Communities, and reflect a diversity of institutions in various stages of development – from organizations in the early planning stages of creating a CDFI, to tribal entities working to certify an existing lending program, to established CDFIs in need of further assistance. The CDFI Fund awards both Financial Assistance and Technical Assistance awards under the NACA Program. For additional details about eligibility, application requirements, and available funding under the NACA Program, please view the NACA Program Notice of Funding Availability (NOFA).</p><p> <b>Healthy Food Financing Initiative-Financial Assistance Overview </b></p><p>In FY 2016, the Healthy Food Financing Initiative-Financial Assistance will serve as a supplemental funding opportunity under the CDFI Program and NACA Program for eligible CDFIs and Native CDFIs that express an interest in expanding their healthy food-focused financing activities and are selected to receive Financial Assistance awards under the FY 2016 rounds of the CDFI Program or NACA Program. For additional details about eligibility, application requirements, and available funding under the Healthy Food Financing Initiative-Financial Assistance Program, please view the CDFI Program and/or NACA Program NOFAs.</p><p> <b>Deadlines </b></p><ul><li><p>The deadline for submission of the SF-424 is <b>Friday, March 18, 2016</b> at 11:59 pm Eastern Time (ET). All Applicants must submit their SF-424s electronically through Grants.gov.</p></li><li><p>The deadline for submission of the CDFI Program and NACA Program applications in AMIS is <b>Monday, April 18, 2016</b> at 11:59 pm ET. </p></li><li><p>The CDFI Fund strongly encourages all materials to be submitted at least three days before each corresponding deadline (Grants.gov and AMIS). The last day the CDFI Fund will be answering questions about the FY 2016 application round is <b>Friday, April 15, 2016</b> at 5:00 pm ET. </p></li></ul><p>Please see the applicable NOFAs for more information on submitting the CDFI Program and NACA Program applications. </p><p> <b>Application Materials </b></p><p>Reference copies of the NOFAs and all application materials can be found on the CDFI Fund’s website at: </p><ul><li><p>CDFI Program: <a href="http://www.cdfifund.gov/cdfi" target="_blank">www.cdfifund.gov/cdfi</a>   </p></li><li><p>NACA Program: <a href="http://www.cdfifund.gov/native" target="_blank">www.cdfifund.gov/native</a>   </p></li></ul><p>In order to provide potential applicants with as much time as possible, the CDFI Fund is posting the NOFAs and application materials for the CDFI Program and NACA Program on the CDFI Fund’s website today in advance of the electronic application being available next week. </p><p>The CDFI Fund will send out an additional notification when the electronic application is available in AMIS for application submission. Applicants are <b>strongly encouraged</b> to read and view all application materials, including the NOFA, application guidance, webinars and presentations. </p><p> <b>Required Application Systems</b></p><ul><li><p> <b>AMIS:</b> The CDFI Fund’s Awards Management Information System (AMIS) is an enterprise-wide business system developed to replace a number of legacy systems and to serve as a modern platform to eventually support all CDFI Fund programs through each phase of the programs’ life cycle.</p><p>All Applicants <b>must use AMIS</b> to create, complete, and submit applications materials for the CDFI Program and NACA Program this year. Please see the NOFAs for more information on submitting the CDFI Program and NACA Program applications.</p></li><li><p> <b>Grants.gov:</b> In addition to the application materials submitted through AMIS, all Applicants are required to submit a SF-424 electronically through Grants.gov. The SF-424 can be found in Grants.gov under the funding opportunity number for each program. </p><p>Applicants that do not submit an SF-424 electronically through Grants.gov by the stated deadline will not be eligible to submit application materials in AMIS.</p></li><li><p> <b>SAM.gov:</b> In order to submit the necessary SF-424 form via Grants.gov, Applicants must have an active System for Awards Management (SAM) account. Each Applicant is advised to first make sure its SAM.gov account is <b>active and valid</b> before beginning its preparation of the other Application materials in Grants.gov or AMIS. Applicants should allow ample time to complete the entire registration and submission process well in advance of the application deadline. The SAM.gov website is <a href="http://www.sam.gov/" target="_blank">www.SAM.gov</a>.  </p></li></ul><p>All applicants <b>must be registered</b> in SAM.gov, Grants.gov, and AMIS to apply for funding. Organizations should confirm that their accounts are up-to-date as soon as possible in order to avoid potential application submission problems. New potential applicants are encouraged to begin the registration process for each of the systems now and will find registration guidance on each website.</p><p> <b>Learn About Applying to the CDFI and NACA Programs </b></p><p>The CDFI Fund is providing the following opportunities to learn more about the FY 2016 CDFI Program and NACA Program funding round:</p><ol><li><p> <b>In-Person Application Workshops:</b> CDFI Fund staff will conduct in-person FY 2016 CDFI Program and NACA Program Application Workshops in Minneapolis, Minnesota; Washington, DC; and Atlanta, Georgia. Due to security requirements at federal facilities where the workshops will be held, anyone wishing to attend the in-person application workshops must register through the online registration system link provided below. Individuals who do not register before the applicable registration deadlines, and thus do not appear on the registration list for the facility, will not be admitted.</p><p>View the registration page for the application workshops and registration deadlines <a title="http://www.cvent.com/d/pfqzkc" href="http://www.cvent.com/d/pfqzkc">here</a>.</p></li><li><p> <b>Q&A Webinars:</b> The CDFI Fund is conducting four targeted live webinars to provide a forum to answer applicant questions about the FY 2016 CDFI Program and NACA Program applications. Please view the list of scheduled webinars on the <a href="/programs-training/Programs/cdfi-program/Pages/apply-step.aspx" target="_blank">CDFI Program</a> and <a href="/programs-training/Programs/native-initiatives/Pages/apply-step.aspx" target="_blank">NACA Program </a>webpages. </p></li><li><p> <b>Online Presentations: </b>The CDFI Fund has created series of targeted PowerPoint presentations and has posted them on its <a href="/programs-training/Programs/cdfi-program/Pages/apply-step.aspx" target="_blank">CDFI Program</a> and <a href="/programs-training/Programs/native-initiatives/Pages/apply-step.aspx" target="_blank">NACA Program </a>webpages. The presentations cover a variety of information and are a good starting point for all applicants. </p></li><li><p> <b>Pre-Recorded Webcasts:</b> The CDFI Fund will be providing pre-recorded webcasts for applicants on its website in the near future. The webcasts will be made available in the Application Materials sections of the <a href="/programs-training/Programs/cdfi-program/Pages/apply-step.aspx">CDFI Program </a>and <a href="/programs-training/Programs/native-initiatives/Pages/apply-step.aspx" target="_blank">NACA Program </a>webpages.</p></li></ol><p> <b>Questions </b></p><p>For more information on the CDFI Program, the NACA Program, the Q&A webinars, or the application workshops, please contact the CDFI Fund’s Help Desk by e-mailing <a href="mailto:cdfihelp@cdfi.treas.gov">cdfihelp@cdfi.treas.gov</a> or by calling <span class="baec5a81-e4d6-4674-97f3-e9220f0136c1" style="white-space:nowrap;">(202) 653-0421<a title="Call: (202) 653-0421" href="#" style="margin:0px;border:currentcolor;left:0px;top:0px;width:16px;height:16px;right:0px;bottom:0px;overflow:hidden;vertical-align:middle;float:none;display:inline;white-space:nowrap;"><img title="Call: (202) 653-0421" alt="" style="margin:0px;border:currentcolor;left:0px;top:0px;width:16px;height:16px;right:0px;bottom:0px;overflow:hidden;vertical-align:middle;float:none;display:inline;white-space:nowrap;" /></a></span> (option 1). </p>2016-02-17T05:00:00ZUpdates198
Remarks By Acting Assistant Secretary Amias Gerety At The National Interagency Community Reinvestment Conference https://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=196Remarks By Acting Assistant Secretary Amias Gerety At The National Interagency Community Reinvestment Conference <p><i>These remarks were originally published on the <a href="https://www.treasury.gov/press-center/press-releases/Pages/jl0350.aspx" target="_blank">Treasury website</a>.</i></p><p>LOS ANGELES – Good afternoon and thank you, Eric, for that introduction. I'd also like to thank the partnering agencies of the National Interagency Community Reinvestment Conference for inviting me to speak today. </p><p>As Treasury's Acting Assistant Secretary for Financial Institutions, I cover a range of issues related to the financial services sector, from terrorist risk insurance to consumer policy. My office formulates polices and coordinates the Department's efforts to support economic prosperity and financial security. A central priority for me and my colleagues at Treasury is to determine how best to use Treasury's resources, both its programs and its policies, to solve the problems that persistently plague Americans, especially those that do not have adequate access to the very financial institutions and infrastructure that my office monitors and reviews. </p><p>Just within the last month, the Administration has been very vocal about the need to increase financial access and opportunity for all Americans. In his State of the Union address, President Obama said, "For the past seven years, our goal has been a growing economy that works better for everybody. We've made progress. But we need to make more." A couple weeks, ago, at one of the country's largest convenings dedicated to financial empowerment, Treasury Secretary Jack Lew reinforced the Administration's desire to continue our progress in connecting the millions of Americans—and billions around the world—who are currently excluded from our financial system and make sure that they have the access they need.</p><p>But what does this really mean? What more can we do to continue progress? </p><p>Let's start with the theme of this conference. Community reinvestment uses the mechanism of the financial system – connecting savers and investors with the needs of borrowers through time. In a regulatory context, it's a requirement for financial institutions to meet the credit needs of the communities they operate in. And over the last day and a half, you've heard what community reinvestment means for those who live every day to recycle the savings of their communities into opportunities. You've heard multiple strategies to increase opportunities for low-income people and communities, tools that support progress towards shared economic growth and financial inclusion. </p><p>I'm honored to be here because Treasury is committed to that process and has three primary tools it can use to assist in this effort: products, partnerships, and programs.</p><p>First, are our products. </p><p>Millions of Americans are in danger of not having enough money to maintain their standard of living in retirement. In fact, nearly 1/3 have no retirement savings or pension. Even on a modest income, saving $5 per pay period, the equivalent of a couple of cups of coffee, can make a real difference over time. As $5 dollars becomes $100 dollars in less than a year, the message that savings add up is quickly apparent, and this realization creates the habit of saving. Once ingrained, that $5 dollar deposit becomes $10 dollars or $20, the savings build even faster. Therefore, Treasury is working to promote long-term savings. myRA was launched last year as a safe option for those whose employers do not offer retirement savings accounts. It is free; there are no minimum balances and no fees. There is no risk of losing money and savings are invested in risk-free U.S. Treasury retirement savings bond. And signing up is easy on myRA.gov and includes simple on-line enrollment. In short, myRA removes the barriers that make it hard to save for millions of Americans. </p><p>Second, is through strategic partnerships with other federal agencies.</p><p>The President's Budget released today announces a new partnership between Treasury and the Department of Labor to help young people develop the habit of effectively managing their finances through connecting them with financial products services and education and tools that build financial capability. Earlier today, I had the opportunity to participate in a Youth Financial Empowerment and Inclusion Roundtable hosted by the mayor's office. I spoke with city leaders about Los Angeles' Financial Empowerment Initiative to expand their Summer Youth Employment Program and connect young people with the appropriate banking products, services and financial education they need. The program works with educators, employers, and city agencies to make sure young people are prepared with job skills and money management skills to succeed as they become adults. We know from their experience that these programs work, because there is no better time to address financial inclusion than with young people receiving their first pay check. We have heard from cities and youth leaders around the country that this is needed and can make a real difference in our communities. With one in three American households lacking a savings account, leaving them more vulnerable when emergencies arise, we know that providing savings options is critical for young people starting financial adulthood. </p><p>Of course, savings is only one part of the equation. Without savings to weather emergencies, credit is the next best option. However, access to revolving credit has declined and many Americans turn to predatory lenders for their short-term financial needs. Tomorrow, I will take a tour with Self-Help Federal Credit Union and see how they have used CDFI Fund's Financial Assistance program to test a hybrid credit union and check cashing model. By purchasing existing check cashing outlets, Self Help created Community Trust Prospera, which provided community residents with a small physical structure that is safe, inviting and accessible to those not comfortable using a traditional bank. The Community Trust Prospera branches served over 40,000 credit union members and clients. I am looking forward to interacting with some of their customers tomorrow and understanding the lessons Self Help learned from this program.</p><p>This is a powerful example of how a small amount of federal support can make a huge difference to a community. That's why Treasury is partnering with the National Credit Union Administration to double the number of CDFI-certified low-income credit unions in 2016. One in thirteen US household have no bank account and more than 20 percent of US households rely on alternative financial services to complete all of their financial transactions. The agreement signed by Treasury and NCUA will help streamline the application process for low-income credit unions to be certified as CDFIs and will help bring the CDFI Fund's resources to more low income communities around the nation. </p><p>Together, the CDFI Fund and NCUA will test a model to facilitate the exchange of data to minimize the application and reporting burden on credit union participants in the programs of the CDFI Fund. If successful, Treasury would like to explore the model with the bank regulators to help more community banks serving low-income communities become CDFIs. With CDFI certification, financial institutions can access training and competitive award programs provided by the CDFI Fund, and these resources can aid these institutions' capacity to provide under-served communities with access to safe and affordable financial services. </p><p>Which brings me to the final tool – our programs. </p><p>The CDFI Fund has awarded more than $2 billion in grant funding to local community financial institutions all over the country. This money is leveraged many times over by CDFIs to create an even greater impact in the communities they serve. While we are proud of the work the CDFI Fund has achieved, we recognize that there is still more work ahead to reach individuals who lack access to financial services in so many communities in our country.</p><p>Through the CDFI Program, the CDFI Fund's flagship program, Treasury provides technical and financial assistance awards to CDFIs. The CDFI Program is the primary way the CDFI Fund builds the capacity of CDFIs to serve low-income people and communities that lack access to financial products and services.</p><p>Per the statute, financial assistance awards may be used by CDFIs to develop or support a number of activities including: commercial facilities; businesses that provide jobs for low-income people or enhance the availability of products and services to low-income people; community facilities; housing that is principally affordable to low income people; and the provision of basic financial services. However, over the last 20 years, we've found that program funding has primarily been used to support community development lending and real-estate backed projects. </p><p>While that part of community development is vital and important, we need to emphasize the many ways CDFI Program funding can be used to fulfill the intent of the statute and assist all CDFIs to serve their investment areas or target populations. We are revamping the Fiscal Year 2017 application in order to foster a more diverse pool of applicants and uses of funds. The CDFI Fund will implement a number of changes to the CDFI Program that will encourage greater diversity in the use of FA awards, specifically those that increase the availability/utilization of banking services for unbanked and underbanked populations. There is role for both lending and retail financial services in creating and promoting financial inclusion for individuals and small businesses and we want to make sure that all types of CDFI programs and services are supported with program funding. </p><p>In addition, Treasury also has the ability to encourage institutions to work together toward a common goal of strengthening our communities. The CDFI Fund statute contemplates the use of community partnerships to expand lending and investment into to low income areas. We are reviving that mechanism of the program and expanding the reach of the CDFI Program by emphasizing the ways awards can be used for financial inclusion and raising awareness that CDFIs can partner with retail financial institutions to offer much-needed services. We hope that with outreach and training, community partnerships between CDFIs, non-profits, community organizations and even mainstream financial institutions will be formed in order to increase the depth and reach of CDFIs. </p><p>Finally, through the budget process, we are working to increase the level of funding for our programs. The 2017 budget proposes to increase the funding for the Bank Enterprise Award Program. The BEA program provides funding for FDIC-insured banks and thrifts for their community development activities. Through an increase in funding, Treasury hopes that these institutions will increase their number of small dollar consumer loans, youth savings accounts and other retail financial services.</p><p>In addition, this year's budget proposes a new Small Dollar Loan program to help all CDFIs – banks, nonprofits and credit unions - address the issue of predatory lending in their communities and provide an alternative to payday lenders. This program will provide grants to CDFIs to establish loan loss reserves and provide technical assistance to establish small dollar loan programs. The President's Budget also calls for extending the State Small Business Credit Initiative, a program that provides credit support for small business lending. From 2011-2014, California leveraged $8.6m in SSBCI funds to support $82.4m in CDFI lending to over 4,000 small businesses, most of which were microbusinesses.</p><p>In a moment, you'll hear from a panel about other ways that CDFIs are finding innovative solutions to deliver what their communities need, including partnerships with banks and other tools that will promote a more inclusive financial system. By partnering with other entities, CDFIs may be able to better connect with technologies that will help make them sustainable in years to come, and provide products and services for younger generations.</p><p>I look forward to continuing this work on financial inclusion and thank you for being a part of a movement to foster a financial system that works for all Americans. </p><p style="text-align:center;">###</p> 2016-02-09T05:00:00ZSpeeches196
Update for Capital Magnet Fund Applicants: Electronic Application Now Availablehttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=195Update for Capital Magnet Fund Applicants: Electronic Application Now Available<p>The electronic application for the fiscal year (FY) 2016 round of the Capital Magnet Fund is now available in the Community Development Financial Institutions Fund (CDFI Fund)’s Awards Management Information System (AMIS) and in Grants.gov. </p><p>All applicants must be registered in SAM.gov, Grants.gov, and AMIS to apply for funding. Organizations should confirm that their AMIS accounts are up-to-date as soon as possible in order to avoid potential application submission problems. New potential applicants are encouraged to begin the registration process now. Registration guidance for Grants.gov and SAM.gov can be found on the websites for those systems. Guidance on using AMIS (including registration) can be found at <a href="https://amis.cdfifund.gov/" target="_blank">https://amis.cdfifund.gov/</a>. </p><p>The CDFI Fund <b>strongly recommends</b> that the instructions and application timelines are reviewed closely by both first-time and repeat applicants and that applicants give themselves adequate time to submit their applications using AMIS.</p><p>To assist potential applicants, the CDFI Fund has provided application guidance and frequently asked questions on its website, www.cdfifund.gov/cmf, under Step 2: Apply. There, applicants can also find information about upcoming live webinars about the FY 2016 Capital Magnet Fund application and AMIS application submission process. </p><p><b>Reminder about Deadlines</b></p><ul><li><p>The deadline for submission of the Capital Magnet Fund application materials due through Grants.gov is 11:59 p.m. Eastern Time (ET) on Wednesday, March 16, 2016.</p></li><li><p>The deadline for submission of the Capital Magnet Fund application materials due through the CDFI Fund’s Award Management Information System (AMIS) is 11:59 p.m. ET on Wednesday, March 30, 2016.</p></li><li><p>The CDFI Fund will stop taking questions about the application at 5:00 p.m. ET on Monday, March 28, 2016. </p></li><li><p>The CDFI Fund will stop providing technical assistance about submitting the application through AMIS at 5:00 p.m. ET on Wednesday, March 30, 2016.</p></li></ul><p><b>Additional Materials </b></p><p>Potential Applicants are <b>strongly encouraged</b> to review these materials before preparing their applications. </p><ul><li><p><a href="/Documents/CMF%20NOFA%20FY%202016%20final%202%203%2015%20clean.pdf" target="_blank">2016 Capital Magnet Fund Notice of Funds Availability</a></p></li><li><p><a href="/Documents/CMF%20regulations%20final%202%203%2016%20clean.pdf" target="_blank">Capital Magnet Fund Interim Rule</a> </p></li></ul><p>Please view the CDFI Fund’s website at <a href="http://www.cdfifund.gov/cmf" target="_blank">www.cdfifund.gov/cmf</a> for full details about the Capital Magnet Fund and how to apply to the FY 2016 application round. Please direct any questions to the Capital Magnet Fund’s Help Desk at (202) 653-0421 or <a href="mailto:cmf@cdfi.treas.gov">cmf@cdfi.treas.gov</a>.  </p> 2016-02-05T05:00:00ZUpdates195
CDFI Fund Opens FY 2016 Funding Round for Capital Magnet Fundhttps://www.cdfifund.gov/Lists/CDFI News/DispForm.aspx?ID=189CDFI Fund Opens FY 2016 Funding Round for Capital Magnet Fund<p>The U.S. Department of the Treasury’s Community Development Financial Institutions Fund (CDFI Fund) opened today the fiscal year (FY) 2016 funding round for the Capital Magnet Fund. </p><p>Through the Capital Magnet Fund, the CDFI Fund provides competitively awarded grants to CDFIs and qualified non-profit housing organizations. These awards can be used to finance affordable housing activities, as well as related economic development activities (including community service facilities), with the objective of revitalizing low-income communities and underserved rural areas. Funding for the Capital Magnet Fund comes from allocations made by the Government-Sponsored Enterprises Fannie Mae and Freddie Mac. The total amount of funds available for the FY 2016 round will be determined in early 2016. Currently, the CDFI Fund estimates that approximately $80 million will be available for the FY 2016 round. </p><p>Capital Magnet Fund awardees are able to utilize funds to create financing tools such as loan loss reserves, revolving loan funds, risk-sharing loans, and loan guarantees. Recipients are required to leverage private and public funds to finance affordable housing and economic development activities that yield a minimum ratio of 10:1. </p><p>In order to provide potential applicants with as much time as possible, the CDFI Fund is posting the Notice of Funds Availability (NOFA) and application materials for the Capital Magnet Fund on the CDFI Fund’s website today in advance of the publication of the NOFA in the Federal Register later this week. </p><p> <b>Deadlines</b></p><ul><li><p>The deadline for submission of the Capital Magnet Fund application materials due through Grants.gov is 11:59 p.m. Eastern Time (ET) on Wednesday, March 16, 2016. </p></li><li><p>The deadline for submission of the Capital Magnet Fund application materials due through the CDFI Fund’s Award Management Information System (AMIS) is 11:59 p.m. ET on Wednesday, March 30, 2016.</p></li><li><p>The CDFI Fund will stop taking questions about the application at 5:00 p.m. ET on Monday, March 28, 2016.</p></li><li><p>The CDFI Fund will stop providing technical assistance about submitting the application through AMIS at 5:00 p.m. ET on Wednesday, March 30, 2016.</p></li></ul><p>Please see the NOFA for more information on submitting Capital Magnet Fund applications.</p><p> <b>Application Materials</b></p><p>The FY 2016 Capital Magnet Fund NOFA, application, application instructions, and related guidance can be found on the CDFI Fund’s website at <a href="/cmf" target="_blank">www.cdfifund.gov/cmf</a> under How to Apply Step 2: Apply. </p><p>Application materials will be available online through Grants.gov and AMIS. All applicants must be registered in SAM.gov, Grants.gov, and AMIS to apply for funding. Organizations should confirm that their accounts are up-to-date as soon as possible in order to avoid potential application submission problems. New potential applicants are encouraged to begin the registration process now. Registration guidance for Grants.gov and SAM.gov can be found on the websites for those systems. Guidance on using AMIS (including registration) can be found at <a href="https://amis.cdfifund.gov/" target="_blank">https://amis.cdfifund.gov/</a>. </p><p>The CDFI Fund will send out an additional notification when the electronic application is available in AMIS for application submission. The CDFI Fund strongly recommends that the instructions and application timelines are reviewed closely by both first-time and repeat applicants and that applicants give themselves adequate time to submit their applications using AMIS.</p><p> <b>Learn About Applying to the Capital Magnet Fund </b></p><p>The CDFI Fund will be holding several live webinar sessions to learn more about the FY 2016 Capital Magnet Fund round. </p><ul><li><p>Thursday, February 11, 2016 at 2:00 p.m. ET: General Application Webinar</p></li><li><p>Tuesday, February 16, 2016 at 1:00 p.m. ET: Webinar for Certified CDFIs</p></li><li><p>Thursday, February 18, 2016 at 2:00 p.m. ET: Webinar for Nonprofit Housing Organizations</p></li><li><p>Wednesday, February 24, 2016 at 1:00 p.m. ET: General Application Webinar</p></li><li><p>Tuesday, March 1, 2016 at 1:00 p.m. ET: AMIS Technical Webinar</p></li><li><p>Thursday, March 3, 2016 at 3:00 p.m. ET: AMIS Technical Webinar</p></li></ul><p> <b>Access information for all webinars is available <a href="/programs-training/Programs/cmf/Pages/apply-step.aspx#step2" target="_blank">on the CDFI Fund's website here</a>.</b></p><p> No prior registration is necessary. 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 conference calls begin. Presentation materials will be added to the CDFI Fund’s website after the webinars are held. </p><p> <b>Questions</b></p><p>For more information on the Capital Magnet Fund, please contact the CDFI Fund’s Help Desk by e-mailing <a href="mailto:cmf@cdfi.treas.gov" target="_blank">cmf@cdfi.treas.gov</a> or by calling (202) 653-0421. The CDFI Fund will stop responding to questions about the FY 2016 award round at <b>5:00 p.m. ET on Monday, March 28, 2016.</b> </p><p>To learn more about the CDFI Fund and its programs, please visit <a href="http://www.cdfifund.gov/" target="_blank">www.cdfifund.gov</a>.   </p>2016-02-02T05:00:00ZUpdates189

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