12 U.S.C. § 4704 — Applications for assistance

Page 1735 TITLE 12—BANKS AND BANKING § 4705 ‘‘(b) REPORTING.—The Inspector General of the De- partment of the Treasury shall submit to the Com- mittee on Financial Services of the House of Rep- resentatives and the Committee on Banking, Housing, and Urban Affairs of the Senate and the Secretary of the Treasury not less frequently than 2 times per year a report relating to the oversight provided by the Office of the Inspector General, including any recommenda- tions for improvements to the programs described in subsection (a).’’ § 4704. Applications for assistance (a) Form and procedures An application for assistance under this sub- chapter shall be submitted in such form and in accordance with such procedures as the Fund shall establish. (b) Minimum requirements Except as provided in sections 4705 and 4712 of this title, the Fund shall require an applica- tion— (1) to establish that the applicant is, or will be, a community development financial insti- tution; (2) to include a comprehensive strategic plan for the organization that contains— (A) a business plan of not less than 5 years in duration that demonstrates that the ap- plicant will be properly managed and will have the capacity to operate as a commu- nity development financial institution that will not be dependent upon assistance from the Fund for continued viability; (B) an analysis of the needs of the invest- ment area or targeted population and a strategy for how the applicant will attempt to meet those needs; (C) a plan to coordinate use of assistance from the Fund with existing Federal, State, local, and tribal government assistance pro- grams, and private sector financial services; (D) an explanation of how the proposed ac- tivities of the applicant are consistent with existing economic, community, and housing development plans adopted by or applicable to an investment area or targeted popu- lation; and (E) a description of how the applicant will coordinate with community organizations and financial institutions which will provide equity investments, loans, secondary mar- kets, or other services to investment areas or targeted populations; (3) to include a detailed description of the applicant’s plans and likely sources of funds to match the amount of assistance requested from the Fund; (4) in the case of an applicant that has pre- viously received assistance under this sub- chapter, to demonstrate that the applicant— (A) has substantially met its performance goals and otherwise carried out its respon- sibilities under this subchapter and the as- sistance agreement; and (B) will expand its operations into a new investment area or serve a new targeted pop- ulation, offer more products or services, or increase the volume of its business; (5) in the case of an applicant with a prior history of serving investment areas or tar- geted populations, to demonstrate that the ap- plicant— (A) has a record of success in serving in- vestment areas or targeted populations; and (B) will expand its operations into a new investment area or to serve a new targeted population, offer more products or services, or increase the volume of its current busi- ness; and (6) to include such other information as the Fund deems appropriate. (c) Preapplication outreach program The Fund shall provide an outreach program to identify and provide information to potential applicants and may provide technical assistance to potential applicants, but shall not assist in the preparation of any application. (Pub. L. 103–325, title I, § 105, Sept. 23, 1994, 108 Stat. 2170.) § 4705. Community partnerships (a) Application An application for assistance may be filed jointly by a community development financial institution and a community partner to carry out a community partnership. (b) Application requirements The Fund shall require a community partner- ship application— (1) to meet the minimum requirements es- tablished for community development finan- cial institutions under section 4704(b) of this title, except that the criteria specified in para- graphs (1) and (2)(A) of section 4704(b) of this title shall not apply to the community part- ner; (2) to describe how each coapplicant will par- ticipate in carrying out the community part- nership and how the partnership will enhance activities serving the investment area or tar- geted population; and (3) to demonstrate that the community part- nership activities are consistent with the stra- tegic plan submitted by the community devel- opment financial institution coapplicant. (c) Selection criteria The Fund shall consider a community partner- ship application based on— (1) the community development financial in- stitution coapplicant— (A) meeting the minimum selection cri- teria described in section 4704 of this title; and (B) satisfying the selection criteria of sec- tion 4706 of this title; (2) the extent to which the community part- ner coapplicant will participate in carrying out the partnership; (3) the extent to which the community part- nership will enhance the likelihood of success of the community development financial insti- tution coapplicant’s strategic plan; and (4) the extent to which service to the invest- ment area or targeted population will be bet- ter performed by a partnership as opposed to the individual community development finan- cial institution coapplicant.