Government Funds Native Community Banks With Alphabet Soup Program
Published Date: 1/17/2025
Notice
Summary
The Department of the Treasury is opening up money for Native American community groups to apply for financial or technical help through the 2025 NACA Program. If you’re a certified group serving Native American, Alaska Native, or Native Hawaiian communities, now’s the time to get your applications in by mid-March or early April. Don’t miss these deadlines if you want a shot at funding to boost your community projects!
Analyzed Economic Effects
9 provisions identified: 6 benefits, 3 costs, 0 mixed.
Estimated $28M in NACA awards
The CDFI Fund expects to award approximately $28.0 million for NACA in FY2025 across Base-FA, PPC-FA, and TA. Anticipated ranges include Base-FA awards of $150,000 to $1,500,000 (about 27 awards, average $822,000), PPC-FA $100,000 to $400,000 (about 10 awards, average $280,000), and TA $10,000 to $200,000 (about 15 awards, average $200,000).
Funding depends on Congressional appropriation
All FY2025 NACA awards are subject to final appropriations; the NOFA states that if Congress does not appropriate funds for NACA there will not be an FY2025 Funding Round. The CDFI Fund also reserves the right to change amounts or reallocate funds based on final appropriations.
Matching funds permanently waived
The Indian Community Economic Enhancement Act of 2020 permanently waived the Matching Funds requirement for Native American CDFI Financial Assistance applicants. TA applicants and HP-FA applicants are also not required to provide Matching Funds.
What grant dollars can pay for
NACA Financial Assistance awards may be used for activities including Commercial Real Estate, Small Business, Microenterprise, Community Facilities, Consumer Financial Products and Services, Affordable Housing, Intermediary Lending, Climate-Focused Financing, Loan Loss Reserves, Development Services, Capital Reserves, and Direct Administrative Expenses. TA awards may fund items such as compensation, professional services, travel, training, equipment, supplies, and incorporation costs (Sponsoring Entities only).
HP-FA housing affordability rules
HP-FA funds must finance rental housing affordable to families at or below 120% Area Median Income (AMI) and/or homeownership projects affordable to families at or below 150% AMI, with the CDFI Fund prioritizing projects affordable to families at or below 80% AMI. HP-FA recipients must increase housing units financed versus their recent three-year baseline and ensure projects will be completed and ready for occupancy by the end of the Period of Performance.
Three-year award cap of $5 million
An Applicant's total sum of Base-FA, TA, PPC-FA and HP-FA awards over the last three years will not exceed $5,000,000. This cap applies regardless of the stated maximum award amounts for each category.
Key application deadlines and steps
If your organization wants FY2025 NACA funding, you must create an AMIS account and submit the SF-424 by February 18, 2025 (11:59 p.m. ET). You must submit the NACA Program Application in AMIS by March 21, 2025 (11:59 p.m. ET), and the Excel HP-FA production application by April 4, 2025 (11:59 p.m. ET).
Disability fund targeting requirement (DF-FA)
DF-FA award funds must directly or indirectly benefit individuals with disabilities, and the majority of DF-FA-supported loans or investments must benefit people with disabilities in an amount equal to or greater than 85% of the total DF-FA provided. Eligible uses include loans for accessible housing, employment opportunities, and assistive technology.
Native-community allocation requirement
At the end of each year of the Period of Performance, 50% or more of the Financial Products closed by NACA Recipients must be in Native Communities. FA award funds must be used in Eligible Markets or the Applicant's approved Target Market and FA recipients must meet Performance Goals and Measures in the Assistance Agreement.
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