Title 12 — Banks and BankingRelease 119-73

§4704 Applications for assistance

Title 12 › Chapter CHAPTER 47— - COMMUNITY DEVELOPMENT BANKING › Subchapter SUBCHAPTER I— - COMMUNITY DEVELOPMENT BANKING AND FINANCIAL INSTITUTIONS › § 4704

Last updated Apr 6, 2026|Official source

Summary

Applications must be sent in the form and by the steps the Fund sets. Unless sections 4705 or 4712 say otherwise, the Fund will require an application to prove the group is or will become a community development financial institution and to include a full strategic plan. That plan must have a business plan of at least 5 years showing the group can be well managed and not stay dependent on Fund help; an analysis of the needs of the investment area or target population and how the group will meet them; a way to coordinate Fund help with federal, state, local, tribal, and private programs; an explanation of how the activities fit local economic, community, and housing plans; and a description of coordination with community groups and other lenders. The application must also show likely sources of matching funds. Repeat recipients must show they met past goals and will expand or grow services; applicants with prior experience must show a record of success and plans to expand. The Fund may ask for other information it thinks is needed. The Fund must run outreach to find and inform possible applicants and may give technical help, but it cannot help prepare an application.

Full Legal Text

Title 12, §4704

Banks and Banking — Source: USLM XML via OLRC

(a)An application for assistance under this subchapter shall be submitted in such form and in accordance with such procedures as the Fund shall establish.

(b)Except as provided in section 4705 and 4712 of this title, the Fund shall require an application—

(1)to establish that the applicant is, or will be, a community development financial institution;

(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 applicant will be properly managed and will have the capacity to operate as a community development financial institution that will not be dependent upon assistance from the Fund for continued viability;

(B)an analysis of the needs of the investment 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 programs, and private sector financial services;

(D)an explanation of how the proposed activities of the applicant are consistent with existing economic, community, and housing development plans adopted by or applicable to an investment area or targeted population; and

(E)a description of how the applicant will coordinate with community organizations and financial institutions which will provide equity investments, loans, secondary markets, 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 previously received assistance under this subchapter, to demonstrate that the applicant—

(A)has substantially met its performance goals and otherwise carried out its responsibilities under this subchapter and the assistance agreement; and

(B)will expand its operations into a new investment area or serve a new targeted population, 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 targeted populations, to demonstrate that the applicant—

(A)has a record of success in serving investment 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 business; and

(6)to include such other information as the Fund deems appropriate.

(c)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.

Reference

Citations & Metadata

Citation

12 U.S.C. § 4704

Title 12 — Banks and Banking

Last Updated

Apr 6, 2026

Release point: 119-73