Notice2024-28521
Notice of Information Collection and Request for Public Comment
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
December 6, 2024
Issuing agencies
Treasury DepartmentCommunity Development Financial Institutions Fund
Abstract
The U.S. Department of the Treasury, as part of a continuing effort to reduce paperwork and respondent burden, invites the general public and other Federal agencies to take this opportunity to comment on proposed and/or continuing information collections, as required by the Paperwork Reduction Act (PRA) of 1995. Currently, the Community Development Financial Institutions Fund (CDFI Fund), Department of the Treasury, is soliciting comments concerning the Small Dollar Loan Program (SDL Program) Application (Application). The Application is an online form submitted through the CDFI Fund's Awards Management Information System (AMIS). Information on the SDL Program can be found on the CDFI Fund's website at https://www.cdfifund.gov/programs- training/programs/sdlp. The CDFI Fund is required by law to make the Applications publicly available for comment prior to submission for a new PRA number.
Full Text
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<title>Federal Register, Volume 89 Issue 235 (Friday, December 6, 2024)</title>
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[Federal Register Volume 89, Number 235 (Friday, December 6, 2024)]
[Notices]
[Pages 97167-97169]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2024-28521]
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DEPARTMENT OF THE TREASURY
Community Development Financial Institutions Fund
Notice of Information Collection and Request for Public Comment
ACTION: Notice and request for public comment.
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SUMMARY: The U.S. Department of the Treasury, as part of a continuing
effort to reduce paperwork and respondent burden, invites the general
public and other Federal agencies to take this opportunity to comment
on proposed and/or continuing information collections, as required by
the Paperwork Reduction Act (PRA) of 1995. Currently, the Community
Development Financial Institutions Fund (CDFI Fund), Department of the
Treasury, is soliciting comments concerning the Small Dollar Loan
Program (SDL Program) Application (Application). The Application is an
online form submitted through the CDFI Fund's Awards Management
[[Page 97168]]
Information System (AMIS). Information on the SDL Program can be found
on the CDFI Fund's website at <a href="https://www.cdfifund.gov/programs-training/programs/sdlp">https://www.cdfifund.gov/programs-training/programs/sdlp</a>. The CDFI Fund is required by law to make the
Applications publicly available for comment prior to submission for a
new PRA number.
DATES: Written comments must be received on or before February 4, 2025
to be assured of consideration.
ADDRESSES: You may submit comments concerning the SDL Program
Application via the Federal e-Rulemaking Portal at <a href="http://www.regulations.gov">www.regulations.gov</a>.
Follow the instructions on the website for the submission of comments.
In general, all comments will be available for inspection at
<a href="http://www.regulations.gov">www.regulations.gov</a>. Comments, including attachments and other
supporting materials, are part of the public record. Do not submit any
information in your comments or supporting materials that you consider
confidential or inappropriate for public disclosure. Information
regarding the CDFI Fund and its programs may be obtained through the
CDFI Fund's website at <a href="http://www.cdfifund.gov">http://www.cdfifund.gov</a>.
FOR FURTHER INFORMATION CONTACT: Eddie Tsibulevskiy, Program Manager,
SDL Program, CDFI Fund, U.S. Department of the Treasury, 1500
Pennsylvania Avenue NW, Washington, DC 20220, by email to
<a href="/cdn-cgi/l/email-protection#a5f6e1e9f5e5c6c1c3cc8bd1d7c0c4d68bc2cad3"><span class="__cf_email__" data-cfemail="d281969e8292b1b6b4bbfca6a0b7b3a1fcb5bda4">[email protected]</span></a>, or phone 202-653-0421 (Option 3).
SUPPLEMENTARY INFORMATION:
Title: Small Dollar Loan Program Application.
OMB Number: 1559-0051.
Abstract: The Small Dollar Loan Program (SDL Program) was
authorized by Title XII--Improving Access to Mainstream Financial
Institutions Act of the Dodd-Frank Wall Street Reform and Consumer
Protection Act of 2010 (Pub. L. 111-203), which amended the Community
Development Banking and Financial Institutions Act of 1994 (12 U.S.C.
4719). Through the SDL Program, the CDFI Fund provides Federal
Financial Assistance in the form of grants for loan loss reserves and
technical assistance to enable award recipients to establish and/or
expand small dollar loan programs. Small dollar loan programs supported
by the SDL Program are intended to address the issues of consumer
access to mainstream financial institutions and provide alternatives to
high-cost small dollar loans. The SDL Program is also intended to
enable award recipients to help unbanked and underbanked populations
build credit, access affordable capital, and allow greater access into
the mainstream financial system.
Through the SDL Program, the CDFI Fund provides:
<bullet> Grants for Loan Loss Reserves (LLR): The awards will
enable a Certified Community Development Financial Institution (CDFI)
to establish a loan loss reserve fund to defray the costs of
establishing or expanding a small dollar loan program.
<bullet> Grants for Technical Assistance (TA): The awards will
support technology, staff support, and other eligible activities to
enable a Certified CDFI to establish and maintain a small dollar loan
program.
SDL Program Award Recipients are selected through a competitive
process involving a careful review of all Applications for program
funding. The Application requires the submission of numeric data and
narrative responses in three parts: 1. Market Need; 2. Business
Strategy and Impact; and 3. Organizational Capacity, including
financial and compliance-related data. The Award selection process is
defined in the Notice of Funds Availability (NOFA) for each funding
round.
SDL Program Award Recipients enter into Assistance Agreements with
the CDFI Fund that set forth required terms and conditions of the
Award, including reporting and data collection requirements. The
Assistance Agreement requires the submission of annual performance
reports. The CDFI Fund reviews the information collected in the
performance reports to ensure the Recipient's compliance with its
Performance Goals and contractual obligations, as well as monitor the
overall performance of the program.
This request for public comment relates to the SDL Program form
under OMB control number 1559-0051, which includes the Application.
Capitalized terms not defined in this Notice (other than titles) have
the meaning set forth in the fiscal year (FY) 2024 SDL Program NOFA.
Current Actions: Renewal of existing Information Collection.
Type of Review: Regular Review.
Affected Public: Businesses or other for-profit institutions, non-
profit entities, and State, local and Tribal entities participating in
CDFI Fund programs.
Estimated Number of Respondents: 100 (Application).
Estimated Annual Time per Respondent: 89 hours (Application).
Estimated Annual Burden Hours: 8,900 hours (Application).
Request for Comments: Comments submitted in response to this Notice
will be summarized and/or included in the request for Office of
Management and Budget approval. All comments will become a matter of
public record and may be published on the CDFI Fund website at <a href="https://www.cdfifund.gov">https://www.cdfifund.gov</a>. The CDFI Fund is seeking input on the SDL Program
Application. The Application may be obtained from the Request for
Public Comments page of the CDFI Fund's website at <a href="https://www.cdfifund.gov/requests-for-comments">https://www.cdfifund.gov/requests-for-comments</a>.
The CDFI Fund is seeking: (a) specific input on the content of the
SDL Program Application and (b) general input on the SDL Program
related topics and considerations.
Comments concerning the Application are invited on: (a) whether the
collection of information is necessary for the proper performance of
the functions of the agency, including whether the information shall
have practical utility; (b) the accuracy of the agency's estimate of
the burden of the collection of information; (c) ways to enhance the
quality, utility and clarity of the information to be collected; (d)
ways to minimize the burden of the collection of information on
respondents, including through the use of technology; (e) estimates of
capital or start-up costs and costs of operation, maintenance and
purchase of services required to provide information; and (f) whether
any additional questions or factors should be considered as part of the
CMF Application and/or review process.
Additionally, the CDFI Fund specifically requests comments
concerning the following questions:
1. Should any data fields, questions, or tables, be added, removed,
or clarified to ensure collection of relevant information?
2. The Application states that LLR Awards cannot exceed 20% of the
Applicant's three-year projected total of small dollar loans closed. Is
the 20% cap appropriate for the purpose of supporting a wide variety of
small dollar loan program designs? If not, provide a rationale and
state what alternative cap would be more appropriate.
3. Is the maximum LLR Award size of $350,000 appropriate for the
purpose of supporting a wide variety of small dollar loan program
designs? If not, what maximum award size would be more appropriate and
why?
4. The Application requests information on how the Applicant will
use an LLR Award to establish a small dollar loan program or expand an
existing one. Is the requested information adequate to demonstrate a
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need for an LLR Award? Why or why not? What, if any, additional
information should be collected to assess the need and use of an LLR
Award request?
5. Is the maximum award size for Technical Assistance Awards of
$150,000 appropriate to support eligible Technical Assistance
activities? If not, what maximum award size would be appropriate and
why?
6. Is the data collected in the track record and projections tables
adequate and appropriate to assess an Applicant's experience in small
dollar lending and projections? Why or why not?
7. The period of performance for SDLP awards is three years. Is
three years sufficient to expend the award to launch or expand a small
dollar loan program? If it's not sufficient, what period would be more
appropriate and why?
8. Is there other information not requested (such as additional
detail on other unsecured consumer loans below $10,000) in the
Application that would demonstrate an Applicant's experience in small
dollar lending and projected small dollar lending activities? If yes,
what is that information?
9. The Application includes questions about the intended impact of
an Applicant's small dollar lending strategy. (1) How should the CDFI
Fund assess the impact of SDL Program Awards on communities served by
Applicants? (2) The CDFI Fund has identified a set of impact options
for Applicants to choose in the Application. Are the current impact
choices sufficient? Why or why not? Are there impacts that should be
added or modified and if yes, what are they?
10. The SDL Program Application states that the Awards will not be
made to Applicants that engage in the Prohibited Practices listed in
Table 1. Are the Prohibited Practices appropriate to prevent predatory
or abusive lending practices that low-income borrowers often face? Why
are why not? Are there any Prohibited Practices that should be added,
eliminated, or clarified? What are they?
Table 1--SDL Program Prohibited Practices
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Prohibited practice Prohibited practice definition
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i. High-Rate loans..................... Loans that exceed the lower of
the following two rates: (1)
an all-inclusive 36% APR
(using the methodology
prescribed in 32 CFR 232.4 of
the Military Lending Act
(referred to as the Military
Annual Percentage Rate [MAPR];
or (2) the interest rate limit
as set by the state agency
that oversees financial
institutions in your state.
ii. Coerced automated repayments....... Loans that: (1) have delayed
loan disbursements for
borrowers who do not agree to
automatic repayments, (2)
charge fees for borrowers who
select manual payments, or (3)
require borrowers to make
payments using wire transfers
or other means that may result
in additional fees for
borrowers.
iii. Excessive refinancing............. Loans that allow refinancing
before at least 80% of the
principal has been repaid.
iv. Loan insurance or credit card add- Loans that offer add-on
ons. insurance or credit card
products, whether they are
automatic or not, that require
borrowers to opt-in or opt-out
to decline coverage or require
the borrower to accept or opt-
out of a credit card. For
example, loans that
automatically include
insurance products such as
credit, life, disability
insurance or involuntary
unemployment insurance
coverage, or loans that
automatically open a credit
card for the borrower.
v. Security interests in household Loans that are secured, except
goods, vehicles, or deposit accounts. for loans secured by a savings
Exception: loans with a savings account for loans with a
account component or credit builder savings component or credit
loans. builder loans.
vi. Excessive late fees on missed loan Loans that charge more than one
payments. fee per late payment.
vii. Abusive overdraft practices....... Lenders who hold the account
from which repayment is being
made may not collect a loan
payment from the borrower's
account that overdraws the
account, triggering overdraft
fees.
viii. Aggressive debt collection Loans in which the lender:
practices. <bullet> Does not offer a
workout program or other
accommodations to help
struggling borrowers before
pursuing other debt collection
avenues.
<bullet> All debt collection
activities must comply with
the Fair Debt Collection
Practices Act, whether
conducted by the lender, a
contract debt collector or
sold to third party debt
collectors.
<bullet> Does not disclose to
borrowers the details of its
debt collection practices or
provide notice to a borrower
when its account is placed
with debt collectors.
ix. Forced arbitration clause, class Loan contracts that contain
action ban, and other bans on legal clauses that prevent borrowers
remedies. from seeking legal remedies in
court, such as mandatory
arbitration clauses, or
clauses requiring that the
borrower waive the right to a
trial by jury or the right to
participate in a class action
lawsuit.
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Authority: (Pub. L. 111-203. 12 U.S.C. 4719, 12 CFR part 1805, 12
CFR part 1815, 12 U.S.C. 4502)
Pravina Raghavan,
Director, Community Development Financial Institutions Fund.
[FR Doc. 2024-28521 Filed 12-5-24; 8:45 am]
BILLING CODE 4810-05-P
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