§ 4706. Selection of institutions

• (a) Except as provided in section 4712 of this title , the Fund shall, in its sole discretion, select community development financial institution applicants meeting the requirements of section 4704 of this title for assistance based on—
  • (1) the likelihood of success of the applicant in meeting the goals of its comprehensive strategic plan;
  • (2) the experience and background of the management team;
  • (3) the extent of need for equity investments, loans, and development services within the investment areas or targeted populations;
  • (4) the extent of economic distress within the investment areas or the extent of need within the targeted populations, as those factors are measured by objective criteria;
  • (5) the extent to which the applicant will concentrate its activities on serving its investment areas or targeted populations;
  • (6) the amount of firm commitments to meet or exceed the matching requirements and the likely success of the plan for raising the balance of the match;
  • (7) the extent to which the matching funds are derived from private sources;
  • (8) the extent to which the proposed activities will expand economic opportunities within the investment areas or the targeted populations;
  • (9) whether the applicant is, or will become, an insured community development financial institution;
  • (10) the extent of support from the investment areas or targeted populations;
  • (11) the extent to which the applicant is, or will be, community-owned or community-governed;
  • (12) the extent to which the applicant will increase its resources through coordination with other institutions or participation in a secondary market;
  • (13) in the case of an applicant with a prior history of serving investment areas or targeted populations, the extent of success in serving them; and
  • (14) other factors deemed to be appropriate by the Fund.
• (b) In selecting applicants for assistance, the Fund shall seek to fund a geographically diverse group of applicants, which shall include applicants from metropolitan, nonmetropolitan, and rural areas.