Frequently Asked Questions

Last Updated: 3/21/11

Frequently Asked Questions are separated into three groups: questions that apply to all six Wachovia Wells Fargo NEXT Awards; questions about the $5.5 million and $2.75 million awards; and questions that apply to the $25,000 awards.

If you have a question that is not covered below, please email it to [email protected]. We will add the question and the response to the FAQs within 2 business days.

Questions about All Six Wachovia Wells Fargo NEXT Awards

  1. If an organization doesn't have audited financials, can they still apply for the Next Awards?
    For the $5.5 million and $2.75 million awards, three years of audits are required. NCUA 5300 financial reports for credit unions will not be accepted for the multi-million dollar awards. For the $25,000 awards an applicant must upload their most recently completed audited financial statement. For the $25,000 only, if the applicant is a credit union and does not have an audited financial statement, the applicant may upload their most recent NCUA Statement of Financial Condition (5300 report).
  2. Can I apply for a multi-million dollar award and a $25,000 award?
    Yes, an organization can apply for a $5.5 million or $2.75 million award, depending on asset size, and also apply for a $25,000 award. However, if the organization is selected for the $5.5 million award or the $2.75 million award, it cannot also be selected for a $25,000 award.
  3. Can an organization receive more than one Wachovia Wells Fargo NEXT Award?
    An organization that receives a $25,000 award will not be eligible to apply for a $25,000 award in future years but will be eligible to apply for a $2.75 million dollar award or $5.5 million in future years. An organization that receives a $2.75 million or a $5.5 million award will not be eligible to apply for any Wachovia Wells Fargo NEXT Award in future years.
  4. Can opportunity finance organizations that are on the Selection Committee apply for a Wachovia Wells Fargo NEXT Award?
    No. The opportunity finance organizations on the Selection Committee cannot apply.
  5. Does my organization have to be a member of the Opportunity Finance Network to apply?
    No, organizations do not have to be a member of OFN to be eligible for a Wachovia Wells Fargo NEXT Award. However, all organizations must meet the eligibility requirements of the award they are seeking.
  6. How do you define “community development financial institution (CDFI)”?
    The Wachovia Wells Fargo NEXT Awards defines a CDFI (or opportunity finance institution) as an entity that:
    • Has a primary mission of community development and strives to have a positive impact on low-income, low-wealth, and other disadvantaged people and communities. If the institution is part of, or controlled by, another corporation(s), the other corporation(s) must also have a primary mission of community development; and
    • Is a private non-governmental financial intermediary that uses financing as an integral part of its community development strategy.
    • In addition, the entity may have either a non-profit or for-profit tax status. Entities that are not 501(c)(3)'s, however, must meet additional criteria including CDFI Fund certification, and will need to provide additional documentation to determine whether the activities that would be supported by the Wachovia Wells Fargo NEXT Award comply with relevant government rules and regulations for charitable giving. The additional documentation requirements will be determined on a case-by-case basis.
  7. Does my organization have to be certified as a CDFI by the U.S. Treasury Department's CDFI Fund to apply?
    If your organization is tax-exempt under Section 501(c)(3) of the Internal Revenue Service code, it does not have to be certified by the CDFI Fund to be eligible for a Wachovia Wells Fargo NEXT Award. If your organization does not have this tax status, then CDFI Fund certification is required, but does not automatically guarantee eligibility.
  8. Is my organization automatically eligible if it is a U.S. Treasury Department CDFI Fund certified CDFI?
    No, certified CDFIs are not automatically eligible. They must meet all of the Eligibility Requirements of the award they are seeking.
  9. What does my CDFI need to provide as proof of CDFI Fund certification?
    As noted in the Application Guidelines, proof of CDFI Fund certification consists of a letter or other correspondence from the CDFI Fund.
  10. My organization has tax exempt status under Section 501(c)(3), but is controlled by a for-profit parent or has affiliates that do not have tax exempt status. Is my organization eligible to apply for an award?
    Your organization may be eligible to apply. If the institution is part of, or controlled by, another corporation(s), the other corporation(s) must also have a primary mission of community development. Additional documentation may be needed to determine whether the activities that would be supported by the Wachovia Wells Fargo Next Award comply with relevant government rules and regulations for charitable giving and the policies of The Wachovia Wells Fargo Foundation and MacArthur Foundation. Please do not attach additional documentation with your online application. We will contact you to request additional documentation that may be needed based on a review of your specific case.
  11. Does the applying 501(c)(3) organization have to have been a CDFI for a certain amount of time before applying for the Next Award?
    To apply for the multi-million dollar Wachovia Wells Fargo NEXT Awards, a CDFI must have been providing loans or making investments to achieve a community development mission for at least five years and meet all of the other Eligibility Requirements. . To apply for the $25,000 awards a CDFI must have been lending for three years and meet all of the other Eligibility Requirements.
  12. I represent a small CDFI community development credit union that has low income status. Can a small community development credit union be considered eligible on its own to apply for the awards or should the credit union use a 501(c)(3) partner as an instrument to apply for this award?
    A community development credit union that has low-income status can apply for a Wachovia Wells Fargo NEXT Award if it meets the other Eligibility Requirements. There is no need to apply with another organization that has 501(c)(3) status. See previous Q&A; on eligibility for further information on applicants that are not 501(c)(3)s.
  13. Is a CDFI certified bank eligible for the award?
    Yes, a CDFI certified bank can apply for a Wachovia Wells Fargo NEXT Award if it meets all of the Eligibility Requirements. See previous Q&A; on tax-exempt status and eligibility for further information on those issues.
  14. How will you determine that an organization that is not a 501(c)(3) is eligible for these awards?
    An organization that is not a 501(c)(3) tax-exempt organization must:
    • Be CDFI Fund-certified
    • Meet all other eligibility requirements and
    • Demonstrate that their use of funds would meet the IRS’s rules and regulations for charitable purposes to the satisfaction of OFN, The Wachovia Wells Fargo Foundation, and the MacArthur Foundation. We must make this judgment on a case by case basis; therefore, we cannot provide general guidance at this time on which additional documents may be requested.
  15. My organization is a US 501(c)(3) located in the US, but lending internationally. Does my organization meet the eligibility criteria?
    No, your organization must be a CDFI lending primarily in the US or US territories to apply for the Wachovia Wells Fargo NEXT Awards.
  16. We are a community loan fund based in Canada. We are structured like a CDFI as our organizational model is based on the USA experience. Would we be eligible to apply for the NEXT awards?
    Only United States based CDFIs are eligible to apply for the Wachovia Wells Fargo NEXT Awards.
  17. Is a tribal entity eligible for a Wachovia Wells Fargo NEXT Award? My organization is an LLC organized under the Tribe.
    A Native CDFI is eligible to apply if it is a separate organization from the Tribe and the Tribe does not have any form of control over the CDFI. The Native CDFI must satisfy all other Eligibility Requirements.
  18. We anticipate that we will be out of compliance with one of our quarterly financial covenants with one institutional investor for the period ending 3/31/10. We intend to ask for a waiver in writing from the institutional investor for the covenant non-compliance. If we get a written waiver, will we be eligible to apply for the Wachovia Wells Fargo NEXT award?
    If you have received a written waiver from your investor, you are in compliance and are eligible to apply for the Wachovia Wells Fargo NEXT award. Please forward the written waiver to [email protected].
  19. How will I know if my online application has been received?
    You will receive email notification confirming that your application was received.
  20. Can I set up an appointment to discuss my application?
    No. OFN staff will contact an applicant if they need clarification of facts and numbers in the application.
  21. How literally do I need to interpret the word limits for the Wachovia Wells Fargo NEXT Awards materials?
    The word limits for the Wachovia Wells Fargo NEXT Awards are strictly enforced. Statements over the maximum word limits will not be considered. Please note that the word limits include footnotes.
  22. We recently changed our name and are now “doing business as.” Should we complete the application under our DBA name or the name that is listed on our 501c3? Or do we just need to state that somewhere in the application?
    Complete the application under your DBA name, but please note the name change somewhere in the application.
  23. Do I have to enter all the information in the application all at once, or can I save it?
    You can save the application. Just remember your ID and password.
  24. What should I submit for a corporate entity chart if my organization is a single entity?
    Any and all related entities should be included in the corporate entity chart. If the applicant organization consists of a single entity, you may state that in a sentence rather than in chart form.
  25. Whom should I contact if I have questions?
    For questions or concerns regarding the application or application process, please send an email to [email protected]. The responses to your questions will be added to this FAQ.

    If you experience technical difficulty with the electronic application, send an email to [email protected].

Questions about the $5.5 Million and $2.75 Million Awards

  1. Added 3/18/11 - Based on our forecasts and current capitalization situation, we would not want to actually draw down the loan for about a year, if we were to win. Is that permitted, or must the loan be funded fully at the time the award is made?
    The NEXT awards are for CDFIs that are ready to accept, use and leverage a large, flexible, investment to take their organization to the NEXT level. We expect to close the Awards investments (debt and grant components) within 3 months of public announcement of the awards in October/November 2011, to the extent possible.
  2. Do applicants that are not selected for an award get a debriefing on the strengths and weaknesses of their applications?
    In 2011, organizations who are not selected to be Semi-Finalists will have the opportunity to set up a phone call with OFN staff to receive feedback on their application and provide input on the application process. Applicants who are not selected to be Semi-finalists will also receive a statement outlining the strengths of the semi-finalist applications.
  3. Can New Market Tax Credits available and/or in the pipeline apply to the $50 million debt/equity requirements?
    For the capital requirement, we will use consolidated financial statements from the applicant as our guide: all debt and equity available for lending/investing that is included in the consolidated financial statements (including affiliates and subsidiaries that are consolidated on financial statements) can be counted toward the capital requirement. If Qualified Equity Investments have been raised through the NMTC and they appear in the consolidated financial statement, they may be counted; otherwise, they cannot be counted.
  4. What are the pricing and term of the long-term loan portion of the Award?
    As it was in previous years the loan is a 10-year, 3% loan with quarterly interest payments.
  5. What are the covenants included in the loan agreement for the loan portion of the Award?
    Covenants will be negotiated on a case-by-case basis. For existing OFN borrowers, covenants will most likely be similar to existing covenants, with the exception of the concentration covenant. Standard OFN covenants relate to operating results, loan loss reserves, liquidity reserves and net assets. Other covenants are used on a case-by-case basis.
  6. Can an organization that wins a $2.75 million dollar award apply for a $5.5 million dollar award in the future if it grows bigger than the $50 million minimum asset requirement?
    No, an organization can only win one multi-million dollar award.
  7. My CDFI is seeking clarification as to whether “available” for lending can include existing outstanding loans (i.e. capital currently dedicated to lending), or if it includes uncommitted capital only?
    Capital dedicated to lending/investing includes both outstanding loans as well as uncommitted capital.
  8. If my CDFI has over $50 million in capital dedicated to lending can we decide to apply for the $2.75 million award?
    No, you must apply for the award size that matches your Organization’s capital dedicated to lending.
  9. My CDFI currently has a three-year, $100 million loan pool, so we have $33 million in capital to lend each year. Based on the total amount of capital we have available to lend, which award should my CDFI apply for?
    For the capital requirement, we will use consolidated financial statements from the applicant as our guide: all debt and equity available for lending/investing that is reflected on the balance sheet will be counted, not just capital for a specific time period.
  10. Can an organization include off-balance sheet resources to meet the Wachovia Wells Fargo NEXT Awards capital requirements?
    For the capital requirement, we will use consolidated financial statements from the applicant as our guide: all debt and equity available for lending/investing that is included in the consolidated financial statements (including affiliates and subsidiaries that are consolidated on financial statements) can be counted toward the capital requirement. In addition, for the capital requirement, an organization may include drawn (but not undrawn) lines of credit.
  11. If undrawn lines-of-credits are not counted towards capital dedicated to lending/investing, then our capital is less than $50 million in each of our 3 most recent year-end audited financials. However, if we draw on our available lines of credit in April, we will be above the $50 million threshold on our 4/30 interim financials which will be submitted with the application. Are we eligible to apply for the larger $5.5 million award?
    The capital dedicated to lending / investing requirement is based on either your most recent audit or interim financial statement, not your 3 most recent year-end financials.
  12. Will you use an applicant’s current level of capital dedicated to lending and/or investing or the amount it had at the end of its most recently completed fiscal year?
    You can use either the capital dedicated to lending/ investing as of the latest audit or interim financial statement. You will be prompted to specify the period you use on the application.
  13. Can an organization include its NMTC-related resources to meet the Wachovia Wells Fargo NEXT Awards capital requirements?
    See response to question #2 above. The assets of NMTC affiliates will be included and count towards the minimum capital eligibility requirement only if these assets are consolidated on the applicant's financial statements.
  14. Do our IDA matching funds count toward capital dedicated to lending and/or investing?
    No. Capital dedicated to lending / investing is capital available for lending, equity investments, loan purchases and loan guarantees.
  15. Which entity(ies) should we include in our responses to the application questions: the applicant organization or all of the entities included on our consolidated financial statements? When can we include our off-balance sheet activities?
    The evaluation of each applicant's vision, innovation and impact will take into account all of the mission-driven lending and investing carried out by the applicant organization, its subsidiaries and its affiliates, regardless of whether these entities are part of the applicant's consolidated financial statement. This assessment also will take into account any off-balance sheet activities that contribute to the organization's overall profile as a leading CDFI. However, to assess each applicant's financial strength and performance in an efficient, transparent and consistent way, only a single entity will be examined. The tables below show which entity(ies) we will evaluate for each Eligibility Requirement and selection criterion, and when we will consider off-balance sheet activities.
    16. Eligibility Requirement Entity(ies) to Be Evaluated
    Charitable Purpose Single Entity
    Mission Consolidated Entities and Off-Balance Sheet Activity
    Finance-based Strategy Single Entity
    3 Years of Financing Experience Single Entity
    Discipline and Performance Single Entity
    Current Plan Single Entity or Consolidated Entities
    Capital Requirements Consolidated Entities on Audit
    Selection Criterion Entity(ies) to Be Evaluated
    Use of Funds Consolidated Entities
    Vision Consolidated Entities and Off-Balance Sheet Activity
    Innovation Consolidated Entities and Off-Balance Sheet Activity
    Leadership Consolidated Entities and Off-Balance Sheet Activity
    Financial Strength and Performance Single Entity
    Impact and Policy Consolidated Entities and Off-Balance Sheet Activity
  16. Does my organization have to operate within Wachovia Wells Fargo’s market to be eligible for a Wachovia Wells Fargo NEXT Award?
    No, any CDFI or opportunity finance institution that meets all the Eligibility Requirements of the award they are seeking can apply.
  17. Does my organization have to be CARS™ Rated to be eligible to apply?
    Applicants do not have to be CARS™ Rated to apply. Winners will be required to get a CARS™ Rating if they do not already have one, subject to CARS™ having the capacity to rate your organizational type.
  18. We are a CARS™ rated organization and recently submitted all the required information and documents for our CARS™ Annual Review. The updated CARS™ report has not been published and probably won't be available until June. In the Wachovia Wells Fargo NEXT award application questions 5-12 say we should submit an update if a material change has occurred. For these questions will the new documents and updates we recently sent in be used or do we additionally need to attach (for questions 5-12 in the application) the CARS™ updates we provided?
    The materials you provided for your CARS™ Annual Review will not be included as part of your application. If the CARS™ Annual Review is not completed prior to April 30th it will not be included either. You do not need to provide updates for these questions unless a material change has occurred since your last completed CARS™ analysis or Annual Review, but you may include any information to provide updates from your last CARS™ full analysis or annual review that you see as pertinent.
  19. We applied for the Wachovia Wells Fargo NEXT Awards last year without having a CARS™ rating. Is it okay to do so again this year? If I recall, we had to answer several additional questions in light of not having the CARS™.
    You are still eligible to apply for a Wachovia Wells Fargo NEXT Award if you do not have a CARS™ rating. Having a CARS™ rating allows organizations to provide a streamlined application as much of the material is covered in a CDFI’s CARS™ analysis. If you do not have a CARS™ analysis you must provide all of the requested documents as part of your application.
  20. I am a CARS™ Rated CDFI. How do I get my CARS™ ID?
    Opportunity Finance Network will email each CARS™ Rated CDFI its unique CARS™ ID.
  21. How much does it cost to get a CARS™ Rating and how long does the process take?
    The cost for a CARS™ Rating is currently $5,000 for an organization with under $15 million in assets, $7,000 for an organization with $15 million to $50 million in assets and $8,000 for an organization with over $50 million in assets. These prices may go up in future periods. The CARS™ analysis takes approximately four to six months to complete.
  22. My CDFI provides loans and bank guarantees. The guarantees are not on our financial statements, but we reserve against them. Should we include guarantees in our write-off and delinquency percentages?
    Do not include guarantees in your write-off and delinquency percentage if you do not include guarantees in your financial statements. Please include your guarantees in the narrative portion of the application if this is an important part of your lending program.
  23. Our financing products include lines of credits. Should we count the credit limit or the draw downs when calculating our volume of loans originated?
    For lines of credit, count the credit limit in the volume of originations.
  24. If a portion of an applicant’s 5-year financing history includes any time when it was part of a larger organization, should we count this time?
    No. An applicant's financing history while it was part of a larger organization does not count toward the 5-year minimum. To meet this Eligibility Requirement, an applicant must have and be able to document clearly a 5-year financing history as a private non-governmental financial intermediary.
  25. How will you determine the 3-year financial history of an organization that is the result of a merger that took place within the last 3 years?
    If the applicant is a merged organization that does not have a 3-year financing history, then one of the organizations that merged must have and be able to document a pre-merger financing history as a private non-governmental financial intermediary that, when combined with the post-merger history, equals at least 3 years. Please submit corresponding financial statements and provide responses in the Summary Financial Information section of the application that correspond to these financial statements. If the applicant becomes a semi-finalist, we will contact you to request additional financial information on the second organization.
  26. Can two organizations submit a joint application?
    No. The applicant must be a single entity.
  27. For the 2011 round of Wachovia Wells Fargo NEXT Awards is it no longer a requirement for organizations to illustrate an increased lending volume?
    Yes, this is no longer an Eligibility Requirement, but it will be taken into consideration as part of the application review, particularly with respect to the Financial Strength and Performance selection criteria.
  28. For the 2011 round of Wachovia Wells Fargo NEXT Awards is it no longer a requirement for organizations to illustrate a profit for the last three years?
    Yes, this is no longer an Eligibility Requirement, but it will be taken into consideration as part of the application review and particularly with respect to the Financial Strength and Performance selection criteria.
  29. Will the loan portion of the Award be unsecured? Can the loan be pre-paid without penalty?
    Yes, the loan is unsecured, and may be pre-paid without penalty.
  30. What is the allowable time period for spending the grant portion of the Award?
    The grant must be spent within five years.
  31. What are eligible uses of the grant funds?
    Grant funds may be used in any way that supports achievement of the applicant's vision and charitable purposes. Eligible uses include but are not limited to one or more of the following: staff salaries, facilities, technology improvements, loan loss reserves, lending/investing capital, purchases of other assets, start or expansion of business lines, etc.
  32. Will the grant be disbursed in one lump sum at the beginning of the grant period or disbursed over a number of years? What will be the term of the grant?
    The grant will be disbursed in one lump sum with the loan, and will be unrestricted.
  33. Do I need to submit a work plan for the grant portion of the award?
    The application requires a statement of proposed use. If you are selected for the award, a detailed work plan, as well as grant reporting, will be required.
  34. How will the Selection Committee verify that my organization meets the Eligibility Requirements?
    OFN staff will review your organization’s financial statements, mission statements, corporate entity chart, and other required materials to verify that your organization meets all the Eligibility Requirements. If necessary, OFN will contact your organization to request additional information.
  35. If the Selection Committee has questions about my application, will they contact me to clarify them?
    Applicants are expected to submit complete and clear applications that comply with all of the word count and other application requirements. To ensure fairness, all applications will be evaluated as submitted. Finalists will be contacted by Opportunity Finance Network Senior Staff to provide additional financial and portfolio quality information as part of the application evaluation process. Semifinalist and finalist management teams should also be available to have conversations with Opportunity Finance Network Senior Staff during the evaluation period. Finalists for the $5.5 million and $2.75 million awards will make an in-person presentation to the Selection Committee. OFN reserves the right to disqualify any application that is incomplete or otherwise not in compliance with application requirements. OFN also reserves the right to contact an applicant to clarify facts or numbers.
  36. Can I contact members of the Selection Committee directly to discuss my application?
    No. The Selection Committee will not accept or respond to communications from individual applicants.
  37. Will the Selection Committee make any site visits to applicants?
    The review process does not include site visits to any applicants; however, OFN reserves the right to make a site visit to any organization if they determine it is necessary for a complete assessment of the applicant.
  38. Who is making the final selection?
    The Selection Committee will meet with award finalists, and will select the award recipients.
  39. Will OFN call me if staff does not understand how to interpret my organization’s financial statements?
    OFN may contact an applicant if it deems it necessary to fully understand that applicant’s financial statements.
  40. If my organization receives an award, will I be notified before the OFN Conference?
    Awardees of the $2.75 million and $5.5 million prizes will be notified before the OFN Conference.
  41. My organization is both a CDFI intermediary and a credit union. What are the implications of identifying ourselves as one versus the other in the application?
    There are no implications. Please identify your organization however best characterizes your business.

Questions about the $25,000 Awards

  1. Added 3/21/11 - Will the $25,000 award program consist of up-front funds or will it be reimbursement?
    We expect to close and fund the $25,000 Wachovia Wells Fargo NEXT Awards grants by year end 2011. Applicants should note that recipients of the $25,000 Wachovia Wells Fargo NEXT Awards will be required to submit an annual audit and a narrative progress report one year after the award is made.
  2. Can an organization apply for all four categories (Advocacy, Community Impact, Financing or Innovation) if they perform all four (4) services?
    An organization can apply for more than one category of the $25,000 Wachovia Wells Fargo NEXT Awards, but can only win one $25,000 award. If you apply for more than one $25,000 Wachovia Wells Fargo NEXT Award, you must use a different username and password in the online application for each award application.
  3. Our organization was pleased to receive a Wachovia Excellence Award in 2006. We are interested in applying for one of this year’s $25,000 awards and wanted to confirm whether or not our past award changes our eligibility.
    If an organization received a Wachovia Excellence Award in the past it is eligible to apply for the $25,000 Wachovia Wells Fargo NEXT Award. If an organization has received a $25,000 Wachovia Wells Fargo NEXT Award it is not able to apply for the $25,000 awards again.
  4. As part of the Wachovia Excellence Awards you needed to be nominated to be considered for an award. Do you need to secure nominators? Should you submit any letters of endorsement from organizations that can speak to your accomplishments?
    For the Wachovia Wells Fargo NEXT Awards we are not accepting nominations of other organizations. Please only fill out an application for your organization. Endorsements are not part of the Wachovia Wells Fargo NEXT Awards applications.
  5. Do advocacy applications require submission of the extensive financial materials requested such as net write-offs and delinquency information?
    Detailed financial information is requested only for the $2.75 million and $5.5 million awards. Please see the $25,000 awards application guidelines to see what is required to apply for a $25,000 award.
  6. Can microenterprise lending organizations apply for a Wachovia Wells Fargo NEXT Award advocacy award?
    Yes, microenterprise lenders can apply for an advocacy award. However, all organizations must meet the Eligibility Requirements of the award they are seeking.
  7. We represent a small CDFI community development credit union with low income status. Because of our limited assets/income, we do not have our financial statements audited. Can we use the last STATEMENT OF FINANCIAL CONDITION (5300 report) as accepted by NCUA (and available on their website) in place of an audited financial statement?
    For the $25,000 awards, a Statement of Financial Condition (5300 report) as accepted by the NCUA will be accepted in place of audited financials.
  8. Who will select the $25,000 awardees?
    OFN and the Wachovia Wells Fargo Foundation staff will review the applications and select the awardees.
  9. If I win, will I be notified before the OFN Conference?
    Finalists will be notified ahead of time. Awardees are announced at the Conference, and not before. Applicants must be in attendance to win. Please do not apply if you do not plan to attend the conference