FROM THE OFFICE OF PUBLIC AFFAIRS

WASHINGTON, DC - The Treasury Department has issued a Notice of Funds Availability (NOFA) for the "First Accounts" program, which seeks to increase the number of Americans who receive basic account services from insured financial institutions.

"Up to 40 million Americans do not use mainstream banking services" said Treasury Assistant Secretary for Financial Institutions Sheila C. Bair. "We hope this program will encourage the creation of innovative new products and services to significantly decrease the number of unbanked Americans."

The NOFA, published in the Federal Register on December 27, 2001, requests applications from a wide variety of entities to compete for $8 million in grant funds.

Eligible applicants for the funds include employers, community development financial institutions, depository institution holding companies, financial services electronic networks, Indian Tribal governments, insured credit unions, insured depository institutions, labor organizations, local governments, non-profit organizations and States.

The proposals for the grant funds will provide, either directly or through one or more insured depository institutions or insured credit unions, low-cost electronic, checking or other types of accounts to low- and moderate-income individuals who currently do not have an account with an insured institution.

The Treasury Department's NOFA puts particular emphasis on trying to reach unbanked employees through their employers, as well as encouraging arrangements whereby employees can obtain basic account services-building from services already provided by their employers' financial institutions. While the NOFA encourages such employer arrangements, it also will consider funding other types of applications that hold a reasonable likelihood of success. To foster innovation, the NOFA provides wide flexibility to applicants in crafting their applications, while giving priority to proposals that can be self-sustaining and replicable in other communities.

The deadline for applications is March 20, 2002. The application and additional information is available on the First Accounts web site, www.treas.gov/firstaccounts.