62. How must an Applicant demonstrate Accountability to its proposed Target Market(s)?

Applicants must demonstrate individual and, if required, collective accountability to their proposed Target Market(s) through one of the following options:

Option 1: Governing Board Only

• At least one governing board member is accountable to each proposed Target Market type, and
• At least 33% of the governing board is accountable to the overall proposed Target Market(s);

Option 2: Governing Board Supplemented by Advisory Board

• At least 20% of the governing board members are accountable to the overall proposed Target Market;
• At least one advisory board member is accountable to each proposed Target Market type;
• At least 60% of the advisory board is accountable to the overall proposed Target Market(s);
• At least one governing board member is also a member of the advisory board; and
• The Applicant has adopted an advisory board policy.

Option 3: Advisory Board Supplemented by Credit Union Membership (Credit Union
Applicant Only)

• At least 33% of the credit union’s members are determined to be members of at least
  one Target Market type in the overall proposed Target Market, using a CDFI Fundapproved
  Target Market assessment methodology;
• At least one advisory board member is accountable to each proposed Target Market
  type;
• At least 60% of the advisory board is accountable to the overall proposed Target
  Market(s);
• At least one governing board member is also a member of the advisory board; and
• The Applicant has adopted an advisory board policy.

Option 4: Advisory Board Only (DIHCs and IDIs, and entities without a formal
governing board only)

• At least one advisory board member is accountable to each proposed Target Market
  type;
• At least 80% of the advisory board is accountable to the overall proposed Target
  Market(s);
• At least one governing board member or partner/owner of the Applicant entity is also
  a member of the advisory board; and
• The Applicant has adopted an advisory board policy.