[Federal Register: November 12, 2009 (Volume 74, Number 217)]
[Notices]
[Page 58239]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr12no09-19]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
[[Page 58239]]
DEPARTMENT OF AGRICULTURE
Rural Business--Cooperative Service
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2010;
Maximum Portion of Guarantee Authority Available for Fiscal Year 2010;
Annual Renewal Fee for Fiscal Year 2010
AGENCY: Rural Business--Cooperative Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: As set forth in 7 CFR 4279.107(b) and 4280.126(c), Rural
Development (the Agency) has the authority to charge an annual renewal
fee for loans made under the Business and Industry (B&I) Guaranteed
Loan Program and the Rural Energy for America (Section 9007; formerly
Section 9006 Renewable Energy Systems and Energy Efficiency
Improvements Program) Guaranteed Loan Program. Pursuant to that
authority, the Agency is establishing the renewal fee rate at one-
fourth of 1 percent for the B&I Guaranteed Loan Program and one-fourth
of 1 percent for the Section 9007 Guaranteed Loan Program. These rates
will apply to all loans obligated in fiscal year (FY) 2010 that are
made under the cited programs. As established in 7 CFR 4279.107 and
4280.126, the amount of the fee on each guaranteed loan will be
determined by multiplying the fee rate by the outstanding principal
loan balance as of December 31, multiplied by the percent of guarantee.
As set forth in 7 CFR 4280.126(a), each fiscal year the Agency
shall establish the initial guarantee fee rate for loans made under the
Section 9007 Guaranteed Loan Program. Pursuant to that authority, the
Agency is establishing the initial guarantee fee rate at 1 percent for
loans made in FY 2010.
As set forth in 7 CFR 4279.107(a) and 4279.119(b)(4), each fiscal
year the Agency shall establish a limit on the maximum portion of B&I
guarantee authority available for that fiscal year that may be used to
guarantee loans with a B&I guarantee fee of 1 percent or guaranteed
loans with a guarantee percentage exceeding 80 percent.
Allowing the guarantee fee to be reduced to 1 percent or exceeding
the 80 percent guarantee on certain B&I guaranteed loans that meet the
conditions set forth in 7 CFR 4279.107 and 4279.119, will increase the
Agency's ability to focus guarantee assistance on projects which the
Agency has found particularly meritorious. For 1 percent fees, (1) the
borrower's business must support value-added agriculture and result in
farmers benefiting financially, or (2) such projects are ``high
impact'' as defined in 7 CFR 4279.155(b)(5), and are located in rural
communities that either (a) remain persistently poor, (b) have
experienced long-term population decline and job deterioration, (c) are
experiencing trauma as a result of natural disaster, or (d) are
experiencing fundamental structural changes in its economic base. For
guaranteed loans exceeding 80 percent, such projects must be a high-
priority project in accordance with 7 CFR 4279.155 (and meet the other
requirements of 7 CFR 4279.119(b)).
Not more than 12 percent of the Agency's quarterly apportioned B&I
guarantee authority (including available Disaster funding) will be
reserved for loan requests with a guarantee fee of 1 percent, and not
more than 15 percent of the Agency's quarterly apportioned guarantee
authority (including available Disaster funding) will be reserved for
guaranteed loan requests with a guaranteed percentage exceeding 80
percent. Once the respective quarterly limits are reached, all
additional loans for that quarter will be at the standard fee and
guarantee limits in 7 CFR part 4279. As an exception to this paragraph
and for the purposes of this notice, loans developed by the North
American Development Bank (NADBank) Community Adjustment and Investment
Program (CAIP) will not count against the 15 percent limit. Up to 50
percent of CAIP loans may have a guarantee percentage exceeding 80
percent. The funding authority for CAIP loans is not derived carryover
or recovered funding authority of the B&I Guaranteed Loan Program.
For B&I projects funded with American Recovery and Reinvestment Act
(ARRA) funds, there is no renewal fee and all guaranteed loans will be
charged a 1 percent guarantee fee. Any guaranteed loan that is $10
million or less that scores at least 55 points in accordance with RD
Instruction 4279-B, section 4279.155, will receive a 90 percent
guarantee.
DATES: Effective Date: November 12, 2009.
FOR FURTHER INFORMATION CONTACT: Brenda Griffin, e-mail
brenda.griffin@wdc.usda.gov, Rural Development, Business Programs,
Business and Industry Division, STOP 3224, 1400 Independence Avenue,
SW., Washington, DC 20250-3224, telephone (202) 720-6802.
SUPPLEMENTARY INFORMATION: This action has been reviewed and determined
not to be a rule or regulation as defined in Executive Order 12866 as
amended by Executive Order 13258.
Date: October 16, 2009.
Judith A. Canales,
Administrator, Rural Business--Cooperative Service.
[FR Doc. E9-27143 Filed 11-10-09; 8:45 am]
BILLING CODE 3410-XY-P