[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR4279.107]

[Page 572-573]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
                   SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 4279_GUARANTEED LOANMAKING--Table of Contents
 
                  Subpart B_Business and Industry Loans
 
Sec. 4279.107  Guarantee fee.

    The guarantee fee will be paid to the Agency by the lender and is 
nonrefundable. The fee may be passed on to the borrower. Except as 
provided in this section, the guarantee fee will be 2 percent multiplied 
by the principal loan amount multiplied by the percent of guarantee and 
will be paid one time only at the time the Loan Note Guarantee is 
issued.
    (a) The guarantee fee may be reduced to 1 percent if the Agency 
determines that the business meets the following criteria:
    (1) High impact business development investment (It is the goal of 
this program to encourage high impact business investment in rural 
areas. The weight given to business investments will be in accordance 
with Sec. 4279.155(b)(5) of this subpart); and
    (2) The business is located in a community that is experiencing long 
term population decline and job deterioration; or
    (3) The business is located in a rural community that has remained 
persistently poor over the last 60 years; or
    (4) The business is located in a rural community that is 
experiencing trauma as a result of natural disaster or that is 
experiencing fundamental structural changes in its economic base.
    (b) Each fiscal year, the Agency shall establish a limit on the 
maximum portion of guarantee authority available for that fiscal year 
that may be used to guarantee loans with a guarantee fee of 1 percent. 
The limit will be announced by publishing a notice in the Federal 
Register. Once the limit has been

[[Page 573]]

reached, the guarantee fee for all additional loans obligated during the 
remainder of that fiscal year will be 2 percent.