[Federal Register Volume 59, Number 91 (Thursday, May 12, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-11419]


[[Page Unknown]]

[Federal Register: May 12, 1994]


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DEPARTMENT OF AGRICULTURE
Farmers Home Administration

7 CFR Part 1948

RIN 0575-AB83

 

Intermediary Relending Program Loan Limit

AGENCIES: Farmers Home Administration and Rural Development 
Administration, USDA.

ACTION: Interim final rule.

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SUMMARY: The Farmers Home Administration (FmHA) and Rural Development 
Administration (RDA) are amending the regulations for the Intermediary 
Relending Program (IRP) to raise the loan limit. This action is needed 
to allow intermediaries that have received and successfully used the 
maximum amount of IRP loans allowed by the current regulations, and 
have need for additional funds, to be eligible to apply for such 
additional funds. The amendment is intended to raise the maximum 
outstanding IRP indebtedness of an intermediary to $4 million, from the 
current limit of $2 million.

DATES: Effective May 12, 1994.
    Comments must be received on or before July 11, 1994.

ADDRESSES: Submit written comments in duplicate to the Chief, 
Regulations Analysis and Control Branch, Farmers Home Administration, 
USDA, Ag. Box 0743, Washington, DC 20250-0743. All written comments 
made pursuant to this notice will be available for public inspection 
during regular working hours at the above office, located in room 6348, 
South Agriculture Building, 14th and Independence Avenue SW., 
Washington, DC.

FOR FURTHER INFORMATION CONTACT: M. Wayne Stansbery, Business and 
Industry Loan Specialist, Rural Development Administration, USDA, Ag. 
Box 3221, Washington, DC 20250-3221, Telephone (202) 720-6819.

SUPPLEMENTARY INFORMATION:

Classification

    We are issuing this interim rule in conformance with Executive 
Order 12866, and have determined that it is a ``significant regulatory 
action.''

Program Affected

    The Catalog of Federal Domestic Assistance program impacted by this 
action is: 10.767, Intermediary Relending Program.

Intergovernmental Review

    As set forth in the final rule and related Notice to 7 CFR part 
3015, subpart V, 48 FR 29112, June 24, 1983, this program is subject to 
the provisions of Executive Order 12372 which requires 
intergovernmental consultation with State and local officials. FmHA and 
RDA conduct intergovernmental consultation in the manner delineated in 
FmHA Instruction 1940-J, ``Intergovernmental Review of Farmers Home 
Administration Programs and Activities.''

Paperwork Reduction Act

    The information collection requirements contained in this 
regulation have been approved by the Office of Management and Budget 
(OMB) under the provisions of 44 U.S.C. chapter 35 and have been 
assigned OMB control number 0575-0130 in accordance with the Paperwork 
Reduction Act of 1980 (44 U.S.C. 3507). This interim rule does not 
revise or impose any new information collection or recordkeeping 
requirements from those approved by OMB. Please send written comments 
to the Office of Information Regulatory Affairs, OMB, Attention: Desk 
Officer for USDA, Washington, DC 20503. Please send a copy of your 
comments to Jack Holston, Agency Clearance Officer, USDA, FmHA, Ag. Box 
0743, Washington, DC 20250.

Civil Justice Reform

    This document has been reviewed in accordance with Executive Order 
12778. It is the determination of RDA and FmHA that this action does 
not unduly burden the Federal Court System in that it meets all 
applicable standards provided in section 2 of the Executive Order.

Environmental Impact Statement

    This action has been reviewed in accordance with FmHA Instruction 
1940-G, ``Environmental Program.'' FmHA and RDA have determined that 
this action does not constitute a major Federal action significantly 
affecting the quality of the human environment, and in accordance with 
the National Environmental Policy Act of 1969, Public Law 91-190, an 
Environmental Impact Statement is not required.

Background

    This regulatory package is an agency initiative to make the IRP 
more effective at stimulating rural community economic development. The 
current regulation prohibits approval of any IRP loan that would result 
in any one intermediary having an outstanding IRP indebtedness 
exceeding $2,000,000. RDA is still not encouraging initial loans of 
more that $2,000,000. However, some intermediaries have received and 
reloaned $2,000,000 and have demand for additional funding to meet the 
needs of the communities they serve. The primary reason for this action 
is to allow subsequent loans to those successful intermediaries that 
have reached the current limit.

Interim Rule

    It is the policy of this Department that rules relating to public 
property, loans, grants, benefits or contracts shall be published for 
comment notwithstanding the exemption of 5 U.S.C. 553 with respect to 
such rules. However, FmHA/RDA is making this action effective upon 
publication in the Federal Register without securing prior public 
comment. It would be contrary to the public interest to wait for public 
comments before implementing an increase in loan ceiling. There is an 
immediate need to provide funds to the public to help alleviate severe 
economic hardship which exists in many rural areas as the result of 
high unemployment and poverty level wages. Numerous intermediaries now 
exist that have received the maximum of $2 million, have successfully 
used all of the funds to assist rural businesses, and have urgent need 
for additional loan funds. These intermediaries have proven their 
ability to play a major and successful role in stimulating the economy 
and developing jobs in rural areas with high unemployment and depressed 
economies. Increasing the IRP loan ceiling quickly will allow them to 
receive additional IRP funds and continue to provide urgently needed 
assistance to businesses in their service areas. Delaying action will 
deprive them of needed funding. Comments will be accepted for 60 days 
after publication and, if appropriate, adjustments will be made in the 
regulation based on the comments.

List of Subjects in 7 CFR Part 1948

    Business and industry, Credit, Economic development, Rural areas.

    Accordingly, part 1948, chapter XVIII, title 7 of the Code of 
Federal Regulations is amended as follows:

PART 1948--RURAL DEVELOPMENT

    1. The authority citation for part 1948 continues to read as 
follows:

    Authority: 7 U.S.C. 1932 note; 5 U.S.C. 301; 7 CFR 2.23; 7 CFR 
2.70.

Subpart C--Intermediary Relending Program (IRP)


Sec. 1948.103  [Amended]

    2. Section 1948.103 is amended in paragraph (c)(4) by revising the 
number ``$2,000,000'' to read ``$4 million ($2 million for loans 
approved after September 30, 1995).''

    Dated: April 12, 1994.
Bob J. Nash,
Under Secretary for Small Community and Rural Development.
[FR Doc. 94-11419 Filed 5-11-94; 8:45 am]
BILLING CODE 3410-07-U-