[Federal Register Volume 59, Number 129 (Thursday, July 7, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-16422]


[[Page Unknown]]

[Federal Register: July 7, 1994]


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DEPARTMENT OF AGRICULTURE
Rural Development Administration

 

Submission of Information Collection to OMB (Under Paperwork 
Reduction Act and 5 CFR Part 1320)

AGENCY: Rural Development Administration, USDA.

ACTION: Notice.

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SUMMARY: The proposed information collection requirements described 
below have been submitted to the Office of Management and Budget (OMB) 
for expedited clearance under 5 CFR 1320.18. The Agency is soliciting 
public comments on the subject submission. This action is necessary in 
order for the Agency to promulgate a new regulation to administer the 
Rural Technology Development Grants (RTDG) program as required by 
legislation. Fiscal year (FY) 1994 appropriation contained $1.5 million 
for the RTDG program. Implementation of this regulation is required to 
administer FY 1994 grants before the end of the FY, since appropriated 
funds cannot be carried forward. It is essential that ample time be 
given for applicants to complete the application process. Failure to 
implement this program and award FY 1994 grants will result in a 
negative impact in the rural areas.

ADDRESSES: Interested persons are invited to submit comments regarding 
this submission. Comments should refer to the proposal by name and 
should be sent to: Lisa Grove, USDA Desk Officer, Office of Management 
and Budget, New Executive Office Building, Washington, DC 20503.

FOR FURTHER INFORMATION CONTACT: Jennifer Barton, Loan Specialist, 
Community Facilities Division, Room 6304, South Agriculture Building, 
14th and Independence Avenue SW., Washington, DC 20250-0700, Telephone: 
(202) 720-1504.

SUPPLEMENTARY INFORMATION: This Notice informs the public that the 
Rural Development Administration (RDA), USDA, has submitted to OMB, for 
expedited processing, this proposal for collection of information for 
clearance as required by the Paperwork Reduction Act (44 U.S.C. Chapter 
35). It is requested that OMB approve this submission within 10 days.

    Authority: Section 3507 of the Paperwork Reduction Act, 44 
U.S.C. 3507.

Supporting Statement

7 CFR 4284-F, Rural Technology Development Grants
    1. Explanation of the circumstances that make the collection of 
information necessary--Public Law 101-624, Section 2347 (7 U.S.C. 1932 
(f) through (h) authorizes grants to establish centers for rural 
technology and cooperative development. In order for an eligible 
applicant to apply for and receive the grant, application must be made 
at the Farmers Home Administration (FmHA) State Office.
    7 CFR 4284 Subpart F contains the specific eligibility 
requirements, the application procedures, the evaluation process RDA 
uses to make selection decisions, and the servicing requirements. 
Grants are competitive and will be awarded based on specific selection 
criteria required by legislation. Project selection will be given to 
those projects that contribute the most to the improvement of economic 
conditions of rural areas. The information submitted should provide an 
accurate picture of the economic conditions of the rural areas to be 
served.
    2. How, by whom, and for what purpose the information is to be 
used--The various forms and narrative requirements contained within 
this regulation are collected from applicants who are public bodies or 
nonprofit institutions. This information is used for determining such 
factors as: (1) eligibility; (2) the specific purposes for which grant 
funds will be utilized; (3) timeframes or dates by which funds will be 
used; (4) who will be carrying out the purposes for which the grant is 
made; (5) project priority; (6) applicant's experience in administering 
a rural economic development program; (7) employment and economic 
development improvement; and (8) geographic location of the area/
business(s) to be served. This information is collected in the process 
of developing the full application and will be gathered in the FmHA 
State Offices.
    Grant selection priority points and general project evaluation will 
be provided for applications based on the economic conditions, project 
proposal, applicant experience, as well as commitments by other funding 
sources.
    If the information is not collected, FmHA will not be able to 
determine: (a) the eligibility of the applicant/projects; (b) whether 
applicable laws and regulations are complied with; and (c) the 
feasibility of the project.
    A summary of the reporting burden to be cleared with this request 
is described as follows:

Intergovernmental Consultations

    This consultation is required in accordance with Executive Order 
12372.

Evidence of Legal Existence and Authority

    The applicant must provide organizational documents to verify its 
eligibility in the program.

Financial Information

    The applicant's latest financial information must be submitted to 
verify the organization's financial capacity to carry out the proposed 
work. The information must include the current year balance sheet and 
income statement. -----

Source and Certification of Other Funds

    The source and amount of applicant's matching share and other 
funding sources and amounts to be contributed to the project must be 
identified. The applicant will be requested to provide certification 
that it has its matching share of funds available for use on the 
project and certifications from other funding sources identified as 
contributing to the grant project. This information will be used by 
FmHA in making grant selections and in determining that the required 
funds for the projects will be available.

Budget

    The budget must be prepared by the applicant as a plan for the 
categories of costs under the grant and will be used by FmHA to monitor 
the use of funds and accomplishments of the grantee.

Area To Be Served

    The applicant must identify the area to be served which includes 
governmental units, town, county, etc.

Demographic Information

    The applicant must provide information concerning the project area 
relating to rural industries and agribusinesses, underemployment, 
outmigration of people and businesses and industries from the area, and 
per capita income of the area. This information will be used to select 
projects that will benefit the most needy areas. The applicant must 
submit the most current full calendar year for which data is available 
and the 3 previous calendar years, if available.

Businesses To Be Assisted

    This information is requested to determine the method and rationale 
that the applicant used to select areas and businesses to be assisted 
by their proposed project to determine that the selection was objective 
and reached the most needy areas/businesses.

Applicant Experience

    The applicant must submit a description of its experience and 
capability in carrying out similar types of programs to be used to show 
its ability to carry out the grant purposes.

Duration of Project

    The applicant must provide FmHA with the number of months duration 
of the project or service and the estimated time it will take from 
grant approval to beginning of service.

Source of Work To Be Performed

    The applicant must submit a brief description of how the work will 
be performed and whether organizational staff or consultants/
contractors will be used.

Evaluation Method

    The applicant's evaluation method for determining whether the 
objectives of the project are being met must be provided so that FmHA 
can determine that the applicant objectively evaluates its project 
work.

Plan for Rural Technology Development Grants

    Applicants must provide a brief plan which describes how they will 
meet certain provisions relating to how the center will effectively 
serve rural areas; improve the economic condition of rural areas by 
promoting the development and commercialization of new products, 
processes, and services, and new enterprises that can add value to on-
farm production through processing or marketing; description of 
proposed grant activities and results; provisions for consultation with 
business, industry, educational institutions, Federal Government, 
State, and local governments, and specifically consultation with 
colleges/universities administering Extension Service programs; 
provisions for obtaining other funding sources; provisions for 
monitoring/evaluating the center's activities and accounting for grant 
funds; and provisions for optimal application of technology and 
cooperative development in rural areas, especially areas adversely 
affected by adverse agricultural economic conditions. This information 
will be used by RDA to determine that the application meets the intent 
of the program and to make a determination concerning grant selection 
of a project.

Proposed Agreement Between Applicants and Ultimate Recipients

    If grant funds will be used for the purpose of making loans/grants 
to businesses (ultimate recipients), the applicant must provide a 
proposed agreement which reflects the grantee and the ultimate 
recipient's responsibilities in use of grant funds.

Plan To Provide Financial Assistance to Third Parties

    If the project plan is to provide financial assistance to third 
parties from a revolving fund established, in part, with RTDG funds, 
the applicant must provide RDA with information regarding the project 
to be financed, sources of all non-RTDG funds, amount of technical 
assistance, purposes of loans/grants, project priority, length of time 
for completion of each project, and other relevant information. This 
information will be used to ensure that loans made as a direct result 
of grant funds are being utilized in accordance with RDA regulations 
(including EEO laws) and environmental regulations and will help ensure 
that objectives and purposes of the grant program are met.

Scope of Work

    The scope of work must be prepared by the applicant. It is a 
summary of previously gathered information concerning the use of the 
grant funds, timeframes for actions, key personnel to be utilized, and 
the use of other than RTDG funds. This information will be used to 
monitor what is accomplished by the grantee.

Request for Appeal

    If applicable, this is a letter from the grantee requesting a 
review of any adverse decision made by RDA.

Evidence of Authority To Execute Documents

    The evidence of authority to execute documents will be used by FmHA 
as evidence that the person executing applicable grant documents on the 
behalf of the applicant organization has the authority to obligate the 
applicant organization.

Evidence of Fidelity Bond Coverage

    Fidelity bonds are required for an amount equal to the greatest 
amount of funds on hand by a grantee. This is to ensure that if funds 
are somehow lost, stolen, misappropriated, etc., that the actual loss 
to the grantee will be mitigated and that purposes of the grant will 
continue.

Project Performance Report

    Applicants are required to submit project performance reports in 
accordance with 7 CFR parts 3015 and 3016. These reports are necessary 
to monitor the appropriate use of grant funds. The project performance 
report shall include, but need not be limited to:
    1. A comparison of actual accomplishments to the objectives 
established for that period;
    2. Reasons why established objectives were not met;
    3. Problems, delays, or adverse conditions which will materially 
affect attainment of planned project objectives, prevent the meeting of 
time schedules or objectives, or preclude the attainment of project 
work elements during established time periods. This disclosure shall be 
accompanied by a statement of the action taken, or contemplated, to 
resolve the situation;
    4. Objectives established for the next reporting period;
    5. Why available information cannot be used or modified.--Status of 
compliance with any special conditions on the use of grant funds.

Audit Report

    Audit reports will be required in accordance with 7 CFR 3015 and 
3016 to determine that grant funds have been utilized for approved 
purposes.

AD-1049, Certification Regarding Drug-Free Workplace Requirements 
(Grants) Alternative I--for Grantees Other Than Individuals

    AD-1049 will be executed by the applicant no later than grant 
closing to certify that the drug-free workplace requirements will be 
met. The use of this form complies with 7 CFR part 3017.

SF-424.1, Application for Federal Assistance

    The SF-424 will be utilized for preapplications for the program. 
Applicants are initially requested to utilize a preapplication to 
provide detailed information for RDA to use in determining eligibility 
and priority for available funds. The information will be utilized by 
RDA to determine that applicants meet the eligibility criteria mandated 
by law and have the capability and resources to carry out the proposed 
projects.

SF-424.1, Application for Federal Assistance

    The application and related information will be used by RDA to 
approve the project. The applicants are asked to provide a minimum 
amount of additional information with their applications.

SF-269, Financial Status Report

    SF-269 will be used by RDA to quarterly monitor the financial 
status of the grantee. The use of this form complies with 7 CFR parts 
3015 and 3016.

SF-270, Request for Advance or Reimbursement

    SF-270 will be submitted by the grantee and used by RDA to document 
disbursement of grant funds. The use of this form complies with 7 CFR 
parts 3015 and 3016.

Exhibit A--Agreement of Administrative Requirements for Rural 
Technology Development Grants

    This exhibit contains information regarding the responsibilities of 
the grantee for receipt of grant funds under the Rural Technology 
Development Grant program. The grantee must read, understand, and sign 
this agreement.

Record Keeping Requirements

Financial Records

    Grantees must maintain financial management systems and retain 
financial records in accordance with standards prescribed in 7 CFR 
parts 3015 and 3016, as appropriate, in accordance with terms and 
conditions of the grant. Grantee records must include an accurate 
accounting and must document how these funds are used.

Property Records

    Grantees must maintain property records in accordance with 
standards prescribed in 7 CFR parts 3015 and 3016, as appropriate, in 
accordance with terms and conditions of the grant.
    3. Use of improved technology.--Improved information technology may 
be used by the grantee; however, each grantee may be relatively small 
and high technology information transfer is not considered economically 
justifiable by FmHA or the grantees. The collection of information 
required by this regulation is minimal and is more a synopsis of 
grantee activities than original data.
    4. Efforts to identify duplication.--The Agency has reviewed all 
grant programs it administers to determine which programs may be 
similar in intent and purpose. The Agency has several grant programs 
that are similar. It is doubtful that an applicant would apply for 
funding under the RTDG program at the same time and for the same 
purpose as an application under another program. However, if there were 
simultaneous participation in more than one grant program, the Agency 
would make every effort to accommodate the requests within the same set 
of applications and processing forms. This effort is presently 
facilitated by assignment of management of these programs to the same 
program area of responsibility. If a grantee is applying for, or 
receiving, a grant from another Federal agency, the forms and documents 
furnished to the other agency would be utilized to the extent possible.
    5. Why available information cannot be used or modified.--As stated 
in 4, if similar information is available within RDA or another agency, 
every effort would be made to utilize that information as is or in an 
appropriately modified form for this program.
    6. Methods to minimize burden of small businesses or entities.--The 
information to be collected is in a format designed to minimize the 
paperwork burden on small businesses and other small entities. The 
information collected is the minimum needed by the Agency to approve 
grants and monitor the grantee performance.
    7. Consequence if information collection were less frequent.--If 
the collection of information were conducted less frequently, it could 
have an adverse effect on the Agency's ability to administer the grant 
program. The Agency must determine that the grant funds are to be used 
by the eligible applicants for authorized purposes.
    8. Inconsistency with guidelines in 5 CFR 1320.6.--There are no 
special circumstances that require the collection to be conducted in a 
manner inconsistent with the guidelines in 7 CFR 1320.6, except for SF-
270. The SF-270 is submitted voluntarily during the disbursement 
period; requests are limited to one every 30 days.
    9. Consultation with persons outside of Agency.--The regulation is 
being published as an interim rule in the Federal Register with a 
request for comments. Implementation of this program is required by 
legislation. No consultations have been made at this time; however, 
comments on the interim rule will be considered.
    10. Confidentially provided to respondent.--No assurance of 
confidentiality is provided to applicants and grantees beyond that 
required by law.
    11. Questions of a sensitive nature.--There will be no collection 
of any information that would be considered sensitive in nature or 
commonly considered private.
    12. Annualized costs to Federal Government and respondents.--The 
Agency estimates the cost to the respondents to comply with this 
regulation to be $78,715. This is based on an estimate of 100 
organizations filing a preapplication and the Agency making 50 of them 
a grant. The Agency used $13.00 per hour based on information from 
similar programs. It is estimated that the primary respondents for the 
grantee would be a director earning $10.80 to $15.45 per hour.
    The cost to the Federal Government to collect and evaluate this 
information is estimated to be $71,718. This includes staff time, 
printing, publication of regulations, operational expenses, and 
overhead. Staff time will vary with appropriation levels because the 
amount of available resources does affect how many applicants will 
apply and need evaluation for funding and how many projects will need 
monitoring and servicing. This estimated cost is based on the grants 
being approved and serviced in the State Office.
    13. Estimate of burden.--We estimate the total annual man hours 
required to comply with this regulation to be 6,055. It is estimated 
that 100 organizations will file a preapplication and 50 grantees will 
be selected for funding. This estimate is based on historical data from 
similar FmHA programs.
    14. Reason for changes in burden.--This is an initial request for 
OMB clearance.
    15. Tabulation, analysis, and publication plans.--The information 
collected is not for the purpose of publication.

Subpart F--Rural Technology Development Grants

Table of Contents

Sec.
4284.501  Purpose.
4284.502  Policy.
4284.503  [Reserved]
4284.504  Definitions.
4284.505  Applicant eligibility.
4284.506-4284.514  [Reserved]
4284.515  Grant purposes.
4284.516  Ineligible grant purposes.
4284.517-4284.526  [Reserved]
4284.540  Grant selection criteria.
4284.527  Other considerations.
4284.528  Application processing.
4284.529-4284.539  [Reserved]
4284.541  Grant approval, fund obligation, grant closing, and third-
party financial assistance.
4284.542-4284.555  [Reserved]
4284.556  Docket preparation and Letter of Conditions.
4284.557  Fund disbursement.
4284.558  Reporting.
4284.559-4284.570  [Reserved]
4284.571  Audit requirements.
4284.572  Grant servicing.
4284.573  Programmatic changes.
4284.574  Subsequent grants.
4284.575  Grant suspension, termination, and cancellation.
4284.576-4284.586  [Reserved]
4284.587  Exception authority.
4284.588  Forms and exhibits.
4284.589-4284.599  [Reserved]
4284.600  OMB control number.

Subpart F--Rural Technology Development Grants

Sec. 4284.501  Purpose

    (a) This subpart outlines the Rural Development Administration's 
(RDA) policies and authorizations and sets forth procedures to 
provide grants for technology and cooperative development in rural 
areas. Grants will not be awarded under this subpart after July 13, 
1995.
    (b) Grants for establishing and operating centers for rural 
technology or cooperative development will be for the primary 
purpose of improving the economic condition of rural areas by 
promoting the development (through technological innovation, 
cooperative development, and adaptation of existing technology) and 
commercialization of new services and products that can be produced 
or provided in rural areas; new processes that can be utilized in 
the production of products in rural areas; and new enterprises that 
can add value to on-farm production through processing or marketing.
    (c) Copies of all forms and Instructions referenced in this 
subpart are available in the Farmers Home Administration (FmHA)/RDA 
National Office or any FmHA State Office.

Sec. 4284.502  Policy

    (a) The grant program will be used to assist in the economic 
development of rural areas.
    (b) Funds allocated for use in accordance with this subpart are 
also to be considered for use by Native American tribes within the 
State regardless of whether State development strategies include 
Indian reservations within the State's boundaries. Native American 
tribes residing on such reservations must have equal opportunity 
along with other rural residents to participate in the benefits of 
these programs. This includes equal application of outreach 
activities of RDA servicing offices.

Sec. 4284.503  [Reserved]

Sec. 4284.504  Definitions

    Approval official--Any authorized FmHA/RDA official.
    Cooperative--An association organized to provide a specific 
service with open membership, equality in ownership and control, 
limited return on members' capital, and equitable methods to 
distribute any excess earnings back to its members.
    Cooperative development--The startup or expansion of a 
cooperative which will promote the development of new services and 
products that can be produced or provided in rural areas, new 
processes that can be utilized in the production of products in 
rural areas, and/or new enterprises that can add value to on-farm 
production through processing or marketing.
    Economic development--The growth of an area as evidenced by 
increases in total income, employment opportunities, decreased 
outmigration of populations, value of production, increased 
diversification of industry, higher labor force participation rates, 
increased duration of employment, higher wage levels, and/or gains 
in other measurements of economic activity, such as land values.
    Nonprofit institutions--Any organization or institution, 
including an accredited institution of higher education, no part of 
the net earnings of which inures, or may lawfully inure, to the 
benefit of any private shareholder or individual.
    Project--The undertaking for which funds will be used to develop 
or operate a technology and/or cooperative development center.
    Public body--Any State, county, city, township, incorporated 
towns and villages, boroughs, authorities, districts, locally-based 
areawide economic development organizations, and Indian tribes on 
Federal and State reservations, and other federally recognized 
Indian tribes in rural areas.
    Servicing office--Any FmHA/RDA State office.
    Small business--A business which does not exceed the maximum 
number of employees or annual receipts allowed for a concern 
(including its affiliates) to be considered small according to the 
established size standards for Small Business Administration (SBA) 
assistance as set forth in 13 CFR, part 121. The business may be 
operated on a profit or nonprofit basis but must rely primarily on 
revenues of the business for operation.
    Technology--The application of science to industrial or 
commercial objectives. The entire body of methods and material used 
to achieve such objectives.
    Technology development--The creation of new technology or the 
use and application of existing technology to promote the 
development and commercialization of new products, new processes, 
and new services that can be produced or provided in rural areas.
    Rural and rural area--Includes all territory of a State, the 
Commonwealth of Puerto Rico, the Virgin Islands of the United 
States, Guam, American Samoa, or the Commonwealth of the Mariana 
Islands that is not within the outer boundary of any city having a 
population of 50,000 or more and its immediately adjacent urbanized 
and urbanizing areas with a population density of more than 100 
persons per square mile, as determined by the Secretary of 
Agriculture according to the latest decennial census of the United 
States.
    Urbanized area--An area immediately adjacent to a city having a 
population of 50,000 or more which, for general social and economic 
purposes, constitutes a single community and has a boundary 
contiguous with that of the city. Such community may be incorporated 
or unincorporated to extend from the contiguous boundary(ies) to 
recognizable open country, less densely settled areas, or natural 
boundaries such as forests or water. Minor open spaces such as 
airports, industrial sites, recreational facilities, or public parks 
shall be disregarded. Outer boundaries of an incorporated community 
extend at least to its legal boundaries. Cities which may have a 
contiguous border with another city, but are located across a river 
from such city, are recognized as a separate community and are not 
otherwise considered a part of an urbanized or urbanizing area, as 
defined in this section, are not in a nonrural area.
    Urbanizing area--A community which is not now, or within the 
foreseeable future not likely to be, clearly separate from and 
independent of a city of 50,000 or more population and its 
immediately adjacent urbanized areas. A community is considered 
``separate from'' when it is separated from the city and its 
immediately adjacent urbanized area by open country, less densely 
settled areas, or natural barriers such as forests or water. Minor 
open spaces such as airports, industrial sites, recreational 
facilities, or public parks shall be disregarded. A community is 
considered ``independent of'' when its social and economic structure 
(e.g., government; educational, health, and recreational facilities; 
and business, industry, tax base, and employment opportunities) is 
not primarily dependent on the city and its immediately adjacent 
urbanized areas.

Sec. 4284.505  Applicant Eligibility

    (a) Grants may be made to public bodies or nonprofit 
institutions.
    (1) The RDA will proceed as follows in rural area 
determinations: When the RDA determines an area to be urbanized or 
urbanizing, he/she must then determine the population density per 
square mile. If the project otherwise appears to be eligible, the 
RDA will request the National Office to provide the correct density 
figure.
    (2) All such density determinations will be made on the basis of 
minor civil division or census county division as used by the Bureau 
of the Census. In making the density calculations, large 
nonresidential tracts devoted to urban land uses such as railroad 
yards, airports, industrial sites, parks, golf courses, and 
cemeteries or land set aside for such purposes will be excluded.
    (b) An outstanding judgement obtained against an applicant by 
the United States in a Federal Court (other than in the United 
States Tax Court), which has been recorded, shall cause the 
applicant to be ineligible to receive any grant or loan until the 
judgement is paid in full or otherwise satisfied. RDA grant funds 
may not be used to satisfy the judgement. Questions about whether or 
not a judgement is still outstanding should be directed to the 
Office of the General Counsel (OGC).

Secs. 4284.506-4284.514  [Reserved]

Sec. 4284.515  Grant Purposes

    Grant funds may be used to pay up to 75 percent of the costs for 
establishing and/or operating centers for rural technology and/or 
cooperative development. Applicant's contribution may be in cash or 
third party in-kind contribution in accordance with parts 3015 and 
3016 of this title. Grant funds may be used for, but are not limited 
to, the following purposes:
    (a) Technology research, investigations, and basic feasibility 
studies in any field or discipline for the purpose of generating 
principles, facts, technical knowledge, new technology, or other 
information that may be useful to rural industries, cooperatives, 
agribusinesses, and other persons or entities in rural areas served 
by such centers in the development and commercialization of new 
products, processes, or services.
    (b) The collection, interpretation, and dissemination of 
principles, facts, technical knowledge, new technology, or other 
information that may be useful to rural industries, cooperatives, 
agribusinesses, and other persons or entities in rural areas served 
by the center in the development and commercialization of new 
products, processes, or services.
    (c) Providing training and instruction for individuals residing 
in rural areas served by the center with respect to the development 
(through technological innovation, cooperative development, and 
adaptation of existing technology) and commercialization of new 
products, processes, or services.
    (d) Providing loans and grants to individuals, small businesses 
and cooperatives in rural areas for purposes of generating, 
evaluating, developing and commercializing new products, processes, 
or services.
    (e) Providing technical assistance and advisory services to 
individuals, small businesses, cooperatives, and industries in rural 
areas served by the center for purposes of developing and 
commercializing new products, processes, or services.
    (f) Providing research and support to individuals, small 
businesses, cooperatives, and industries in rural areas served by 
the center for purposes of developing new agricultural enterprises 
to add value to on-farm production through processing or marketing.
    (g) Paying up to 75 percent of the administrative costs of the 
applicant in carrying out its projects.
    (h) Equipment and materials necessary to carry out other 
eligible grant purposes under this section.

Sec. 4284.516  Ineligible Grant Purposes

    Grant funds may not be used to:
    (a) Pay more than 75 percent of a project cost.
    (b) Pay more than 75 percent of administrative costs.
    (c) Duplicate current services or replace or substitute support 
previously provided.
    (d) Pay costs of preparing the application package for funding 
under this program.
    (e) Pay costs incurred prior to the effective date of the grant 
made under this subpart.
    (f) Pay for building construction or the purchase of real estate 
or vehicles; improving and/or renovation of office space; or repair 
or maintenance of privately-owned property.
    (g) Fund political activities.
    (h) Pay for assistance to any private business enterprise which 
does not have at least 51 percent ownership by those who are either 
citizens of the United States or reside in the United States after 
being legally admitted for permanent residence.

Secs. 4284.517-4284.526  [Reserved]

Sec. 4284.527  Other Considerations

    (a) Civil rights compliance requirements. All grants made under 
this subpart are subject to the requirements of Title VI of the 
Civil Rights Act of 1964 which prohibits discrimination on the basis 
of race, color, and national origin as outlined in subpart E of part 
1901 of this title. In addition, the grants made under this subpart 
are subject to the requirements of section 504 of the Rehabilitation 
Act of 1973 which prohibits discrimination on the basis of handicap; 
the requirements of the Age Discrimination Act of 1975 which 
prohibits discrimination on the basis of age; and Title III of the 
Americans with Disabilities Act, Pub. L. 101-336, which prohibits 
discrimination on the basis of disability by private entities in 
places of public accommodations.
    (b) Environmental requirements.
    (1) General applicability. Unless specifically modified by this 
section, the requirements of subpart G of part 1940 of this title 
apply to this subpart. RDA will give particular emphasis to ensuring 
compliance with the environmental policies contained in 
Secs. 1940.303 and 1940.304 of subpart G of part 1940 of this title. 
Although the purpose of the grant program established by this 
subpart is to improve business, industry, and employment in rural 
areas, this purpose is to be achieved, to the extent practicable, 
without adversely affecting important environmental resources of 
rural areas such as important farmland and forest lands, prime 
rangelands, wetland and floodplains. Prospective recipients of 
grants, therefore, must consider the potential environmental impacts 
of their applications at the earliest planning stages and develop 
plans and projects that minimize the potential to adversely impact 
on the environment.
    (2) Technical assistance. An application for a technical 
assistance project is generally excluded from the environmental 
review process by Sec. 1940.333 of subpart G of part 1940 of this 
title. However, as further specified in that section, the grantee of 
a technical assistance grant, in the process of providing technical 
assistance, must consider the potential environmental impacts of the 
recommendations provided to the recipient of the technical 
assistance.
    (3) Applications for grants to provide financial assistance to 
third-party recipients. As part of the preapplication, the applicant 
must provide a complete Form FmHA 1940-20, ``Request for 
Environmental Information,'' for each project specifically 
identified in its plan to provide financial assistance to third 
parties who will undertake eligible projects with such assistance. 
RDA will review the preapplication, supporting materials, and any 
required Forms FmHA 1940-20 and initiate a Class II assessment for 
the preapplication in accordance with Sec. 1940.318 of subpart G of 
part 1940 of this title. This assessment will focus on the potential 
cumulative impacts of the projects as well as any environmental 
concerns or problems that are associated with individual projects 
and that can be identified at this time from the information 
submitted. Because RDA's approval of this type of grant application 
does not constitute RDA's commitment to the use of grant funds for 
any identified third-party projects (see Sec. 4284.541 of this 
subpart), no public notification requirements for a Class II 
assessment will apply to the preapplication. After the grant is 
approved, each third-party project to be assisted under the grant 
will undergo the applicable environmental review and public 
notification requirements in subpart G of part 1940 of this title 
prior to RDA providing its consent to the grantee to assist the 
third-party project. If the preapplication reflects only one 
specific project which is specifically identified as the third-party 
recipient for financial assistance, RDA may perform the appropriate 
environmental assessment in accordance with the requirements of 
subpart G of part 1940 of this title and forego initiating a Class 
II assessment with no public notification. However, the applicant 
must be advised that if the recipient or project changes after the 
grant is approved, the project to be assisted under the grant will 
undergo the applicable environmental review and public notification 
requirements in subpart G of part 1940 of this title.
    (c) Governmentwide debarment and suspension (nonprocurement) and 
requirements for drug-free workplace. All projects must comply with 
the requirements set forth in part 3017 of this title and FmHA 
Instruction 1940-M (available in any State RDA/FmHA office).
    (d) Restrictions on lobbying. All grants must comply with the 
lobbying restrictions set forth in part 3018 of this title.
    (e) Excess capacity or transfer of employment.
    (1) If a proposed grant is for more than $1 million and will 
increase direct employment by more than 50 employees, the applicant 
will be requested to provide written support for an RDA 
determination that the proposal will not result in a project which 
is calculated to, or likely to, result in:
    (i) The transfer of any employment or business activity from one 
area to another (this limitation shall not prohibit assistance for 
the expansion of an existing business entity through the 
establishment of a new branch, affiliate, or subsidiary of such 
entity if the expansion will not result in an increase in the 
unemployment in the area of original location or in any other area 
where such entity conducts business operations unless there is 
reason to believe that such expansion is being established with the 
intention of closing down the operations of the existing business 
entity in the area of its original location or in any other area 
where it conducts such operations), or
    (ii) An increase in the production of goods, materials, or 
commodities or the availability of services or facilities in the 
area when there is not sufficient demand for such goods, materials, 
commodities, services, or facilities to employ the efficient 
capacity of existing competitive commercial or industrial 
enterprises, unless such financial or other assistance will not have 
an adverse effect upon existing competitive enterprises in the area. 
The applicant's written support will consist of a resolution from 
the applicant and Form FmHA 449-22, ``Certification of Non-
Relocation and Market and Capacity Information Report,'' from each 
existing and future occupant of the site. The applicant may use 
Guide 2 of subpart G of part 1942 (available in any State RDA/FmHA 
office) as an example in preparing the resolution. Future occupants 
of the site must be certified by Department of Labor (DOL) as 
outlined in paragraph (e)(3) of this section for a period of 3 years 
after the initial certification by DOL.
    (2) RDA will check each document for completeness and accuracy 
and submit nine copies of each to the National Office for forwarding 
to DOL.
    (3) Grants shall not be made if the Secretary of Labor certifies 
within 30 days after the matter has been submitted by the Secretary 
of Agriculture that the provisions of paragraph (e)(1) of this 
section have not been met. Information for obtaining this 
certification will be submitted, in writing, by the applicant to 
RDA. The information will be submitted to DOL by the RDA National 
Office. Grant approval may be given and funds may be obligated, 
subject to the DOL certification being received, provided RDA has 
made its own separate determinations of (e)(1)(i) and (ii) of this 
section when applicable.
    (f) Management assistance. Grant recipients will be supervised, 
as necessary, to ensure that projects are completed in accordance 
with approved plans and specifications and that funds are expended 
for approved purposes. Grants made under this subpart will be 
administered under, and are subject to parts 3015, 3016, and 3017 of 
this title, as appropriate, and established RDA guidelines.
    (g) National Historic Preservation Act of 1966. All projects 
will be in compliance with the National Historic Preservation Act of 
1966 in accordance with subpart F of part 1901 of this title.
    (h) Uniform Relocation Assistance and Real Property Acquisition 
Policies Act. All projects must comply with the requirements set 
forth in part 21 of this title.
    (i) Floodplains and wetlands. All projects must comply with 
Executive Order 11988, ``Floodplain Management,'' and Executive 
Order 11990, ``Protection of Wetlands.''
    (j) Flood or mudslide hazard area precautions. If the grantee 
financed project is in a flood or mudslide area, flood or mudslide 
insurance must be provided.
    (k) Termination of Federal requirements. Once the grantee has 
provided 29 assistance to projects from a revolving fund, in an 
amount equal to the grant provided by RDA, the requirements imposed 
on the grantee shall not be applicable to any new projects 
thereafter financed from the revolving funds. Such new projects 
shall not be considered as being derived from Federal funds.
    (l) Intergovernmental review. Grant projects are subject to the 
provisions of Executive Order 12372 which requires intergovernmental 
consultation with State and local officials. A revolving fund 
established in whole, or in part, with grant funds will also be 
considered a project for the purpose of intergovernmental review as 
well as the specific projects funded with grant funds from the 
revolving loan project. For each project to be assisted with a grant 
under this subpart and for which the State has elected to review the 
project under their intergovernmental review process, the State 
Point of Contact must be notified. Notification, in the form of a 
project description, can be initiated by the grantee. Any comments 
from the State must be included with the grantee's request to use 
RDA grant funds for the specific project. Prior to RDA's decision on 
the request, compliance with requirements of intergovernmental 
consultation must be demonstrated for each project. These 
requirements should be carried out in accordance with subpart V, 
``Intergovernmental Review of Department of Agriculture Programs and 
Activities,'' of part 3015 of this title (see subpart J of part 1940 
of this title, available in any State RDA/FmHA office).

Sec. 4284.528  Application Processing

    (a) Preapplications.
    (1) Applicants will file an original and one copy of Standard 
Form (SF)-424.1, ``Application for Federal Assistance (For Non-
construction),'' with the appropriate RDA office. This form is 
available in any State RDA/FmHA office.
    (2) All preapplications shall be accompanied by:
    (i) Evidence of applicant's legal existence and authority to 
perform the proposed activities under the grant.
    (ii) Latest financial information to show the organization's 
financial capacity to carry out the proposed work. At a minimum, the 
information should include a balance sheet and an income statement. 
A current audit report is preferred where one is reasonably 
obtainable.
    (iii) Estimated breakdown of total costs, including costs to be 
funded by the applicant as well as other sources. Other sources 
should be identified. Certification must be provided from the 
applicant that its matching share to the project is available and 
will be used for the project. The matching share must meet the 
requirements of parts 3015 and 3016 of this title. Certifications 
from an authorized representative of each source of funds must be 
provided indicating that funds are available and will be used for 
the proposed project.
    (iv) Budget and description of the accounting system in place or 
proposed.
    (v) Area to be served, identifying each government unit, i.e., 
town, county, etc., if affected by the proposed project and evidence 
of support and concurrence in the proposed project from the affected 
local governmental bodies as evidenced by resolution or a written 
statement from the chief elected local official.
    (vi) The most current demographic information (and source) about 
the area to be served which includes information on the rural 
industries and agribusinesses in the area; unemployment rate; 
description of under employment in the area; information regarding 
outmigration of people; businesses and industries; and the per 
capita income of the area. The source of information and dates must 
be identified and must be from a recognized source such as Census 
data or State employment data.
    (vii) Businesses to be assisted.
    (viii) Applicant's experience, including experience of key staff 
members and person(s) who will be providing the proposed service(s) 
and managing the project.
    (ix) The number of months duration of the project or service and 
the estimated time it will take from grant approval to beginning of 
service.
    (x) Method and rationale used to select the areas/businesses 
that will receive the service.
    (xi) Brief description of how the work will be performed and 
whether organizational staff or consultants/contractors will be 
used.
    (xii) Evaluation method to be used by the applicant to determine 
if objectives of the proposed activity are being accomplished.
    (xiii) A brief plan which contains the following provisions and 
describes how the applicant will meet those provisions:
    (A) A provision that substantiates that the applicant will 
effectively serve rural areas in the United States.
    (B) A provision that the primary objective of the applicant will 
be to improve the economic condition of rural areas by promoting the 
development (through technological innovation, cooperative 
development, and adaptation of existing technology) and 
commercialization of:
    (1) New services and products that can be produced or provided 
in rural areas;
    (2) New processes that can be utilized in the production of 
products in rural areas; and
    (3) New enterprises that can add value to on-farm production 
through processing or marketing.
    (C) A description of the activities that the applicant will 
carry out to accomplish such objective.
    (D) A description of the proposed activities to be funded under 
this subpart.
    (E) A description of the contributions that the applicant's 
proposed activities are likely to make to the improvement of the 
economic conditions of the rural areas served by the applicant.
    (F) Provisions that the applicant, in carrying out its 
activities, will seek, where appropriate, the advice, participation, 
expertise, and assistance of representatives of business, industry, 
educational institutions, the Federal Government, and State and 
local governments.
    (G) Provisions that the applicant will consult with any college 
or university administering Extension Service programs and cooperate 
with such college or university in the coordination of the center's 
activities and programs.
    (H) Provisions that the applicant will take all practicable 
steps to develop continuing sources of financial support for the 
center, particularly from sources in the private sector.
    (I) Provisions for:
    (1) Monitoring and evaluating its activities; and
    (2) Accounting for money received and expended by the 
institution under this subpart.
    (J) Provisions that the applicant will provide for the optimal 
application of technology and cooperative development in rural 
areas, especially those areas adversely affected by adverse 
agricultural economic conditions, through the establishment of 
demonstration projects and subcenters for:
    (1) Rural technology development where the technology can be 
implemented by communities, community colleges, businesses, 
cooperatives, and other institutions; or
    (2) Cooperative development where such development can be 
implemented by cooperatives to improve local economic conditions.
    (xiv) If grant funds are to be used for the purpose of making 
loans and/or grants to eligible individuals, small businesses, or 
cooperatives (ultimate recipients) in rural areas for eligible 
purposes under this subpart, the applicant shall develop a plan 
which outlines the purposes and administration of the fund and 
include a copy of a proposed agreement to be used between the 
applicant and the ultimate recipient(s) which includes the 
following:
    (A) An assurance that the responsibilities of the grantee, as a 
recipient of grant funds under this subpart, are passed on to the 
ultimate recipient and the ultimate recipient understands its 
responsibilities to comply with the requirements set forth in this 
subpart, including parts 3015 and 3016 of this title.
    (B) Provisions that the ultimate recipient will comply with 
debarment and suspension requirements contained in part 3017 of this 
title and will execute Form AD-1048, ``Certification Regarding 
Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower 
Tier Covered Transactions.''
    (C) Provisions that the ultimate recipient will execute Form 
FmHA 400-1, ``Equal Opportunity Agreement,'' and Form FmHA 400-4, 
``Assurance Agreement.''
    (D) Clear documentation that the ultimate recipient understands 
its responsibilities to the applicant.
    (E) Clear documentation that the applicant understands its 
responsibilities in monitoring the ultimate recipient's activities 
under the grant and the applicant's plan for such monitoring.
    (F) Brief written narrative addressing all items in 
Sec. 4284.540(a) of this subpart, regarding grant selection 
criteria.
    (3) [Reserved]
    (4) Applicants whose preapplications are found to be ineligible 
will be given notice by use of Form AD-622 and advised of their 
appeal rights under subpart B of part 1900 of this title.
    (5) If at any time prior to grant approval it is decided that 
favorable action will not be taken on a preapplication or 
application, the RDA will notify the applicant in writing of the 
reasons why the request was not favorably considered. The 
notification will advise the applicant of appeal rights under 
subpart B of part 1900 of this title.
    (6) Applicants eligible for funding within the available funds 
will be provided forms and instructions for filing a complete 
application. Applicants should be advised against incurring 
obligations which cannot be fulfilled without RDA funds.
    (b) Applications. Upon notification on Form AD-622 that the 
applicant is eligible for funding, the following will be submitted 
to the RDA by the applicant:
    (1) SF 424.1.
    (2) Proposed scope of work, detailing the proposed activities to 
be accomplished and timeframes for completion of each activity.
    (3) Proposed budget, including source and amount of applicant 
contribution and any other funding sources for the proposed project.
    (4) Other requested information needed by RDA to make a grant 
award determination.
    (c) Applicant response. If the applicant fails to submit the 
application and related material by the date shown on Form AD-622 
(normally 30 days from the date of Form AD-622), RDA may discontinue 
consideration of the application. Appeal rights will be given in 
accordance with subpart B of part 1900 of this title.

Secs. 4284.529-4284.539  [Reserved]

Sec. 4284.540  Grant Selection Criteria

    Grants will be awarded under this subpart on a competitive 
basis. The priorities described below will be used by the RDA to 
rate preapplications and applications. Points will be distributed as 
indicated in paragraph (a) of this section. Points will be 
distributed according to ranking as compared with other 
preapplications/ applications on hand. A copy of the score sheet 
(Exhibit B) (available in any State RDA/FmHA Office) should be 
placed in the casefile for future reference.
    (a) The selection criteria are as follows:
    (1) Economic conditions. Preference will be given to proposed 
projects which will serve a rural area(s) that has few rural 
industries and agribusinesses; high levels of unemployment or 
underemployment; high rates of outmigration of people, businesses, 
and industries; and low levels of per capita income. RDA will 
consider data supporting these demographics from the United States 
Bureau of the Census or other reliable data from recognized local, 
regional, State or Federal sources or from surveys conducted by 
reliable, impartial sources. Outmigration of businesses and 
industries, for example, may be supported by county business 
patterns data available from the Bureau of the Census. Data to 
support all categories must be for the most current full calendar 
year for which the data is available and the 3 calendar years prior 
to that year. The competitive range for proposed projects is as 
follows:
    (i) Number of rural industries and agribusinesses in comparison 
with the population of the area(s) to be served: 1 or less per 5,000 
residents--25 points; 1 or less per 3,000 residents--15 points; or 1 
or less per 1,000 residents--5 points.
    (ii) Unemployment rate in the area(s) to be served: Exceeds the 
State rate by 25 percent or more--15 points; or exceeds the State 
rate by less than 25 percent but more than 5 percent--10 points.
    (iii) Underemployment in the area(s) to be served exceeds the 
State rate of underemployment by 25 percent or more--20 points; 
exceeds the State rate by less than 25 percent--10 points; or is 
equal to or less than State rate--0 points.
    (iv) Outmigration of rural residents from the area(s) as 
evidenced by a population loss in the last full calendar year of at 
least 20 percent--20 points.
    (v) Outmigration of business and industry and/or business and 
industry closures in the area(s) of at least 20 percent in the last 
3 years--20 points.
    (vi) Average per capita income of the area(s) is less than the 
State average by: 50 percent--25 points; or 25 percent--10 points.
    (2) Project proposal. The project proposal will contribute the 
most to the improvement of economic conditions of the rural area(s) 
by:
    (i) Creation of industries or agribusinesses in the area(s): 1 
or more per 5,000 residents--20 points; 1 or more per 10,000 
residents--10 points; or 1 or more per 20,000 residents--5 points.
    (ii) Increasing employment by 10 percent or more--10 points.
    (iii) Stemming the flow of outmigration of people, businesses, 
or industries by 10 percent or more--10 points.
    (iv) Increasing the tax base of the area(s) by 2 percent or 
more--5 points.
    (3) Applicant experience. The applicant demonstrates capability 
to transfer for practical application in rural areas the technology 
generated and demonstrates the ability to commercialize products, 
processes, services, and enterprises in rural areas--15 points.
    (b) Review of decision. Each application for assistance will be 
carefully reviewed in accordance with the priorities established in 
this section. A priority rating will be assigned to each 
application. Applications selected for funding will be based on the 
priority rating assigned each application and the total funds 
available. All applications submitted for funding should contain 
sufficient information to permit RDA to complete a thorough priority 
rating. When a determination is made that favorable action will not 
be taken on a preapplication or application, the applicant will be 
notified in writing of the reasons why the request was not favorably 
considered. The notification to the applicant will state that a 
review of this decision by RDA may be requested by the applicant in 
accordance with subpart B of part 1900 of this title.

Sec. 4284.541  Grant Approval, Fund Obligation, Grant Closing, and 
Third-Party Financial Assistance

    A copy of the executed Form FmHA 1940-1, ``Request for 
Obligation of Funds,'' and the approved scope of work will be sent 
to the applicant on the obligation date. The grant will be 
considered closed on the obligation date. Exhibit A of this subpart, 
available in any State RDA/FmHA office, shall become a permanent 
part of Form FmHA 1940-1 when grant funds are involved, and the 
following paragraphs will appear in the comment section of that form 
as appropriate:
    (a) ``The grantee understands the requirements for receipt of 
funds under the Rural Technology Development Grant program. The 
grantee assures and certifies that it is in compliance with all 
applicable laws, regulations, Executive Orders, and other generally 
applicable requirements, including those set forth in exhibit A of 
subpart F of part 4284 of this chapter, available in any State RDA/
FmHA Office, 7 CFR parts 3015, 3016, 3017, and 3018 (including 
revisions through ________ (date of grant approval)); and the Letter 
of Conditions and the approved scope of work.''
    (b) For grants involving the establishment of a revolving loan 
program to benefit third parties, the following statement shall also 
be added to the comment section of Form FmHA 1940-1: ``The grantee 
furthermore agrees to use grant funds for the purposes outlined in 
the Scope of Work approved by RDA.''

Sec. 4284.542-4284.555  [Reserved]

Sec. 4284.556  Docket Preparation and Letter of Conditions

    (a) The following forms and documents will be part of the grant 
docket:
    (1) Form FmHA 400-1 for the applicant and recipients of the 
technical assistance, loans under a revolving loan fund, and rural 
learning projects if the recipients are other than individuals.
    (2) Form FmHA 400-4 for the applicant and recipients of the 
technical assistance or loans under a revolving loan fund.
    (3) Scope of work and budget prepared by the applicant.
    (4) Form FmHA 1940-1.
    (5) Resolution of the Board, if appropriate, approving the grant 
application.
    (6) Evidence of authority for individual, in the applicant's 
organization, to execute grant documents.
    (7) Evidence of fidelity bond coverage.
    (8) Form FmHA 1942-43, ``Project Summary--Community Facilities 
(Other Than Utility-Type Projects).''
    (9) Executed Forms AD-1047, ``Certification Regarding Debarment, 
Suspension, and Other Responsibility Matters--Primary Covered 
Transactions,'' and AD-1049, ``Certification Regarding Drug-Free 
Workplace Requirements (Grants) Alternative I--For Grantees Other 
Than Individuals.''
    (10) Executed certification in accordance with part 3018, 
Appendix A of this title, that no Federal appropriated funds have 
been paid or will be paid for lobbying activities and Form LLL, 
``Disclosure of Lobbying Activities.''
    (11) Proposed agreement between applicant and ultimate recipient 
as required in Sec. 4284.528(a)(2)(xiv) of this subpart, if 
applicable.
    (12) Class II Environmental Assessment (if applicable).
    (13) Finding of No Significant Impact (if applicable).
    (14) Form FmHA 400-8, ``Compliance Review,'' (Nondiscrimination 
by Recipients of Financial Assistance through Farmers Home 
Administration.)
    (b) The RDA representative will prepare a Letter of Conditions 
outlining the conditions under which the grant will be made. It will 
include those matters necessary to assure that the proposed grant is 
completed in accordance with the terms of the scope of work and 
budget, that the grant funds are expended for authorized purposes, 
and that the requirements prescribed in parts 3015, 3016, 3017, and 
3018 of this title are complied with. Each Letter of Conditions will 
contain the following paragraphs:
    (1) ``This letter establishes conditions which must be 
understood and agreed to by you before further consideration may be 
given to the application.''
    (2) ``This letter is not to be considered as grant approval nor 
as a representation as to the availability of funds. The docket may 
be completed on the basis of a grant not to exceed $________ and a 
matching share by the applicant in the amount of $________.''
    (3) ``Please complete and return the attached Form FmHA 1942-46, 
`Letter of Intent to Meet Conditions,' if you desire further 
consideration be given your application.''
    (4) ``You must certify that the activities provided under the 
grant will benefit a rural area.''
    (5) ``You must certify that at least 25 percent of the total 
funds for this project are provided as the grantee's share and meet 
the matching fund requirements of 7 CFR parts 3015 and 3016.''
    (6) ``You must certify that no Federal appropriated funds have 
been paid or will be paid for lobbying activities in accordance with 
7 CFR part 3018, Appendix A, and execute Form LLL.''
    (7) ``You must execute Form AD-1047, `Certification Regarding 
Debarment, Suspension, and Other Responsibility Matters--Primary 
Covered Transactions,' to certify that your organization is not 
debarred or suspended from Government assistance. You also must 
obtain a certification on Form AD-1048, `Certification Regarding 
Debarment, Suspension, Ineligibility and Voluntary Exclusion--Lower 
Tier Covered Transactions,' from any person or entity you do 
business with as a result of this Government assistance that they 
are not debarred or suspended from Government assistance.''
    (8) ``You must execute Form AD-1049, `Certification Regarding 
Drug-Free Workplace Requirements (Grants) Alternative I--For 
Grantees Other Than Individuals,' to certify that you will provide a 
drug-free awareness program for employees.''
    (9) ``You must obtain prior approval for any change to the scope 
or objectives of the approved project. Failure to obtain prior 
approval of changes to the scope of work or budget can result in 
suspension/termination of grant funds.''
    (10) Other items in the Letter of Conditions should include 
those appropriate items relative to: maximum amount of grant; 
contributions; required project audit: evidence of compliance with 
all applicable Federal, State, and local requirements; closing 
instructions, DOL certifications; compliance with any required 
environmental mitigation measures; and other requirements.

Sec. 4284.557  Fund Disbursement

    Grantees will be reimbursed as follows:
    (a) An SF-270, ``Request for Advance or Reimbursement,'' will be 
completed by the applicant and submitted to RDA not more frequently 
than monthly.
    (b) Upon receipt of a properly completed SF 270, the funds will 
be requested through the field office terminal system. Ordinarily, 
payment will be made within 30 days after receipt of a proper 
request for reimbursement.
    (c) Grantees are encouraged to use minority banks (a bank which 
is owned by at least 50 percent minority group members) for the 
deposit and disbursement of funds. A list of minority owned banks 
can be obtained from the Office of Minority Business Enterprise, 
Department of Commerce, Washington, DC 20230.
    (d) The grantee's share in the cost of the project will be 
disbursed in advance of grant funds or on a pro-rata distribution 
basis with grant funds during the disbursement period. The grantee 
will not be permitted to provide its contribution at the end of the 
grant period.

Sec. 4284.558  Reporting

    An SF-269, ``Financial Status Report,'' and a project 
performance activity report will be required of all grantees on a 
quarterly basis. A final project performance report will be required 
with the last SF-269. The final report may serve as the last 
quarterly report. The final report must include a final evaluation 
of the project. Grantees shall constantly monitor performance to 
ensure that time schedules are being met, projected work by time 
periods is being accomplished, and other performance objectives are 
being achieved. Grantees are to submit an original of each report to 
RDA. The project performance reports shall include, but not be 
limited to, the following:
    (a) A comparison of actual accomplishments to the objectives 
established for that period;
    (b) Reasons why established objectives were not met;
    (c) Problems, delays, or adverse conditions which will affect 
attainment of overall project objectives, prevent meeting time 
schedules or objectives, or preclude the attainment of particular 
project work elements during established time periods. This 
disclosure shall be accompanied by a statement of the action taken 
or planned to resolve the situation; and
    (d) Objectives and timetable established for the next reporting 
period.

Secs. 4284.559-4284.570  [Reserved]

Sec. 4284.571  Audit Requirements

    The grantee will provide an audit report in accordance with 
subpart A of part 1942 of this title. The audit requirements only 
apply to the year(s) in which grant funds are received. Audits must 
be prepared in accordance with generally accepted government 
auditing standards using the publication, ``Standards for Audit of 
Governmental Organizations, Programs, Activities and Functions.''

Sec. 4284.572  Grant Servicing

    Grants will be serviced in accordance with subpart E of part 
1951 of this title.

Sec. 4284.573  Programmatic Changes

    The grantee shall obtain prior approval for any change to the 
scope or objectives of the approved project. Failure to obtain prior 
approval of changes to the scope or budget can result in suspension/
termination of grant funds.

Sec. 4284.574  Subsequent Grants

    Subsequent grants will be processed in accordance with the 
requirements set forth in this subpart.

Sec. 4284.575  Grant Suspension, Termination, and Cancellation

    Grants may be cancelled by RDA by use of Form FmHA 1940-10 
``Cancellation of U.S. Treasury Check and/or Obligation.'' The RDA 
will notify the applicant, by letter, that the grant has been 
cancelled. A copy of the letter will be sent to the Regional 
Attorney, OGC, if the Regional Attorney has been involved. The 
applicant will be provided appeal rights, as appropriate, in 
accordance with subpart B of part 1900 of this title. Grants may be 
suspended or terminated for cause or convenience, in accordance with 
parts 3015 and 3016 of this title.

Secs. 4284.576-4284.586  [Reserved]

Sec. 4284.587  Exception Authority

    The Administrator may, in individual cases, make an exception to 
any requirement or provision of this subpart which is not 
inconsistent with the authorizing statute, an applicable law or a 
decision of the Comptroller General, if the Administrator determines 
that application of the requirement or provision would adversely 
affect the Government's interest and shows how the adverse impact 
will be eliminated or minimized if the exception is made.

Sec. 4284.588  Forms and Exhibits

    Exhibits A, B, and C and forms referenced (all available in any 
State RDA/FmHA office) are for use in administering grants made 
under this subpart.

Secs. 4284.589-4284.599  [Reserved]

Sec. 4284.600  OMB Control Number

RDA Instruction 4284-F
Exhibit A
Agreement of Administrative Requirements for Rural Technology 
Development Grants
    This exhibit contains information regarding the responsibilities of 
the grantee for receipt of grant funds under the Rural Technology 
Development Grant (RTDG) program. These requirements do not supersede 
the requirements for receipt of Federal funds as stated in 7 CFR part 
3015 and 3016; however, specific areas related to the program are cited 
below.
    In consideration for the RTDG grant by RDA, grantee agrees to:
    1. Cause the RTDG program to be completed within the total sums 
available to it, including grant funds, in accordance with the scope of 
work and any necessary modifications thereof prepared by grantee and 
approved by grantor.
    2. Permit periodic inspection of the program operations by a 
representative of grantor.
    3. Make the program available to all persons in grantee's service 
area without regard to race, color, national origin, religion, sex, 
marital status, age, physical or mental handicap.
    4. Not use grant funds to replace any financial support previously 
provided or assured from any other source. The grantee agrees that the 
general level of expenditure by the grantee for the benefit of program 
area and/or program covered by this agreement shall be maintained and 
not reduced as a result of the Federal share funds received under this 
grant.
    5. Provide financial management systems which will include:
    (a) Accurate, current, and complete disclosure of the financial 
result of each grant.
    (b) Records which identify adequately the source and application of 
funds for grant-supporting activities. Those records shall contain 
information pertaining to grant awards and authorizations, obligations, 
unobligated balances, assets, liabilities, outlays, and income.
    (c) Effective control over and accountability for all funds. 
Grantee shall adequately safeguard all such assets and shall ensure 
that they are used solely for authorized purposes.
    (d) Accounting records supported by source documentation.
    6. Retain financial records, supporting documents, statistical 
records, and all other records pertinent to the grant for a period of 
at least 3 years after grant closing except that the records shall be 
retained beyond the 3-year period if audit findings have not been 
resolved. Microfilm copies may be substituted in lieu of original 
records. The grantor and the Comptroller General of the United States, 
or any of their duly authorized representatives, shall have access to 
any books, documents, papers, and records of the grantee which are 
pertinent to the specific grant program for the purpose of making 
audits, examinations, excerpts, and transcripts.
    7. Provide an audit report prepared in accordance with generally 
accepted Government auditing standards using the publication, 
``Standards for Audit of Governmental Organizations, Programs, 
Activities and Functions.''
    8. Provide grantor with such periodic reports as it may require and 
permit periodic inspection of its operations by a designated 
representative of the grantor.
    9. Execute Form FmHA 400-1, ``Equal Opportunity Agreement,'' Form 
FmHA 400-4, ``Assurance Agreement,'' and any other agreements required 
by grantor to implement the civil rights requirements. If any such form 
has been executed by grantee as a result of a grant being made to 
grantee by grantor contemporaneously with the making of this grant, 
another form of the same type need not be executed in connection with 
this grant.
    10. That upon any default under its representations or agreements 
set forth in this instrument, grantee, at the option and the demand of 
grantor, will, to the extent legally permissible, repay to grantor 
forthwith the original principal amount of the grant stated herein 
above, with interest equal to the rate of interest paid on U.S. 26-week 
Treasury Bills adjusted quarterly from the date of the default. The 
provisions of this exhibit may be enforced by grantor at its option and 
without regard to prior waivers by it of previous defaults of grantee, 
by judicial proceedings to require specific performance of the terms of 
this exhibit, or by such other proceedings in the law or equity in 
either Federal or State courts as may be deemed necessary by grantor to 
assure compliance with the provisions of this exhibit and the laws and 
regulations under which this grant is made.
    11. That no member of Congress shall be admitted to any share or 
part of this grant or any benefit that may arise therefrom; but this 
provision shall not be construed to bar, as a contractor under the 
grant, a publicly held corporation whose ownership might include a 
member of Congress.
    12. That all non-confidential information resulting from its 
activities shall be made available to the general public on an equal 
basis.
    13. That the purpose and scope of work for which this grant is made 
shall not duplicate programs for which monies have been received, are 
committed, or are applied to from other sources (public or private).
    14. That grantee shall relinquish any and all copyrights and/or 
privileges to the materials developed under this grant as published in 
whole or in part. The material shall contain a notice and be identified 
by language to the following effect: ``The material is the result of 
tax-supported research and as such is not copyrightable. It may be 
freely reprinted with the customary crediting of the source.''
    15. That the grantee shall abide by the policies promulgated in the 
USDA Uniform Assistance Regulations, 7 CFR parts 3015 and 3016, which 
provides standards for use by grantee in establishing procedures for 
the procurement of supplies, equipment, and other services with Federal 
grant funds.
    16. Obtain prior approval from grantor for use of grant funds for 
uses or amounts not consistent with the approved scope of work and 
budget.
    17. That the grantee, except for States, will remit interest earned 
on grant funds deposited in an interest bearing account in accordance 
with the USDA Uniform Assistance Regulation 7 CFR parts 3015 and 3016.
    18. Grantee will comply with property management standards 
established by 7 CFR parts 3015 and 3016 for personal property. 
``Personal property'' means property of any kind except real property. 
It may be tangible--having physical existence--or intangible--having no 
physical existence; such as patents, inventions, and copyrights. 
``Nonexpendable personal property'' means tangible personal property 
having a useful life of more than 1 year and an acquisition cost of 
$300 or more per unit. A grantee may use its own definition of 
nonexpendable personal property provided that such definition would at 
least include all tangible personal property as defined above. 
``Expendable personal property'' refers to all tangible personal 
property other than nonexpendable property. When nonexpendable property 
is acquired by a grantee with project funds, title shall not be taken 
by the Federal Government but shall be vested in the grantee subject to 
the following conditions.
    (a) Right to transfer title. For items of real or nonexpendable 
personal property having a unit acquisition cost of $1,000 or more, RDA 
may reserve the right to transfer the title to the Federal Government 
or to a third party named by the Federal Government when such third 
party is otherwise eligible under existing statutes. Such reservation 
shall be subject to the following standards:
    (i) The property shall be appropriately identified in the grant or 
otherwise made known to the grantee in writing.
    (ii) RDA shall issue disposition instructions within 120 calendar 
days after the end of the Federal support of the project for which it 
was acquired. If RDA fails to issue disposition instructions within the 
120 calendar day period, the grantee shall apply the standards of 
paragraph 18. (b) of this exhibit.
    (iii) When RDA exercises its right to take title, the personal 
property shall be subject to the provisions for federally owned 
nonexpendable property discussed in paragraphs 18. (b) and (c) of this 
exhibit.
    (iv) When title is transferred either to the Federal Government or 
to a third party and the grantee is instructed to ship the property 
elsewhere, the grantee shall be reimbursed by the benefiting Federal 
agency with an amount which is computed by applying the percentage of 
the grantee participation in the cost of the original grant project or 
program to the current fair market value of the property, plus any 
reasonable shipping or interim storage costs incurred.
    (b) Use of other nonexpendable personal property for which the 
grantee has title.
    (i) The grantee shall use the property in the project or program 
for which it was acquired as long as needed, whether or not the project 
or program continues to be supported by Federal funds. When it is no 
longer needed for the original project or program, the grantee shall 
use the property in connection with its other federally sponsored 
activities, in the following order of priority:
    (1) Activities sponsored by RDA.
    (2) Activities sponsored by other Federal agencies.
    (ii) Shared use. During the time that nonexpendable personal 
property is held for use on the project or program for which it was 
acquired, the grantee shall make it available for use on other projects 
or programs if such other use will not interfere with the work on the 
project or program for which the property was originally acquired. 
First preference for such other use shall be given to projects or 
programs sponsored by RDA; second preference shall be given to projects 
or programs sponsored by other Federal agencies. If the property is 
owned by the Federal Government, use for other activities not sponsored 
by the Federal Government shall be permissible if authorized by RDA. 
User charges should be considered, if appropriate.
    (c) Disposition of nonexpendable personal property. When the 
grantee no longer needs the property as provided in paragraph 18. (b) 
of this exhibit, the property may be used for other activities in 
accordance with the following standards:
    (i) Personal property with a unit acquisition cost of less than 
$1,000. The grantee may use the property for other activities without 
reimbursement to the Federal Government or sell the property and retain 
the proceeds.
    (ii) Nonexpendable personal property with a unit acquisition cost 
of $1,000 or more. The grantee may retain the property for other use 
provided that compensation is made to RDA or its successor. The amounts 
of compensation shall be computed by applying the percentage of Federal 
participation in the cost of the original project or program to current 
fair market value of the property. If the grantee has no need for the 
property and the property has further use value, the grantee shall 
request disposition instructions from the original grantor agency.
    (iii) RDA shall determine whether the property can be used to meet 
the Agency's requirements. If no need exists within RDA, the General 
Services Administration Federal Property Management Regulations will be 
used by RDA to determine whether a need for the property exists in 
other Federal agencies. RDA shall issue instructions to the grantee no 
later than 120 days after the grantee request and the following 
procedures shall govern:
    (1) If so instructed or if disposition instructions are not issued 
within 120 calendar days after the grantee's request, the grantee shall 
sell the property and reimburse RDA an amount computed by applying the 
percentage of the grantor participation in the grant program to the 
sales proceeds. However, the grantee shall be permitted to deduct and 
retain from the Federal share $100 or 10 percent of the proceeds, 
whichever is greater, for the grantee's selling and handling expenses.
    (2) If the grantee is instructed to dispose of the property other 
than as described in paragraphs 18. (b) and (c) of this exhibit, the 
grantee shall be reimbursed by RDA for such costs incurred in its 
disposition.
    (3) Property management standards for nonexpendable personal 
property. The grantee's property management standards for nonexpendable 
personal property shall include the following procedural requirements:
    (a) Property records shall be maintained accurately and shall 
include:
    (i) A description of the property.
    (ii) Manufacturer's serial number, model number, Federal stock 
number, National stock number, or other identification number.
    (iii) Sources of the property including grant or other agreement 
number.
    (iv) Whether title vests in the grantee or the Federal Government.
    (v) Acquisition date (or date received, if the property was 
furnished by the Federal Government) and costs.
    (vi) Percentage (at the end of the budget year) of Federal 
participation in the cost of the project or program for which the 
property was acquired. (Not applicable to property furnished by the 
Federal Government).
    (vii) Location, use, and condition of the property and the date the 
information was reported.
    (viii) Unit acquisition cost.
    (ix) Ultimate disposition data, including date of disposal and 
sales price or the method used to determine current fair market value 
where a grantee compensates the Federal agency for its share.
    (b) Property owned by the Federal Government must be marked to 
indicate Federal ownership.
    (c) A physical inventory of property shall be taken and the results 
reconciled with the property records at least once every 2 years. Any 
differences between quantities determined by the physical inspection 
and those shown in the accounting records shall be investigated to 
determine the causes of the difference. The grantee shall, in 
connection with the inventory, verify the existence, current 
utilization, and continued need for the property.
    (d) A control system shall be in effect to ensure adequate 
safeguards to prevent loss, damage, or theft of the property. Any loss, 
damage, or the theft of nonexpendable property shall be investigated 
and fully documented; if the property was owned by the Federal 
Government, the grantee shall promptly notify RDA.
    (e) Adequate maintenance procedures shall be implemented to keep 
the property in good condition.
    (f) Where the grantee is authorized or required to sell the 
property, proper sales procedures shall be established which would 
provide for competition to the extent practicable and result in the 
highest possible return.
    (g) Expendable personal property shall vest in the grantee upon 
acquisition. If there is a residual inventory of such property 
exceeding $1,000 in total aggregate fair market value upon termination 
or completion of the grant and if the property is not needed for any 
other federally sponsored project or program, the grantee shall retain 
the property for use on nonfederally sponsored activities or sell it, 
but must in either case compensate the Federal Government for its 
share. The amount of compensation shall be computed in the same manner 
as nonexpendable personal property.
    This exhibit covers the following described personal property and 
any additional property acquired wholly or in part with grant funds 
(use continuation sheets as necessary):
    19. To the following termination provisions:
    (a) Termination for cause: The grantor agency may terminate any 
grant in whole, or in part, at any time before the date of completion, 
whenever it is determined that the grantee has failed to comply with 
the conditions of the grant. The grantor agency shall promptly notify 
the grantee in writing of the determination and the reasons for the 
termination, together with the effective date.
    (b) Termination for convenience: The grantor agency or grantee may 
terminate grants in whole, or in part, when both parties agree that the 
continuation of the program would not produce beneficial results 
commensurate with the further expenditure of funds. The two parties 
shall agree upon the termination conditions, including the effective 
date and, in the case of partial terminations, the portion to be 
terminated. The grantee shall not incur new obligations for the 
terminated portion after the effective date, and shall cancel as many 
outstanding obligations as possible. The grantor agency shall allow 
full credit to the grantee for the Federal share of the noncancelable 
obligations properly incurred by the grantee prior to termination.
    RDA agrees that it will:
    1. Assist grantee, within available appropriations, with such 
technical assistance as grantor deems appropriate in planning the 
program and coordinating the plan with local official comprehensive 
plans and with any State or area plans for the area in which the 
program is located.
    2. At its sole discretion, RDA may at any time give any consent, 
deferment, subordination, release, satisfaction, or termination of any 
or all of grantee's grant obligations, with or without valuable 
consideration, upon such terms and conditions as RDA may determine to 
be:
    (a) Advisable to further the purposes of the grant or to protect 
the Government's financial interest therein; and
    (b) Consistent with both the statutory purposes of the grant and 
the limitations of the statutory authority under which it is made.

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Title

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Date

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RDA Approval Official

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                                               7 CFR 4284-F Rural Technology Development Grants, June 1994                                              
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                                                                                                                    Estimated    Estimated              
                                                                                          Estimated     Reports       total      number of    Estimated 
    Section of regulations                   Title                      Form No.          number of      filed        annual     hours per   total hours
                                                                                         respondents    annually    responses    respondent             
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                                                            Reporting Requirements--No Forms                                                            
--------------------------------------------------------------------------------------------------------------------------------------------------------
4284.527......................  Intergovernmental               Written................          100  On occasion          100         2.00          200
                                 Consultations                                                                                                          
4284.528 (a)(2)(i)............  Evidence of Legal Existence     Written................          100  On occasion          100         1.00          100
                                 and Authority.                                                                                                         
4284.528 (a)(2)(ii)...........  Financial Information.........  Written................          100  On occasion          100         0.50           50
4284.528 (a)(2)(iii)..........  Source and Certification of     Written................          100  On occasion          100         0.50           50
                                 Other Funds.                                                                                                           
4284.528 (a)(2)(iv)...........  Budget........................  Written................          100  On occasion          100         2.00          200
4284.528 (a)(2)(v)............  Area to be Served.............  Written................          100  On occasion          100         1.00          100
4284.528 (a)(2)(vi)...........  Demographic Information.......  Written................          100  On occasion          100         2.00          200
4284.528 (a)(2)(vii)..........  Business to be Assisted.......  Written................          100  On occasion          100         2.00          200
4284.528 (a)(2)(viii).........  Applicant Experience..........  Written................          100  On occasion          100         1.00          100
4284.528 (a)(2)(ix)...........  Duration of Project...........  Written................          100  On occasion          100         0.50           50
4284.528 (a)(2)(xi)...........  Source of Work to be Performed  Written................          100  On occasion          100         0.50           50
4284.528 (a)(2)(xii)..........  Evaluation Method.............  Written................          100  On occasion          100         0.50           50
4284.528 (a)(2)(xiii).........  Plan for Rural Technology       Written................          100  On occasion          100         8.00          800
                                 Development Grants.                                                                                                    
4284.528 (a)(2)(xiv)..........  Proposed Agreement Between      Written................          100  On occasion          100         4.00          400
                                 Applicants and Ultimate                                                                                                
                                 Recipients.                                                                                                            
                                Plan to Provide Financial       Written................           30  On occasion           30         5.00          150
                                 Assistance to Third Parties.                                                                                           
4284.556 (b) Exhibit A........  Scope of Work.................  Written................           50  On occasion           50         8.00          400
4284.528......................  Request for Appeal............  Written................            5  On occasion            5         1.00            5
4284.556......................  Evidence of Authority to        Written................           50  On occasion           50         0.50           25
                                 Execute Document.                                                                                                      
4284.556......................  Evidence of Fidelity Bond       Policy.................          100  On occasion          100         1.00          100
                                 Coverage.                                                                                                              
4284.558......................  Project Performance Report....  Written................           50  4..........          200         8.00        1,600
4284.571......................  Audit Report..................  Written................           50  On occasion           50         6.00          300
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                                             Reporting Requirements--Forms Approved Under Other OMB Numbers                                             
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
4284.527......................  Request for Environmental       1940-20 (0575-0094)....  ...........  ...........  ...........  ...........  ...........
                                 Information.                                                                                                           
4284.527......................  Certificate of Non Relocation   449-22 (0575-0029).....  ...........  ...........  ...........  ...........  ...........
                                 and Market Capacity                                                                                                    
                                 Information Report.                                                                                                    
4284.527......................  Certification Regarding Drug-   AD-1049 (9000-0101)....           50  On occasion           50         0.50           25
                                 Free Workplace Requirements                                                                                            
                                 (Grants) Alternative I--for                                                                                            
                                 Grantees Grantees other than                                                                                           
                                 Individuals.                                                                                                           
4284.528 (a)..................  Preapplication for Federal      SF-424.1 (0348-0043)...          100  On occasion          100         1.00          100
                                 Assistance (for non-                                                                                                   
                                 construction).                                                                                                         
4284.528 (b)..................  Application for Federal         SF-424.1 (0348-0043)...           50  On occasion           50         2.00          100
                                 Assistance (for non-                                                                                                   
                                 construction).                                                                                                         
4284.556......................  Compliance Review.............  FmHA 400-8 (0575-0018).  ...........  ...........  ...........  ...........  ...........
                                Assurance Agreement...........  FmHA 400-4 (0575-0018).  ...........  ...........  ...........  ...........  ...........
                                Letter of Intent to Meet        (FmHA 442-6) (0575-      ...........  ...........  ...........  ...........  ...........
                                 Conditions.                     0015).                                                                                 
                                Equal Opportunity Agreement...  (FmHA 400-1) (0575-      ...........  ...........  ...........  ...........  ...........
                                                                 0018).                                                                                 
4284.558......................  Financial Status Report.......  SF-269 (0348-0039).....           50  4..........          200         1.00          200
4284.557......................  Request for Advance or          SF-270 (0348-0006).....           50  12.........          600         0.50          300
                                 Reimbursement.                                                                                                         
Exhibit A.....................  Agreement of Administrative     Written................           50  On occasion           50         1.00           50
                                 Requirements for Rural                                                                                                 
                                 Technology Development Grants.                                                                                         
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                        
                                                               Record Keeping Requirements                                                              
                                                                                                                                                        
--------------------------------------------------------------------------------------------------------------------------------------------------------
Exhibit A Sec. 5, 6...........  Financial Records.............  Written................           50  ...........  ...........         1.00           50
Exhibit A Sec. 18.............  Property Records..............  Written................           50  ...........  ...........         3.00          150
                               -------------------------------------------------------------------------------------------------------------------------
      Total reporting.........  ..............................  .......................  ...........  ...........        2,935  ...........        5,905
Recordkeeping.................  ..............................  .......................  ...........  ...........  ...........  ...........          200
                               -------------------------------------------------------------------------------------------------------------------------
      Docket Total............  ..............................  .......................  ...........  ...........  ...........  ...........        6,105
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    Dated: June 24, 1994.
Wilbur T. Peer,
Acting Administrator, Rural Development Administration.
[FR Doc. 94-16422 Filed 7-6-94; 8:45 am]
BILLING CODE 3410-32-U