[Federal Register Volume 63, Number 18 (Wednesday, January 28, 1998)]
[Notices]
[Pages 4217-4218]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 98-2053]


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DEPARTMENT OF AGRICULTURE

Rural Business--Cooperative Service


Maximum Portion of Guarantee Authority Available for Fiscal Year 
1998

AGENCY: Rural Business--Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: As set forth in the final rule under 7 CFR part 4279, subpart 
B, each fiscal year the Agency shall establish a limit on the maximum 
portion of guarantee authority available for that fiscal year that may 
be used to guarantee loans with a guarantee fee of 1 percent or 
guaranteed loans with a guarantee percentage exceeding 80 percent.

[[Page 4218]]

    Allowing the guarantee fee to be reduced to 1 percent or exceeding 
the 80 percent guarantee on certain guaranteed loans that meet the 
conditions set forth in subpart B of part 4279 will allow for the 
targeting of projects in rural communities that remain persistently 
poor, experience long-term population decline and job deterioration, 
and other related criteria.
    Not more than 7 percent of the Agency quarterly apportioned 
guarantee authority will be reserved for loan requests with a guarantee 
fee of 1 percent, and not more than 15 percent of the Agency quarterly 
apportioned guarantee authority will be reserved for guaranteed loan 
requests with a guaranteed percentage exceeding 80 percent. Once the 
above quarterly limits have been reached, all additional loans 
guaranteed during the remainder of that quarter will require a 2 
percent guarantee fee and not exceed an 80 percent guarantee limit.
    Written requests by the Rural Development State Office for approval 
of a guaranteed loan with a 1 percent guarantee fee or a guaranteed 
loan exceeding 80 percent must be forwarded to the National Office, 
Attn.: Director, Business Programs Processing Division, for review and 
consideration prior to obligation of the guaranteed loan. The 
Administrator will provide a written response to the State Office 
confirming approval or disapproval of the request.

EFFECTIVE DATE: January 28, 1998.

FOR FURTHER INFORMATION CONTACT: Kenneth E. Hennings, Senior Loan 
Specialist, Business Programs Processing Division, Rural Business--
Cooperative Service, USDA, Stop 3221, Washington, DC 20250-3221, 
telephone (202) 690-3809.

SUPPLEMENTARY INFORMATION: This action has been reviewed and determined 
not to be a rule or regulation as defined in Executive Order 12866.

    Dated: January 11, 1998.
Dayton J. Watkins,
Administrator.
[FR Doc. 98-2053 Filed 1-27-98; 8:45 am]
BILLING CODE 3410-XY-U