[Federal Register Volume 68, Number 13 (Tuesday, January 21, 2003)]
[Notices]
[Page 2751]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 03-1226]



[[Page 2751]]

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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Maximum Portion of Guarantee Authority Available for Fiscal Year 
2003 From Carryover and Recovered Funds

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: As set forth in 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. This notice covers only 
fiscal year (FY) 2002 carryover and recovered funds. Once FY 2003 
appropriated funds are apportioned, a second notice will be published 
for those funds.
    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 7 CFR 4279.107 and 4279.119 will increase the 
Agency's ability to focus guarantee assistance on projects which the 
Agency has found particularly meritorious, such as projects in rural 
communities that remain persistently poor, experience long-term 
population decline and job deterioration, are experiencing trauma as a 
result of natural disaster, or are experiencing fundamental structural 
changes in the economic base.
    Not all of the available Business and Industry (B&I) Guaranteed 
Loan program funding authority for FY 2002 was used; consequently, this 
and recovered funding authority for approved B&I Guaranteed Loans which 
did come to fruition are now apportioned and available for use. Not 
more than 12 percent of the Agency's quarterly apportioned carryover 
and recovered 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 carryover and recovered 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 with 
carryover and recovered funds during the remainder of that quarter will 
require a 2 percent guarantee fee and not exceed an 80 percent 
guarantee limit. As an exception to this paragraph and for the purposes 
of this notice, loans developed by the North American Development Bank 
Community Adjustment and Investment Program (CAIP) will not count 
against the 15 percent limit. Up to 50 percent of CAIP funds may be 
used for loan requests with a guaranteed percentage exceeding 80 
percent.
    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 and Industry 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 21, 2003.

FOR FURTHER INFORMATION CONTACT: Fred Kieferle, Processing Branch 
Chief, Business and Industry Division, Rural Business-Cooperative 
Service, USDA, Stop 3224, 1400 Independence Avenue, SW., Washington, DC 
20250-3224, telephone (202) 720-7818.

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

    Dated: January 13, 2003.
John Rosso,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 03-1226 Filed 1-17-03; 8:45 am]
BILLING CODE 3410-XY-P