[Federal Register Volume 69, Number 17 (Tuesday, January 27, 2004)]
[Notices]
[Pages 3875-3876]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-1633]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Maximum Portion of Guarantee Authority Available for Fiscal Year 
2004

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.
    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, which 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 more than 12 percent of the Agency's 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's 
quarterly apportioned guarantee authority will be reserved for 
guaranteed loan requests with a guarantee 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. As an exception to this paragraph and for the purposes 
of this notice, loans developed by the North American Development Bank 
(NADBank) Community Adjustment and Investment Program (CAIP) will not 
count against the 15 percent limit. Up to 50 percent of CAIP loans may 
have a guarantee percentage exceeding 80 percent. The funding authority 
for CAIP loans is not derived from carryover or recovered funding 
authority of the Business and Industry (B&I) Guaranteed Loan Program.
    Written requests by the Rural Development State Office for approval 
of a guaranteed loan with a 1 percent guarantee fee or a guaranteed 
loan

[[Page 3876]]

exceeding 80 percent must be forwarded to the National Office, Attn: 
Director, B&I 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 27, 2004.

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, 
D.C. 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 15, 2004.
John Rosso,
Administrator.
[FR Doc. 04-1633 Filed 1-26-04; 8:45 am]
BILLING CODE 3410-XY-P