[Federal Register Volume 70, Number 54 (Tuesday, March 22, 2005)]
[Notices]
[Pages 14439-14443]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 05-5582]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service


Revolving Fund Program; Announcement of Grant and Loan 
Application Deadlines and Funding Levels

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding availability and solicitation of 
applications.

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SUMMARY: The Rural Utilities Service (RUS) announces that it is 
accepting grant applications for its Revolving Fund Program (RFP) for 
fiscal year (FY) 2005. FY 2005 available funding for the RFP grant 
program is $496,000.

DATES: You may submit completed RFP grant applications on paper or 
electronically according to the following deadlines:
     Paper applications must be postmarked and mailed, shipped, 
or sent overnight no later than May 23, 2005, to be eligible for FY 
2005 grant funding. Late applications are not eligible for FY 2005 
grant funding.
     Electronic applications must be submitted through 
Grants.gov no later than May 23, 2005, to be eligible for FY 2005 grant 
funding.

ADDRESSES: You may obtain application guides and materials for the RFP 
program from the RUS Water and Environmental Programs (WEP) Web site: 
http://www.usda.gov/rus/Water. You may also request application guides 
and materials from RUS by contacting the WEP at (202) 720-9586.
    Submit completed paper applications for RFP grant to the Rural 
Utilities Service, U.S. Department of Agriculture, 1400 Independence 
Ave., SW., Room 2233, STOP 1570, Washington, DC 20250-1570. 
Applications should be marked ``Attention: Assistant Administrator, 
Water and Environmental Programs.''
    Submit electronic grant applications at http://www.grants.gov 
(Grants.gov), following the instructions you find on that Web site.

FOR FURTHER INFORMATION CONTACT: Stephen S. Saulnier, Loan Specialist, 
Water Program Division, Rural Utilities Service, U.S. Department of 
Agriculture, telephone: (202) 690-2526, fax: (202) 690-0649.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Utilities Service (RUS).
    Funding Opportunity Title: Grant Program To Establish a Fund for 
Financing Water and Wastewater Projects (Revolving Fund Program (RFP)).
    Announcement Type: Funding Level Announcement, and Solicitation of 
Applications.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.864.
    Dates: You may submit a completed application for a RFP grant on or 
before May 23, 2005.
    Reminder of Competitive Grant Application Deadline: Applications 
must be mailed, shipped or submitted electronically through Grants.gov 
no later than May 23, 2005, to be eligible for FY 2005 grant funding.

Items in Supplementary Information

    I. Funding Opportunity: Brief introduction to the RFP.
    II. Award Information: Available funds, maximum amounts.
    III. Eligibility Information: Who is eligible, what kinds of 
projects are eligible, what criteria determine basic eligibility.
    IV. Application and Submission Information: Where to get 
application materials, what constitutes a completed application, how 
and where to submit applications, deadlines, items that are eligible.
    V. Application Review Information: Considerations and preferences, 
scoring criteria, review standards, selection information.

[[Page 14440]]

    VI. Award Administration Information: Award notice information, 
award recipient reporting requirements.
    VII. Agency Contacts: Web, phone, fax, email, contact name.

I. Funding Opportunity

    Drinking water systems are basic and vital to health and economic 
development. With dependable water facilities, rural communities can 
attract families and businesses that will invest in the community and 
improve the quality of life for all residents. Without dependable water 
facilities, the communities cannot sustain economic development.
    The Rural Utilities Service (RUS) supports the sound development of 
rural communities and the growth of our economy without endangering the 
environment. RUS provides financial and technical assistance to help 
communities bring safe drinking water and sanitary, environmentally 
sound waste disposal facilities to rural Americans in greatest need.
    The Revolving Fund (RFP) Grant Program has been established to 
assist communities with water or wastewater systems. Qualified private 
non-profit organizations will receive RFP grant funds to establish a 
lending program for eligible entities. Eligible entities for the 
revolving loan fund will be the same entities eligible to obtain a 
loan, loan guarantee, or grant from the Rural Utilities Service Water 
and Waste Disposal and Wastewater loan and grant programs. As grant 
recipients, the non-profit organizations will set up a revolving loan 
fund to provide loans to finance predevelopment costs of water or 
wastewater projects, or short-term small capital projects not part of 
the regular operation and maintenance of current water and wastewater 
systems. The amount of financing to an eligible entity shall not exceed 
$100,000.00 and shall be repaid in a term not to exceed 10 years. The 
rate shall be determined in the approved grant work plan.

II. Award Information

    FY 2005 funding for the RFP Grant Program is $496,000.

III. Eligibility Information

A. What Are the Basic Eligibility Requirements for Applying?

    1. Is a private, non-profit organization that has tax-exempt status 
from the United States Internal Revenue Service (IRS);
    2. Is legally established and located within one of the following:
    a. A state within the United States.
    b. The District of Columbia.
    c. The Commonwealth of Puerto Rico.
    d. A United States territory.
    e. Has the legal capacity and authority to carry out the grant 
purpose;
    f. Has a proven record of successfully operating a revolving loan 
fund to rural areas;
    g. Has capitalization acceptable to the Agency, and is composed of 
at least 51 percent of the outstanding interest or membership being 
citizens of the United States or individuals who reside in the United 
States after being legally admitted for permanent residence;
    h. Has no delinquent debt to the Federal Government or no 
outstanding judgments to repay a Federal debt; and
    i. Demonstrates that it possesses the financial, technical, and 
managerial capability to comply with Federal and State laws and 
requirements.

B. What Are the Basic Eligibility Requirements for a Project?

    1. The following activities are authorized under the RFP statute:
    a. Grant funds must be used to capitalize a revolving fund program 
for the purpose of providing direct loan financing to Ultimate 
Recipients for pre-development costs associated with proposed or with 
existing water and wastewater systems; or
    b. Short-term costs incurred for equipment replacement, small-scale 
extension of services, or other small capital projects that are not 
part of the regular operations and maintenance activities of existing 
water and wastewater systems.
    2. Grant funds may not be used to pay any of the following:
    a. Payment of the Intermediary's administrative costs or expenses, 
and
    b. Delinquent debt owed to the Federal Government.

IV. Application and Submission Information

A. Where To Get Application Information

    The application guide, copies of necessary forms, the RFP 
regulation, and samples are available from these sources:
    1. The RFP of RUS Web site: http://www.usda.gov/rus/water, or 
http://www.grants.gov.
    2. Telephone the RFP of RUS for paper copies: (202) 720-9586.

B. You May File an Application in Either Paper or Electronic Format

    1. Applications submitted on paper:
    a. Send or deliver paper applications by the U.S. Postal Service 
(USPS) or courier delivery services to: Assistant Administrator, Water 
and Environmental Programs, Rural Utilities Service, 1400 Independence 
Avenue, SW., STOP 1548, Room 5145 South, Washington, DC 20250-1548. RUS 
will not accept applications by fax or e-mail.
    b. Submit the original paper application (no stamped, photocopied, 
or initialed signatures) and two copies on or before the deadline date. 
The application and any materials sent with it become Federal records 
by law and cannot be returned to you.
    2. Electronically submitted applications:
    a. Applications will not be accepted by RUS via facsimile machine 
or electronic mail.
    b. Electronic applications for grants will be accepted if submitted 
through the Federal Government's Grant.gov Web site: http://www.grants.gov.
    c. How to register with Grants.gov: You must be registered with 
Grants.gov before you can submit a grant application. If you have not 
used Grants.gov before, you will need to register with the Central 
Contractor Registry (CCR) and the Credential Provider. You will also 
need a DUNS number to access or register for these services. The 
registration processes may take several business days to complete. 
Follow the instructions at Grants.gov for registering and submitting an 
electronic application. RUS may request original signatures on 
electronically submitted documents later.
    d. The CCR registers your organization, housing your organizational 
information and allowing Grants.gov to use it to verify your identity. 
You may register for the CCR by calling the CCR Assistance Center at 1-
888-227-2423 or you may register online at: http://www.ccr.gov.
    e. The Credential Provider gives you or your representative a 
username and password, as part of the Federal Government's e-
Authentication to ensure a secure transaction. You will need the 
username and password when you register with Grants.gov or use 
Grants.gov to submit your application. You must register with the 
Central Provider through Grants.gov: https://apply.grants.gov/OrcRegister.
    f. DUNS number. As required by OMB, a Dun and Bradstreet Data 
Universal Numbering System (DUNS) number (DUNS) number is required for 
paper and electronically submitted grant applications. The Standard 
Form 424 (SF-424), ``Application for Federal Assistance'' contains a 
field for you to use when supplying your DUNS number. Obtaining a DUNS 
number costs nothing and requires a brief telephone call to Dun and 
Bradstreet. To verify that your organization has a

[[Page 14441]]

DUNS number or to receive one, call the dedicated toll-free request 
line at 1-866-705-5711. The following information is required when 
requesting a DUNS number:
    (i) Legal Name.
    (ii) Headquarters name and address of the organization
    (iii) Doing business as (dba) or other name by which the 
organization is commonly recognized.
    (iv) Physical address.
    (v) Mailing address (if separate from headquarters and/or physical 
address).
    (vi) Telephone number.
    (vii) Contact name and title.
    (viii) Number of employees at the physical location.
    For more information, please visit Grants.gov and the Dun and 
Bradstreet Web site: http://www.dunandbradstreet.com.

C. What Constitutes a Completed Application?

    1. To be considered for a RFP grant award, you must be an eligible 
entity and must submit a complete application on or before May 23, 
2005. You should consult the cost principles and general administrative 
requirements for grants pertaining to their organizational type in 
order to prepare the budget and complete other parts of the 
application. You also must demonstrate compliance (or intent to 
comply), through certification or other means, with a number of public 
policy requirements.
    2. Applicants must complete and submit the following forms to apply 
for a RFP grant:
    a. Standard Form 424, ``Application for Federal Assistance.''
    b. Standard Form 424A, ``Budget Information--Non-Construction 
Programs.''
    c. Standard Form 424B, ``Assurances--Non-Construction Programs.''
    d. Standard Form LLL, ``Disclosure of Lobbying Activity.''
    e. Form RD 400-1, ``Equal Opportunity Agreement.''
    f. Form RD 400-4, ``Assurance Agreement (Under Title VI, Civil 
Rights Act of 1964.)''
    3. The project proposal should outline the project in sufficient 
detail to provide a reader with a complete understanding of how the 
loan program will work. Explain what you will accomplish by lending 
funds to eligible entities. Demonstrate the feasibility of the proposed 
loan program in meeting the objectives of this grant program. The 
proposal should cover the following elements:
    a. Present a brief project overview. Explain the purpose of the 
project, how it relates to RUS's purposes, how you will carry out the 
project, what the project will produce, and who will direct it.
    b. Describe why the project is necessary. Demonstrate that eligible 
entities need loan funds. Quantify the number of prospective borrowers 
or provide statistical or narrative evidence that a sufficient number 
of borrowers will exist to justify the grant award. Describe the 
service area. Address community needs.
    c. Clearly state your project goals. Your objectives should clearly 
describe the goals and be concrete and specific enough to be 
quantitative or observable. They should also be feasible and relate to 
the purpose of the loan program.
    d. The narrative should cover in more detail the items briefly 
described in the Project Summary. It should establish the basis for any 
claims that you have substantial expertise in promoting the safe and 
productive use of Revolving Funds. In describing what the project will 
achieve, you should tell the reader if it also will have broader 
influence. The narrative should address the following points:
    (i) Document your ability to administer and service a revolving 
fund in accordance with the provisions of 7 CFR Part 1783.
    (ii) Document that, to establish the revolving fund, you can commit 
financial resources your organization controls. This documentation 
should describe the sources of funds other than the RFP grant that will 
be used to pay your operational costs and provide financial assistance 
for projects.
    (iii) Demonstrate that you have secured commitments of significant 
financial support from other funding sources, if appropriate.
    (iii) List the fees and charges that borrowers will be assessed.
    e. The work plan must describe the tasks and activities that will 
be accomplished with available resources during the grant period. It 
must show the work you plan to do to achieve the anticipated outcomes, 
goals, and objectives set out for the RFP Program. The plan must:
    (i) Describe the work to be performed by each person.
    (ii) Give a schedule or timetable of work to be done.
    (iii) Show evidence of previous experience with the techniques to 
be used or their successful use by others.
    (iv) Outline the loan program to include the following: Specific 
loan purposes, a loan application process; priorities, borrower 
eligibility criteria, limitations, fees, interest rates, terms, and 
collateral requirements.
    (v) Provide a marketing plan.
    (vi) Explain the mechanics of how you will transfer loan funds to 
the borrowers.
    (vii) Describe follow-up or continuing activities that should occur 
after project completion such as monitoring and reporting borrowers' 
accomplishments.
    (viii) Project Evaluation. It should describe how the results will 
be evaluated, in line with the project objectives.
    (ix) Personnel. The applicant should list all personnel responsible 
for administering this program along with a statement of their 
qualifications and experience.
    f. The written justification for projected costs should explain how 
budget figures were determined for each category. It should indicate 
which costs are to be covered by grant funds and which costs will be 
met by your organization or other organizations. The justification 
should account for all expenditures discussed in the narrative. It 
should reflect appropriate cost-sharing contributions. The budget 
justification should explain the budget and accounting system proposed 
or in place. The administrative costs for operating the budget should 
be expressed as a percentage of the overall budget. The budget 
justification should provide specific budget figures, rounding off 
figures to the nearest dollar. Applicants should consult OMB Circular 
A-122: ``Cost Principles for Non-Profit Organizations'' for information 
about appropriate costs for each budget category.
    g. In addition to completing the standard application forms, you 
must submit supplementary materials.
    h. Demonstrate that your organization is legally recognized under 
state and Federal law. Satisfactory documentation includes, but is not 
limited to, certificates from the Secretary of State, or copies of 
state statutes or laws establishing your organization. Letters from the 
IRS awarding tax-exempt status are not considered adequate evidence.
    i. Submit a certified list of directors and officers with their 
respective terms.
    j. Submit evidence of tax exempt status from the Internal Revenue 
Service.
    k. You must disclose debarment and suspension information required 
in accordance with 7 CFR, Part 3017, subpart 3017.335, if it applies. 
The section heading is ``What information must I provide before 
entering into a covered transaction with the Department of 
Agriculture?'' It is part of the Department of Agriculture's rules on 
Government-wide Debarment and Suspension.

[[Page 14442]]

    l. Submit the most recent audit of your organization.
    m. Submit the following financial statements:
    (i) A pro forma balance sheet at start-up and for at least three 
additional years; Balance sheets, income statements, and cash flow 
statements for the last three years. If your organization has been 
formed less than three years, the financial statements should be 
submitted for the periods from inception to the present.
    (ii) Projected income and cash flow statements for at least three 
years supported by a list of assumptions showing the basis for the 
projections.
    (iii) The projected income statement and balance sheet must include 
one set of projections that shows the revolving loan fund only and a 
separate set of projections that shows your organization's total 
operations.
    n. You may present additional information to support and describe 
your plan for achieving the grant objectives. The information may be 
regarded as essential for understanding and evaluating the project such 
as letters of support, resolutions, policies, etc. The supplements may 
be presented in appendices to the proposal.
    4. You must identify all of your organization's known workplaces by 
including the actual address of buildings (or parts of buildings) or 
other sites where work under the award takes place. Workplace 
identification is required under the drug-free workplace requirements 
in accordance with 7 CFR, Part 3021, subpart 3021.230. The section 
heading is ``How and when must I identify workplaces?'' This is part of 
the Department of Agriculture's rules on Government-wide Requirements 
for Drug-Free Workplace (Financial Assistance).

V. Application Review Information

A. Criteria

    1. Receipt Acknowledgment by letter sent within 30 days of 
receiving your application, RUS will acknowledge the application's 
receipt. Your application will be reviewed for completeness to 
determine if you included all of the items required. If your 
application is incomplete or ineligible, RUS will return it to you with 
an explanation.
    2. A review team, composed of at least two members, will evaluate 
all applications and proposals. They will make overall recommendations 
based on factors such as eligibility, application completeness, and 
conformity to application requirements. They will score the 
applications based on criteria in the next section.
    3. All applications that are complete and eligible will be ranked 
competitively based on the following scoring criteria:

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              Scoring criteria                          Points
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1. Degree of expertise and successful        Up to 30 points.
 experience in Up to 30 making and
 servicing commercial loans, with a points
 successful record.
2. Percentage of applicant contributions.
 Points allowed under this paragraph will
 be based on written evidence of the
 availability of funds from sources other
 than the proceeds of a RFP grant to pay
 part of the cost of a loan recipient's
 project. In-kind contributions will not be
 considered. Funds from other sources as a
 percentage of the RFP grant and points
 corresponding to such percentages are as
 follows:
    Less than 20 percent--.................  Ineligible.
    At least 20 percent but not more than    10 points.
     49 percent of 10 points the total
     project costs.
    At least 50 percent of the total         20 points.
     project costs.
3. Extent to which the work plan clearly     Up to 40 points.
 articulates a well thought out approach to
 accomplishing objectives; points clearly
 defines who will be served by the project
 or program; and includes all components
 listed in 1783.37(b)(14).
4. Description of the service area,
 particularly the range of the area:
    State..................................  10 points.
    Regional...............................  15 points.
    National...............................  20 points.
5. Extent to which the problem or issue      Up to 15 points.
 being addressed in the Needs Assessment is
 defined clearly and points supported by
 data.
6. Extent to which the goals and objectives  Up to 15 points.
 are clearly defined, tied to the need as
 defined in the Needs points Assessment,
 and are measurable.
7. Extent to which the evaluation methods    Up to 20 points.
 are specific to the program, clearly
 defined, measurable, with points expected
 program outcomes.
8. Administrator's discretion, taking into   Up to 10 points.
 consideration such factors as: Creative
 outreach ideas for marketing RFP loans;
 Amount of funds requested in relation to
 the amount of needs demonstrated in the
 proposal; Excellent utilization of a
 previous revolving loan fund; and (d)
 Optimizing the use of agency resources.
------------------------------------------------------------------------

VI. Award Review Process

A. RUS Will Rank All Qualifying Applications by Their Final Score

    Applications will be selected for funding, based on the highest 
scores and the availability of funding for RFP grants. Each applicant 
will be notified in writing of the score its application receives.

B. Application Determinations

    In making its decision about your application, RUS may determine 
that your application is:
    1. Eligible and selected for funding,
    2. Eligible but offered fewer funds than requested,
    3. Eligible but not selected for funding; or,
    4. Ineligible for the grant.

C. Appeals

    In accordance with 7 CFR part 1900, subpart B, you generally have 
the right to appeal adverse decisions. Some adverse decisions cannot be 
appealed. For example, if you are denied RUS funding due to a lack of 
funds available for the grant program, this decision cannot be 
appealed. However, you may make a request to the National Appeals 
Division (NAD) to review the accuracy of our finding that the decision 
cannot be appealed. The appeal must be in writing and filed at the 
appropriate Regional Office, which can be found at http://www.nad.usda.gov/offices.htm or by calling (703) 305-1166.

VII. Award Administration Information

A. Terms and Conditions of Grant Award

    Applicants selected for funding will complete a grant agreement 
which outlines the terms and conditions of the grant award.

[[Page 14443]]

B. Grantee Reimbursement

    1. SF-270, ``Request for Advance or Reimbursement,'' will be 
completed by the grantee and submitted to either the State or National 
Office not more frequently than monthly.
    2. 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.
    3. Grantees are encouraged to use women- and minority-owned banks 
(a bank which is owned at least 50 percent by women or minority group 
members) for the deposit and disbursement of funds.

C. Post-Award Project Changes

    Any change in the scope of the project, budget adjustments of more 
than 10 percent of the total budget, or any other significant change in 
the project must be reported to and approved by the approval official 
by written amendment to RUS Guide 1775-1. Any change not approved may 
be cause for termination of the grant.

D. Project Reporting

    1. 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.
    2. SF-269, ``Financial Status Report (short form),'' and a project 
performance activity report will be required of all grantees on a 
quarterly basis, due 30 days after the end of each quarter.
    3. A final project performance report will be required with the 
last SF-269 due 90 days after the end of the last quarter in which the 
project is completed. The final report may serve as the last quarterly 
report.
    4. All multi-State grantees are to submit an original of each 
report to the National Office. Grantees serving only one State are to 
submit an original of each report to the State Office. The project 
performance reports should detail, preferably in a narrative format, 
activities that have transpired for the specific time period.
    5. The grantee will provide an audit report or financial statements 
as follows:
    a. Grantees expending $500,000 or more Federal funds per fiscal 
year will submit an audit conducted in accordance with OMB Circular A-
133. The audit will be submitted within 9 months after the grantee's 
fiscal year. Additional audits may be required if the project period 
covers more than one fiscal year.
    b. Grantees expending less than $500,000 will provide annual 
financial statements covering the grant period, consisting of the 
organization's statement of income and expense and balance sheet signed 
by an appropriate official of the organization. Financial statements 
will be submitted within 90 days after the grantee's fiscal year.

VII. Agency Contacts

    A. Web site: http://www.usda.gov/rus/water. The RUS' Web site 
maintains up-to-date resources and contact information for RFP 
programs.
    B. Telephone: 202-720-9586.
    C. Fax: 202-690-0649.
    D. E-mail: [email protected].
    E. Main point of contact: Stephen Saulnier, Loan Specialist, Water 
and Environmental Programs, Water Programs Division, Rural Utilities 
Service, U.S. Department of Agriculture.

    Dated: March 3, 2005.
Curtis M. Anderson,
Acting Administrator, Rural Utilities Service.
[FR Doc. 05-5582 Filed 3-21-05; 8:45 am]
BILLING CODE 3410-15-P