[Federal Register Volume 72, Number 52 (Monday, March 19, 2007)]
[Rules and Regulations]
[Pages 12704-12705]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: E7-4920]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

7 CFR Part 4279

RIN 0570-AA26


Business and Industry Guaranteed Loan Program; Technical 
Correction

AGENCY: Rural Business--Cooperative Service, USDA.

ACTION: Final rule.

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SUMMARY: The Rural Business-Cooperative Service (RBS) is revising its 
program regulations to correct an inadvertent omission in a sentence 
concerning eligibility of debt refinancing. The words ``existing lender 
debt'' will be added to a sentence that currently limits refinancing to 
less than 50 percent of the overall loan. The intended effect is to 
limit existing lender debt refinancing to less than 50 percent of the 
overall loan.

DATES: Effective Date: March 19, 2007.

FOR FURTHER INFORMATION CONTACT: Brenda Griffin, Loan Specialist, 
Business and Industry Division, Rural Business-Cooperative Service, 
U.S. Department of Agriculture, STOP 3224, 1400 Independence Avenue, 
SW., Washington, DC 20250-3224. Telephone: (202) 720-6802; TDD number 
is (800) 877-8339 or (202) 708-9300; Fax number: (202) 720-6003; e-
mail: [email protected].

SUPPLEMENTARY INFORMATION:

Classification

    This rule has been determined to be not significant for the 
purposes of Executive Order 12866 and, therefore, has not been reviewed 
by the Office of Management and Budget (OMB).

Programs Affected

    The Catalog of Federal Domestic Assistance number for the program 
impacted by this action is 10.768, Business and Industry Loans.

Intergovernmental Review

    Business and Industry Guaranteed Loans are subject to the 
provisions of Executive Order 12372, which require intergovernmental 
consultation with state and local officials. RBS will conduct 
intergovernmental consultation in the manner delineated in RD 
Instruction 1940-J, ``Intergovernmental Review of Rural Development 
Programs and Activities,'' available in any Rural Development office 
and on the Internet at http://rurdev.usda.gov.regs/ and in 7 CFR part 
3015, subpart V.

Paperwork Reduction Act

    The information collection requirements contained in this 
regulation have been previously approved by OMB under the provisions of 
44 U.S.C. chapter 35 and have been assigned OMB control number 0570-
0017, in accordance with the Paperwork Reduction Act (PRA) of 1995. 
There is no new paperwork burden associated with this correction.

E-Government Act Compliance

    RBS is committed to complying with the E-Government Act, to promote 
the use of the Internet and other information technologies to provide 
increased opportunities for citizen access to Government information 
and services, and for other purposes. For information pertinent to E-
GOV compliance related to this proposed rule, please contact Brenda 
Griffin at (202) 720-6802.

Regulatory Flexibility Act

    In compliance with the Regulatory Flexibility Act (5 U.S.C. 601-
612), the undersigned has determined and certified by signature of this 
document that this rule will not have a significant economic impact on 
a substantial number of small entities. Since this rule is a technical 
correction and has no significant economic impact on a substantial 
number of small entities, a regulatory flexibility analysis was not 
performed.

Civil Justice Reform

    This rule has been reviewed under Executive Order 12988, Civil 
Justice Reform. In accordance with this Executive Order: (1) All State 
and local laws and regulations that are in conflict with this rule will 
be preempted, (2) no retroactive effect will be given this rule, and 
(3) administrative proceedings in accordance with 7 CFR part 11 must be 
exhausted before bringing litigation challenging action taken under 
this rule unless these regulations specifically allow bringing suit at 
an earlier time.

Environmental Impact Statement

    This document has been reviewed in accordance with 7 CFR part 1940, 
subpart G, ``Environmental Program.'' RBS has determined that this 
action does not constitute a major Federal action significantly 
affecting the quality of the human environment, and in accordance with 
the National Environmental Policy Act of 1969, 42 U.S.C. 4321 et seq., 
an Environmental Impact Statement is not required.

Unfunded Mandates Reform Act

    Title II of the Unfunded Mandates Reform Act of 1995 (UMRA), Public 
Law 104-4, establishes requirements for Federal agencies to assess the 
effects of their regulatory actions on State, local, and tribal 
governments and the private sector. Under section 202 of the UMRA, RBS 
generally must prepare a written statement, including a cost-benefit 
analysis, for proposed and final rules with ``Federal mandates'' that 
may result in expenditures to State, local or tribal governments, in 
the aggregate, or to the private sector, of $100 million or more in any 
one year. When such a statement is needed for a rule, section 205 of 
UMRA generally requires RBS to identify and consider a reasonable 
number of regulatory alternatives and adopt the least costly, more cost 
effective or least burdensome alternative that achieves the objectives 
of the rule.
    This rule contains no Federal mandates (under the regulatory 
provisions of Title II of the UMRA) for State, local, and tribal 
governments or the private sector. Thus, this rule is not subject to 
the requirements of sections 202 and 205 of UMRA.

Executive Order 13132

    It has been determined under Executive Order 13132, Federalism, 
that this rule does not have sufficient federalism implications to 
warrant the preparation of a Federalism Assessment. The provisions 
contained in this rule will not have a substantial direct effect on 
States or their political subdivisions or on the distribution of power 
and responsibilities among the various levels of government.

Background

    A final rule was published in the Federal Register on June 8, 2006, 
concerning tangible balance sheet equity requirements for the Business 
and Industry Guaranteed Loan Program. The

[[Page 12705]]

rule modified existing debt refinancing eligibility language and 
inadvertently omitted three key words that existed prior to the final 
rule taking effect. This rule inserts those three words back into the 
debt refinancing eligibility language.

List of Subjects in 7 CFR Part 4279

    Business and industry, Loan programs, Rural areas, Rural 
development assistance.

0
Accordingly, chapter XLII, title 7, Code of Federal Regulations, is 
amended as follows:

PART 4279--GUARANTEED LOANMAKING

0
1. The authority citation for part 4279 continues to read as follows:

    Authority: 5 U.S.C. 301 and 7 U.S.C. 1989.

Subpart B--Business and Industry Loans

0
2. In Sec.  4279.113, paragraph (r) is revised to read as follows:


Sec.  4279.113  Eligible loan purposes.

* * * * *
    (r) To refinance outstanding debt when it is determined that the 
project is viable and refinancing is necessary to improve cash flow and 
create new or save existing jobs. Except as provided for in Sec.  
4279.108(d)(4) of this subpart, existing lender debt may be included 
provided that, at the time of application, the loan has been current 
for at least the past 12 months (unless such status is achieved by the 
lender forgiving the borrower's debt) and the lender is providing 
better rates or terms. Subordinated owner debt is not eligible under 
this paragraph. Unless the amount to be refinanced is owed directly to 
the Federal government or is federally guaranteed, the existing lender 
debt refinancing must be a secondary part (less than 50 percent) of the 
overall loan.
* * * * *

    Dated: February 23, 2007.
Jackie J. Gleason,
Administrator, Rural Business--Cooperative Service.
[FR Doc. E7-4920 Filed 3-16-07; 8:45 am]
BILLING CODE 3410-XY-P