[Federal Register Volume 77, Number 24 (Monday, February 6, 2012)]
[Notices]
[Pages 5759-5760]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-2559]


-----------------------------------------------------------------------

DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2012; 
Maximum Portion of Guarantee Authority Available for Fiscal Year 2012; 
Annual Renewal Fee for Fiscal Year 2012

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

-----------------------------------------------------------------------

SUMMARY: As set forth in 7 CFR 4279.107(b), the Agency has the 
authority to charge an annual renewal fee for loans made under the 
Business and Industry (B&I) Guaranteed Loan Program. Pursuant to that 
authority, the Agency is establishing the renewal fee rate at one-
fourth of 1 percent for the

[[Page 5760]]

B&I Guaranteed Loan Program. This rate will apply to all loans 
obligated in Fiscal Year 2012 that are made under the B&I program. As 
established in 7 CFR 4279.107, the amount of the fee on each guaranteed 
loan will be determined by multiplying the fee rate by the outstanding 
principal loan balance as of December 31, multiplied by the percent of 
guarantee.
    The Agency has been authorized by the 2012 Appropriations Bill to 
charge a maximum of 3 percent for its guarantee fee for Fiscal Year 
2012. As such, the guarantee fee for Fiscal Year 2012 will be 3 
percent.
    As set forth in 7 CFR 4279.107(a) and 4279.119(b)(4), each fiscal 
year the Agency shall establish a limit on the maximum portion of B&I 
guarantee authority available for that fiscal year that may be used to 
guarantee loans with a reduced guarantee fee or guaranteed loans with a 
guarantee percentage exceeding 80 percent.
    Allowing a reduced guarantee fee or exceeding the 80 percent 
guarantee on certain B&I 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 that the Agency has found 
particularly meritorious. For reduced guarantee fees, the borrower's 
business must support value-added agriculture and result in farmers 
benefiting financially or must be a high impact business investment as 
defined in 7 CFR 4279.155(b)(5) and be located in rural communities 
that remain persistently poor, that experience long-term population 
decline and job deterioration, that are experiencing trauma as a result 
of natural disaster, or that are experiencing fundamental structural 
changes in its economic base. For guaranteed loans exceeding 80 
percent, such projects must be a high-priority project in accordance 
with 7 CFR 4279.155 (and meet the other requirements of 7 CFR 
4279.119(b)).
    Not more than 12 percent of the Agency's quarterly apportioned B&I 
guarantee authority will be reserved for loan requests with a reduced 
guarantee fee, 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 
respective quarterly limits are reached, all additional loans for that 
quarter will be at the standard fee and guarantee limits.

DATES: Effective Date: February 6, 2012.

FOR FURTHER INFORMATION CONTACT: Brenda Griffin, USDA, Rural 
Development, Business Programs, Business and Industry Division, STOP 
3224, 1400 Independence Avenue SW., Washington, DC 20250-3224, 
telephone (202) 720-6802, email [email protected].

SUPPLEMENTARY INFORMATION: This action has been reviewed and determined 
not to be a rule or regulation as defined in Executive Order 12866, as 
amended by Executive Order 13258.

     Dated: January 27, 2012.
Judith A. Canales,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2012-2559 Filed 2-3-12; 8:45 am]
BILLING CODE 3410-XY-P