[Federal Register Volume 77, Number 129 (Thursday, July 5, 2012)]
[Notices]
[Pages 39675-39677]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-16394]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Applications for Licensing as a Non-Leveraged Rural Business 
Investment Company Under the Rural Business Investment Program

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the acceptance of applications from 
newly-formed Rural Business Investment Companies (RBICs) who are 
interested in being licensed as non-leveraged RBICs under the Agency's 
Rural Business Investment Program (RBIP). The Agency intends to issue 
no more than one non-leveraged license in Fiscal Year 2012.

DATES: The Agency will begin accepting applications on August 6, 2012.

ADDRESSES: Address for application submission: Completed applications 
must be sent to Specialty Programs Division, U.S. Department of 
Agriculture, Mail Stop 3225, 1400 Independence Avenue SW., Washington, 
DC 20250-3225.
    Address for requesting information: Application materials and other 
information may be requested by writing to Director, Specialty Programs 
Division, U.S. Department of Agriculture, Mail Stop 3225, 1400 
Independence Avenue SW., Washington, DC 20250-3225.

FOR FURTHER INFORMATION CONTACT: Detailed information on the RBIP, 
including application materials and instructions, can be found on the 
Agency's Web site at http://www.rurdev.usda.gov/BCP_RBIP.html. You 
also may request information from the Agency by contacting Mark 
Brodziski, Director, Specialty Programs Division, U.S. Department of 
Agriculture, Mail Stop 3225, 1400 Independence Avenue SW., Washington, 
DC 20250-3225, at (202) 720-1400.

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 defines ``collection of 
information'' as a requirement for ``answers to * * * identical 
reporting or recordkeeping requirements imposed on ten or more 
persons'' (44 U.S.C. 3502(3)(A)). The collection requirements 
associated with this Notice, is expected to receive less than ten 
respondents and therefore the Act does not apply.

Overview Information

    Federal Agency Name. Rural Business-Cooperative Service.
    Opportunity Title. Rural Business Investment Program for Non-
leveraged RBICs.
    Announcement Type. Initial announcement.

Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for the program impacted by this action is 10.860, Rural 
Business Investment Program.

    Dates. The Agency will begin accepting applications for non-
leveraged status on August 6, 2012.
    Availability of Notice. This Notice is available on the USDA Rural 
Development Web site at: http://www.rurdev.usda.gov/BCP_RBIP.html.

I. Opportunity Description

    A. Purpose. The purpose of Subtitle H of the Consolidated Farm and 
Rural Development Act, as amended (7 U.S.C. 2009cc et seq.) (the 
``Act'') is to promote economic development and the creation of wealth 
and job opportunities in rural areas and among individuals living in 
those areas through venture capital investments by for-profit RBICs.
    The purpose of this Notice is to license qualified RBICs as non-
leveraged RBICs under the RBIP. Previously, the Agency only licensed 
qualified RBICs as leveraged RBICs.
    B. Program authority. Subtitle H of the Consolidated Farm and Rural 
Development Act, as amended (7 U.S.C. 2009cc et seq.) establishes the 
Rural Business Investment Program.
    C. Definition of Terms. The terms defined in 7 CFR part 4290 are 
applicable to this Notice.

II. Licensing Information

    A. Number of Licenses. The Agency intends to issue no more than one 
non-leveraged license in Fiscal Year 2012. In Fiscal Year 2013, subject 
to sufficient administrative resources, the Agency intends to issue no 
more than three non-leveraged licenses.
    B. Type of License. Non-leveraged.

III. Eligibility Information

    Applicants and their applications are subject to the provisions of 
this Notice

[[Page 39676]]

and to the provisions of 7 CFR part 4290. In order to be eligible for 
non-leveraged status under this Notice, the applicant must demonstrate 
that one or more Farm Credit System (FCS) institution(s) will invest in 
the RBIC and, individually or collectively, hold 10 percent or more of 
the applicant's total capital.

IV. Application and Submission Information

    A. Where to Obtain Applications. Applicants may obtain applications 
and other applicable application material from the Agency's Specialty 
Programs Division, as provided in the ADDRESSES section of this Notice. 
Because applications will be selected on a first-come, first-served 
basis, the Agency recommends that potential applicants who plan to 
request application materials via mail request such materials as soon 
as possible.
    Application materials may also be obtained via http://www.rurdev.usda.gov/BCP_RBIP.html or by contacting the Agency at the 
address and phone number provided in the ADDRESSES section of this 
Notice.
    B. Content and Form of Submission. Applicants must submit 
applications in order to be considered. Applications must be submitted 
in accordance with the application instructions contained in this 
Notice and in 7 CFR 4290, including a requirement that applications be 
submitted in hard copy form. Applications sent electronically or by 
facsimile will not be accepted.
    Contents of the initial application include RD Form 4290-1, ``Rural 
Business Investment Program (RBIP) Application,'' Part I, Management 
Assessment Questionnaire (MAQ), and RD Form 4290-2, ``Rural Business 
Investment Program (RBIP) Application,'' Part II, Exhibits (exhibits A, 
D, E, F, G, K, L, P, V, and Z).
    Submit two complete, original hard copy sets of the RD Form 4290-1 
and RD Form 4290-2 (excluding Exhibit P, which is required in 
electronic form only). Place each of the two original sets in a large 
3-ring binder. Label the binders with the RBIC's name. Submit one 
complete and unbound one-sided hard copy of the MAQ and Exhibits 
suitable for photocopying (i.e., no hole punches, staples, paper clips, 
tabs or binders).
    Applicants must enclose in their submission a nonrefundable 
licensing fee of $500 in the form of a check payable to USDA.
    C. When to submit. Applications will be accepted on a continuous 
basis starting August 6, 2012.
    D. Where to Submit. The applicant must submit an original of the 
application to the Agency's Specialty Programs Division as specified in 
the ADDRESSES section of this Notice.
    E. How to Submit. Applicants may submit their applications via mail 
service.

V. Program Provisions

    This section of the Notice identifies the procedures the Agency 
will use to process and select applicants for licensing as a non-
leveraged RBIC. More information about the RBIP is available in the 
regulation at 7 CFR part 4290.
    The Agency will select applicants for licensing as a non-leveraged 
RBIC on a first-come, first-served basis. For Fiscal Year 2012, the 
Agency intends to award no more than one non-leveraged license.
    The Agency will review each application it receives in response to 
this Notice with regard to eligibility and completeness. If the 
application is incomplete, the Agency will notify the applicant of the 
missing information. The applicant must then provide the missing 
information in order for the Agency to further review the application.
    As noted above, the Agency will select applicants on a first-come, 
first-served basis. The Agency will determine the order of applications 
based on the date the Agency receives a complete application. For 
example, if an application is received on July 1, but is incomplete, 
and the applicant supplies the Agency with the missing information on 
August 1, then that application will be considered for selection on the 
basis of the August 1 date--the date on which the Agency received a 
complete application. Therefore, the Agency encourages applicants to 
ensure their applications are complete prior to submitting them.
    Only those applications that are eligible will be processed further 
for determining whether the applicant will be licensed as a non-
leveraged RBIC. The Agency anticipates being able to further process 
only one application in FY 2012. The Agency will not begin processing 
additional complete and eligible applications until the evaluation of 
the first application has been completed. Thus, most of the complete 
and eligible applications received in response to this Notice will be 
processed in FY 2013 and beyond in the order received.
    For each application that receives further processing, the Agency 
will focus its assessment of the application on the consistency of the 
newly-formed RBIC's business plan with the goals of the RBIC program 
and on the applicant's management team's qualifications. Following this 
assessment, if the initial recommendation is favorable, the Agency, or 
its designee, will interview the applicant's management team.
    Based on the assessment and interview, a recommendation will be 
made as to whether or not to select the applicant for non-leveraged 
status. If the recommendation is favorable, the Agency will send to the 
applicant a Letter of Conditions (also known as a ``Green Light'' 
letter) and the applicant will be invited to submit an updated RD Form 
4290-1, Part I, Management Assessment Questionnaire, and RD Form 4290-
2, Part II, Exhibits. Upon receipt of the Letter of Conditions, the 
applicant has 24 months to raise their private equity capital. Once a 
selected applicant has achieved full compliance with the regulations 
governing licensing as an RBIC, the Agency will issue the non--
leveraged license to the RBIC.

VI. Administrative Information Applicable to This Notice

A. Notifications

    (1) Eligibility. If an applicant is determined by the Agency to be 
eligible for participation, the Agency will notify the applicant in 
writing. If an applicant is determined by the Agency to be ineligible, 
the Agency will notify the applicant, in writing, as to the reason(s) 
the applicant was rejected. Such applicant will have review and appeal 
rights as specified in this Notice.
    (2) License. Each applicant will be notified of the Agency's 
decision on their application.

B. Administrative and National Policy Requirements

    (1) Review or appeal rights. A person may seek a review of an 
adverse Agency decision under this Notice or appeal to the National 
Appeals Division in accordance with 7 CFR part 11.
    (2) Notification of unfavorable decisions. If at any time prior to 
license approval it is decided that favorable action will not be taken, 
the Agency will notify the applicant in writing of the decision and of 
the reasons why issuing a non-leveraged license was not favorably 
considered. The notification will inform the applicant of its rights to 
an informal review, mediation, and appeal of the decision in accordance 
with 7 CFR part 11.

VII. Agency Contacts

    For further information about this Notice or for assistance with 
the program requirements, please contact the Specialty Programs 
Division, STOP 3225, Room 6867, 1400 Independence

[[Page 39677]]

Avenue SW., Washington, DC 20250-3225. Telephone: (202) 720-1400.

VIII. Nondiscrimination Statement

    USDA prohibits discrimination in all its programs and activities on 
the basis of race, color, national origin, age, disability, and where 
applicable, sex, marital status, familial status, parental status, 
religion, sexual orientation, genetic information, political beliefs, 
reprisal, or because all or part of an individual's income is derived 
from any public assistance program. (Not all prohibited bases apply to 
all programs.) Persons with disabilities who require alternative means 
for communication of program information (Braille, large print, 
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600 
(voice and TDD). To file a complaint of discrimination, write to USDA, 
Director, Office of Civil Rights, 1400 Independence Avenue SW, 
Washington, DC 20250-9410, or call (800) 795-3272 (voice), or (202) 
720-6382 (TDD). ``USDA is an equal opportunity provider, employer, and 
lender.''

    Dated: June 26, 2012.
John C. Padalino,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2012-16394 Filed 7-3-12; 8:45 am]
BILLING CODE P