[Federal Register Volume 80, Number 3 (Tuesday, January 6, 2015)]
[Notices]
[Pages 486-487]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-30967]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2015; 
Maximum Portion of Guarantee Authority Available for Fiscal Year 
2015;Annual Renewal Fee for Fiscal Year 2015

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: As set forth in 7 CFR 4279.107, the Agency has the authority 
to charge an initial guarantee fee and an

[[Page 487]]

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-half of 1 percent for the B&I 
Guaranteed Loan Program. This rate will apply to all loans obligated in 
Fiscal Year (FY) 2015 that are made under the B&I program. As 
established in 7 CFR 4279.107(b)(1), 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 was authorized by the 2012 Appropriations Bill, and 
subsequent Appropriation Acts, to charge a maximum of 3 percent for its 
guarantee fee for FYs 2012, 2013, and 2014. The 2015 Appropriations Act 
does contain a provision to charge a maximum of 3 percent for its 
guarantee fee for FY 2015. As such, the guarantee fee for FY 2015 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 which 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 experience long-term population decline and job deterioration, 
remain persistently poor, are experiencing trauma as a result of 
natural disaster, or are experiencing fundamental structural changes in 
its economic base. For guaranteed loans exceeding 80 percent, such 
projects must qualify as a high-priority project (a requirement of 7 
CFR 4279.119(b)), scoring at least 50 points in accordance with 7 CFR 
4279.155(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 
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: January 6, 2015.

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.

Lillian E. Salerno,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2014-30967 Filed 1-5-15; 8:45 am]
BILLING CODE 3410-XY-P