[Federal Register Volume 83, Number 187 (Wednesday, September 26, 2018)]
[Notices]
[Pages 48588-48589]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2018-20944]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2019;
Maximum Portion of Guarantee Authority Available for Fiscal Year 2019;
Annual Renewal Fee for Fiscal Year 2019
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: This notice helps to improve applicants' awareness of the
Guarantee Fee rates for Guaranteed Loans for fiscal year (FY) 2019, the
Maximum Portion of Guarantee Authority Available for FY 2019, and the
Annual Renewal Fee for FY 2019 when applying for guaranteed loans under
the Business and Industry (B&I) Guaranteed Loan Program.
The Agency has the authority to charge a guarantee fee and an
annual renewal fee for loans made under the B&I Guaranteed Loan
Program. Pursuant to that authority, and subject to the Continuing
Resolution, the Agency is establishing an initial guarantee fee rate of
3 percent and an annual renewal fee rate of one-half of 1 percent for
the B&I Guaranteed Loan Program.
The initial guarantee fee is paid at the time the Loan Note
Guarantee is issued. The annual renewal fee is paid by the lender to
the Agency once a year. Payment of the annual renewal fee is required
in order to maintain the enforceability of the guarantee. Additionally,
the Agency will require the borrower to have an active System for Award
Management (SAM) registration prior to obligation and maintain the
active registration until all funds are disbursed.
DATES: Applicability date: September 26, 2018.
FOR FURTHER INFORMATION CONTACT: Tanner Hinkel, USDA, Rural
Development, Business Programs, Business and Industry Division, STOP
3224, 1400 Independence Avenue SW, Washington, DC 20250-3224, telephone
(202) 720-1970, email [email protected].
SUPPLEMENTARY INFORMATION: As set forth in 7 CFR 4279.120, the Agency
has the authority to charge an initial guarantee fee and an annual
renewal fee for loans made under the B&I Guaranteed Loan Program.
Pursuant to that authority, and subject to the Continuing Resolution,
the Agency is establishing an initial guarantee fee rate of 3 percent
and an annual renewal fee rate of one-half of 1 percent for the B&I
Guaranteed Loan Program. Unless precluded by a subsequent FY 2019
appropriation, these rates will apply to all loans obligated in FY 2019
that are made under the B&I Guaranteed Loan Program. As established in
7 CFR 4279.120(b)(1), the amount of the annual fee on each guaranteed
loan will be determined by multiplying the annual fee rate by the
outstanding principal loan balance as of December 31, multiplied by the
percentage of guarantee.
As set forth in 7 CFR 4279.120(a) and 4279.119(b), 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
an increased percentage of guarantee. The Agency has established that
not more than 12 percent of the Agency's apportioned B&I guarantee
authority will be reserved for loan guarantee requests with a reduced
fee, and not more than 15 percent of the Agency's apportioned B&I
guarantee authority will be reserved for guaranteed loan requests with
an increased percentage of guarantee. Once the respective limits are
reached, all additional loans will be at the standard fee and guarantee
limits.
Allowing a reduced guarantee fee or increased percentage of
guarantee on certain B&I guaranteed loans that meet the conditions set
forth in 7 CFR 4279.120 and 4279.119 will increase the Agency's ability
to focus guarantee assistance on projects that the Agency has found
particularly meritorious. Subject to annual limits set by the Agency in
this notice, the Agency may charge a reduced guarantee fee if requested
by the lender for loans of $5 million or less when the borrower's
business supports value-added agriculture and results in farmers
benefitting financially, promotes access to healthy foods, or is a high
impact business development investment located in a rural community
that is experiencing long-term population decline; has remained in
poverty for the last 30 years; is experiencing trauma as a result of
natural disaster; is located in a city or county with an unemployment
rate 125 percent of the statewide rate or greater; or is located within
the boundaries of a federally recognized Indian tribe's reservation or
within tribal trust lands or within land owned by an Alaska Native
Regional or Village Corporation as defined by the Alaska Native Claims
Settlement Act. Subject to annual limits set by the Agency in this
notice, the Agency may allow increased percentages of guarantee for
high-priority projects or loans where the lender needs the increased
percentage of guarantee due to its legal or regulatory lending limit.
As set forth in 2 CFR 25.200(b), each entity that applies and does
not have an exemption under 2 CFR 25.110 must be registered in the SAM
prior to submitting an application or plan, maintain an active SAM
registration with current information at all times during which it has
an active Federal award or an application or plan under
[[Page 48589]]
consideration by the Agency, and provide its unique entity identifier
in each application or plan it submits to the Agency.
Non-Discrimination Statement
In accordance with Federal civil rights law and U.S. Department of
Agriculture (USDA) civil rights regulations and policies, the USDA, its
Agencies, offices, and employees, and institutions participating in or
administering USDA programs are prohibited from discriminating based on
race, color, national origin, religion, sex, gender identity (including
gender expression), sexual orientation, disability, age, marital
status, family/parental status, income derived from a public assistance
program, political beliefs, or reprisal or retaliation for prior civil
rights activity, in any program or activity conducted or funded by USDA
(not all bases apply to all programs). Remedies and complaint filing
deadlines vary by program or incident.
Persons with disabilities who require alternative means of
communication for program information (e.g., Braille, large print,
audiotape, American Sign Language, etc.) should contact the responsible
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or
contact USDA through the Federal Relay Service at (800) 877-8339.
Additionally, program information may be made available in languages
other than English.
To file a program discrimination complaint, complete the USDA
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or
write a letter addressed to USDA and provide in the letter all of the
information requested in the form. To request a copy of the complaint
form, call (866) 632-9992. Submit your completed form or letter to USDA
by:
(1) Mail: U.S. Department of Agriculture, Office of the Assistant
Secretary for Civil Rights, 1400 Independence Avenue SW, Washington DC
20250-9410;
(2) Fax: (202) 690-7442; or
(3) Email: [email protected].
This action has been reviewed and determined not to be a rule or
regulation as defined in Executive Order 12866.
Dated: September 10, 2018.
Bette B. Brand,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2018-20944 Filed 9-25-18; 8:45 am]
BILLING CODE 3410-XY-P