[Federal Register Volume 85, Number 62 (Tuesday, March 31, 2020)]
[Rules and Regulations]
[Page 17721]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-06706]



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 Rules and Regulations
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  Federal Register / Vol. 85, No. 62 / Tuesday, March 31, 2020 / Rules 
and Regulations  

[[Page 17721]]



DEPARTMENT OF AGRICULTURE

Rural Utilities Service

7 CFR Part 1779

Rural Housing Service

7 CFR Part 3575

Rural Business-Cooperative Service

7 CFR Part 4287


Notification of Guarantee Loan Payment Deferrals for Business and 
Industry Loan Guarantees, Rural Energy for America Program Loan 
Guarantees, Community Facilities Loan Guarantees, and Water and Waste 
Loan Guarantees

AGENCY: Rural Business-Cooperative Service, Rural Housing Service, and 
Rural Utilities Service, USDA.

ACTION: Notification.

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SUMMARY: The Rural-Business Cooperative Service (RBCS), Rural Housing 
Service (RHS), and Rural Utilities Service (RUS) agencies of the Rural 
Development mission area, hereinafter referred to as Agency, will 
temporarily allow lenders with guaranteed loans with the Agency to 
unilaterally offer payment deferrals for the period specified in the 
DATES section of this notification to their customers who may be 
experiencing temporary cash flow issues due to the Coronavirus (COVID-
19) pandemic.

DATES: This policy is effective March 31, 2020 and the temporary 
authorization expires on September 30, 2020.

FOR FURTHER INFORMATION CONTACT: For RBCS, Aaron Morris, Director, 
Program Processing Division, 202-720-1501, [email protected]; for 
RHS, Deborah Jackson, Director, Guaranteed Loan Processing and 
Servicing Division, 202-720-8454, [email protected]; for RUS, 
James Fritz, Water and Environmental Programs, 413-253-4303, 
[email protected].

SUPPLEMENTARY INFORMATION: In accordance with 7 CFR 4287.107 (RBCS), 7 
CFR 3575.69 (RHS), and 7 CFR 1779.69 (RUS), the lender is responsible 
for servicing the entire loan and for taking all servicing actions that 
a reasonably prudent lender would perform in servicing its own 
portfolio of loans that are not guaranteed. Beginning immediately and 
through September 30, 2020, the USDA Business and Industry Guaranteed 
Loan Program (B&I), Rural Energy for America Program (REAP), Community 
Facilities Guaranteed Loan Program, and Water and Waste Guaranteed 
Program lenders may assist borrowers experiencing temporary cash flow 
issues resulting from the COVID-19 pandemic, by deferring payments for 
a period no longer than 180 days from the date the original payment is 
due. The lender must notify the Agency in writing of any payment 
deferments. Written notification to the Agency will meet the standard 
for concurrence until September 30, 2020. After September 30, 2020, 
lenders must resume obtaining Agency approval in accordance with all 
applicable program regulations, forms, and existing authorities. A 
response from the Agency is not required. This guidance applies to all 
borrowers that had a current repayment status as of January 31, 2020.
    If the loan has been sold on the secondary market, the secondary 
market holder and lender must agree to the deferment actions being 
taken. The Agency will expect a written agreement signed by both 
parties in these instances prior to executing any payment deferral 
action.
    The Agency does not consider a loan that is under a deferral or 
forbearance agreement to be a delinquent loan. Unpaid interest accruing 
during a deferral or forbearance agreement is not subject to the 
limitation of the guarantee of accrued interest under 7 CFR 4287.145(d) 
(RBCS), 7 CFR 3575.3 (RHS), nor 7 CFR 1779.3 (RUS).

Bette B. Brand,
Deputy Under Secretary Rural Development.
[FR Doc. 2020-06706 Filed 3-27-20; 11:15 am]
 BILLING CODE 3410-XY-P