[Federal Register Volume 85, Number 100 (Friday, May 22, 2020)]
[Notices]
[Pages 31139-31141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11243]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

[Docket RBS-20-CO-OP-0011]


The Business and Industry Coronavirus Aid, Relief, and Economic 
Security Act (CARES Act) Guaranteed Loan Program

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice of Funding Availability (NOFA).

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SUMMARY: The Rural Business-Cooperative Service (RBCS), a Rural 
Development agency of the United States Department of Agriculture 
(USDA), announces that in response to the national COVID-19 Public 
Health Emergency, USDA Rural Development was provided additional 
funding assistance of $20,500,000 in budget authority appropriated 
under the Coronavirus Aid, Relief, and Economic Security Act (CARES 
Act). The Business and Industry (B&I) Guaranteed Loan Program is 
administered through RBCS.

DATES: Applications will be accepted beginning on May 22, 2020 and must 
be received no later than 11:59 p.m. Eastern Daylight Time on September 
15, 2021, or until funds are expended. Program funding expires 
September 30, 2021.

ADDRESSES: If you wish to apply for assistance or need further 
information, contact the USDA Rural Development State Office in the 
State where your project is located. A list of USDA Rural Development 
State Offices and contact names are available at http://www.rd.usda.gov.

FOR FURTHER INFORMATION CONTACT: Mark Brodziski, Acting Administrator, 
Rural Business and Cooperative Service, Rural Development, U.S. 
Department of Agriculture, 1400 Independence Avenue SW, Stop, 
Washington, DC 20250-3221; email: [email protected]; telephone 
(202) 205-0903.

SUPPLEMENTARY INFORMATION: 

Congressional Review Act

    Pursuant to the Congressional Review Act (5 U.S.C. 801), the Office 
of Information and Regulatory Affairs of the Office of Management and 
Budget designated this action as a major rule, as defined by 5 U.S.C. 
804(2) because this action will result in an annual effect on the 
economy of $100,000,000 or more. However, notwithstanding 5 U.S.C. 801, 
section 808(2) of the Congressional Review Act (5 U.S.C. 808(2)) 
permits that if any rule which an agency for good cause finds that 
notice and public procedure thereon would be impracticable, 
unnecessary, or contrary to the public interest, shall take effect at 
such time that the Agency determines. USDA has determined, under 
section 808(2), that making these funds available through the issuance 
of this NOFA, as authorized in Division B, Title I of the CARES Act, 
supplements existing authority implemented in 7 CFR part 4279, subparts 
A and B, and 7 CFR part 4287, subpart B, and find good cause that 
notice and public procedure would be impracticable and contrary to the 
public interest, in light of the national COVID-19 Public Health 
Emergency. Such finding is made because withholding these funds would 
unduly delay the provision of emergency benefits under the CARES Act, 
which Congress intended to provide expeditious relief to address the 
current economic conditions arising from the COVID-19 emergency.

Overview

    Federal Agency Name: Rural Development, Rural Business-Cooperative 
Service.
    Funding Opportunity Title: Business and Industry Guaranteed Loan 
Program.
    Announcement Type: Notice of Funding Availability (NOFA).
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.768.
    Dates: Applications will be accepted beginning on May 22, 2020 and 
must be received no later than 11:59 p.m. Eastern Daylight Time on 
September 15, 2021, or until funds are expended. Program funding 
expires September 30, 2021.

Items in Supplementary Information

I. Funding Opportunity Description
II. Federal Award Information
III. Eligibility Information
IV. Application Submission Information
V. Other Information

I. Funding Opportunity Description

A. Purpose

    This NOFA is being issued pursuant to the recently passed CARES 
Act. The CARES Act provides for additional funds to the Agency for use 
under the B&I Guaranteed Loan Program. The Agency is announcing the 
availability of funding through the B&I Guaranteed Loan program for 
eligible projects as set forth in this NOFA and applies only to the 
award of CARES Act funds for loans made available through the B&I 
Guaranteed Loan Program (B&I CARES Act Guaranteed Loan Program) 
pursuant to this notice. These provisions do not apply to loans funded 
under the Appropriations Act of 2020 or any other appropriations other 
than the CARES Act.
    Subject to remaining availability of funding for the B&I CARES Act 
Guaranteed Loan Program, the Agency may publish a subsequent notice 
which may have terms and conditions that differ from this notice. Such 
modifications to program terms and conditions in subsequent notice(s) 
may be made to more appropriately align program funding with the 
purposes described in this notice and the CARES Act.

B. Implementation of CARES Act Provisions

    Consistent with the purposes of the CARES Act, the Agency has 
determined that the most effective use of these

[[Page 31140]]

program funds is to provide guaranteed loans to rural businesses in 
response to the economic conditions associated with the national COVID-
19 Public Health Emergency. It is the Agency's intent that Guaranteed 
loan funds will be directed toward working capital loan purposes to 
support business operations and facilities in rural areas including 
agricultural producers. The amount of the B&I Cares Act Program Loan 
shall be based on a cash flow analysis and must not be greater than the 
amount needed to cure problems caused by the COVID-19 emergency.
    In determining the type of enhancements that participating lenders 
would need to offer to generate quality loans and approve and disburse 
loan funds in a timely and efficient manner in these critical times, 
the Agency considered adjustments to several requirements of the B&I 
program where such adjustments can be made without compromising Agency 
underwriting standards. The Agency also evaluated adjustments to the 
program requirements in order to enable lenders greater flexibility in 
structuring loans in consideration of the borrowers' financial 
condition and capacity. For the B&I CARES Act Program, the Agency is 
extending loan authority to support agricultural production, 
simplifying the application procedures for smaller loans and adjusting 
program requirements regarding the maximum percentage of guarantee, the 
equity evaluation, the appraisal evaluation, the collateral evaluation, 
and the repayment terms for working capital loans.
    As a result of these considerations and the funding purposes 
outlined in the CARES Act, the Agency decided to provide 90 percent 
guarantees to all CARES Act funded loans, set the guarantee fee at 2%, 
accept appraisals completed within two years of the date of the 
application, not require discounting of collateral for working capital 
loans, and extend the maximum term for working capital loans to 10 
years.

II. Federal Award Information

A. Statutory Authority

    This program is authorized under the Coronavirus Aid, Relief, and 
Economic Security Act (Pub. L. 116-136).

B. Catalog of Federal Domestic Assistance (CFDA) Number 10.768

C. Available Funds

    The CARES Act provides $20,500,000 in budgetary authority for this 
program through September 30, 2021, which will support approximately 
$951,000,000 in loan guarantees in accordance with the credit subsidy 
scoring based on the provisions of this Notice. The aggregate total 
amount of loans for agricultural production will initially be limited 
to 50 percent of the total amount of program level of B&I CARES Act 
Program, approximately $475,500,000. The Agency may publish future 
notices in the Federal Register revising the limitation of the amount 
of funding made available for loans for agricultural production to 
align with the demand for these loans.

D. Funding Limitations

    The Agency will consider applications in the order they are 
received by the Agency. The Agency will distribute CARES Act funds on a 
first-come, first-served basis; however, in the event that demand 
exceeds the supply of funds, it is anticipated that toward the end of 
the funding period the Agency will need to assign priority points for 
the limited remaining funds, and for this purpose the Agency will 
compare an application to other pending applications that are competing 
for funding in accordance with 7 CFR 4279.166.

III. Eligibility Information

    This section of the notice identifies provisions specific to 
guaranteed loan applications seeking CARES Act funds. Eligibility 
requirements for lenders, borrowers, and projects and all other 
provisions of 7 CFR part 4279, subparts A and B, and 7 CFR part 4287, 
subpart B, apply to B&I CARES Act Program guaranteed loans unless 
indicated otherwise in 7 CFR 4279.190 and as follows:

A. Eligible Use of Funds

    Under the provisions of 7 CFR 4279.190(c)(2), B&I CARES Act Program 
guaranteed loans will be limited to loans for working capital loan 
purposes in accordance with 7 CFR 4279.190(c)(3). Loan proceeds may be 
used only to support facilities and business operations, including 
certain agricultural producers in rural areas that were in operation on 
February 15, 2020. Loan proceeds must be disbursed through multiple 
draws on an as-needed monthly basis.

IV. Application Submission Information

A. Address To Request Application Package

    Application materials may be obtained by contacting one of Rural 
Development State Offices, as identified via the following link: 
https://www.rd.usda.gov/contact-us/state-offices.

B. Filing Preapplications and Applications

    Applications will be accepted beginning on May 22, 2020 and must be 
received no later than 11:59 p.m. Eastern Daylight Time on September 
15, 2021, or until funds are expended. Program funding expires 
September 30, 2021.

V. Other Information

A. Paperwork Reduction Act

    In accordance with the Paperwork Reduction Act of 1995, the 
information collection activities associated with this rule are covered 
under the Business and Industry (B&I) Guaranteed Loan Program, OMB 
Number: 0570-0069.

B. Nondiscrimination Statement

    The U.S. Department of Agriculture (USDA) prohibits discrimination 
against its customers, employees, and applicants for employment on the 
basis of race, color, national origin, age, disability, sex, gender 
identity, reprisal or retaliation for prior civil rights activity, 
political beliefs, marital status, familial or parental status, 
religion, sexual orientation, income derived from any public assistance 
program, or protected genetic information in employment, in any program 
or activity conducted or funded by the Department. (Not all prohibited 
bases will apply to all applicants and/or employment activities.)
    If you wish to file a Civil Rights program complaint of 
discrimination, complete the USDA Program Discrimination Complaint Form 
(PDF), found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or complete the form at any USDA office, or 
call (866) 632-9992 to request the form. You may also write a letter 
containing all the information requested in the form. Send your 
completed complaint form or letter to us by mail at U.S. Department of 
Agriculture, Director, Office of Adjudication, 1400 Independence Avenue 
SW, Washington, DC 20250-9410, by fax (202) 690-7442 or email at 
[email protected].
    Individuals who are deaf, hard of hearing or have speech 
disabilities and wish to file either an EEO or program complaint, 
please contact USDA through the Federal Relay Service at (800) 877-8339 
or (800) 845-6136 (in Spanish).
    Persons with disabilities, who wish to file a program complaint, 
please see information above on how to contact us directly by mail or 
by email. If you require alternative means of communication for program 
information

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(e.g., Braille, large print, audiotape, etc.) please contact USDA's 
TARGET Center at (202) 720-2600 (voice and TDD).

Bette B. Brand,
Deputy Under Secretary, Rural Development.
[FR Doc. 2020-11243 Filed 5-21-20; 8:45 am]
 BILLING CODE 3410-XY-P