[Federal Register Volume 87, Number 27 (Wednesday, February 9, 2022)]
[Rules and Regulations]
[Pages 7367-7368]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-02710]



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 Rules and Regulations
                                                 Federal Register
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 This section of the FEDERAL REGISTER contains regulatory documents 
 having general applicability and legal effect, most of which are keyed 
 to and codified in the Code of Federal Regulations, which is published 
 under 50 titles pursuant to 44 U.S.C. 1510.
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  Federal Register / Vol. 87, No. 27 / Wednesday, February 9, 2022 / 
Rules and Regulations  

[[Page 7367]]



DEPARTMENT OF AGRICULTURE

Rural Utilities Service

Rural Housing Service

Rural Business-Cooperative Service

7 CFR Part 5001

[Docket No. RUS-19-Agency-0030]
RIN 0572-AC56


OneRD Guaranteed Loan Regulation; Corrections

AGENCY: Rural Business-Cooperative Service, Rural Housing Service, 
Rural Utilities Service, Department of Agriculture (USDA).

ACTION: Final rule; correction and correcting amendments.

-----------------------------------------------------------------------

SUMMARY: On December 10, 2021, Rural Development's Rural Business-
Cooperative Service, Rural Housing Service, and Rural Utilities 
Service, agencies of the United States Department of Agriculture 
(USDA), published a final rule with comment for the oneRD Guarantee 
Loan Program (oneRD). The final rule made necessary revisions to the 
policy and procedures that strengthened the oversight and management of 
the growing Community Facilities, Water and Waste Disposal, Business 
and Industry, and Rural Energy for America guarantee portfolios. The 
final rule had an omission of information in the preamble and contained 
errors in the amendatory language. This document corrects the final 
regulation.

DATES: This rule is effective February 9, 2022.

ADDRESSES: Address all comments concerning this correction to Lauren 
Cusick, Regulations Management Division, Rural Development Innovation 
Center, U.S. Department of Agriculture, 1400 Independence Ave. SW, Stop 
1522, Washington, DC 20250; telephone (202) 720-1414; email 
[email protected].

FOR FURTHER INFORMATION CONTACT: Lauren Cusick, Regulations Management 
Division, Rural Development Innovation Center, U.S. Department of 
Agriculture, 1400 Independence Ave. SW, Stop 1522, Washington, DC 
20250; telephone (202) 720-1414; email [email protected].

SUPPLEMENTARY INFORMATION: Rural Development's Rural Business-
Cooperative Service, Rural Housing Service, and Rural Utilities Service 
are issuing corrections to the final rule that published December 10, 
2021, at 86 FR 70349 and to 7 CFR part 5001.

List of Subjects in 7 CFR Part 5001

    Business and industry, Community facility, Energy efficiency 
improvement, Loan programs, Renewable energy, Rural areas, Rural 
development, Water and waste disposal.

    In FR Doc. 2021-26160, appearing on page 70349 in the Federal 
Register of December 10, 2021, make the following correction:


Sec.  5001.452  [Corrected]

0
1. On page 70358, in the second column, Instruction 22 for Sec.  
5001.452, is corrected by removing the phrase ``and adding paragraph 
(b)(i)(iii)(L)(3)''. For the reasons discussed in the preamble, 7 CFR 
part 5001 is corrected by making the following correcting amendments:

PART 5001--GUARANTEED LOANS

0
1. The authority citation for part 5001 continues to read as follows:

    Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 
7 U.S.C. 8107.


0
2. Amend Sec.  5001.141 by revising paragraph (a)(2) to read as 
follows:


Sec.  5001.141  New markets tax credits.

* * * * *
    (a) * * *
    (2) The provisions of Sec.  5001.127(f) notwithstanding, a lender 
that is a CDE or sub-CDE may have an ownership interest in the borrower 
provided that each condition specified in paragraphs (a)(2)(i) through 
(iii) of this section is met.
    (i) The lender does not have an ownership interest in the borrower 
prior to the application.
    (ii) The lender does not take a controlling interest in the 
borrower.
    (iii) The lender does not provide equity or take an ownership 
interest in a borrower at a level that would result in the lender 
owning 20 percent or more interest in the borrower.
* * * * *

0
3. Amend Sec.  5001.202 by revising paragraph (b)(5) to read as 
follows:


Sec.  5001.202  Lender's credit evaluation.

* * * * *
    (b) * * *
    (5) Conditions. This paragraph (b)(5) refers to the general 
business environment, including the regulatory environment affecting 
the business or industry, and status of the Borrower's industry. 
Consideration will be given to items listed in paragraphs (b)(5)(i) 
through (ix) of this section and when applicable the lender should 
submit supporting documentation (e.g., feasibility study, market study, 
preliminary architectural or engineering reports, etc.) in accordance 
with Sec. Sec.  5001.304 through 5001.307:
    (i) Availability and depth of resource/feedstock market, strength 
and duration of purchase agreements and availability of substitutes;
    (ii) Analysis of current and future market potential and off-take 
agreements, competition, type of project (service, product, or 
commodity based);
    (iii) Energy infrastructure, availability and dependability, 
transportation and other infrastructure, and environmental 
considerations;
    (iv) Technical feasibility including demonstrated performance of 
the technology and integrated processing equipment and systems, 
developer system performance guarantees, or technology insurance;
    (v) Complexity of construction and completion, terms of 
construction contracts, experience and financial strength of the 
construction contractor or engineering, procurement, and construction 
(EPC) contractor;
    (vi) Contracts and intellectual property rights, licenses, permits, 
and state and local regulations;
    (vii) Creditworthiness of any counterparties, as applicable;
    (viii) Industry-related public policy issues; and
    (ix) Other criteria that the lender or Agency deems relevant to the 
project.
* * * * *

[[Page 7368]]


0
4. Amend Sec.  5001.204 by revising paragraph (b) to read as follows:


Sec.  5001.204  Personal, partnership, and corporate guarantees.

* * * * *
    (b) When warranted by an Agency assessment of potential financial 
risk, the Agency may require the following:
    (1) Guarantees to be secured;
    (2) Guarantees from any person or entity owning less than a 20-
percent Interest or membership in the borrower; and
    (3) Guarantees from persons whose ownership Interest in the 
borrower is held indirectly through intermediate or affiliated 
entities.
* * * * *


Sec.  5001.451  [Amended]

0
5. Amend Sec.  5001.451 by redesignating the second paragraph 
(b)(3)(xiii) and paragraph (b)(3)(xiv) as paragraphs (b)(3)(xiv) and 
(xv), respectively.

Justin Maxson,
Deputy Under Secretary, Rural Development.
[FR Doc. 2022-02710 Filed 2-8-22; 8:45 am]
BILLING CODE 3410-15-P