[Federal Register Volume 87, Number 81 (Wednesday, April 27, 2022)]
[Rules and Regulations]
[Pages 24857-24858]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2022-08943]


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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

Rural Housing Service

Rural Business-Cooperative Service

7 CFR Part 5001

[Docket No. RUS-19-Agency-0030]


OneRD Guaranteed Loan Initiative

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

ACTION: Final rule; applicability.

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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 was effective on December 10, 
2021, and applied to all applications filed by an applicant pursuant to 
OneRD on or after that date. This document announces which provisions 
could be applied to applications pending review, conditional 
commitments, and loans made under OneRD since October 1, 2020.

DATES: This document applies to the final rule issued and effective 
December 10, 2021.

ADDRESSES: For consideration of the applicable provisions, contact the 
USDA Rural Development State Office in which the project is located. A 
listing of each State Office can be found at https://www.rd.usda.gov/about-rd/state-offices. Information regarding the OneRD Guarantee 
Initiative may be found at https://www.rd.usda.gov/onerdguarantee.

FOR FURTHER INFORMATION CONTACT: Lauren Cusick, Regulations Management 
Division, Rural Development Innovation Center, U.S. Department of 
Agriculture, 1400 Independence Ave. SW, Stop 0793, 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 
(RUS) issued a final rule that published December 10, 2021, at 86 FR 
70349. The final rule revised the policy and procedures to strengthen 
oversight and management of the growing Community Facilities (CF), 
Water and Waste Disposal (WWD), Business and Industry (B&I), and Rural 
Energy for America (REAP) loan guarantee portfolios. The action was 
part of a continuing effort by the Agency to improve customer service 
for its lenders and create a more efficient work process for its staff. 
The Agency has determined that certain provisions that were effective 
in the rule issued on December 10, 2021, may be applied to applications 
pending review, conditional commitments, and loans made under 7 CFR 
part 5001 since October 1, 2020.
    Rural Development staff will contact lenders that do not have a 
current System for Award Management (SAM) registration. Until there is 
an active SAM registration no conditional commitment or obligation may 
be executed. The following table provides the amendments made in the 
final rule published December 10, 2020, which apply to: (1) All new and 
pending applications filed pursuant to 7 CFR part 5001; (2) 
Applications where a Conditional Commitment has been issued pursuant to 
7 CFR part 5001 but for which no guarantee has been issued; and (3) To 
lenders with guarantees issued pursuant to 7 CFR part 5001:

[[Page 24858]]



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    Section of regulation                      Amendment
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5001.130 Lender eligibility    Paragraph (a) was amended to include new
 requirements.                  requirements for lenders to be
                                registered in and maintain an account in
                                the System for Award Management (SAM) to
                                conform with 2 CFR part 25.
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    Lenders may request consideration for certain revised provisions by 
notifying the Agency. The following table provides the amendments made 
in the final rule published December 10, 2021, which may be applied to: 
(1) All new and pending applications filed pursuant to 7 CFR part 5001; 
(2) Applications where a Conditional Commitment has been issued 
pursuant to 7 CFR part 5001, but for which no guarantee has been 
issued; and (3) To lenders with guarantees issued pursuant to 7 CFR 
part 5001:

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    Section of regulation                      Amendment
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5001.408 Participation or      Paragraph (b) was amended to remove the
 assignment of guaranteed       requirement of the lender to maintain a
 loan.                          minimum servicing fee of 50 basis points
                                from any holder and will allow the
                                lenders to determine their own interest
                                rate spreads when selling to a holder or
                                participating to another lender.
5001.513 Interest rate         Paragraph (e) was amended to allow
 changes.                       variable rate changes to be changed to
                                fixed rates whether the fixed rate is
                                higher or lower at the request of the
                                borrower, agreement of the holder, if
                                any, and Agency concurrence.
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    For pending OneRD applications filed pursuant to 7 CFR part 5001 
prior to December 11, 2021, applicants may opt-in to provisions by 
completing the Opt-In form located in the forms section of the OneRD 
Guarantee website (rd.usda.gov/onerdguarantee). A revised or updated 
application will need to be submitted by lenders choosing to opt-in to 
the following provisions:

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    Section of regulation                      Amendment
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5001.3 Definitions...........  The definition of affiliate was updated
                                to further clarify what constitutes an
                                affiliate.
                               The definition of energy efficiency
                                improvement was updated to conform with
                                7 CFR part 4280.
                               The definition of existing business was
                                updated to further define what it means
                                for an existing business to be in
                                operation.
                               The definition of new business was
                                updated to further define what it means
                                for a new business to be in operation.
                               The definition of power purchase
                                agreement was updated to conform with 7
                                CFR part 4280.
5001.104 Eligible WWD          Paragraph (c) was revised to clarify when
 projects and requirements.     a utility project that is serving both
                                rural and non-rural areas is eligible
                                for a loan guarantee.
5001.105 Eligible B&I          The introductory text was revised to
 projects and requirements.     clarify that the list of eligible
                                projects is not exclusive of the only
                                projects that will be considered as
                                eligible B&I projects.
                               Paragraph (b)(1) was updated to clarify
                                that a B&I guaranteed loan may be used
                                for the purchase and development of
                                land, buildings, or infrastructure for
                                public or private commercial
                                enterprises.
                               Paragraph (b)(8) was revised to clarify
                                exclusion of owner-occupied housing in
                                the B&I guarantee program.
                               Paragraphs (b)(9) and (10) were combined
                                and edited to clarify when B&I funds may
                                be utilized to fund a CF project.
                               A new paragraph (b)(10) was added to
                                clarify when B&I funds may be used for
                                the development and construction of
                                broadband and telecommunication systems,
                                including modification of existing
                                systems, that are not otherwise eligible
                                for funding in the RUS program or if
                                funding is unavailable in the eligible
                                RUS program, subject to the Public
                                Notice Filing requirements of 7 CFR
                                1738.106(a) and the additional reporting
                                requirements of 7 CFR 1738.107.
                               Paragraphs (d)(1)(i) and (ii) and
                                (d)(2)(i) and (ii) were revised to
                                clarify the length of time the minimum
                                balance sheet equity must be maintained.
5001.115 Ineligible projects-- Paragraph (n) was amended to clarify when
 general.                       owner occupied housing is considered
                                eligible and removed paragraph (s) the
                                ineligibility of self-storage
                                facilities.
5001.121 Eligible uses of      The introductory text was updated to
 loan funds.                    allow a recipient of a loan guarantee to
                                use up to 10 percent of project funds to
                                construct, improve, or acquire broadband
                                infrastructure related to the project
                                financed, to conform with the
                                requirements of 7 CFR part 1980, subpart
                                M.
5001.126 Borrower eligibility  Paragraph (e) was amended to add a new
                                paragraph (e)(3), End users, to conform
                                with 7 CFR part 4280. This revision
                                brings consistency to REAP on the
                                analysis of the eligibility of the
                                applicant controlling interest of an end-
                                user.
5001.205 General project       Paragraph (e)(2)(ii) was amended to
 monitoring requirements.       provide Lenders the opportunity to
                                provide project monitoring under
                                specific criteria.
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Justin Maxson,
Deputy Under Secretary, Rural Development.
[FR Doc. 2022-08943 Filed 4-26-22; 8:45 am]
BILLING CODE 3410-15-P