United States Government Publishing Office publisher pbl distributor dst United States National Archives and Records Administration Office of the Federal Register author aut Government Organization text government publication eng FR Regulatory Information 2006_register executive 2010-09-22 article Rules and Regulations D09002ee1c80f5734 D09002ee1c80f57a6 United States Department of Agriculture originator org United States Government Agency or Subagency United States Rural Business-Cooperative Service originator org United States Government Agency or Subagency In this final rule the Rural Business-Cooperative Service (the Agency) amends existing regulations relating to Business and Industry (B&I) loans made or guaranteed by the Agency by modifying the provisions that address the evaluation of credit quality. Changes to these underwriting provisions were originally proposed on January 16, 2004. The scope of this final rule is more limited than originally proposed but also implements a change not originally discussed in the proposed rule. Specifically, in the case of the refinancing of USDA or other Federal agency debt only, the Agency is modifying the definition of tangible balance sheet equity to include the off balance sheet value of tangible assets to the extent of the difference between the depreciated book value of real property assets and their current market value supported by an appraisal or the original book value, whichever is less. In these limited cases, the adjusted tangible balance sheet equity will also include qualified subordinated debt owed to the owner. As stated above, these adjustments to the equity calculation will apply only in cases where the Agency is asked to guarantee a refinancing of outstanding debt currently owed to or guaranteed by a Federal agency, including the Small Business Administration. The intended effect of this action is to facilitate Agency guarantees of certain refinancing loans that otherwise would not meet the equity requirements because the financial statements prepared in accordance with generally accepted accounting principles do not reflect the current market value of real property assets owned by the borrower. In the case of all direct or guaranteed loan applications, the tangible net equity calculation may include a restricted universe of qualified intellectual property. The Agency is also increasing the equity requirements applicable to energy businesses. 71 FR 33181 https://www.govinfo.gov/app/details/FR-2006-06-08/E6-8891 E6-8891 fr08jn06-5 RIN 0570-AA49 3410-XY-P https://www.govinfo.gov/app/details/FR-2006-06-08/E6-8891 https://www.govinfo.gov/content/pkg/FR-2006-06-08/html/E6-8891.htm https://www.govinfo.gov/content/pkg/FR-2006-06-08/pdf/E6-8891.pdf Loan Programs-Business and Industry-Rural Development Assistance Rural Areas 10 p. 33181 33190 71 FR 33181 Title 7 Part 1980 7 CFR Part 1980 Title 7 Part 4279 7 CFR Part 4279 RIN 0570-AA49 Business and Industry Guaranteed Loans-Tangible Balance Sheet Equity; Federal Register Vol. 71, Issue RULE E6-8891 DEPARTMENT OF AGRICULTURE Rural Business-Cooperative Service 3410-XY-P E6-8891 Final rule.

In this final rule the Rural Business-Cooperative Service (the Agency) amends existing regulations relating to Business and Industry (B&I) loans made or guaranteed by the Agency by modifying the provisions that address the evaluation of credit quality. Changes to these underwriting provisions were originally proposed on January 16, 2004. The scope of this final rule is more limited than originally proposed but also implements a change not originally discussed in the proposed rule. Specifically, in the case of the refinancing of USDA or other Federal agency debt only, the Agency is modifying the definition of tangible balance sheet equity to include the off balance sheet value of tangible assets to the extent of the difference between the depreciated book value of real property assets and their current market value supported by an appraisal or the original book value, whichever is less. In these limited cases, the adjusted tangible balance sheet equity will also include qualified subordinated debt owed to the owner. As stated above, these adjustments to the equity calculation will apply only in cases where the Agency is asked to guarantee a refinancing of outstanding debt currently owed to or guaranteed by a Federal agency, including the Small Business Administration. The intended effect of this action is to facilitate Agency guarantees of certain refinancing loans that otherwise would not meet the equity requirements because the financial statements prepared in accordance with generally accepted accounting principles do not reflect the current market value of real property assets owned by the borrower. In the case of all direct or guaranteed loan applications, the tangible net equity calculation may include a restricted universe of qualified intellectual property. The Agency is also increasing the equity requirements applicable to energy businesses.

July 10, 2006. Fred Kieferle, Rural Business- Cooperative Service, USDA, Stop 3224, Room 6845, 1400 Independence Ave., SW., Washington, DC 20250-3224, Telephone (202) 720-7818, Fax (202) 720-6003, or E-mail: fred.kieferle@wdc.usda.gov. Loan Programs-Business and Industry-Rural Development Assistance Rural Areas Program regulations: Business and industry guaranteed loans; tangible balance sheet equity, fred.kieferle@wdc.usda.gov Vol. 71, no. 110 Office of the Federal Register, National Archives and Records Administration 2006-06-08 continuing daily deposited born digital 238 p. Table of Contents: AE 2.7: GS 4.107: AE 2.106: KF70.A2 https://www.govinfo.gov/app/details/FR-2006-06-08 P0b002ee18094672f 0097-6326 0042-1219 0364-1406 769-004-00000-9 000582072 f:fr08jn06 https://www.govinfo.gov/app/details/FR-2006-06-08 https://www.govinfo.gov/content/pkg/FR-2006-06-08/pdf/FR-2006-06-08.pdf https://www.govinfo.gov/content/pkg/FR-2006-06-08/xml/FR-2006-06-08.xml fdlp 33147 33373 DGPO 2010-09-22 2024-06-06 FR-2006-06-08 machine generated eng FR FR-2006-06-08 71 110