Rule2022-08943
OneRD Guaranteed Loan Initiative
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
April 27, 2022
Effective
December 10, 2021
Issuing agencies
Agriculture DepartmentRural Utilities ServiceRural Housing ServiceRural Business-Cooperative Service
Abstract
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.
Full Text
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<title>Federal Register, Volume 87 Issue 81 (Wednesday, April 27, 2022)</title>
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[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 [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[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 <a href="https://www.rd.usda.gov/about-rd/state-offices">https://www.rd.usda.gov/about-rd/state-offices</a>. Information regarding the OneRD Guarantee
Initiative may be found at <a href="https://www.rd.usda.gov/onerdguarantee">https://www.rd.usda.gov/onerdguarantee</a>.
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 <a href="/cdn-cgi/l/email-protection#7a161b0f081f1454190f091319113a0f091e1b541d150c"><span class="__cf_email__" data-cfemail="b8d4d9cdcaddd696dbcdcbd1dbd3f8cdcbdcd996dfd7ce">[email protected]</span></a>.
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 (<a href="http://rd.usda.gov/onerdguarantee">rd.usda.gov/onerdguarantee</a>). 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
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</html>Indexed from Federal Register on April 27, 2022.
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