[Federal Register: October 31, 2005 (Volume 70, Number 209)]
[Notices]
[Page 62294]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr31oc05-20]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2006;
Maximum Portion of Guarantee Authority Available for Fiscal Year 2006
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: As set forth in 7 CFR 4279.107(b) and 4280.126(c), Rural
Development (the Agency) has the authority to charge an annual renewal
fee for loans made under the Business and Industry (B&I) Guaranteed
Loan Program and the Renewable Energy and Energy Efficiency
Improvements (REEEI) Guaranteed Loan Program. Pursuant to that
authority, the Agency is establishing the renewal fee rate at one-
fourth of 1 percent for the B&I Guaranteed Loan Program and one-eighth
of 1 percent for the REEEI Guaranteed Loan Program. These rates will
apply to all loans obligated in fiscal year (FY) 2006 that are made
under the cited programs. As established in 7 CFR 4279.107 and
4280.126, the amount of the fee on each guaranteed loan will be
determined by multiplying the fee rate by the outstanding principal
loan balance as of December 31, multiplied by the percent of guarantee.
As set forth in 7 CFR 4280.126(a), each fiscal year the Agency
shall establish the initial guarantee fee rate for loans made under the
REEEI Guaranteed Loan Program. Pursuant to that authority, the Agency
is establishing the initial guarantee fee rate at 1 percent for loans
made in FY 2006.
As set forth in 7 CFR 4279.107(a) and 4279.119(b)(4), each fiscal
year the Agency shall establish a limit on the maximum portion of B&I
guarantee authority available for that fiscal year that may be used to
guarantee loans with a B&I guarantee fee of 1 percent or guaranteed
loans with a guarantee percentage exceeding 80 percent.
Allowing the guarantee fee to be reduced to 1 percent or exceeding
the 80 percent guarantee on certain B&I guaranteed loans that meet the
conditions set forth in 7 CFR 4279.107 and 4279.119 will increase the
Agency's ability to focus guarantee assistance on projects which the
Agency has found particularly meritorious, such as projects in rural
communities that remain persistently poor, which experience long-term
population decline and job deterioration, are experiencing trauma as a
result of natural disaster, or are high impact as defined in 7 CFR
4279.155(b)(5).
Not more than 12 percent of the Agency's quarterly apportioned B&I
guarantee authority will be reserved for loan requests with a guarantee
fee of 1 percent, and not more than 15 percent of the Agency's
quarterly apportioned guarantee authority will be reserved for
guaranteed loan requests with a guaranteed percentage exceeding 80
percent. Once the above quarterly limits have been reached, all
additional loans guaranteed during the remainder of that quarter will
require a 2 percent guarantee fee and not exceed an 80 percent
guarantee limit.
Written requests by the Rural Development State Office for approval
of a guaranteed loan with a 1 percent guarantee fee or a guaranteed
loan exceeding 80 percent must be forwarded to the National Office,
Attn: Director, Business and Industry Division, for review and
consideration prior to obligation of the guaranteed loan. The
Administrator will provide a written response to the State Office
confirming approval or disapproval of the request.
Effective Date: October 31, 2005.
FOR FURTHER INFORMATION CONTACT: Rick Bonnet, Special Projects/Programs
Oversight Division, Rural Business-Cooperative Service, USDA, STOP
3221, 1400 Independence Avenue, SW., Washington, DC 20250-3221,
telephone (202) 720-1804.
SUPPLEMENTARY INFORMATION: This action has been reviewed and determined
not to be a rule or regulation as defined in Executive Order 12866 as
amended by Executive Order 13258.
Dated: October 21, 2005.
Peter J. Thomas,
Administrator.
[FR Doc. 05-21588 Filed 10-28-05; 8:45 am]
BILLING CODE 3410-XY-P