[Federal Register: March 23, 1999 (Volume 64, Number 55)]
[Notices]               
[Page 13961]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr23mr99-32]

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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

 
Maximum Portion of Guarantee Authority Available for Fiscal Year 
1999

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: As set forth in 7 CFR part 4279, subpart B, each fiscal year 
the Agency shall establish a limit on the maximum portion of guarantee 
authority available for that fiscal year that may be used to guarantee 
loans with a 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 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, experience long-term 
population decline and job deterioration, are experiencing trauma as a 
result of natural disaster or are experiencing fundamental structural 
changes in the economic base.
    Not more than 7 percent of the Agency quarterly apportioned 
guarantee authority will be reserved for loan requests with a guarantee 
fee of 1 percent, and not more than 15 percent of the Agency 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. As 
an exception to this paragraph and for the purposes of this notice, 
loans developed by the North American Development Bank (NADBANK) 
Community Adjustment and Investment Program (CAIP) will not count 
against the 15 percent limit. CAIP loans are subject to a 50 percent 
limit of the overall CAIP loan program.
    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 Programs Processing 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: March 23, 1999.

FOR FURTHER INFORMATION CONTACT: Kenneth E. Hennings, Senior Loan 
Specialist, Business Programs Processing Division, Rural Business-
Cooperative Service, USDA, Stop 3221, Washington, DC 20250-3221, 
telephone (202) 690-3809.

SUPPLEMENTARY INFORMATION: This action has been reviewed and determined 
not to be a rule or regulation as defined in Executive Order 12866.

    Dated: March 2, 1999.
Dayton J. Watkins,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 99-6997 Filed 3-22-99; 8:45 am]
BILLING CODE 3410-XY-U