[Federal Register Volume 78, Number 3 (Friday, January 4, 2013)]
[Notices]
[Page 691]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2012-31711]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2013;
Maximum Portion of Guarantee Authority Available for Fiscal Year 2013;
Annual Renewal Fee for Fiscal Year 2013
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: As set forth in 7 CFR 4279.107, the Agency has the authority
to charge an initial guarantee fee and an annual renewal fee for loans
made under the Business and Industry (B&I) Guaranteed Loan Program.
Pursuant to that authority, the Agency is establishing the renewal fee
rate at one-half of 1 percent for the B&I Guaranteed Loan Program. This
rate will apply to all loans obligated in Fiscal Year (FY) 2013 that
are made under the B&I program. As established in 7 CFR 4279.107(b)(1),
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.
The Agency was authorized by the 2012 Appropriations Bill to charge
a maximum of 3 percent for it guarantee fee for FY 2012. It is the
Agency's expectation that the 2013 Appropriations Bill will contain the
same authorization to charge a maximum of 3 percent for its guarantee
fee for FY 2013. As such, the guarantee fee for FY 2013 will be 3
percent. In the event the 2013 Appropriations Bill reduces the fee
authorization below 3 percent, a subsequent notice will be published in
the Federal Register amending the guarantee fee for FY 2013.
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 reduced guarantee fee or guaranteed loans with a
guarantee percentage exceeding 80 percent.
Allowing a reduced guarantee fee 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. For reduced guarantee fees, the borrower's
business must support value-added agriculture and result in farmers
benefiting financially or must be a high impact business investment as
defined in 7 CFR 4279.155(b)(5) and be located in rural communities
that experience long-term population decline and job deterioration,
remain persistently poor, are experiencing trauma as a result of
natural disaster, or are experiencing fundamental structural changes in
its economic base. For guaranteed loans exceeding 80 percent, such
projects must qualify as a high-priority project (a requirement of 7
CFR 4279.119(b)), scoring at least 50 points in accordance with 7 CFR
4279.155(b).
Not more than 12 percent of the Agency's quarterly apportioned B&I
guarantee authority will be reserved for loan requests with a reduced
fee, and not more than 15 percent of the Agency's quarterly apportioned
guarantee authority will be reserved for guaranteed loan requests with
a guarantee percentage exceeding 80 percent. Once the respective
quarterly limits are reached, all additional loans for that quarter
will be at the standard fee and guarantee limits.
DATES: Effective Date: January 4, 2013.
FOR FURTHER INFORMATION CONTACT: Brenda Griffin, USDA, Rural
Development, Business Programs, Business and Industry Division, STOP
3224, 1400 Independence Avenue SW., Washington, DC 20250-3224,
telephone (202) 720-6802, email [email protected].
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: December 4, 2012.
Lillian Salerno,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2012-31711 Filed 1-3-13; 8:45 am]
BILLING CODE 3410-XY-P