[Federal Register Volume 78, Number 243 (Wednesday, December 18, 2013)]
[Notices]
[Page 76593]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2013-30020]
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Notices
Federal Register
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This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
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Federal Register / Vol. 78, No. 243 / Wednesday, December 18, 2013 /
Notices
[[Page 76593]]
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2014;
Maximum Portion of Guarantee Authority Available for Fiscal Year 2014;
Annual Renewal Fee for Fiscal Year 2014
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) 2014 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 Consolidated and Further Continuing Appropriations Act of 2013
set funding levels according to those established by the 2012
Appropriations Bill. This authorized the Agency to charge a maximum of
3 percent for its guarantee fee for FY 2013. It is the Agency's
expectation that the 2014 Appropriations Bill will contain the same
authorization to charge a maximum of 3 percent for its guarantee fee
for FY 2014. As such, the guarantee fee for FY 2014 will be 3 percent.
In the event the 2014 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 2014.
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: December 18, 2013.
FOR FURTHER INFORMATION CONTACT: Jerred Brown, USDA, Rural
Development, Business Programs, Business and Industry Division, STOP
3224, 1400 Independence Avenue SW., Washington, DC 20250-3224,
telephone (202) 720-1970, 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: November 27, 2013.
Lillian E. Salerno,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2013-30020 Filed 12-17-13; 8:45 am]
BILLING CODE 3410-XY-P