[Federal Register Volume 79, Number 80 (Friday, April 25, 2014)]
[Notices]
[Pages 22944-22946]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-09333]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Applications for Licensing as a Non-leveraged Rural Business
Investment Company Under the Rural Business Investment Program
AGENCY: Rural Business-Cooperative Service, U.S. Department Agriculture
(USDA).
ACTION: Notice.
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SUMMARY: This Notice announces the acceptance of applications from
newly-formed Rural Business Investment Companies (RBICs) who are
interested in being licensed as non-leveraged RBICs under the Agency's
Rural Business Investment Program (RBIP).
DATES: The Agency began accepting applications for non-leveraged status
on August 6, 2012, and will accept applications for non-leveraged
status on a continuous basis through July 29, 2016, or until such time
the Agency determines otherwise.
Beginning fiscal year (FY) 2014, the Agency will limit its review
during a fiscal year to those applications it has received as of July
29 of that year. A fiscal year is October 1 to September 30. Any
application received after July 29 will be held for consideration in
the following fiscal year. Unless otherwise identified by the Agency,
the Agency will not consider any application submitted in response to
this Notice that it receives after July 29, 2016.
[[Page 22945]]
ADDRESSES: Address for Application Submission: Completed applications
must be sent to Specialty Programs Division, U.S. Department of
Agriculture, Room Number 4204-S, 1400 Independence Avenue SW.,
Washington, DC 20250-3226.
Address for Requesting Information: Application materials and other
information may be requested by writing to Claudette Fernandez,
Director, Specialty Programs Division, U.S. Department of Agriculture,
Room 4204-S, 1400 Independence Avenue SW., Washington, DC 20250-3226.
FOR FURTHER INFORMATION CONTACT: Detailed information on the RBIP,
including application materials and instructions, can be found on the
Agency's Web site at http://www.rurdev.usda.gov/BCP_RBIP.html. You
also may request information from the Agency by contacting Claudette
Fernandez, Director, Specialty Programs Division, U.S. Department of
Agriculture, Room 4204-S, 1400 Independence Avenue SW., Washington, DC
20250-3226, at (202) 720-1400.
SUPPLEMENTARY INFORMATION:
Paperwork Reduction Act
The Paperwork Reduction Act of 1995 defines ``collection of
information'' as a requirement for ``answers to * * * identical
reporting or recordkeeping requirements imposed on ten or more
persons'' (44 U.S.C. 3502(3)(A)). The collection requirement associated
with this Notice is expected to receive less than ten respondents and
therefore the Act does not apply.
Overview Information
Federal Agency Name. Rural Business-Cooperative Service.
Opportunity Title. Rural Business Investment Program for Non-
leveraged RBICs.
Announcement Type. Subsequent announcement.
Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA
number for the program impacted by this action is 10.860, Rural
Business Investment Program.
Dates. The Agency began accepting applications for non-leveraged
status on August 6, 2012, and will continue to accept applications for
non-leveraged status through at least July 29, 2016, or until such time
the Agency determines otherwise. Beginning fiscal year (FY) 2014, the
Agency will limit its review during a fiscal year to those applications
it has received as of July 29 of that year. A fiscal year is October 1
to September 30. Any application received after July 29 will be held
for consideration in the following fiscal year.
Availability of Notice. This Notice is available on the USDA Rural
Development Web site at: http://www.rurdev.usda.gov/BCP_RBIP.html.
I. Opportunity Description
A. Background. The purpose of Subtitle H of the Consolidated Farm
and Rural Development Act, as amended (7 U.S.C. 2009cc et seq.) is to
promote economic development and the creation of wealth and job
opportunities in rural areas and among individuals living in those
areas through venture capital investments by for-profit RBICs.
Prior to August 6, 2012, the Agency issued licenses to qualified
RBICs as leveraged RBICs only. A notice published in the Federal
Register on July 5, 2012, (77 FR 39675), informed the public that the
Agency would begin accepting non-leveraged RBIC license applications on
August 6, 2012. In the July 5, 2012, notice, the Agency indicated its
intent to issue one non-leveraged license in FY 2012 and up to three
licenses in FY 2013, depending on available resources.
The purpose of this current Notice is to notify interested RBICs
that the Agency is still accepting applications from qualified RBICs
for licensing as non-leveraged RBICs under the RBIP. The Agency will
continue to accept such applications through July 29, 2016, or until
such other time the Agency determines otherwise.
B. Program Authority. Subtitle H of the Consolidated Farm and Rural
Development Act, as amended (7 U.S.C. 2009cc et seq.) establishes the
RBIP.
C. Definition of Terms. The terms defined in 7 CFR part 4290 are
applicable to this Notice.
II. Licensing Information
A. Number of Licenses. The Agency intends to issue no more than
five non-leveraged RBIC licenses through FY 2016, subject to sufficient
resources. However, additional applications for licenses may be
considered if sufficient resources are made available.
B. Type of License. Non-leveraged.
III. Eligibility Information
Applicants and their applications are subject to the provisions of
this Notice and to the provisions of 7 CFR part 4290. In order to be
eligible for non-leveraged status under this Notice, the applicant must
demonstrate that one or more Farm Credit System (FCS) institution(s)
will invest in the RBIC and, individually or collectively, hold 10
percent or more the applicant's total capital.
IV. Application and Submission Information
A. Where to Obtain Applications. Applicants may obtain applications
and other applicable application material from the Agency's Specialty
Programs Division, as provided in the ADDRESSES section of this Notice.
Because applications will be selected on a first-come, first-served
basis, the Agency recommends that potential applicants who plan to
request application materials via mail request such materials as soon
as possible.
Application materials may also be obtained via http://www.rurdev.usda.gov/BCP_RBIP.html or by contacting the Agency at the
address and phone number provided in the ADDRESSES section of this
Notice.
B. Prior to Preparing Application. The Agency recommends that those
interested in applying for non-leveraged licensing contact the Agency
at the address and phone number provided in the ADDRESSES section of
this Notice to determine the status of the non-leveraged program in
order to avoid unnecessary expenditure of resources by the applicant.
As noted earlier in this Notice, the Agency intends to issue up to five
non-leveraged licenses through FY 2016 and, due to limited resources,
the Agency may not be able to review more than two applications in any
1 fiscal year.
C. Content and Form of Submission. Applications must be submitted
in accordance with the application instructions contained in this
Notice and in 7 CFR 4290. Applicants must submit complete initial
applications in order to be considered. Applications must be submitted
in hard copy form and on a USB flash drive; applications sent by
facsimile will not be accepted.
Contents of the initial application include RD Form 4290-1, ``Rural
Business Investment Program (RBIP) Application,'' Part I, Management
Assessment Questionnaire (MAQ), and RD Form 4290-2, ``Rural Business
Investment Program (RBIP) Application,'' Part II, Exhibits (exhibits A,
D, E, F, G, K, L, P, V, and Z).
Submit two complete, original hard copy sets of the RD Form 4290-1
and RD Form 4290-2 (excluding Exhibit P, which is required in
electronic form only). Place each of the two original sets in a large
3-ring binder. Label the binders with the RBIC's name. Submit one
complete and unbound one-sided hard copy of the MAQ and Exhibits
suitable for photocopying (i.e., no hole punches, staples, paper clips,
tabs, or binders).
[[Page 22946]]
Applicants must enclose in their submission a nonrefundable
licensing fee of $500 in the form of a check payable to USDA.
C. When to Submit. The Agency is accepting applications for non-
leveraged status now through July 29, 2016, or until such time the
Agency determines otherwise.
D. Where to Submit. The applicant must submit the application
material to the Agency's Specialty Programs Division as specified in
the ADDRESSES section of this Notice.
E. How to Submit. Applicants are encouraged to submit their
applications via package/parcel service.
V. Program Provisions
This section of the Notice identifies the procedures the Agency
will use to process and select applicants for licensing as a non-
leveraged RBIC. More information about the RBIP is available in the
regulation at 7 CFR part 4290.
The Agency will review each application it receives in response to
this Notice with regard to eligibility and completeness. If the
application is incomplete, the Agency will notify the applicant of the
information that is missing. The applicant must then provide the
missing information in order for the Agency to further review the
application.
The Agency will select applicants for licensing as a non-leveraged
RBIC on a first-come, first-served basis. The Agency will determine the
order of applications based on the date the Agency receives a complete
application. For example, if an application is received on July 1, but
is incomplete, and the applicant supplies the Agency with the missing
information on August 1, then that application will be considered for
selection on the basis of the August 1 date-- the date on which the
application was complete. Therefore, the Agency encourages applicants
to ensure their applications are complete prior to submitting them.
Only those applications that are eligible will be processed further
for determining whether the applicant will be licensed as a non-
leveraged RBIC. However, not all applications received in response to
this Notice will receive this further processing. For each application
that receives further processing, the Agency or its designee will focus
its assessment of the application on the consistency of the newly
formed RBIC's business plan with the goals of the RBIP program and on
the applicant's management team's qualifications. Following this
assessment, if the initial recommendation is favorable, the Agency or
its designee will interview the applicant's management team.
Based on the assessment and interview, a preliminary determination
will be made as to whether or not to select the applicant for non-
leveraged status. If the preliminary determination is favorable, the
Agency will send to the applicant a Letter of Conditions (also known as
a ``Green Light'' letter) and the applicant will be invited to submit
an updated RD Form 4290-1, Part I, Management Assessment Questionnaire,
and RD Form 4290-2, Part II, Exhibits. Upon receipt of the Letter of
Conditions, the applicant has 24 months to raise their private equity
capital. Once a selected applicant has achieved full compliance with
the regulations governing licensing as an RBIC, the Agency will issue
the non-leveraged license to the RBIC.
VI. Administrative Information Applicable to This Notice
A. Notifications
(1) Eligibility. The Agency will notify the applicant in writing
whether or not the application is determined to be eligible for
participation in the RBIP. If an applicant is determined by the Agency
to be ineligible, the Agency will provide the reason(s) the applicant
was rejected. Such applicant will have review and appeal rights as
specified in this Notice.
(2) License. Each applicant receiving a ``Green Light'' letter will
be notified whether or not the RBIC will be licensed after the Agency's
review of the updated RD Form 4290-1, Part I, Management Assessment
Questionnaire, and RD Form 4290-2, Part II, Exhibits.
B. Administrative and National Policy Requirements
(1) Review or Appeal Rights. A person may seek a review of an
adverse Agency decision under this Notice or appeal to the National
Appeals Division in accordance with 7 CFR part 11.
(2) Notification of Unfavorable Decisions. If at any time prior to
license approval it is decided that favorable action will not be taken,
the Agency will notify the applicant in writing of the decision and of
the reasons why issuing a non-leveraged license was not favorably
considered. The notification will inform the applicant of its rights to
an informal review, mediation, and appeal of the decision in accordance
with 7 CFR part 11.
VII. Agency Contacts
For further information about this Notice or for assistance with
the program requirements, please contact the Specialty Programs
Division, Room 4204-S, 1400 Independence Avenue SW., Washington, DC
20250-3226. Telephone: (202) 720-1400.
VIII. Nondiscrimination Statement
USDA prohibits discrimination in all its programs and activities on
the basis of race, color, national origin, age, disability, and where
applicable, sex, marital status, familial status, parental status,
religion, sexual orientation, genetic information, political beliefs,
reprisal, or because all or part of an individual's income is derived
from any public assistance program. (Not all prohibited bases apply to
all programs.) Persons with disabilities who require alternative means
for communication of program information (Braille, large print,
audiotape, etc.) should contact USDA's TARGET Center at (202) 720-2600
(voice and TDD).
If you wish to file a Civil Rights programs complaint of
discrimination, complete the USDA Program Discrimination Complaint Form
(PDF) found online at http://www.ascr.usda.gov/complain_filing_cust.html or at any USDA Office, or call (866) 632-9992 to request the
form. You may also write a letter containing all of the information
requested in the form. Send your completed complaint form or letter to
us by mail at U.S. Department of Agriculture, Director, Office of
Adjudication, 1400 Independence Ave. SW., Washington, DC 20250-9410, by
fax (202) 690-7442, or email at [email protected].
Individuals who are deaf, hard of hearing, or have speech
disabilities and who wish to file either an EEO or program complaint,
please contact USDA through the Federal Replay Service at (800) 877-
8339 or (800) 845-6136 (in Spanish).
Persons with disabilities who wish to file a program complaint,
please see information above on how to contact us by mail directly or
by email. If you require alternative means of communication for program
information (e.g., Braille, large print, audiotape, etc.), please
contact USDA's TARGET Center at (202) 720-2600 (voice and TDD).
Dated: April 9, 2014.
Lillian E. Salerno,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2014-09333 Filed 4-24-14; 8:45 am]
BILLING CODE 3410-XY-P