[Federal Register Volume 80, Number 239 (Monday, December 14, 2015)]
[Notices]
[Page 77314]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2015-31300]


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Notices
                                                Federal Register
________________________________________________________________________

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, 
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statements of organization and functions are examples of documents 
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Federal Register / Vol. 80, No. 239 / Monday, December 14, 2015 / 
Notices

[[Page 77314]]



DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2016; 
Maximum Portion of Guarantee Authority Available for Fiscal Year 2016; 
Annual Renewal Fee for Fiscal Year 2016

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: This notice helps to improve applicants' awareness of the 
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year (FY) 2016; 
Maximum Portion of Guarantee Authority Available for FY 2016; Annual 
Renewal Fee for FY 2016 when applying for guaranteed loans under the 
Business and Industry (B&I) program.
    The Agency was authorized by the 2012 Appropriations Bill, and 
subsequent Appropriations Acts, to charge a maximum of 3 percent for 
its guarantee fee for FY 2012, 2013, 2014 and 2015. The guarantee fee 
for FY 2016 will be 3 percent.
    The Agency has established that 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.
    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 FY 2016 that are made under the B&I program.

DATES: Effective date: December 14, 2015.

FOR FURTHER INFORMATION CONTACT: Nichelle Daniels, USDA, Rural 
Development, Business Programs, Business and Industry Division, STOP 
3224, 1400 Independence Avenue SW., Washington, DC 20250-3224, 
telephone (202) 720-0786, email [email protected].

SUPPLEMENTARY INFORMATION: 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 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 FY 2016 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, and 
subsequent Appropriation Acts, to charge a maximum of 3 percent for its 
guarantee fee for FY 2012, 2013, 2014 and 2015. It is the Agency's 
expectation that the 2016 Appropriations Act will contain a provision 
to charge a maximum of 3 percent for its guarantee fee for FY 2016. As 
such, the guarantee fee for FY 2016 will be 3 percent.
    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 FY 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 that 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 development 
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.
    The Agency has established that 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.
    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 1, 2015.
Samuel H. Rikkers,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2015-31300 Filed 12-11-15; 8:45 am]
 BILLING CODE 3410-XY-P