[Federal Register Volume 82, Number 83 (Tuesday, May 2, 2017)]
[Notices]
[Page 20457]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2017-08790]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2017;
Maximum Portion of Guarantee Authority Available for Fiscal Year 2017;
Annual Renewal Fee for Fiscal Year 2017
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) 2017,
Maximum Portion of Guarantee Authority Available for FY 2017, Annual
Renewal Fee for FY 2017 when applying for guaranteed loans under the
Business and Industry (B&I) Guaranteed Loan Program.
The Agency has the authority to charge a guarantee fee and an
annual renewal fee for loans made under the B&I Guaranteed Loan
Program. Pursuant to that authority, and subject to the current
Continuing Resolution, the Agency is establishing an initial guarantee
fee rate of 3 percent and an annual renewal fee rate of one-half of 1
percent for the B&I Guaranteed Loan Program.
The initial guarantee fee is paid at the time the Loan Note
Guarantee is issued. The annual renewal fee is paid by the lender to
the Agency once a year. Payment of the annual renewal fee is required
in order to maintain the enforceability of the guarantee.
DATES: Effective May 2, 2017.
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 4279.120, 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, and subject to the current continuing
resolution, the Agency is establishing an initial guarantee fee rate of
3 percent and an annual renewal fee rate of one-half of 1 percent for
the B&I Guaranteed Loan Program. Unless precluded by a subsequent FY
2017 appropriation, these rates will apply to all loans obligated in FY
2017 that are made under the B&I Guaranteed Loan Program. As
established in 7 CFR 4279.120(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
percentage of guarantee.
As set forth in 7 CFR 4279.120(a) and 4279.119(b), 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
an increased percentage of guarantee. The Agency has established that
not more than 12 percent of the Agency's apportioned B&I guarantee
authority will be reserved for loan guarantee requests with a reduced
fee, and not more than 15 percent of the Agency's apportioned B&I
guarantee authority will be reserved for guaranteed loan requests with
an increased percentage of guarantee. Once the respective limits are
reached, all additional loans will be at the standard fee and guarantee
limits.
Allowing a reduced guarantee fee or increased percentage of
guarantee on certain B&I guaranteed loans that meet the conditions set
forth in 7 CFR 4279.120 and 4279.119 will increase the Agency's ability
to focus guarantee assistance on projects that the Agency has found
particularly meritorious. Subject to annual limits set by the Agency in
this notice, the Agency may charge a reduced guarantee fee if requested
by the lender for loans of $5 million or less when the borrower's
business supports value-added agriculture and results in farmers
benefitting financially, promotes access to healthy foods, or is a high
impact business development investment located in a rural community
that is experiencing long-term population decline; has remained in
poverty for the last 30 years; is experiencing trauma as a result of
natural disaster; is located in a city or county with an unemployment
rate 125 percent of the statewide rate or greater; or is located within
the boundaries of a federally recognized Indian tribe's reservation or
within tribal trust lands or within land owned by an Alaska Native
Regional or Village Corporation as defined by the Alaska Native Claims
Settlement Act. Subject to annual limits set by the Agency in this
notice, the Agency may allow increased percentages of guarantee for
high-priority projects or loans where the lender needs the increased
percentage of guarantee due to its legal or regulatory lending limit.
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: April 18, 2017.
Chadwick O. Parker,
Acting Administrator, Rural Business-Cooperative Service.
[FR Doc. 2017-08790 Filed 5-1-17; 8:45 am]
BILLING CODE 3410-XY-P