[Federal Register: March 28, 2002 (Volume 67, Number 60)]
[Notices]
[Page 14909-14910]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr28mr02-31]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Maximum Portion of Guarantee Authority Available for Fiscal Year
2002
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
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SUMMARY: As set forth in 7 CFR part 4279, subpart B, each fiscal year
the Agency shall establish a limit on the maximum portion of guarantee
authority available for that fiscal year
[[Page 14910]]
that may be used to guarantee loans with a guarantee fee of 1 percent
or guaranteed loans with a guarantee percentage exceeding 80 percent.
Allowing the guarantee fee to be reduced to 1 percent or exceeding
the 80 percent guarantee on certain 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, such as projects in rural
communities that remain persistently poor, experience long-term
population decline and job deterioration, are experiencing trauma as a
result of natural disaster or are experiencing fundamental structural
changes in the economic base.
Not more than 12 percent of the Agency quarterly apportioned
guarantee authority will be reserved for loan requests with a guarantee
fee of 1 percent, and not more than 15 percent of the Agency quarterly
apportioned guarantee authority will be reserved for guaranteed loan
requests with a guaranteed percentage exceeding 80 percent. Once the
above quarterly limits have been reached, all additional loans
guaranteed during the remainder of that quarter will require a 2
percent guarantee fee and not exceed an 80 percent guarantee limit. As
an exception to this paragraph and for the purposes of this notice,
loans developed by the North American Development Bank (NADBANK)
Community Adjustment and Investment Program (CAIP) will not count
against the 15 percent limit. CAIP loans are subject to a 50 percent
limit of the overall CAIP loan program.
Written requests by the Rural Development State Office for approval
of a guaranteed loan with a 1 percent guarantee fee or a guaranteed
loan exceeding 80 percent must be forwarded to the National Office,
Attn: Director, Business and Industry Division, for review and
consideration prior to obligation of the guaranteed loan. The
Administrator will provide a written response to the State Office
confirming approval or disapproval of the request.
EFFECTIVE DATE: March 28, 2002.
FOR FURTHER INFORMATION CONTACT: Fred Kieferle, Processing Branch
Chief, Business and Industry Division, Rural Business-Cooperative
Service, USDA, Stop 3224, 1400 Independence Avenue, SW., Washington, DC
20250-3224, telephone (202) 720-7818.
SUPPLEMENTARY INFORMATION: This action has been reviewed and determined
not to be a rule or regulation as defined in Executive Order 12866.
Dated: March 7, 2002.
John Rosso,
Administrator.
[FR Doc. 02-7500 Filed 3-27-02; 8:45 am]
BILLING CODE 3410-XY-P
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