FmHA

SBA

1. In addition to the ceiling limitations listed herein, the extent of loan assistance is also limited by the amount of actual loss, potential repayment ability, collateral available, the applicant's needs and other credit factors.

(a) There is a statutory limit of $500,000 per disaster per applicant for Actual Loss Loan assistance for both those who can obtain and those who cannot obtain their credit elsewhere.

(b) Administrative ceilings for those who cannot obtain credit elsewhere have been established as follows:

(1) Actual Loss Loan-$500,000 per applicant per disaster designation for disasters occurring on or after October 1, 1978.

(2) $250,000 per applicant per disaster designation for disasters occurring through September 30, 1978.

(3) Annual Production and/or Major Adjustment Loans $1,500,000 outstanding principal balance authorized per EM borrower, regardless of the number of disasters. A further sub-limitation setting a $300,000 maximum outstanding principal balance on Major Adjustment Loans for refinancing debts, which are secured by real estate, is established within the above $1,500,000 ceiling. However, borrowers indebted for an EM Loan(s) on or before December 15, 1979, who cannot obtain credit elsewhere, may receive subsequent Annual Production Loans in amounts necessary to continue their normal operation(s) without regard to this indebtedness ceiling.

1. Home Loans-No statutory limit; however, the following administrative limits have been established: (a) $50,000 for real estate, (b) $10,000 for personal property, or (c) $55,000 for combined purposes and up to $50,000 for eligible refinancing.

2. Business Loans, Physical Disasters-No statutory limit for disasters commencing prior to enactment of Pub. L. 96302, i.e., July 2, 1980; however, a $500,000 administrative limit was in effect; exceptions permitted by SBA Regional Administrator to avoid undue financial hardship.

For disasters commencing on or after July 3, 1980, the statutory limit is $500,000 per disaster per borrower. Limit may be waived by Administrator if applicant is a major source of employment in an area suffering a major disaster declared by the President.

3. Business Loans, Economic Injury-No statutory limit, the amount of economic injury determines the size of the loan.

II. Purpose.

The purpose of this memorandum of understanding is to coordinate certain ASCS disaster activities with the FmHA actual loss emergency loan program.

III. ASCS and FmHA Coordination on Disaster Activities to Farmers and Ranchers The amount of any benefits received from ASCS disaster programs, including disaster payments and cost-sharing payments under the Emergency Conservation Program, Emergency Feed Program, will be considered by FmHA in determining the maximum amount of an actual loss emergency loan that a farmer can receive. This will be done in accordance with FmHA regulations.

IV. Understanding Reached

A. FmHA County Supervisors prior to determining the maximum amount of any actual loss emergency loan, will consult with ASCS County Executive directors regarding ASCS disaster benefits provided or to be provided to FmHA emergency loan applicants.

B. ASCS County Executive Directors, at the request of the FmHA County Supervisors, will provide FmHA with the following information from ASCS county office records: farmland and cropland acreages on the applicant's farm(s), production on crops, and amounts of payments or assistance provided or to be provided by ASCS to such applicant. Form FmHA 1945-29, "ASCS Verification of Farm Acreage, Production, and Benefits", will be used for this purpose.

C. FmHA County Supervisor will, in a timely manner, provide ASCS county offices with the names and addresses of farmers or ranchers who have had an actual loss emergency loan approved.

D. ASCS County Executive Directors will consult with FmHA County Supervisors before issuing disaster payments to farmers or ranchers for whom Form FmHA 1945-29 has been received. Sight drafts for payments of ASCS disaster benefits for farmers and ranchers whose FmHA loan application has been approved, will be prepared to show FmHA as joint payee and forwarded to the FmHA county office.

V. Supersedure

This memorandum of understanding supersedes the one signed by the Administrator of FmHA on April 18, 1975, and the Administrator of ASCS on April 23, 1975.

VI. Amendment

This memorandum of understanding may be amended at any time by mutual consent of the agencies involved.

/s/ Ray V. Fitzgerald,

Administrator,

Agricultural Stabilization

and Conservation Service. Date: 11-8-79.

/s/ Gordon Cavanaugh,

Administrator,

Farmers Home Administration.

Date: 10-30-79.

CFR 2.23; delegation of authority by the Assistant Secretary for Rural Development, 7 CFR 2.70, unless otherwise noted.

SOURCE: 43 FR 14283, Apr. 4, 1978, unless otherwise noted.

§ 1948.1 General.

This subpart sets forth the policies and procedures for making grants under Section 306(a)(11) of the Consolidated Farm and Rural Development Act, Area Development Assistance Planning Grants for comprehensive planning for rural development. The Farmers Home Administration (FmHA) will fully consider all A-95 clearinghouse review comments and recommendations in selecting applications for funding. The appropriate vehicle for State Rural Development Committee comments shall be the A95 review process. Federally recognized Indian Tribes are exempted from the provisions of the Office of Management and Budget (OMB) Circular A-95.

§ 1948.2 [Reserved]

§ 1948.3 Objectives.

The objective of the Area Development Assistance Planning Grant Program is to contribute to the development of comprehensive planning for rural development, especially as such planning affects the unemployed, the underemployed, those with low family incomes, and minorities, by providing grants which will:

(a) Make possible the development of comprehensive planning processes for rural areas;

(b) Enable rural areas which already have plans to revise them and/or fill critical gaps when this is needed to ensure an integrated, usable package;

(c) Support the development of an aspect or aspects of a comprehensive planning process, provided this will make it possible to put the plan into action. The actions should be consistent with other community plans.

§ 1948.4 [Reserved]

§ 1948.5 Definitions.

Terms used in this subpart have the following meanings:

(a) "Clearinghouse" includes:

"Comprehensive

planning"

(b) means a continuing process which develops guides for action which include goals, objectives, priorities, policies, or procedures relating to (1) the provision of community facilities and/or other governmental services, and (2) the effective development and utilization of human and natural resources. Rural comprehensive planning includes but is not limited to:

(i) The provision of leadership, coordination, citizen involvement, data collection, and technical analysis; (ii) the determination of planning project effectiveness through continuing evaluation; (iii) the establishment of mechanisms for implementation; and (iv) the provision of opportunities for citizens and governmental units to affect the overall rural development policy-making process.

(c) "Grantee" means an entity with whom FmHA has entered into a grant agreement under this program.

(d) "Rural" and "rural area" shall not include any area in any city or town which has a population in excess of ten thousand inhabitants.

policy

(e) "Rural development making process" means a process of problem and issue identification, evaluation and selection of policy and strategy options, monitoring and assessing effectiveness of strategies, and program implementation which systematically involves relevant Federal, State, and local government agencies, public and consumer interest groups, and the private sector.

(f) "Rural development strategy" means a coordinated set of Federal, State, and local actions targeted to the specific needs of diverse rural areas.

(g) "State" means any of the fifty States, Puerto Rico, or the Virgin Islands.

common or related social, economic, or physical characteristics indicating a community of developmental interests and which have been formally designated or recognized by the State as an appropriate area for planning. This definition may also include an individual county which has been formally designated or recognized by the state as a substate district.

(i) "Units of general local government" means any county, parish, city, town, township, village, or other general purpose political subdivision of a State, authorized to engage in comprehensive planning by law or State designation.

§ 1948.6 [Reserved]

§ 1948.7 Source of funds.

All grants awarded will be made from appropriated funds specifically allotted for this program.

§§ 1948.8-1948.9 [Reserved]

§ 1948.10 Financial support.

(a) Grants will not exceed 75 percent of the total funds required for the planning project. The Grantee's share must equal at least 25 percent of the total project costs, these costs being met by cash, services, or a combination of both.

(b) Grantees may request subsequent grants for comprehensive planning purposes subject to the criteria contained in these regulations.

§§ 1948.11-1948.12 [Reserved]

§ 1948.13 Applicant eligibility.

(a) Organizations eligible for grants include units of general local government, substate district organizations, areawide comprehensive planning agencies, regional and local planning commissions, State governments, Federally or State recognized Indian Tribes or Nations, and public, quasipublic, or private nonprofit organizations as may have authorization to prepare comprehensive plans for rural development or specific aspects of rural development. An applicant must have authority to receive and spend Federal and other funds and to con

tract for planning purposes. Applicants will furnish FmHA with evidence of legal existence and authority to prepare comprehensive plans for rural development or specific aspects of rural development.

(b) Except for Federally recognized Indian Tribes, an applicant for multijurisdictional area planning, if the applicant is other than the areawide comprehensive planning agency designated pursuant to OMB Circular A-95, shall submit an agreement between the applicant and such areawide agency covering the means by which their planning project activities will be coordinated. Such agreement will cover but need not be limited to the following:

(1) Identification of relationships between the planning project activities and the areawide comprehensive planning agency which will require coordination;

(2) The organizational and procedural arrangements for coordinating activities such as common board membership, procedures for joint reviews of projected activities and policies, and information exchange;

(3) Cooperative arrangements for sharing planning resources including funds, personnel, facilities, and services; and

(4) Agreements regarding social, economic, demographic, and environmental base data, statistics, and projections constituting the basis on which planning in the area will proceed.

When the applicant has been unable to develop such an agreement, a statement will be submitted to FmHA indicating what efforts have been made to secure an agreement and issues which have prevented obtaining it. In such case FmHA, in consultation with the State clearinghouse, will undertake to resolve these issues within 30 days of receipt of the application and before approving the application.

§ 1948.14 [Reserved]

§ 1948.15 Comprehensive Planning Projects for Rural Development.

(a) The rural area to be covered in a planning project may be any area where the people have common or closely related problems or interests.

The area covered may not include any area in any city or town which has a population of more than ten thousand people.

(b) Planning projects financed with FmHA grants should consider present population distribution, projected population growth or decline, economic conditions and trends of the rural areas concerned, and other area functions which are deemed essential for orderly growth of the rural area involved. The planning projects may inIclude, but need not be limited to, the addressing of rural planning needs in the areas of housing, energy management, community facilities, health, transportation, education, recreation, resource conservation, and the development and/or preservation of land for residential, agricultural, commercial, and industrial uses.

(c) Each planning project should analyze planning alternatives for the rural area. Consideration should be given to the recommendations and services available from local, State, Federal, and private agencies and private individuals.

(1) If the rural area to be covered is in an area covered by a State or regional plan, the plan already developed for the larger area must be carefully considered to avoid conflict or duplication.

(2) Each planning project should be coordinated with other comprehensive or special purpose plans including overall economic development plans and local industrial development plans.

(3) To the fullest extent possible, planning projects should be coordinated with related planning and development activities presently carried out by the areawide A-95 clearinghouse agency.

(d) Planning projects should consider preservation and enhancement of the area's environment and the area's historic value.

§§ 1948.16-1948.17 [Reserved]

§ 1948.18 Grant purposes.

Grant funds may be used for the preparation of comprehensive plans and for comprehensive planning pur