Headquarters Office: Director, Water and Waste Disposal Division, Rural Development Administration, Department of Agriculture, digit number for FTS.) RELATED PROGRAMS: 10.760, Water and Waste Disposal Systems for Rural Communities; 10.766, Community Facilities Loans. EXAMPLES OF FUNDED PROJECTS: Rural communities can use these funds to correct drinking water problems that have been created by a significant decline in quantity or quality of their water supply. The communities use the funds for new systems, waterline extensions, construction of water sources and treatment facilities, storage tanks, and repairs or renovation of existing systems. CRITERIA FOR SELECTING PROPOSALS: For Section 306A grants, the proposed projects designed to serve a rural area with a population of 5,000 or less that has a median household income of not more than 70 percent of the statewide nonmetropolitan household income and had a significant decline in quantity of water available from private individually owned wells will be given priority. For Section 306B grants, the proposed projects designed to serve a rural area with a population of 3,000 or less that has a median household income of not more than 70 percent of the statewide nonmetropolitan household income and had a significant decline in quantity of water available from private individually owned wells will be given priority. Preference also will be given to proposed projects that will assist an established water system or remedy an acute shortage of quality water. The Regional Director will rate applications on a point system and points received will be considered in selecting projects for funding. 10.764 RESOURCE CONSERVATION AND DEVELOPMENT LOANS FEDERAL AGENCY: RURAL DEVELOPMENT ADMINISTRA TION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Food and Agriculture Act of 1962, Public Law 87-703, 7 U.S.C. 1011 (Supp. V) 1959-63, 7 U.S.C. 1010. OBJECTIVES: To provide loan assistance to local sponsoring agencies in authorized areas where acceleration of program of resource conservation, development, and utilization will increase economic opportunities for local people through conservation of water and natural resources. TYPES OF ASSISTANCE: Direct Loans. USES AND USE RESTRICTIONS: Loan funds may be used for: (1) Rural community public outdoor-oriented water based recreational facilities; (2) soil and water development, conservation, control and use facilities; (3) shift-in-land use facilities; (4) community water storage facilities; and (5) special purpose equipment to carry out the above purposes. Project must be located in an authorized RC&D area. A loan for a single RC&D measure cannot exceed $500,000. Terms, 30 years. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: City, county, State agencies and local nonprofit corporations in authorized Resource Conservation and Development (RC&D) areas may be eligible for loan assistance provided they: (1) Are a sponsor of the RC&D measure for which a loan is requested and which is included in the RC&D project plan; (2) have authority to borrow funds, repay the loan, and pledge security for the loan and to operate the facilities or services provided; and (3) are financially sound, organized, and managed to provide efficient service. Beneficiary Eligibility: Farmers, ranchers, rural residents and other residents in an authorized Resource Conservation and Develop ment (RC&D) area. Credentials/Documentation: Evidence of legal capacity, financial re sponsibility, and economic feasibility relative to the activity for which assistance is requested. This program is excluded from cov erage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: The standard application forms as furni shedby the Federal agency and required by OMB Circular No. A. 102 must be used for this program. An informal preapplication conference is recommended. An environmental assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs.” An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in apply ing for assistance, if the State has selected the project for review. Application Procedure: Preapplication Form SF-424 is filed at Dis trict FmHA offices from which assistance may be obtained. Award Procedure: After the preapplication has been reviewed by the District Office, it is forwarded to the FmHA State Office for review and processing instructions. Following review by the State Office the applicant is notified about eligibility, availability of funds and if an application should be filed. Upon favorable review and approval of a complete application package, funds are made available to the District Office for delivery. Deadlines: None. Range of Approval/Disapproval Time: From 30 to 90 days. Appeals: If an application is rejected, the reasons for rejection are fully stated. The applicant may request a review of the decision from the next higher management level of FmHA. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: This program has no statutory formula. Length and Time Phasing of Assistance: A time limitation is not spec ified for use of FmHA loan funds. Funds will be awarded when all FmHA requirements are met and the project can be completed on a timely basis. Funds may be advanced on an as needed basis by FmHA. POST ASSISTANCE REQUIREMENTS: Reports: Periodic progress reports are to be made to the FmHA Dis trict Director. Audits: Periodic audits should be made as part of the recipients's sys tems of financial management and internal control to meet terms and conditions of loans and other agreements. In accordance with the provisions of OMB Circular No. A-128, "Audits of State and Local Governments," State and local governments that receive financial assistance of $100,000 or more within the State's fiscal year shall have an audit made for that year. State and local governments that receive between $25,000 and $100,000 within the State's fiscal year shall have an audit made in accordance with Circular No. A-128, or in accordance with Federal laws and regu lations governing the programs in which they participate. Records: Records and accounts are required to reflect the operations of the project. Account Identification: 12-4140-0-3-351; 12-1140-0-1-351. $600,000. Range and Average of Financial Assistance: $12,840 to $500,000, $72,300. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, one loan was made. In fiscal year 1993, 0 loans were made. In fiscal year 1994, two loans are estimated to be made. REGULATIONS, GUIDELINES, AND LITERATURE: Farmers Home Administration, PA-799 and PA-973, no charge, 7-CFR 1942 Subpart I. INFORMATION CONTACTS: Regional or Local Office: Consult your local telephone directory for FmHA county or district office number. If no listing, contact appropriate FHA State office listed in Appendix IV of the Cata log. Headquarters Office: Director, Community Facilities Division, Rural Development Administration, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1490. (Use same 7-digit number for FTS.) RELATED PROGRAMS: 10.063, Agricultural Conservation Program; 10.500, Cooperative Extension Service; 10.766, Community Facilities Loans; 10.901, Resource Conservation and Development; 10.902, Soil and Water Conservation. EXAMPLES OF FUNDED PROJECTS: Loans were made for irriga tion of farmland and drainage of farmland. CRITERIA FOR SELECTING PROPOSALS: Not applicable. 10.765 WATERSHED PROTECTION AND FLOOD PREVENTION LOANS FEDERAL AGENCY: RURAL DEVELOPMENT ADMINISTRA TION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Watershed Protection and Flood Prevention Act, as amended, Section 9, Public Law 83-566, 16 U.S.C. 1006a; Flood Control Act, as amended, Public Law 78-534. OBJECTIVES: To provide loan assistance to sponsoring local organi zations in authorized watershed areas for share of cost for works of improvement. TYPES OF ASSISTANCE: Direct Loans. USES AND USE RESTRICTIONS: Loan funds may be used to help local sponsors provide the local share of the cost of watershed works of improvement for flood prevention, irrigation, drainage, water quality management, sedimentation control, fish and wildlife development, public water based recreation, and water storage and related costs. The total amount of WS loans outstanding in any one watershed cannot exceed $10,000,000. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: To be eligible for a watershed loan an applicant must: (1) Be a sponsoring local organization, such as municipal corporation, soil and water conservation district, or other organization not operated for profit in the approved watershed project; and (2) have authority under State law to obtain, give security for, and raise revenues to repay the loan and to operate and maintain the facilities to be financed with the loan. Beneficiary Eligibility: Farmers, ranchers, rural residents and other residents in the authorized watershed area. Credentials/Documentation: Evidence of legal capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested. This program is excluded from cov erage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: The standard application forms fur nished by the Federal agency and required by OMB Circular No. A-102 must be used for this program. An environmental assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. Application Procedure: Preapplication Form SF-424 is filed at county or District FmHA office from which assistance may be obtained. Award Procedure: After the preapplication has been reviewed by the District Office, it is forwarded to the FmHA State Office for review and processing instructions. Following review by the State Office, the applicant is notified about eligibility, availability of funds, and if an application should be filed. Upon favorable review and approval of a complete application package, funds are made available to the FmHA District Office for delivery. Deadlines: None. Range of Approval/Disapproval Time: From 30 to 90 days. Appeals: If an application is rejected, the reasons for rejection are fully stated. The applicant may request a review of the decision from the next higher management level of FmHA. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: This program has no statutory formula. Length and Time Phasing of Assistance: A time limitation is not spec ified for the use of FmHA loan funds. Funds will be awarded when all FmHA requirements are met and the project can be completed on a timely basis. Funds may be advanced on an as needed basis by FmHA. POST ASSISTANCE REQUIREMENTS: Reports: Periodic progress reports are made to the FmHA. tems of financial management and internal control to meet terms lations governing the programs in which they participate. Records: Records and accounts are required to reflect the operations of the project. Account Identification: 12-4140-0-3-351; 12-1140-0-1-351. (Loans) FY 92 $2,649,000; FY 93 est $4,000,000; and FY 94 est $O. Range and Average of Financial Assistance: $170,000 to $2,479,000; $156,576. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, two loans were made. Two loans are estimated to be made in fiscal year 1993. REGULATIONS, GUIDELINES, AND LITERATURE: Watershed Loans -Farmers Home Administration · PA-406 no charge. Subpart I. FmHA county or District office number. If no listing, contact appropriate FmHA State office listed in Appendix IV of the Cata log. Headquarters Office: Director, Community Facilities Division, Rural Development Administration, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1490. (Use same 7-digit number for FTS.) RELATED PROGRAMS: 10.416, Soil and Water Loans; 10.766, Com munity Facilities Loans; 10.902, Soil and Water Conservation; 10.904, Watershed Protection and Flood Prevention; 10.906, River Basin Surveys and Investigations. EXAMPLES OF FUNDED PROJECTS: Loans were made to: 1) In stall or improve facilities to store and convey irrigation water to farms; treat and distribute water for farm use, and drain farm areas; 2) install structures and equipment for flood prevention; 3) install or improve a municipal water supply reservoir with recreation, fish and wild life improvement; 4) establish recreational developments in or adjacent to reservoirs, lakes, streams, or shore lines; and 5) provide fish and wildlife developments. CRITERIA FOR SELECTING PROPOSALS: Not applicable. 10.766 COMMUNITY FACILITIES LOANS FEDERAL AGENCY: RURAL DEVELOPMENT ADMINISTRA TION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Consolidated Farm and Rural Development Act, as amended, Section 306, Public Law 92-419, 7 U.S.C. 1926. OBJECTIVES: To construct, enlarge, extend, or otherwise improve community facilities providing essential services to rural residents. TYPES OF ASSISTANCE: Direct Loans; Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: Community facilities include but are not limited to those providing or supporting overall community development such as fire and rescue services, transportation, community, social, cultural, and health benefits: industrial park sites, access ways, and utility extensions. All facilities financed in whole or in part with FmHA funds shall be for public use. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: City, county, and State agencies, political and quasi-political subdivisions of States and associations including corporations, Indian tribes on Federal and State reservations and other Federally Recognized Indian tribes and existing private corporations which: (1) Are operated on a not-for-profit basis; (2) have or will have the legal authority necessary for constructing, operating, and maintaining the proposed facility or service and forobtaining, giving security for, and repaying the loan; and (3) are unable to finance the proposed project from its own resources or through commercial credit at reasonable rates and terms. Assistance is authorized for eligible applicants in rural areas of the States, Puerto Rico, the Virgin Islands, Guam, American Samoa, and the Trust Territory of the Pacific Islands. Beneficiary Eligibility: Farmers, ranchers, rural residents and other users of such public facilities in eligible applicant areas as set out above. Credentials/Documentation: Evidence of legal capacity and financial responsibility of the applicants and the economic feasibility of the project relative to the activity for which assistance is requested. This program is excluded from coverage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: The standard application forms as fur nished by the Federal agency and required by OMB Circular No. A-102 must be used for this program. An environmental assessment is required for this program. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs.” An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the project for review. Application Procedure: Preapplication Form SF-424 is filed at the local FmHA District office from which assistance may be obtained. This program is subject to the provisions of OMB Circular No. A-110. Award Procedure: After the preapplication has been reviewed by the FmHA District Director, it is forwarded to the FmHA State Office for review and processing instructions. Following review by the State Office, the applicant is notified about eligibility, availability of funds and if an application should be filed. Upon completion of application processing requirements and approval by the State Office, funds are made available to the FmHA District Office for delivery. Deadlines: None. Range of Approval/Disapproval Time: From 30 to 90 days. Appeals: If an application is rejected, the reasons for rejection are fully stated. The applicant may request a review of the decision from the next higher management level of FmHA. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Matching funds are not re quired, but may be used in connection with the funds provided from the applicant or other sources. Funds are allocated to States based upon rural population and number of households in poverty. The statistical factor for eligibility is towns or incorporated areas under 20,000 population. The source is "Latest Decennial Census." This program has no statutory formula. Length and Time Phasing of Assistance: A time limitation is not spec ified for the use of FmHA loan or grant funds. Funds will be awarded when all FmHA requirements are met and the project can be completed on a timely basis. Funds may be advanced on an as needed basis by the FmHA to cover expenses for a 30-day period. POST ASSISTANCE REQUIREMENTS: Reports: Periodic reports are made to FmHA. Each borrower will monitor and report to FmHA on actual performance during the construction of each project financed or to be financed in whole or in part with FmHA loans funds. Audits: Periodic audits should be made as part of the recipient's sys tems of financial management and internal control to meet terms and conditions of loans and other agreements. In accordance with the provisions of OMB Circular No. A-128, "Audits of State and Local Governments,” State and local governments that receive financial assistance of $100,000 or more within the State's fiscal year shall have an audit made for that year. State and local governments that receive between $25,000 and $100,000 within the State's fiscal year shall have an audit made in accordance with Circular No. A-128, or in accordance with Federal laws and regu lations governing the programs in which they participate. Records: The borrower must maintain adequate records and accounts of the operation of the facility developed. FINANCIAL INFORMATION: Account Identification: 12-4155-0-3-452; 12-2082-0-1-452. $100,000,000; and FY 94 est $389,000,000. (Guaranteed Loans) FY 92 $25,000,000; FY 93 est $100,000,000; and FY 94 est $75,000,000. Range and Average of Financial Assistance: $6,000 to $4,500,000; $356,155. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, 240 direct loans and 31 guaranteed loans were made. It is anticipated that 350 direct and guaranteed loan applications will be received in fiscal year 1993. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR 1942, Subpart A; Community Facility Loans, except Fire and Rescue Community Programs Guaranteed Loans; PA-1100, no charge. FmHA County or District office numbers. If no listing, contact the appropriate FmHA State office listed in Appendix IV of the Catalog Headquarters Office: Director, Community Facilities Division, Rural Development Administration, Department of Agriculture, Washington, DC 20250. Telephone: (202) 720-1490. (Use same 7-digit number for FTS.) RELATED PROGRAMS: 10.500, Cooperative Extension Service; 10.664, Cooperative Forestry Assistance; 15.124, Indian Loans Economic Development. EXAMPLES OF FUNDED PROJECTS: Loans were made to: (1) Es tablish rural health clinics in medically undeserved areas; (2) purchase fire fighting equipment for rural towns; (3) construct new municipal buildings; (4) build new schools to serve rural counties; and (5) renovate hospitals to meet current life/safety codes. CRITERIA FOR SELECTING PROPOSALS: Projects are selected for funding giving due consideration to State development strategies, serving the largest number of low income rural residents and priority recommendations. Priority for funding will be first to those projects that will enhance public safety such as fire, police, rescue and ambulance services; secondly, those health care facilities which are necessary to conform with life/safety code; third, for those public service facilities such as community buildings and courthouses; fourth, new hospitals and major expansion of existing hospitals. 10.767 INTERMEDIARY RELENDING PROGRAM FEDERAL AGENCY: RURAL DEVELOPMENT ADMINISTRA. TION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Health and Human Services Act of 1986, Section 407, Public Law 99-425, 7 U.S.C. 1932 note; Food Security Act of 1985, Section 1323, as amended, Public Law 99-198, 7 U.S.C. 1631; Community Economic Development Act of 1981, Section 623, as amended, Public Law 97-35, 42 U.S.C. 9812. OBJECTIVES: To finance business facilities and community develop ment. TYPES OF ASSISTANCE: Direct Loans. USES AND USE RESTRICTIONS: An entity that receives an Inter mediary Relending Program (IRP) loan from the Rural Development Administration (RDA) is referred to as an intermediary. Intermediaries must relend all of the loan funds received from the IRP loan, for business facilities or community development in rural areas. An entity that receives a loan from an intermediary is referred to as an ultimate recipient. The maximum loan to any one intermediary is $2 million. The maximum term is 30 years and the interest rate is one percent per annum. Intermediaries may not use IRP funds to finance more than 75 percent of the cost of an ultimate recipient's project or for a loan of more than $150,000 to one ultimate recipient. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Eligible intermediaries may include: Private nonprofit organizations, State or local governments, Puerto Rico, Virgin Islands, Guam, American Samoa, Northern Mariana Is lands, and federally recognized Indian tribes. Beneficiary Eligibility: Ultimate recipients may include: Profit orga nizations, individuals, public and private nonprofit organizations. Credentials/Documentation: Intermediaries must have adequate legal authority and a proven record of successfully assisting rural businesses and industries. Ultimate recipients must not be located within a city with a population of 25,000 or more. Both intermediaries and ultimate recipients must be unable to obtain the loan at reasonable rates and terms through commercial credit or other Federal, State, or local programs. This program is excluded from coverage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: This program is excluded from cover age under OMB Circular No. A-102. This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. An environmental impact assessment is required for this program. Application Procedure: Potential intermediaries should file applica tions with the Rural Development Administration, Business and Industry Division, Room 6321, South Agriculture Building, Washington, DC 20250-3200. The application package includes Form FmHA 1948-1 and a written work plan. More details are available in CFR 1948.122, or from the RDA National Office or any RDA Regional Office or Farmers Home Administration (FmHA) State Office. This program was formerly operated by FmHA. Until the newly created RDA field structure is in place, FmHA continues to administer the program on the local level. Intermediaries devel op their own application procedures for ultimate recipients. Award Procedure: The application of each intermediary may be evaluated by the RDA National Office or authority may be delegated to a Regional Office or State Office. Applications received by RDA will be reviewed and ranked quarterly and funded in the order of priority ranking. Deadlines: None. Range of Approval/Disapproval Time: From 30 to 60 days. Appeals: Adverse actions by RDA in connection with this program may be appealed by contacting the Area Supervisor of FmHA's National Appeals Staff. Appeals will be handled in accordance with 7 CFR 1900-B. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: This program has no statutory formula or specific matching requirements, but RDA funds loaned to one ultimate recipient by an intermediary must not exceed 75 percent of the cost of the ultimate recipient's project. Length and Time Phasing of Assistance: Applicant intermediaries must show a need for the funds and generally should limit the request to an amount they can expect to use within one year. After a loan is approved, the funds are released to the intermediary in multiple advances as required to fund loans to ultimate recipients. POST ASSISTANCE REQUIREMENTS: Reports: Intermediaries must submit quarterly reports on lending ac tivity, income and expenses, financial condition and progress, an annual budget, an annual report on assistance to low-income per sons, farm families, and displaced farm families. Audits: In accordance with the provisions of OMB Circular No. A 128, "Audits of State and Local Governments," State and local governments that receive financial assistance of $100,000 or more within the State's fiscal year shall have an audit made for that year. State and local governments that receive between $25,000 and $100,000 within the State's fiscal year shall have an audit made in accordance with Circular No. A-128, or in accordance with Federal laws and regulations governing the programs in which they participate. Any intermediary not having audits under OMB Circular No. A-128 must have an annual audit completed in accordance with generally accepted auditing standards. Records: No records are specifically required except those necessary to complete the required reports and audits. FINANCIAL INFORMATION: Account Identification: 12-4233-0-3-452; 12-2069-0-1-452. FY 94 est $112,650,000. $1,101,000. PROGRAM ACCOMPLISHMENTS: It is anticipated that in 1992, 61 applications will be received (including 12 carried over from fiscal year 1992) and 35 loans will be approved. It is anticipated that in fiscal year 1994, 60 applications will be received (including 12 car ried over from fiscal year 1993) and 35 loans will be approved. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR 1948, Subpart C; 7 CFR 1951, Subpart R. Regional or Local Office: Not applicable. 6321, South Agriculture Building, Washington, DC 20250-0700. Telephone: (202) 690-4100. RELATED PROGRAMS: 10.434, Nonprofit National Corporations Loan and Grant Program; 10.769, Rural Development Grants. EXAMPLES OF FUNDED PROJECTS: (1) $1,560,000 loan to a non profit corporation to relend to businesses within a State; (2) $1,300,000 loan to a nonprofit corporation to relend to businesses within six counties in two States; (3) $2,120,000 loan to a nonprofit corporation with a nationwide service area, for relending to rural transportation facilities; and (4) $510,000 loan to a nonprofit cor poration serving an eight-county area for relending to businesses. CRITERIA FOR SELECTING PROPOSALS: Factors considered in judging applications include: Financial condition, assurance of repayment ability, equity, collateral, experience and record of managing a loan program or providing other assistance to rural businesses, ability to leverage with funds from other sources, extent assistance would flow to low income persons, farm families, and displaced farm families. 10.768 BUSINESS AND INDUSTRIAL LOANS FEDERAL AGENCY: RURAL DEVELOPMENT ADMINISTRA TION, DEPARTMENT OF AGRICULTURE AUTHORIZATION: Consolidated Farm and Rural Development Act, as amended, Section 310 B, Public Law 92-419, 7 U.S.C. 1932. OBJECTIVES: To assist public, private, or cooperative organizations (profit or nonprofit), Indian tribes or individuals in rural areas to obtain quality loans for the purpose of improving, developing or financing business, industry, and employment and improving the economic and environmental climate in rural communities includ ing pollution abatement and control. TYPES OF ASSISTANCE: Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: Financial assistance may be ex tended for: (a) Business and industrial acquisition, construction, conversion, enlargement, repair, modernization, development costs; (b) purchasing and development of land, easements, rightsof-way, buildings, facilities, leases or materials; (c) purchasing equipment, leasehold/improvements, machinery and supplies; and (d) pollution control and abatement. Maximum loan size is $10,000,000 and maximum time allowable for final maturity is limited to 30 years for land and buildings, the usable life of machinery and equipment purchased with loan funds, not to exceed 15 years, and 7 years for working capital. Interest rates on guaranteed loans are negotiated between the lender and the borrower. For loans of $2 million or less, the maximum percentage of guarantee is 90 percent. For loans over $2 million but not over $5 million, the maximum percentage of guarantee is 80 percent. For loans in excess of $5 million, the maximum percentage of guarantee is 70 percent. Losses on principal advanced, including protective advances, and accrued interest, may be guaranteed to the lender. Loans may not be made or guaranteed (a) to pay off a creditor in excess of the value of the collateral, (b) for distribution or payment to the owner, partners, shareholders, or beneficiaries of the applicant or members of their families when such persons shall retain any portion of their equity in the business, (c) for projects involving agricultural production, (d) for transfer of ownership of a business unless the loan will keep the business from closing, or prevent the loss of employment opportunities in the area, or provide expanded job opportunities, (e) for the guarantee of lease payments, (1) for financing community antenna television services or facilities, (g) for charitable and educational institutions, churches, fraternal organizations, hotels, motels, tourist homes, convention centers, tourist, recreation or amusement facilities, lending and investment institutions and insurance companies, (h) for any legitimate business activity where more than 10 percent of the annual gross income is derived from legalized gambling, (i) for guarantee of loans made by other Federal agencies except those made by Banks for Co-ops, Federal Land Bank or Production Credit Associations, and (i) for any project which is likely to result in transfer of business or employment from one area to another or cause production which exceeds demand. Interested parties should contact the Rural Development Administration (RDA) or Farmers Home Administration (FmHA) State Office nearest them. The B&I program was formerly operated by FmHA. Until the newly created RDA field structure is in place, FmHA will continue to administer the program at the local level. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: An applicant may be a cooperative, corpora tion, partnership, trust or other legal entity organized and operated on a profit or nonprofit basis; an Indian Tribe; a municipality, county, or other political subdivision of a State; or individuals in rural areas. Applicants must be located in one of the fifty States, Puerto Rico, Virgin Islands, Guam, American Samoa, or the Commonwealth of the Northern Mariana Islands, in rural areas other than cities having a population of 50,000 or more and immediately adjacent to urbanized and urbanizing areas with a population density of more than 100 persons per square mile. Preference is given to loans in open country, rural communities and towns of 25,000 or less, and, on applications of equal priority, to veterans. Applicants must be U.S. citizens or reside in the United States after being legally admitted for permanent residence and, if corporations, at least 51 percent ownership must be held by U.S. citi Application Procedure: Form FmHA 449-1 is used for guaranteed loans and filed at the FmHA State office. This program is ex cluded from coverage under OMB Circular No. A-110. Award Procedure: Applications are forwarded to the FmHA State Director for review and final approval. Deadlines: Application deadline for D&D and DARBE guaranteed loans, September 30, 1991. Range of Approval/Disapproval Time: From 60 to 120 days. Appeals: If an application is rejected, the reasons for rejection are fully stated. The lender and applicant may jointly request an appeal hearing by the National Appeals Staff within 30 days provided the request is in writing. The requestor and State Director are notified of the decision by the Hearing Officer. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Matching funds are not re quired. For existing businesses, applicants are required to provide a minimum of 10 percent tangible balance sheet equity. For new businesses and those businesses which cannot offer personal/corporate guarantees, or for energy-related businesses, 20-25 percent equity is required. For guaranteed loans for disaster assistance, tangible balance sheet equity must be positive. Equity must be such that, when considered with other credit factors, repayment of the loan and the continued success of the business operation are reasonably assured. Feasibility studies are normally required. On loans of $2 million or less, feasibility studies may be waived in some cases. Length and Time Phasing of Assistance: The conditional commitment for the FmHA guaranteed loan specifies the time limit for the use of funds. The loan note guarantee will be issued when all of the requirements of the conditional commitment have been met. POST ASSISTANCE REQUIREMENTS: Reports: Each lender will be required to monitor and report to RDA on actual performance during the construction of each project financed, in whole or in part, with RDA assistance. When project is in operation, field visits will be made and customary financial statements provided as determined by the lender and RDA. Audits: Independent audited financial statements are required annual ly. For seasoned loans with an unpaid balance of $100,000 or less, this audit requirement may be modified to permit the use of compilation financial statements or reviews if prior audits were satis factory. Records: Records and accounts must be maintained to reflect the op erations of the project. FINANCIAL INFORMATION: Account Identification: 12-4155-0-3-452; 12-2082-0-1-452. $100,000,000; and FY 94 est $100,000,000. Range and Average of Financial Assistance: $30,000 to $7,500,000, $1,111,000 (average size) for B&I guaranteed loans. PROGRAM ACCOMPLISHMENTS: There were 92 B&I guarantees made in fiscal year 1992. It is estimated that 95 (B&I) guarantees will be made in fiscal year 1993. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR Part 1980-A Section 1980.1 through 1980.100 and 1980-E Section 1980.401 through 1980.500; Business and Industrial Loans, PA 1101; and Facts for Lenders PA-1142. INFORMATION CONTACTS: Regional or Local Office: Consult your local telephone directory for FmHA county office number. If no listing, get in touch with appropriate FmHA State office listed in Appendix IV of the Cata log. Headquarters Office: Administrator, Rural Development Administra tion, Department of Agriculture, Washington, DC 20250-0700. Telephone: (202) 690-1553. (Use same 7-digit number for FTS.) RELATED PROGRAMS: 10.766, Community Facilities Loans; 10,769, Rural Development Grants. EXAMPLES OF FUNDED PROJECTS: Loans made by lending insti tutions have been guaranteed in order to assist the raising of capital by a wide variety of manufacturing, retail, wholesale, and service businesses. Some recent guarantees have assisted an agri zens. Beneficiary Eligibility: Beneficiaries include cooperatives, corpora tions, partnerships, trust or legal entities organized and operated for profit or nonprofit, Federally Recognized Indian Tribal Governments and individuals in rural areas of less than 50,000 popula tion. Credentials/Documentation: Evidence of legal capacity, economic feasibility and financial responsibility relative to the activity for which assistance is requested. This program is excluded from cov erage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: This program is eligible for coverage under E.O. 12372, "Intergovernmental Review of Federal Programs." An applicant should consult the office or official designated as the single point of contact in his or her State for more information on the process the State requires to be followed in applying for assistance, if the State has selected the program for review. All preapplication letters must be coordinated fully with appropriate State agencies in keeping with Executive Order 12372, "Intergovernmental Review of Federal Programs,” in a manner that will assure maximum support of the State's strategies for development of its rural areas. The application form as furnished by the Federal agency must be used for this program. An environmental assessment is required and an environmental impact statement may be required for this program. This program is excluded from coverage under OMB Circular No. A-102. |