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POST ASSISTANCE REQUIREMENTS:
Reports: The borrower must initially submit Form FmHA 1944-8,

"Tenant Certification,” for each tenant. Subsequent tenant certifi-
cations must be obtained annually and submitted to the District
Director. Monthly progress reports are to be made to the FmHA
District Director during the first year six months of successful op-
eration and each month thereafter until discontinued by the Dis-

trict Director. An annual report will also be necessary. Audits: For borrowers not covered by OMB Circular No. A-128,

they are required annually from borrowers with 25 or more units per project. Audits are conducted by a certified public accountant selected by the borrower. This program is also subject to audit by the USDA Office of Inspector General. 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: Adequate operating records must be maintained by borrow

er.
FINANCIAL INFORMATION:

Account Identification: 12-4141-0-3-371; 12-2002-0-1-604.
Obligations: (Direct payments) FY 92 $311,119,000; FY 93 est

$319,900,000; and FY 94 est $421,817,000. Range and Average of Financial Assistance: No data on this subject

are available at this time. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, 30,033 fami

lies were assisted. In fiscal year 1993, 31,291 families are estimated

to be assisted. REGULATIONS, GUIDELINES, AND LITERATURE: FmHA In

struction 1944-E "Rural Rental Housing Loan Policies, Procedures, and Authorizations"; 7 CFR 1822. Rental Assistance Pro

gram Fact Sheet, PA 1210 (dated September 1988). INFORMATION CONTACTS: Regional or Local Office: Consult your local telephone directory for

FmHA county office or district office number. If no listing, get in touch with appropriate FmHA State office listed in Appendix IV

of the Catalog. Headquarters Office: Director, Multi-family Housing Services and

Property Management Division, Farmers Home Administration,
Department of Agriculture, Washington, DC 20250. Telephone:

(202) 720-1599. (Use same 7-digit number for FTS.) RELATED PROGRAMS: 10.405, Farm Labor Housing Loans and

Grants; 10.415, Rural Rental Housing Loans.
EXAMPLES OF FUNDED PROJECTS: Not applicable.
CRITERIA FOR SELECTING PROPOSALS: Not applicable.

income families in rural areas; to pay necessary and reasonable office and administrative expenses; and to pay reasonable fees for training of organization personnel. Eighty percent or more of funds must be used for loans, grants or other assistance to homeowners to pay any part of the cost for repair or rehabilitation of structures; funds may not be used to hire personnel to perform construction or to pay any debts, expenses or costs other than pre

viously outlined and approved in the project application. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Must be a State or political subdivision, public

nonprofit corporation (including Indian Tribes or tribal corporations) authorized to receive and administer housing preservation grants, private nonprofit corporation, or a consortium of such eligible entities. Applicants must provide assistance under this program to families residing in open country and communities with a population of 10,000 that are rural in character and places with a population of up to 25,000 under certain conditions. Applicants in towns with population of 10,000 to 25,000 should check with local FmHA office to determine if the Agency can serve them. Assistance is authorized for eligible applicants in the United States, Puerto Rico, Virgin Islands, and the territories and possessions of

the United States. Beneficiary Eligibility: Very low and low-income rural individuals

and families who are homeowners and need resources to bring

their housing up to code standards. Credentials/Documentation: Applicants must have the financial, legal,

administrative, and operational capacity to carry out the objectives of the program by having experience in rural housing rehabilitation. Costs will be determined in accordance with OMB Cir

cular No. A-87 for State and local governments. APPLICATION AND AWARD PROCESS: Preapplication Coordination: The standard application forms as fur

nished by the Federal agency and required by 7 CFR parts 3015 or 3016 must be used for this program. Preapplications on SF 424.1 "Application for Federal Assistance (for non-construction)," must be submitted to the FmHA District office. Applicants are encouraged to consult with the FmHA District office prior to submission of a preapplication and to receive assistance in the preparation of their preapplication. An environmental impact 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 program for review. Application Procedure: Applicants must file a preapplication form.

The standard application forms as furnished by the agency and required by 7 CFR parts 3015 or 3016 must be used for this program. Upon notification by Form AD-622, ”Notice of Preapplication Review Action," that the applicant has been tentatively selected for funding under the preapplication project selection criteria, the applicant may submit an application on SF 424.1, "Application For Federal Assistance (for non-construction)" to the FmHA District office. This program is subject to the provisions of

7 CFR parts 3015 or 3016. Award Procedure: Award is made by the FmHA State Director. Deadlines: Dates governing the acceptance, review, and selection of

project preapplication will be published annually in the Federal Register. Applicants may also contact the FmHA State office for

preapplication deadlines. Range of Approval/Disapproval Time: Notice of action taken on

preapplications will be generally within 70 days of final date of ac

ceptance of preapplication. Appeals: Applicants may request reconsideration on the basis of per

tinent facts concerning their application within 30 days of notifica

tion of action taken on the preapplication or application. Renewals: Applicants that have previously received a grant, and

have achieved the goals established for the previous grant, must reapply for an additional grant under the initial grant procedures.

10.433 RURAL HOUSING PRESERVATION

GRANTS FEDERAL AGENCY: FARMERS HOME ADMINISTRATION,

DEPARTMENT OF AGRICULTURE AUTHORIZATION: Housing Act of 1949, as amended, Section 533,

Public Law 98-181, 42 U.S.C. 1480. OBJECTIVES: To assist very low- and low-income rural homeowners

in obtaining adequate housing to meet their needs by providing the necessary assistance to repair or rehabilitate their housing. These objectives will be accomplished through the establishment of housing rehabilitation projects run by eligible applicants. This program is intended to make use of and leverage any other available housing programs which provide resources to very low and low-income rural residents to bring their homes up to code stand

ards. TYPES OF ASSISTANCE: Project Grants. USES AND USE RESTRICTIONS: Organizations may use up to 20

percent of the Housing Preservation Grant funds for program administration, such as to hire the personnel to carry out a project of housing rehabilitation to meet the needs of very low and low

ing their homes up to local code standards through an HPG grant combined with other Federal funding, such as HUD's community development block grants or HHS's weatherization program. Other variations funded in fiscal years 1988 thru 1991 includes using HPG funds to establish a revolving loan fund that provides homeowners a long term, interest subsidized loan; "lending homeowners the money and "forgiving” 20 percent per year until the loan becomes a grant after five years; using the grantee's own employees to perform the rehabilitation work to reduce the costs; and, in a few instances, leveraging State resources for repair loans or grants. In most cases, grantees that are currently active in home repair and rehabilitation were selected and were able to leverage

their existing programs with the new HPG funds. CRITERIA FOR SELECTING PROPOSALS: Projects must provide a

feasible housing rehabilitation program and serve areas with a concentration of substandard housing and very low and low-income families. In addition, the following criteria will be considered in the selection of grant recipients. Each preapplication and its accompanying statement of activities will be evaluated on: (1) The percentage of very low-income persons assisted; (2) the percentage of use of HPG funds to total cost of housing preservation; (3) the applicant's administrative capacity and experience in (i) housing rehabilitation or weatherization, (ii) assisting very low and lowincome families attain housing assistance and (iii) prior programs no outstanding audits findings; (4) the proposed program will be undertaken in non-Metropolitan Statistical Areas identified by FmHA as having populations below 10,000 or in remote parts of other rural areas, (i.e., rural areas contained in Metropolitan Statistical Areas with less than 5,000 population); (5) the program will minimize the use of grant funds for administrative purposes, i.e., less than 20 percent of grant funds; (6) the program will alleviate overcrowding in rural residences inhabited by very low and lowincome families; and (7) if an existing grantee has met the objectives of its current grant.

ASSISTANCE CONSIDERATIONS:
Formula and Matching Requirements: See 7 CFR 1940-L, "Method-

ology and Formulas for Allocation of Loan and Grant Funds."
This program has a statutory formula consisting of the following
factors and weights: State's percentage of national rural popula-
tion, 33 1/3 percent; State's percentage of national number of rural
occupied substandard units, 33 1/3 percent; and State's percentage
of national rural families with incomes below the poverty level, 33
1/3 percent. Data source for each factor is based on the latest
census data available. The percentage for each factor is multiplied
by the weight assigned and summed to arrive at a State factor.
The State factor is multiplied by the total amount available for al-
location nationally, minus the national office reserve (approximate-
ly 10 percent). This program has no cost-sharing arrangement or
matching requirements although priorities under the project selec-
tion criteria include extent of leveraging of funds to complement

the housing preservation grant. Length and Time Phasing of Assistance: Grants are made for a 12 to

24 month period. POST ASSISTANCE REQUIREMENTS: Reports: Quarterly financial and project performance reports are to

be made to the FmHA District Office. Audits: Periodic audits should be made as part of the recipient's

system of financial management and internal control to meet terms and conditions of grants 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: Grantees shall maintain adequate records and accounts to

assure that grant funds are used for authorized purposes. FINANCIAL INFORMATION:

Account Identification: 12-2070-0-1-604.
Obligations: (Grants) FY 92 $23,000,000; FY 93 est $23,000,000; and

FY 94 est $23,306,000.
Range and Average of Financial Assistance: The first year of funding

for the program was fiscal year 1986; 129 applicants were selected from the 362 that applied. In fiscal year 1989, 158 applicants were selected from the 347 that applied. Grants ranged from $13,000 to $258,000; the average grant was $121,114. The annual funding from 1986 through 1990 has been $19,140,000. In fiscal year 1991, 193 applicants were selected from the 410 that applied. Total funding increased to $22,999,700. In fiscal year 1992, 410 applied and

189 were selected for funding. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, 189 grantees

were funded; collectively, the grantees propose to provide assistance to approximately 5,000 homeowners for the rehabilitation of

their homes. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR 1944

N, Section 1944.651 through 1944.700, FmHA Instruction 1944-N.

Regulations are available from FmHA State offices. INFORMATION CONTACTS: Regional or Local Office: Consult your local telephone directory for

FmHA District Office number. If no listing, contact appropriate

FMHA State office listed in Appendix IV of the Catalog. Headquarters Office: Multiple Family Housing Processing Division,

Farmers Home Administration, Department of Agriculture, Washington DC 20250. Telephone: (202) 720-1606. (Use same 7-digit

number for FTS.) RELATED PROGRAMS: 10.410, Very Low to Moderate Income

Housing Loans; 10.411, Rural Housing Site Loans; 10.417, Very
Low-Income Housing Repair Loans and Grants; 10.420, Rural
Self-Help Housing Technical Assistance; 14.108, Rehabilitation
Mortgage Insurance; 14.121, Mortgage Insurance-Homes in Out-

lying Areas. EXAMPLES OF FUNDED PROJECTS: Funded projects generally

provide financial assistance to very low-income families for bring

10.434 NONPROFIT NATIONAL CORPORATIONS

LOAN AND GRANT PROGRAM

FEDERAL AGENCY: FARMERS HOME ADMINISTRATION,

DEPARTMENT OF AGRICULTURE AUTHORIZATION: Food Security Act of 1985, as amended, Section

1323, Public Law 99-198, 7 U.S.C. 1932. OBJECTIVES: To improve business, industry and employment in rural

areas, specifically the direct retention and/or creation of jobs through the stimulation of private investment and foundation con

tributions. TYPES OF ASSISTANCE: Guaranteed/Insured Loans; Project

Grants. USES AND USE RESTRICTIONS: Financial assistance may be ex

tended to nonprofit national rural development and finance corporations that establish similar and affiliated statewide rural development and finance programs for the purpose of providing loans, guarantees, technical assistance and other financial assistance to profit or nonprofit local businesses to improve business, industry,

and employment opportunities in a rural area. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: An applicant must be a nonprofit national cor

poration (NNC) authorized to do business in at least three States. The general purpose of the NNC, as stated in its organizational documents, must include the stimulation of business, industry, and employment in rural areas. The NNC must be legally able to borrow and lend money, as well as to give and accept security for said monies, and possess a recent audit demonstrating the financial solvency and resources to carry out the intent of the program. Applicants must have written approval to administer a revolving loan program by the Governor of each State in which the bor

rower intends to operate, and must be fully bonded against losses. Beneficiary Eligibility: Beneficiaries include nonprofit national corpo

rations who provide assistance to profit and/or nonprofit businesses in rural areas of less than 20,000 population.

ton, DC 20250. Telephone: (202) 720-1490. (Use same 7-digit

number for FTS.) RELATED PROGRAMS: None. EXAMPLES OF FUNDED PROJECTS: Not applicable. CRITERIA FOR SELECTING PROPOSALS: The criteria for judg.

ment of the proposal are based on the organization of the potential borrower's program delivery system and intended purpose the borrower will achieve. The borrower must be a nonprofit national corporation eligible to do business in at least three States and have a statewide affiliate in each of the States it proposes to do business. Among other items, the borrower must also: (1) Possess financial solvency and resources adequate to carry out the intent of the program; (2) be able to provide sufficient collateral for the guaranteed loan; (3) demonstrate a need for the assistance, i.e., a sufficient number of known and potential recipients for the assistance it will provide as a result of the loan guarantee and grant; (4) have evidence of a commitment of other financial resources to complement the FmHA assistance; and (5) demonstrate to FmHA that it has a successful track record of providing similar assistance to rural businesses as provided for by this program.

Credentials/Documentation: Evidence of legal capacity, economic

feasibility and financial responsibility relative to the activity for which the assistance is requested must be provided. This program

is excluded from coverage 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 apply. ing for assistance, if the State has selected the program for review. An environmental assessment is required on the applicant's initial

plan and ultimately for each project the applicant will assist. Application Procedure: Form FmHA 1980-60 is used for both guar

anteed loans and grants and is filed at the RDA National Office. This program is subject to the provisions of OMB Circular Nos.

A-110 and A-102. Award Procedure: Applications are submitted to the FmHA National

Office for review and approval. Deadlines: If funding is authorized, applicants should file applications

between January 1 and March 31 with the FmHA office designat

ed by FmHA Administrator. Range of Approval/Disapproval Time: Sixty days or less. Appeals: If an adverse decision is made by FmHA which affects the

applicants and/or borrowers, the reasons for the decision are fully stated. The lender and borrower may jointly request a hearing from the next highest official above the position of the decision maker provided the request is in writing and accompanied by supporting information and documentation with a copy of such material concurrently submitted to the original decision maker. The appellant and decision maker are notified of the decision by the hear

ing officer. Renewals: Not applicable. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Matching funds are required.

The maximum Federal assistance the borrower can provide to the projects it assists will be limited to 75 percent of the total project cost up to $500,000. Therefore, it will be necessary for a minimum of 25 percent of the total project cost to be funded with other

sources of funding. Length and Time Phasing of Assistance: The commitment for guaran

tee for FmHA assistance specifies the time limit for the use of funds. Funds will be advanced when all of the requirements of the

commitment for guarantee have been met. POST ASSISTANCE REQUIREMENTS: Reports: After the loan is closed, field visits will be made and cus

tomary financial statements should be provided, as determined by

the lender and FmHA. Audits: Independent audited financial statements are required annual

ly. Records: Records and accounts must be maintained to reflect the

borrower's operations. FINANCIAL INFORMATION:

Account Identification: 12-4233-0-3-452; 12-4155-0-3-452.
Obligations: (Guaranteed loans) FY 92 $0; FY 93 est $0; and FY 94

est $O. (Grants) FY 92 $0; FY 93 est SO; and FY 94 est $0. Range and Average of Financial Assistance: Not applicable. PROGRAM ACCOMPLISHMENTS: Three nonprofit national corpo

rations received funding during fiscal year 1987 for establishment of revolving loan funds and provision of technical assistance. Assistance is presently being provided from the revolving loan funds established by fiscal year 1987 obligations. No funds have been ap

propriated since fiscal year 1987. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR 1980

G, Sections 1980.601 through 1980.700. INFORMATION CONTACTS: Regional or Local Office: FmHA State Office listed in Appendix IV

of the Catalog. Headquarters Office: Director, Community Facilities Division, Farm

ers Home Administration, Department of Agriculture, Washing

10.435 AGRICULTURAL LOAN MEDIATION

PROGRAM FEDERAL AGENCY: FARMERS HOME ADMINISTRATION,

DEPARTMENT OF AGRICULTURE AUTHORIZATION: Agricultural Credit Act of 1987, Title V, Public

Law 100-233; Food, Agriculture, Conservation, and Trade Act of 1990, Public Law 101-624; Agricultural Audit Improvement Act

of 1992. OBJECTIVES: To assist States in establishing and administering loan

mediation programs and services for agricultural producers and

their creditors. TYPES OF ASSISTANCE: Project Grants. USES AND USE RESTRICTIONS: Grants are to be used solely for

the operation and administration of a State's Agricultural Loan Mediation Program which has been certified by the Administrator of Farmers Home Administration as meeting the requirements of Section 501(c) of Title V of the Agricultural Credit Act of 1987. A grant will not exceed 70 percent of the total fiscal year funds that a qualifying State requires to operate and administer its Agricultural Loan Mediation Program, or $500,000, whichever is less. Eligible costs are limited to those that are reasonable and necessary to carry out the mission of the State's Agricultural Loan Mediation Program in providing mediation services for agricultural producers and their creditors. There is no other authorized use of

grant funds.
ELIGIBILITY REQUIREMENTS:

Applicant Eligibility: State governments.
Beneficiary Eligibility: Agricultural producers and their creditors.
Credentials/Documentation: Have an Agricultural Loan Mediation

Program which has been certified by the Administrator of FmHA
and which certification has not been withdrawn; provide evidence
to justify the estimated costs of operating and administering the
State's Agricultural Loan Mediation Program. The Governor of a
State must make a written request to FmHA no later than August
1 of each year to receive a matching grant during the fiscal year
commencing October 1, of that same year. Costs will be deter-
mined in accordance with OMB Circular No. A-87 for State and
local governments. The Secretary of Agriculture, with respect to
each program under the jurisdiction of the Secretary that makes
guarantees, or insurers of agricultural loans shall participate in ag-
ricultural loan mediation programs certified by the Administrator
of Farmers Home Administration as meeting the requirements of

Section 501(c) of Title V of the Agricultural Credit Act of 1987. APPLICATION AND AWARD PROCESS: Preapplication Coordination: This program is excluded from cover

age under E.O. 12372. Application Procedure: The standard application forms as furnished

by the Federal agency and required by OMB Circular No. A-102

a $153,800 grant was received by the State of Oklahoma; a $53,000 grant was received by the State of Oregon; a $45,980 grant was received by the State of South Dakota; a $454,421 grant was received by the State of Texas; a $15,000 grant was received by Utah; a $136,200 grant was received by the State of Wisconsin;

and a $20,000 grant was received by the State of Wyoming. CRITERIA FOR SELECTING PROPOSALS: Certification by the Ad

ministrator, FmHA, that Mediation Program meets the requirements of Section 501(c) of Title V of the Agricultural Credit Act (Public Law 100-233); application meets requirements of FmHA regulations to be implemented.

'must be used for this program. This program is excluded from

coverage under OMB Circular No. A-110. Award Procedure: Grant funds will be distributed on a first come,

first served basis to qualifying States. If, however, when funds for a fiscal year become available, there are not sufficient funds to give all qualifying States 70 percent of their justified estimated expenses for the fiscal year, the percentage allocation will be reduced so as to give all States the same percentage of their ex

penses. Deadlines: Contact FmHA National Office for application deadlines. Range of Approval/Disapproval Time: Thirty days from receipt of a

complete application package. Appeals: FmHA Instruction 1900-B, "FmHA Appeal Procedure." Renewals: Annually through the beginning of fiscal year 1995. Sec

tion 506 of Title V of the Agricultural Credit Act of 1987, Public Law 100-233 and Section 1853 of the Food, Agricultural, Conser

vation and Trade Act of 1990, Public Law 101-624. ASSISTANCE CONSIDERATIONS: Formula and Matching Requirements: Seventy percent of fiscal year

cost of operating and administering a State's Agricultural Loan

Mediation Program, not to exceed $500,000 annually. Length and Time Phasing of Assistance: From beginning to end of

the Federal government's fiscal year. Grant will be an annual grant and will run concurrently with the Federal government's

fiscal year; reimbursement by Treasury check. POST ASSISTANCE REQUIREMENTS: Reports: Reports are submitted quarterly: Standard Form 269, "Fi

nancial Status Report"; Standard Form 272, "Federal Cash Trans

actions Report"; and Program Performance Report. Audits: Inaccordance 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. Records: Record keeping will conform to requirements of OMB Cir

cular No. A-102. FINANCIAL INFORMATION:

Account Identification: 12-4140-0-3-351.
Obligations: (Grants) FY 92 $2,710,100; FY 93 est $2,700,143; and

FY 94 est $3,000,000.
Range and Average of Financial Assistance: $20,000 to $500,000.
PROGRAM ACCOMPLISHMENTS: In fiscal year 1993, 18 matching

grants were awarded totaling $2,700,881 to the States of Alabama, Arkansas, Arizona, Iowa, Kansas, Minnesota, Montana, Nebraska, Nevada, New Mexico, North Dakota, Oklahoma, Oregon, South Dakota, Texas, Utah, Wisconsin, and Wyoming. All 19 States are expected to receive USDA certification in fiscal year 1993 and re

quest matching grants totaling $3,000,000 in fiscal year 1993. REGULATIONS, GUIDELINES, AND LITERATURE: 7 CFR Part

1946 published on August 26, 1988, 53 FR 32597. INFORMATION CONTACTS:

Regional or Local Office: None.
Headquarters Office: South Agriculture Building, Room 5019, 14th

and Independence Ave., SW., Washington, DC 20250. Telephone:

(202) 720-1471. Contact Person: Chester A. Bailey. RELATED PROGRAMS: None. EXAMPLES OF FUNDED PROJECTS: Seventeen States having me

diation programs certified by USDA have received matching grants totaling $2,700,881 in fiscal year 1993. A $171,433 grant was received by the State of Alabama; a $82,500 grant was received by the State of Arkansas; a $17,590 grant was received by Arizona; a $194,800 grant was received by the State of Iowa; a $387,769 grant was received by the State of Kansas; a $300,000 grant was received by the State of Minnesota; a $157,750 grant was received by the State of Nebraska; a $117,540 grant was received by the State of New Mexico; a $389,098 grant was received by North Dakota; a $5,000 grant was received by Nevada;

10.437 INTEREST ASSISTANCE PROGRAM FEDERAL AGENCY: FARMERS HOME ADMINISTRATION,

DEPARTMENT OF AGRICULTURE AUTHORIZATION: Consolidated Farm and Rural Development

Act, as amended. OBJECTIVES: To aid not larger than family sized farms in obtaining

credit when they are temporarily unable to project a positive cash

flow without a reduction in the interest rate. TYPES OF ASSISTANCE: Guaranteed/Insured Loans. USES AND USE RESTRICTIONS: Interest Assistance Program can

be used on any of the three types of guaranteed loans. The three types and loan purposes are as follows: (1) Farm Ownership (FO) Loans - to buy, improve, or enlarge farms. Uses may include construction, improvement, or repair of farm homes and service buildings; improvement of on-farm water supplies; installation of pollution control or energy conservation measures; and establishing non-agricultural enterprises that help farmers supplement their farm income; (2) Operating Loans (OL) - to pay for items needed for farm operations, including livestock, farm and home equipment, feed, seed, fertilizer, fuel, chemicals, hail and other crop insurance, family living expenses, minor building improvements, water system development, hired labor, pollution abatement, and methods of operation to comply with the Occupational Safety and Health Act; and (3) Soil and Water (SW) · to develop, conserve, or make proper use of land and water resources, including development of wells and other sources of water, irrigation systems, drainage improvements, and improvements associated with forestry, fish farming, land protection, or pollution control. Loan limits are as follows: Real estate loans (FO and SW) -$300,000. For FO and SW loans, the County Supervisor can approve loans up to $260,000, the District Director up to $270,000, and the State Director or designee has the remaining authority to the maximum loan amount of $300,000. Operating (chattel) loans - $400,000. For OL loans, the County Supervisor can approve loans up to $350,000, the District Director up to $360,000, and the State Di

rector or designee has the full authority of $400,000. ELIGIBILITY REQUIREMENTS: Applicant Eligibility: Individuals, partnerships, or joint operations,

legal resident aliens, corporations and cooperatives that meet the eligibility requirements for a guarantee loan and are able to project the required cash flow margins with the injection of inter

est assistance. Beneficiary Eligibility: This program aids both the borrower and the

lender. The borrower is able to continue to get credit and the

lender receives up to a 90 percent guarantee on the loan. Credentials/Documentation: None. This program is excluded from

coverage under OMB Circular No. A-87. APPLICATION AND AWARD PROCESS: Preapplication Coordination: None. This program is excluded from

coverage under E.O. 12372 and OMB Circular No. A-102. Application Procedure: A guaranteed loan with interest assistance

can be made by contacting a lender or the FmHA County Supervisor in the county where the proposed farming operation or headquarters will be located for advice on procedures, forms, and requirements for making a pre-application and/or an application. FmHA has more than 1,750 county offices serving every rural county in the United States. They are normally located in the county seat. Farmers Home Administration offices are listed in the telephone directory under U.S. Government, Department of Agriculture. Location of an office may be obtained by writing to

Farmers Home Administration, USDA, Washington, DC 20250. Award Procedure: Not applicable. Deadlines: This program expires September 30, 1995. No other

deadlines are applicable. (Food Security Act of 1985, Section

1320). Range of Approval/Disapproval Time: One to 45 days. Appeals: At the time of any rejection FmHA will notify the appli

cant of appeal rights and procedures.
Renewals: None.
ASSISTANCE CONSIDERATIONS:

Formula and Matching Requirements: Not applicable.
Length and Time Phasing of Assistance: Interest Assistance can be

granted for a period of up to 10 years or the life of the loan. Inter-
est Rate Assistance Program can pay a portion (1-4 percent) of the

borrowers interest costs. POST ASSISTANCE REQUIREMENTS: Reports: The lender is required to file FmHA Form 1980-24 annual

ly. This form will reflect current loan information, request a claim payment and establish the amount of interest assistance for the

next year. Audits: FmHA will review FmHA Form 1980-24 annually. In addi

tion, FmHA will require a loan activity summary and calculation

of interest charges. Records: The type of records required will be on a case-by-case

basis. FINANCIAL INFORMATION:

Account Identification: 12-4140-0-3-351; 12-1140-0-1-351.

Obligations: (Subsidized Guaranteed Loans) FY 92 $215,500,000,

FY 93 est $84,898,000; and FY 94 est $238,354,000. Range and Average of Financial Assistance: $1 to $400,000. PROGRAM ACCOMPLISHMENTS: In fiscal year 1992, this pro

gram allowed over 1,452 family sized farmers to continue farming and receiving credit from the private sector. Participation is ex

pected to increase in 1993. REGULATIONS, GUIDELINES, AND LITERATURE: Regulations

published at 54 FR 1534, codified in 7 CFR Part 1980. INFORMATION CONTACTS: Regional or Local Office: Farmers Home Administration State Of.

fices can inform applicants of county office locations where applicants may apply for this assistance. FmHA State Office locations

are listed in Appendix IV of the Catalog. Headquarters Office: A guaranteed loan can be obtained by contact

ing a lender or the FmHA County Supervisor in the county where the proposed farming operation or headquarters will be located. FmHA has more than 1,750 CountyOffices serving every rural county in the United States. Location of an office may be obtained by writing or contacting the FmHA, USDA, Washing

ton, DC 20250. RELATED PROGRAMS: None. EXAMPLES OF FUNDED PROJECTS: None. CRITERIA FOR SELECTING PROPOSALS: Each loan application

will be judged on its own merit and processed in chronological order. The Food, Agriculture, Conservation and Trade Act of 1990 requires at least 30 percent of subsidized guarantees be extended to direct loan borrowers. This program will assist the agency's most credit-worthy direct loan borrowers in graduating with a guaranteed loan accomplished by an interest subsidy.

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