Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2014; Maximum Portion of Guarantee Authority Available for Fiscal Year 2014; Annual Renewal Fee for Fiscal Year 2014, 76593 [2013-30020]
Download as PDF
76593
Notices
Federal Register
Vol. 78, No. 243
Wednesday, December 18, 2013
This section of the FEDERAL REGISTER
contains documents other than rules or
proposed rules that are applicable to the
public. Notices of hearings and investigations,
committee meetings, agency decisions and
rulings, delegations of authority, filing of
petitions and applications and agency
statements of organization and functions are
examples of documents appearing in this
section.
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Guarantee Fee Rates for Guaranteed
Loans for Fiscal Year 2014; Maximum
Portion of Guarantee Authority
Available for Fiscal Year 2014; Annual
Renewal Fee for Fiscal Year 2014
Rural Business-Cooperative
Service, USDA.
AGENCY:
ACTION:
Notice.
As set forth in 7 CFR
4279.107, the Agency has the authority
to charge an initial guarantee fee and an
annual renewal fee for loans made
under the Business and Industry (B&I)
Guaranteed Loan Program. Pursuant to
that authority, the Agency is
establishing the renewal fee rate at onehalf of 1 percent for the B&I Guaranteed
Loan Program. This rate will apply to all
loans obligated in Fiscal Year (FY) 2014
that are made under the B&I program.
As established in 7 CFR 4279.107(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 percent
of guarantee.
The Consolidated and Further
Continuing Appropriations Act of 2013
set funding levels according to those
established by the 2012 Appropriations
Bill. This authorized the Agency to
charge a maximum of 3 percent for its
guarantee fee for FY 2013. It is the
Agency’s expectation that the 2014
Appropriations Bill will contain the
same authorization to charge a
maximum of 3 percent for its guarantee
fee for FY 2014. As such, the guarantee
fee for FY 2014 will be 3 percent. In the
event the 2014 Appropriations Bill
reduces the fee authorization below 3
percent, a subsequent notice will be
published in the Federal Register
amending the guarantee fee for FY 2014.
ehiers on DSK2VPTVN1PROD with NOTICES
SUMMARY:
VerDate Mar<15>2010
15:27 Dec 17, 2013
Jkt 232001
As set forth in 7 CFR 4279.107(a) and
4279.119(b)(4), 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 a guarantee
percentage exceeding 80 percent.
Allowing a reduced guarantee fee or
exceeding the 80 percent guarantee on
certain B&I 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. For
reduced guarantee fees, the borrower’s
business must support value-added
agriculture and result in farmers
benefiting financially or must be a high
impact business investment as defined
in 7 CFR 4279.155(b)(5) and be located
in rural communities that experience
long-term population decline and job
deterioration, remain persistently poor,
are experiencing trauma as a result of
natural disaster, or are experiencing
fundamental structural changes in its
economic base. For guaranteed loans
exceeding 80 percent, such projects
must qualify as a high-priority project (a
requirement of 7 CFR 4279.119(b)),
scoring at least 50 points in accordance
with 7 CFR 4279.155(b).
Not more than 12 percent of the
Agency’s quarterly apportioned B&I
guarantee authority will be reserved for
loan requests with a reduced fee, and
not more than 15 percent of the
Agency’s quarterly apportioned
guarantee authority will be reserved for
guaranteed loan requests with a
guarantee percentage exceeding 80
percent. Once the respective quarterly
limits are reached, all additional loans
for that quarter will be at the standard
fee and guarantee limits.
DATES: Effective Date: December 18,
2013.
FOR FURTHER INFORMATION CONTACT:
Jerred Brown, USDA, Rural
Development, Business Programs,
Business and Industry Division, STOP
3224, 1400 Independence Avenue SW.,
Washington, DC 20250–3224, telephone
(202) 720–1970, email jerred.brown@
wdc.usda.gov.
This
action has been reviewed and
determined not to be a rule or regulation
SUPPLEMENTARY INFORMATION:
PO 00000
Frm 00001
Fmt 4703
Sfmt 4703
as defined in Executive Order 12866, as
amended by Executive Order 13258.
Dated: November 27, 2013.
Lillian E. Salerno,
Administrator, Rural Business-Cooperative
Service.
[FR Doc. 2013–30020 Filed 12–17–13; 8:45 am]
BILLING CODE 3410–XY–P
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Maximum Loan Amount for Business
and Industry Guaranteed Loans in
Fiscal Year 2014
Rural Business-Cooperative
Service, USDA.
ACTION: Notice.
AGENCY:
Section 4279.119(a)(1) of 7
CFR allows the Rural BusinessCooperative Service Administrator, at
the Administrator’s discretion, to grant
an exception to the $10 million limit for
Business and Industry (B&I) guaranteed
loans of $25 million or less under
certain circumstances. Due to the
limited program funds that are expected
for Fiscal Year (FY) 2014 for the B&I
Guaranteed Loan Program, the
Administrator has decided to only grant
exceptions to the $10 million loan limit
for existing B&I guaranteed loan
borrowers that meet certain criteria.
Limiting the maximum loan amount
will enable the Agency to provide
financing assistance to as many projects
as possible. In order for an existing B&I
guaranteed loan borrower to be granted
an exception to the $10 million loan
limit, they must meet the following
criteria: (1) Qualify as a high priority
project (a requirement of 7 CFR
4279.119(a)(1)(i)), scoring at least 50
points in accordance with the criteria in
7 CFR 4279.155(b); (2) have an existing
B&I loan that has been current for the
past 12 months without such status
being achieved through debt
forgiveness; and (3) not be requesting a
refinance of the existing B&I loan. All
other requirements of 7 CFR 4279.119(a)
must be met. Limiting exceptions to the
$10 million limit will allow the Agency
to guarantee more loans and target
smaller loans/projects impacting more
small businesses and will assist the
Agency to conserve scarce funding
dollars at a time when there is
unprecedented interest in the program.
SUMMARY:
E:\FR\FM\18DEN1.SGM
18DEN1
Agencies
[Federal Register Volume 78, Number 243 (Wednesday, December 18, 2013)]
[Notices]
[Page 76593]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: 2013-30020]
========================================================================
Notices
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains documents other than rules
or proposed rules that are applicable to the public. Notices of hearings
and investigations, committee meetings, agency decisions and rulings,
delegations of authority, filing of petitions and applications and agency
statements of organization and functions are examples of documents
appearing in this section.
========================================================================
Federal Register / Vol. 78, No. 243 / Wednesday, December 18, 2013 /
Notices
[[Page 76593]]
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2014;
Maximum Portion of Guarantee Authority Available for Fiscal Year 2014;
Annual Renewal Fee for Fiscal Year 2014
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice.
-----------------------------------------------------------------------
SUMMARY: As set forth in 7 CFR 4279.107, the Agency has the authority
to charge an initial guarantee fee and an annual renewal fee for loans
made under the Business and Industry (B&I) Guaranteed Loan Program.
Pursuant to that authority, the Agency is establishing the renewal fee
rate at one-half of 1 percent for the B&I Guaranteed Loan Program. This
rate will apply to all loans obligated in Fiscal Year (FY) 2014 that
are made under the B&I program. As established in 7 CFR 4279.107(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 percent of guarantee.
The Consolidated and Further Continuing Appropriations Act of 2013
set funding levels according to those established by the 2012
Appropriations Bill. This authorized the Agency to charge a maximum of
3 percent for its guarantee fee for FY 2013. It is the Agency's
expectation that the 2014 Appropriations Bill will contain the same
authorization to charge a maximum of 3 percent for its guarantee fee
for FY 2014. As such, the guarantee fee for FY 2014 will be 3 percent.
In the event the 2014 Appropriations Bill reduces the fee authorization
below 3 percent, a subsequent notice will be published in the Federal
Register amending the guarantee fee for FY 2014.
As set forth in 7 CFR 4279.107(a) and 4279.119(b)(4), 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 a
guarantee percentage exceeding 80 percent.
Allowing a reduced guarantee fee or exceeding the 80 percent
guarantee on certain B&I 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. For reduced guarantee fees, the borrower's
business must support value-added agriculture and result in farmers
benefiting financially or must be a high impact business investment as
defined in 7 CFR 4279.155(b)(5) and be located in rural communities
that experience long-term population decline and job deterioration,
remain persistently poor, are experiencing trauma as a result of
natural disaster, or are experiencing fundamental structural changes in
its economic base. For guaranteed loans exceeding 80 percent, such
projects must qualify as a high-priority project (a requirement of 7
CFR 4279.119(b)), scoring at least 50 points in accordance with 7 CFR
4279.155(b).
Not more than 12 percent of the Agency's quarterly apportioned B&I
guarantee authority will be reserved for loan requests with a reduced
fee, and not more than 15 percent of the Agency's quarterly apportioned
guarantee authority will be reserved for guaranteed loan requests with
a guarantee percentage exceeding 80 percent. Once the respective
quarterly limits are reached, all additional loans for that quarter
will be at the standard fee and guarantee limits.
DATES: Effective Date: December 18, 2013.
FOR FURTHER INFORMATION CONTACT: Jerred Brown, USDA, Rural
Development, Business Programs, Business and Industry Division, STOP
3224, 1400 Independence Avenue SW., Washington, DC 20250-3224,
telephone (202) 720-1970, email jerred.brown@wdc.usda.gov.
SUPPLEMENTARY INFORMATION: 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: November 27, 2013.
Lillian E. Salerno,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2013-30020 Filed 12-17-13; 8:45 am]
BILLING CODE 3410-XY-P