[Federal Register Volume 85, Number 100 (Friday, May 22, 2020)]
[Notices]
[Pages 31139-31141]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-11243]
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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
[Docket RBS-20-CO-OP-0011]
The Business and Industry Coronavirus Aid, Relief, and Economic
Security Act (CARES Act) Guaranteed Loan Program
AGENCY: Rural Business-Cooperative Service, USDA.
ACTION: Notice of Funding Availability (NOFA).
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SUMMARY: The Rural Business-Cooperative Service (RBCS), a Rural
Development agency of the United States Department of Agriculture
(USDA), announces that in response to the national COVID-19 Public
Health Emergency, USDA Rural Development was provided additional
funding assistance of $20,500,000 in budget authority appropriated
under the Coronavirus Aid, Relief, and Economic Security Act (CARES
Act). The Business and Industry (B&I) Guaranteed Loan Program is
administered through RBCS.
DATES: Applications will be accepted beginning on May 22, 2020 and must
be received no later than 11:59 p.m. Eastern Daylight Time on September
15, 2021, or until funds are expended. Program funding expires
September 30, 2021.
ADDRESSES: If you wish to apply for assistance or need further
information, contact the USDA Rural Development State Office in the
State where your project is located. A list of USDA Rural Development
State Offices and contact names are available at http://www.rd.usda.gov.
FOR FURTHER INFORMATION CONTACT: Mark Brodziski, Acting Administrator,
Rural Business and Cooperative Service, Rural Development, U.S.
Department of Agriculture, 1400 Independence Avenue SW, Stop,
Washington, DC 20250-3221; email: mark.brodziski@usda.gov; telephone
(202) 205-0903.
SUPPLEMENTARY INFORMATION:
Congressional Review Act
Pursuant to the Congressional Review Act (5 U.S.C. 801), the Office
of Information and Regulatory Affairs of the Office of Management and
Budget designated this action as a major rule, as defined by 5 U.S.C.
804(2) because this action will result in an annual effect on the
economy of $100,000,000 or more. However, notwithstanding 5 U.S.C. 801,
section 808(2) of the Congressional Review Act (5 U.S.C. 808(2))
permits that if any rule which an agency for good cause finds that
notice and public procedure thereon would be impracticable,
unnecessary, or contrary to the public interest, shall take effect at
such time that the Agency determines. USDA has determined, under
section 808(2), that making these funds available through the issuance
of this NOFA, as authorized in Division B, Title I of the CARES Act,
supplements existing authority implemented in 7 CFR part 4279, subparts
A and B, and 7 CFR part 4287, subpart B, and find good cause that
notice and public procedure would be impracticable and contrary to the
public interest, in light of the national COVID-19 Public Health
Emergency. Such finding is made because withholding these funds would
unduly delay the provision of emergency benefits under the CARES Act,
which Congress intended to provide expeditious relief to address the
current economic conditions arising from the COVID-19 emergency.
Overview
Federal Agency Name: Rural Development, Rural Business-Cooperative
Service.
Funding Opportunity Title: Business and Industry Guaranteed Loan
Program.
Announcement Type: Notice of Funding Availability (NOFA).
Catalog of Federal Domestic Assistance (CFDA) Number: 10.768.
Dates: Applications will be accepted beginning on May 22, 2020 and
must be received no later than 11:59 p.m. Eastern Daylight Time on
September 15, 2021, or until funds are expended. Program funding
expires September 30, 2021.
Items in Supplementary Information
I. Funding Opportunity Description
II. Federal Award Information
III. Eligibility Information
IV. Application Submission Information
V. Other Information
I. Funding Opportunity Description
A. Purpose
This NOFA is being issued pursuant to the recently passed CARES
Act. The CARES Act provides for additional funds to the Agency for use
under the B&I Guaranteed Loan Program. The Agency is announcing the
availability of funding through the B&I Guaranteed Loan program for
eligible projects as set forth in this NOFA and applies only to the
award of CARES Act funds for loans made available through the B&I
Guaranteed Loan Program (B&I CARES Act Guaranteed Loan Program)
pursuant to this notice. These provisions do not apply to loans funded
under the Appropriations Act of 2020 or any other appropriations other
than the CARES Act.
Subject to remaining availability of funding for the B&I CARES Act
Guaranteed Loan Program, the Agency may publish a subsequent notice
which may have terms and conditions that differ from this notice. Such
modifications to program terms and conditions in subsequent notice(s)
may be made to more appropriately align program funding with the
purposes described in this notice and the CARES Act.
B. Implementation of CARES Act Provisions
Consistent with the purposes of the CARES Act, the Agency has
determined that the most effective use of these
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program funds is to provide guaranteed loans to rural businesses in
response to the economic conditions associated with the national COVID-
19 Public Health Emergency. It is the Agency's intent that Guaranteed
loan funds will be directed toward working capital loan purposes to
support business operations and facilities in rural areas including
agricultural producers. The amount of the B&I Cares Act Program Loan
shall be based on a cash flow analysis and must not be greater than the
amount needed to cure problems caused by the COVID-19 emergency.
In determining the type of enhancements that participating lenders
would need to offer to generate quality loans and approve and disburse
loan funds in a timely and efficient manner in these critical times,
the Agency considered adjustments to several requirements of the B&I
program where such adjustments can be made without compromising Agency
underwriting standards. The Agency also evaluated adjustments to the
program requirements in order to enable lenders greater flexibility in
structuring loans in consideration of the borrowers' financial
condition and capacity. For the B&I CARES Act Program, the Agency is
extending loan authority to support agricultural production,
simplifying the application procedures for smaller loans and adjusting
program requirements regarding the maximum percentage of guarantee, the
equity evaluation, the appraisal evaluation, the collateral evaluation,
and the repayment terms for working capital loans.
As a result of these considerations and the funding purposes
outlined in the CARES Act, the Agency decided to provide 90 percent
guarantees to all CARES Act funded loans, set the guarantee fee at 2%,
accept appraisals completed within two years of the date of the
application, not require discounting of collateral for working capital
loans, and extend the maximum term for working capital loans to 10
years.
II. Federal Award Information
A. Statutory Authority
This program is authorized under the Coronavirus Aid, Relief, and
Economic Security Act (Pub. L. 116-136).
B. Catalog of Federal Domestic Assistance (CFDA) Number 10.768
C. Available Funds
The CARES Act provides $20,500,000 in budgetary authority for this
program through September 30, 2021, which will support approximately
$951,000,000 in loan guarantees in accordance with the credit subsidy
scoring based on the provisions of this Notice. The aggregate total
amount of loans for agricultural production will initially be limited
to 50 percent of the total amount of program level of B&I CARES Act
Program, approximately $475,500,000. The Agency may publish future
notices in the Federal Register revising the limitation of the amount
of funding made available for loans for agricultural production to
align with the demand for these loans.
D. Funding Limitations
The Agency will consider applications in the order they are
received by the Agency. The Agency will distribute CARES Act funds on a
first-come, first-served basis; however, in the event that demand
exceeds the supply of funds, it is anticipated that toward the end of
the funding period the Agency will need to assign priority points for
the limited remaining funds, and for this purpose the Agency will
compare an application to other pending applications that are competing
for funding in accordance with 7 CFR 4279.166.
III. Eligibility Information
This section of the notice identifies provisions specific to
guaranteed loan applications seeking CARES Act funds. Eligibility
requirements for lenders, borrowers, and projects and all other
provisions of 7 CFR part 4279, subparts A and B, and 7 CFR part 4287,
subpart B, apply to B&I CARES Act Program guaranteed loans unless
indicated otherwise in 7 CFR 4279.190 and as follows:
A. Eligible Use of Funds
Under the provisions of 7 CFR 4279.190(c)(2), B&I CARES Act Program
guaranteed loans will be limited to loans for working capital loan
purposes in accordance with 7 CFR 4279.190(c)(3). Loan proceeds may be
used only to support facilities and business operations, including
certain agricultural producers in rural areas that were in operation on
February 15, 2020. Loan proceeds must be disbursed through multiple
draws on an as-needed monthly basis.
IV. Application Submission Information
A. Address To Request Application Package
Application materials may be obtained by contacting one of Rural
Development State Offices, as identified via the following link:
https://www.rd.usda.gov/contact-us/state-offices.
B. Filing Preapplications and Applications
Applications will be accepted beginning on May 22, 2020 and must be
received no later than 11:59 p.m. Eastern Daylight Time on September
15, 2021, or until funds are expended. Program funding expires
September 30, 2021.
V. Other Information
A. Paperwork Reduction Act
In accordance with the Paperwork Reduction Act of 1995, the
information collection activities associated with this rule are covered
under the Business and Industry (B&I) Guaranteed Loan Program, OMB
Number: 0570-0069.
B. Nondiscrimination Statement
The U.S. Department of Agriculture (USDA) prohibits discrimination
against its customers, employees, and applicants for employment on the
basis of race, color, national origin, age, disability, sex, gender
identity, reprisal or retaliation for prior civil rights activity,
political beliefs, marital status, familial or parental status,
religion, sexual orientation, income derived from any public assistance
program, or protected genetic information in employment, in any program
or activity conducted or funded by the Department. (Not all prohibited
bases will apply to all applicants and/or employment activities.)
If you wish to file a Civil Rights program complaint of
discrimination, complete the USDA Program Discrimination Complaint Form
(PDF), found online at http://www.ascr.usda.gov/complaint_filing_cust.html, or complete the form at any USDA office, or
call (866) 632-9992 to request the form. You may also write a letter
containing all the information requested in the form. Send your
completed complaint form or letter to us by mail at U.S. Department of
Agriculture, Director, Office of Adjudication, 1400 Independence Avenue
SW, Washington, DC 20250-9410, by fax (202) 690-7442 or email at
program.intake@usda.gov.
Individuals who are deaf, hard of hearing or have speech
disabilities and wish to file either an EEO or program complaint,
please contact USDA through the Federal Relay Service at (800) 877-8339
or (800) 845-6136 (in Spanish).
Persons with disabilities, who wish to file a program complaint,
please see information above on how to contact us directly by mail or
by email. If you require alternative means of communication for program
information
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(e.g., Braille, large print, audiotape, etc.) please contact USDA's
TARGET Center at (202) 720-2600 (voice and TDD).
Bette B. Brand,
Deputy Under Secretary, Rural Development.
[FR Doc. 2020-11243 Filed 5-21-20; 8:45 am]
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