§ 1942.402 - Policy.

(a) FmHA or its successor agency under Public Law 103-354 will make WS and RCD loans available to sponsoring local public bodies, agencies, and nonprofit organizations to assist them in obtaining the local cost of WS works of improvement and RCD measures. Any processing or servicing activity conducted pursuant to this subpart involving authorized assistance to FmHA or its successor agency under Public Law 103-354 employees, members of their families, known close relatives, or business or close personal associates, is subject to the provisions of subpart D of part 1900 of this chapter. Applicants for this assistance are required to identify any known relationship or association with an FmHA or its successor agency under Public Law 103-354 employee. FmHA or its successor agency under Public Law 103-354 will assist the local sponsors and the Soil Conservation Service (SCS) in making loans from SCS construction funds as WS advances when needed for the development of future water supplies or for site preservation.

(b) FmHA or its successor agency under Public Law 103-354 will coordinate application processing with the SCS and other appropriate State and Federal agencies.