§ 1948.102 - Definitions and abbreviations.

(a) General definitions. The following definitions are applicable to the terms used in this subpart.

(1) Applicant. The intermediary applying to FmHA or its successor agency under Public Law 103-354 for loan funds for relending to ultimate recipients for business facilities and community development in a rural area.

(2) Intermediary (Borrower). The entity receiving FmHA or its successor agency under Public Law 103-354 loan funds for relending to ultimate recipients pursuant to FmHA or its successor agency under Public Law 103-354 requirements found in § 1948.103.

(3) Letter of Conditions. FmHA or its successor agency under Public Law 103-354's letter of proposed terms and conditions to the intermediary which when accepted by the intermediary provides the binding conditions under which FmHA or its successor agency under Public Law 103-354 will make a loan to the intermediary.

(4) Loan Agreement. The signed agreement between FmHA or its successor agency under Public Law 103-354 and the intermediary setting forth the terms and conditions of the loan.

(5) Low-income. The level of income of a person or family which is at or below the Poverty Guidelines as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)).

(6) Market value. The most probable price which property should bring, as of a specific date in a competitive and open market, assuming the buyer and seller are prudent and knowledgeable, and the price is not affected by undue stimulus such as forced sale or loan interest subsidy.

(7) Principals of intermediary. Include members, officers, directors, entities, and other entities directly involved in the operation and management of an intermediary organization.

(8) Ultimate recipient. The entity or individual receiving financial assistance from the intermediary.

(9) Rural area. Includes all territory of a State that is not within the outer boundary of any city having a population of twenty-five thousand or more.

(10) State. Any of the fifty States, the Commonwealth of Puerto Rico, the Virgin Islands of the United States, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

(11) Technical assistance or service. Technical assistance or service is any function unreimbursed by FmHA or its successor agency under Public Law 103-354 performed by the intermediary for the benefit of the ultimate recipient.

(12) Working capital. The excess of current assets over current liabilities. It identifies the liquid portion of total enterprise capital which constitutes a margin or buffer for meeting obligations within the ordinary operating cycle of the business.

(13) Intermediary Relending Program (IRP). A program operated by an intermediary whereby the intermediary uses loan funds received from FmHA or its successor agency under Public Law 103-354, along with any other available funds, to make loans to ultimate recipients. Relending programs will normally establish revolving funds so that income from loans made to ultimate recipients, in excess of necessary operating expenses and debt payments, will be used to make additional loans to ultimate recipients.

(b) Abbreviations. The following abbreviations are applicable to this subpart:

(1) B&I—Business and Industry (2) FmHA—Farmers Home Administration or its successor agency under Public Law 103-354 (3) IRP—Intermediary Relending Program (4) OGC—Office of the General Counsel (5) OIG—Office of Inspector General (6) RDLF—Rural Development Loan Fund (7) USDA—United States Department of Agriculture