§ 1948.128 - Requests to make loans to ultimate recipients.

(a) When an intermediary proposes to use funds obtained from FmHA or its successor agency under Public Law 103-354 to make a loan to an ultimate recipient, and prior to final approval of such loan, the intermediary will submit to FmHA or its successor agency under Public Law 103-354 a copy of the ultimate recipient's application and provide certification that the ultimate recipient is eligible; the proposed loan is for an eligible purpose; and the proposed loan complies with all applicable statutes and regulations. No commitment of loan funds to the ultimate recipient may be made by the intermediary until an affirmative decision on proceeding with funding to the ultimate recipient is rendered by FmHA or its successor agency under Public Law 103-354.

(b) As part of the intermediary's request to FmHA or its successor agency under Public Law 103-354 for concurrence to make a loan to an ultimate recipient, the intermediary will include for the project a properly completed Form FmHA 1940-20 executed by the ultimate recipient. FmHA or its successor agency under Public Law 103-354 will review the Form FmHA 1940-20, and complete the environmental review in accordance with § 1948.117 of this subpart. The results of this review will be used by FmHA or its successor agency under Public Law 103-354 in making its decision on the request.

(c) The intermediary will provide, for FmHA or its successor agency under Public Law 103-354 review, all comments obtained in accordance with paragraph (a) of § 1948.117 of this subpart, “Intergovernmental review.”

(d) If FmHA or its successor agency under Public Law 103-354 determines it is unable to concur with the loan request, the intermediary will be informed in writing the reasons for denial.