96-32171. Maximum Portion of Guarantee Authority Available for Fiscal Year 1996-97

[Federal Register Volume 61, Number 247 (Monday, December 23, 1996)]
[Notices]
[Pages 67530-67531]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-32171]


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DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service


Maximum Portion of Guarantee Authority Available for Fiscal Year 
1996-97

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: As set forth in the final rule under 7 CFR subpart B of part 
4279, effective on December 23, 1996, each fiscal year the Agency shall 
establish a limit on the maximum portion of guarantee authority 
available for that fiscal year that may be used to guarantee loans with 
a guarantee fee of 1 percent and/or guaranteed loans with a guarantee 
percentage exceeding 80 percent.
    Allowing the guarantee fee to be reduced to 1 percent and/or 
exceeding the 80 percent guarantee on certain guaranteed loans that 
meet the conditions set forth in subpart B of part 4279 will allow for 
the targeting of projects in rural communities that remain persistently 
poor, experience long-term population decline and job deterioration, 
and other related criteria.
    Not more than 7 percent of the Agency guarantee authority will be 
reserved for loan requests with a guarantee fee of 1 percent, and not 
more than 15 percent of the Agency guarantee authority will be reserved 
for guaranteed loan requests with a guaranteed percentage exceeding 80 
percent. Once the above quarterly limits have been reached, all 
additional loans guaranteed during the remainder of that quarter will 
require a 2 percent guarantee fee and not exceed an 80 percent 
guarantee limit.
    Written requests by the Rural Development State Office for approval 
of a guaranteed loan with a 1 percent guarantee fee and/or a guaranteed 
loan exceeding 80 percent must be forwarded to the National Office, 
Attn: Director, Business Programs Processing Division, for review and 
consideration prior to obligation of the guaranteed loan. The 
Administrator will provide a written response to the State Office 
confirming approval or disapproval of the request.

FOR FURTHER INFORMATION CONTACT: Kenneth E. Hennings, Senior Loan 
Specialist, Business Programs

[[Page 67531]]

Processing Division, Rural Business-Cooperative Service, USDA, Stop 
3221, Washington, DC 20250-3221, telephone [phone].

SUPPLEMENTARY INFORMATION: This action has been reviewed and determined 
not to be a rule or regulation as defined in Executive Order 12866.

    Dated: December 13, 1996.
Wilbur T. Peer,
Acting Administrator.
[FR Doc. 96-32171 Filed 12-20-96; 8:45 am]
BILLING CODE 3410-XY-P