[Federal Register Volume 59, Number 152 (Tuesday, August 9, 1994)]
[Unknown Section]
[Page 0]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 94-19408]
[[Page Unknown]]
[Federal Register: August 9, 1994]
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DEPARTMENT OF AGRICULTURE
Farmers Home Administration
7 CFR Part 1942
Rural Development Administration
7 CFR Part 4284
RIN: 0570-AA08
Rural Business Enterprise Grants and Television Demonstration
Grants
AGENCIES: Rural Development Administration and Farmers Home
Administration, USDA.
ACTION: Proposed rule.
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SUMMARY: The Rural Development Administration (RDA) proposes to amend a
Farmers Home Administration (FmHA) regulation previously utilized by
RDA in administering the Rural Business Enterprise Grants and
Television Demonstration Grants program, which is presently contained
within 7 CFR Part 1942, Subpart G. This action is necessary to amend
the regulation in order to implement Title V, Section 516 (d) of Public
Law 102-552, Section 6 of Public Law 102-554, and RDA Instruction 4284-
B. The intended effects of this action are to allow grants to be made
for the purposes set forth within the two Public Laws and to expand the
number of businesses qualifying for assistance. This proposed action
will affect other regulations by changing references from FmHA
Instruction 1942-G to RDA Instruction 4284-B. All such revisions will
be appropriately indicated within the final rule publication.
DATES: Written comments must be received on or before September 8,
1994.
ADDRESSES: Submit written comments in duplicate to the Office of the
Chief, Regulations Analysis and Control Branch, Farmers Home
Administration, USDA, Room 6348, South Agriculture Building,
Washington, DC 20250. All written comments will be available for public
inspection during regular working hours at the above address.
FOR FURTHER INFORMATION CONTACT: Howard Franklin, Loan Specialist,
Community Facilities Division, Rural Development Administration, Room
6320, South Agriculture Building, Washington, DC 20250, telephone (202)
720-1503.
SUPPLEMENTARY INFORMATION:
Classification
This rule has been determined to be significant/economically
significant and was reviewed by the Office of Management and Budget
under Executive Order 12866.
Environmental Impact Statement
This document has been reviewed in accordance with 7 CFR Part 1940,
Subpart G, ``Environmental Program.'' RDA has determined that the
proposed action does not constitute a major Federal action
significantly affecting the quality of the human environment and, in
accordance with the National Environmental Policy Act of 1969 (Pub. L.
91-190), an Environmental Impact Statement is not required.
Executive Order 12778
The proposed regulation has been reviewed in light of Executive
Order 12778 and meets the applicable standards provided in sections 2
(a) and 2 (b)(2) of that Order. Provisions within this part which are
inconsistent with State law are controlling. All administrative
remedies pursuant to 7 CFR Part 1900, Subpart B, must be exhausted
prior to filing suit.
Regulatory Flexibility Act
In compliance with the Regulatory Flexibility Act, the
Administrator has determined that this action would not have a
significant economic impact on a substantial number of small entities
because the action will not affect a significant number of small
entities as defined by the Regulatory Flexibility Act (5 U.S.C. 601).
Intergovernmental Review
This action affects the following RDA program as listed in the
Catalog of Federal Domestic Assistance under 10.769 Rural Business
Enterprise and Television Demonstration Grants and is subject to the
provisions of E.O. 12372, which requires intergovernmental consultation
with State and local officials. (7 CFR Part 3015, Subpart V; 48 FR
29112, June 24, 1983, 49 FR 2267, May 31, 1984, 50 FR 14088, April 10,
1985.)
Paperwork Reduction Act: The information collection or
recordkeeping requirements contained in this regulation have been
submitted to the Office of Management and Budget under section 3504 (h)
of the Paperwork Reduction Act of 1980. Public reporting burden for
this collection of information is estimated to vary from 30 minutes to
40 hours per response with an average of 1.86 hours per response,
including time for reviewing instructions, searching existing data
sources, gathering and maintaining the data needed, and completing and
reviewing the collection of information. Please send written comments
to the Office of Information Regulatory Affairs, OMB, Attention: Desk
Officer for USDA, Washington, DC 20503. Please send a copy of your
comments to Jack Holston, Agency Clearance Officer, USDA, RDA, AG Box
0743, Washington, DC 20250.
Discussion
RDA proposes this action to implement Title V, Section 516 (d) of
Public Law 102-552, Farm Credit Banks and Associations Safety and
Soundness Act of 1992, which provides for grants to create, expand, and
operate rural distance learning networks and rural learning programs
that provide educational or job training instruction related to
potential employment or job advancement for adult students. RDA
recognizes that education and job training instruction are necessary to
provide qualified employees for the development of small and emerging
private businesses in rural areas. Therefore, RDA is proposing to
require evidence of need from these existing or startup businesses for
the educational or job training instruction for funding under this
program. This proposed action will also implement Section 6 of Public
Law 102-554, Agricultural Credit Improvement Act of 1992, which
authorizes grants to qualified nonprofit organizations for the
provision of technical assistance and training to rural communities for
the purpose of improving passenger transportation services or
facilities. Assistance provided under this amendment may include on-
site technical assistance to local/regional governments, public transit
agencies, and related nonprofit and for-profit organizations in rural
areas, including the development of training assistance for local
officials and agencies in rural areas. Similar grants have been awarded
under the Rural Business Enterprise Grant (RBEG) program to qualified
nonprofit organizations for assisting small and emerging private
business enterprises. This action further proposes to change the
definition of small and emerging private business enterprise in order
that it will be consistent with specific program size standards
established by the Small Business Administration. RDA recognizes that
technical assistance and/or revolving fund projects have the potential
to assist more small and emerging private business enterprises and
proposes to amend its project selection criteria to give these projects
additional priority points. The discretionary points portion of the
project selection process is proposed to be changed to clarify that
discretionary points may be provided when the applicant has not
received a previous grant in accordance with this subpart, and the
grant applied for is not more than $500,000. Additionally, the RDA
Administrator would have authority to assign up to 100 discretionary
points to projects requiring National Office reserve funds. Assignment
of discretionary points by the RDA Administrator would be based on an
appropriate geographic distribution of funds, criteria which would
result in substantial employment improvement, mitigation of economic
distress of a community via the creation of jobs, and/or the resolution
of emergency situations. Relative to grants for operating revolving
loan funds, the proposed action would clarify that the requirements for
a Scope of Work would include the applicant's loan processing and
servicing procedures when providing detail on its experience in
operating a revolving loan fund. Other minor revisions and
clarifications are appropriate to effect improved program understanding
and administration. Finally, this action is necessary in order to
implement RDA Instruction 4284-B.
List of Subjects
7 CFR Part 1942
Business and industry, Grant programs--Housing and community
development, Industrial parks, Rural areas.
7 CFR Part 4284
Business and industry, Grant programs--Housing and community
development, Industrial parks, Rural areas.
Therefore, Chapters XVIII and XLII, Title 7, Code of Federal
Regulations are amended as follows:
PART 1942--ASSOCIATIONS
1. Subpart G of Part 1942 is removed and reserved.
PART 4284--GRANTS
2. The authority citation for part 4284 continues to read as
follows:
Authority: 7 U.S.C. 1989; 16 U.S.C. 1005, 5 U.S.C. 301; 7 CFR
2.23 and 2.70.
3. Subpart B of Part 4284 is added to read as follows:
PART 4284--GRANTS
Subpart B--Rural Business Enterprise Grants and Television
Demonstration Grants
Sec.
4284.101 Purpose.
4284.102 Policy.
4284.103 [Reserved]
4284.104 Definitions.
4284.105 Eligibility and priority.
4284.106 Purposes of grants.
4284.107 Limitations on use of grant funds.
4284.108 Regional Commission Grants.
4284.109 [Reserved]
4284.110 Other considerations.
4284.111 Application processing.
4284.112 [Reserved]
4284.113 Plan to provide financial assistance to third parties.
4284.114 Grants to provide financial assistance to third parties,
television demonstration projects, rural learning programs and
technical assistance projects.
4284.115 Docket preparation and Letter of Conditions.
4284.116 Grant approval, fund obligation, grant closing, and third-
party financial assistance.
4284.117 Fund disbursement.
4284.118 Reporting.
4284.119 Audit requirements.
4284.120 Programmatic changes.
4284.121 Grant cancellation.
4284.122 Grant servicing.
4284.123 Subsequent grants.
4284.124 4284.197 [Reserved]
4284.198 Exception authority.
4284.199 Public availability of forms, regulations, and
instructions.
4284.200 OMB control number.
Guides to Subpart G
Guide 1--Project Management Agreement Between the
________________ Regional Commission and the Rural Development
Administration, Department of Agriculture, pertaining to
________________ County ________________.
Guide 2--Resolution
Subpart B--Rural Business Enterprise Grants and Television
Demonstration Grants
Sec. 4284.101 Purpose.
This subpart outlines Rural Development Administration (RDA)
policies and authorizations and sets forth procedures for making grants
to finance and facilitate development of private business enterprises.
Any processing or servicing activity conducted pursuant to this subpart
involving authorized assistance to RDA 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 title. Applicants for this assistance are required to identify any
known relationship or association with an RDA employee.
Sec. 4284.102 Policy.
(a) The grant program will be used to support the development of
small and emerging private business enterprises in rural areas.
(b) RDA officials will maintain liaison with officials of other
Federal, State, regional, and local development agencies to coordinate
related programs to achieve rural development objectives.
(c) RDA officials shall cooperate with appropriate State agencies
in making grants that support State strategies for rural area
development.
(d) Funds allocated for use in accordance with this subpart are
also to be considered for use of Native Americans within the State
regardless of whether State development strategies include Native
American reservations within the State's boundaries. Native Americans
residing on such reservations must have equal opportunity along with
other rural residents to participate in the benefits of these programs.
This includes equal application of outreach activities of all RDA
offices.
Sec. 4284.103 [Reserved]
Sec. 4284.104 Definitions.
Passenger transportation. A means or system of air, land, or water
conveyance primarily benefiting rural residents.
Project. For Rural Business Enterprise Grants (RBEG), the result of
the use of program funds, i.e., payment of startup operating costs,
working capital, and fees for professional services; acquisition of
land, easements, and rights-of-way; development of site, facilities,
and infrastructure (including pollution control and abatement
facilities); purchase, repair, or modernization of buildings, plants,
machinery, and equipment; conditional refinancing; provision of
technical assistance, job training/educational instruction; or
providing financial assistance to third parties through a loan. For
Television Demonstration Grants (TDG), television programming developed
on issues of importance to farmers and rural residents.
Regional Commission Grants (RCG). Grants administered by RDA from
funds made available by the Appalachian Regional Commission (ARC) or
other Federal Regional Commissions designated under Title V of the
Public Works and Economic Development Act of 1965.
Rural and rural area. Includes all territory of a State, the
Commonwealth of Puerto Rico, the Virgin Islands of the United States,
Guam, American Samoa, or the Commonwealth of the Mariana Islands that
is not within the outer boundary of any city having a population of
50,000 or more and its immediately adjacent urbanized and urbanizing
areas with a population density of more than 100 persons per square
mile, as determined by the Secretary of Agriculture, according to the
latest decennial census of the United States.
Rural Business Enterprise Grants. Grants made to finance and
facilitate development of small and emerging private business
enterprises in rural areas. Grants are made from RDA funds under
authority of the Consolidated Farm and Rural Development Act, as
amended, Sec. 310B(c) (7 U.S.C. 1932).
Rural distance learning network. A telecommunications link between
an eligible applicant in accordance with this subpart and the student/
employee receiving educational or job training instruction which meets
the definition of a rural learning program. The network connects
teachers and/or adult students located in rural areas with teachers
and/or adult students that are located in a different rural area or
connects teachers in nonrural areas to adult students in rural areas.
Rural learning program. A system or means of providing educational
or job training instruction to adult students located in rural areas
which will result in qualified employees for small businesses as
defined in this section. The training will result in employment with
small businesses or job advancement of employees presently employed by
small businesses. This may include establishment, expansion, and
operation of rural distance learning networks necessary to provide the
training.
Small and emerging private business enterprise. A new business, or
one that is expanding, which operates on a profit or nonprofit basis
and relies primarily on revenues of the business for operation. The
business/proposed business must not exceed the maximum number of
employees or annual receipts allowed for a concern (including its
affiliates) to be considered small according to the size standards
established for Small Business Administration (SBA) assistance and set
forth in 13 CFR, Part 121.
Technical assistance. A function performed for the benefit of a
private business enterprise and which is a problem solving activity,
such as market research, product and/or service improvements,
feasibility studies, and job training/educational instruction, etc.
Additionally, technical assistance could include functions performed on
behalf of rural communities to improve passenger transportation
services or facilities and which qualify as problem solving activities,
i.e., transportation needs assessment, route planning, and/or training,
etc.
Television Demonstration program. Television programming developed
to demonstrate the effectiveness of providing information on
agriculture and other issues of importance to farmers and other rural
residents. Grants are made from RDA funds under authority of the
Consolidated Farm and Rural Development Act, as amended, Sec. 310B(j)
(7 U.S.C. 1932).
Urbanized area. An area immediately adjacent to a city having a
population of 50,000 or more, which, for general social and economic
purposes, constitutes a single community and has a boundary contiguous
with that of the city. Such community may be incorporated or
unincorporated and extend from the contiguous boundary(ies) to
recognizable open country, less densely settled areas, or natural
boundaries such as forests or water. Minor open spaces such as
airports, industrial sites, recreational facilities, or public parks
shall be disregarded. Outer boundaries of an incorporated community
extend at least to its legal boundaries. Cities which may have a
contiguous border with another city, but are located across a river
from such city, are recognized as a separate community and are not
otherwise considered a part of an urbanized or urbanizing area, as
defined in this section are not in a nonrural area.
Urbanizing area. A community which is not now, or within the
foreseeable future not likely to be, clearly separate from, and
independent of, a city of 50,000 or more population and its immediately
adjacent urbanized areas. A community is considered ``separate from''
when it is separated from the city and its immediately adjacent
urbanized area by open country, less densely settled areas, or natural
barriers such as forests or water. Minor open spaces such as airports,
industrial sites, recreational facilities, or public parks shall be
disregarded. A community is considered ``independent of'' when its
social and economic structure (e.g., government, education, health, and
recreational facilities; and business, industry, tax base, and
employment opportunities) is not primarily dependent on the city and
its immediately adjacent urbanized area.
Sec. 4284.105 Eligibility and priority.
(a) Eligibility. (1) RBEGs may be made to public bodies and private
nonprofit corporations serving rural areas. Public bodies include
States, counties, cities, townships, and incorporated towns and
villages, boroughs, authorities, districts, and Native Americans on
Federal and State reservations and other federally recognized Native
American groups in rural areas.
(2) RCG applicants must meet eligibility requirements of the
Regional Commission, and also those of RDA, in accordance with
paragraph (a)(1) of this section for RDA to administer the RCG in
accordance with this subpart.
(3) TDGs may be made to statewide, private (not public-body driven)
nonprofit public television systems whose coverage is predominantly
rural. An eligible applicant must be organized as a private (not
public-body driven) nonprofit public television system, licensed by the
Federal Communications Commission under its non-commerical
classification, and operated statewide and within a coverage area that
is predominantly rural.
(4) An outstanding judgment obtained against an applicant by the
United States in a Federal Court (other than in the United States Tax
Court), which has been recorded, shall cause the applicant to be
ineligible to receive any grant until the judgment is paid in full or
otherwise satisfied. RDA grant funds may not be used to satisfy the
judgment. Questions about whether or not a judgment is still
outstanding should be directed to the Office of the General Counsel
(OGC).
(b) Project selection process. The following paragraphs indicate
items and conditions which must be considered in selecting
preapplications for further development. Due to the small number of
applicants eligible for TDGs, such applicants will not compete for
priority points against RBEG applicants but must compete with other
applicants for TDGs.
(1) Preapplications. The preapplication and supporting information
submitted with it will be considered in determining the proposed
project's priority for available funds.
(i) All preapplications shall be accompanied by sufficient
information to permit the numerical ranking established by paragraph
(b)(3) of this section. Such information should include:
(A) A description of proposed service(s) to be provided/projects to
be funded.
(B) Income data on area to be served.
(C) Unemployment rate of the area to be served.
(D) Median household income of area to be served.
(E) Grantee's experience in providing the proposed service.
(ii) If a preapplication involves the establishment of a revolving
fund, the following additional information should be provided:
(A) Grantee's financial ability to administer a revolving loan fund
(at a minimum, the information should include a balance sheet and an
income statement).
(B) The need for a revolving fund.
(C) Other funds available to leverage funds made available in
accordance with this program.
(2) RDA review. All preapplications will be reviewed and scored and
Form AD-622, ``Notice of Preapplication Review Action,'' issued within
the time limits in Sec. 1942.2 (a)(2)(iv) of Subpart A of Part 1942 of
this title. When considering authorizing the development of an
application for funding, the RDA should consider the remaining funds in
the State allocation, and the anticipated allocation of funds for the
next fiscal year as well as the amount of time necessary to complete
that application. Applicants whose preapplications are found to be
ineligible will be so advised. These applicants will be given adverse
notice through Form AD-622 and advised of their appeal rights under
Subpart B of Part 1900 of this title. Those applicants with eligible
lower scoring preapplications which obviously cannot be funded within
an eighteen month period of time, and are not within 150 percent of the
State's allocation, should be notified that funds are not available;
and requested to advise whether they wish to have their preapplication
maintained in an active file for future consideration. The RDA may
request an additional allocation of funds from the National Office for
such preapplications. Such requests will be considered along with all
others on hand.
(3) Selection priorities. The priorities described in this
paragraph will be used by RDA to rate preapplications. Points will be
distributed as indicated in paragraphs (b)(3)(i) through (v) of this
section.
(i) Population. Proposed project(s) will primarily be located in a
community of:
(A) between 15,000 and 25,000 population--5 points;
(B) between 5,000 and 15,000 population--10 points;
(C) under 5,000 population--15 points.
(ii) Economic conditions. (A) Proposed project(s) will primarily be
located in areas where the unemployment rate exceeds the State rate by
25 percent or more--20 points; exceeds the State rate by less than 25
percent--10 points; is equal to, or less than, State rate--0 points.
(B) Proposed project(s) will primarily be located in areas where
median household income (MHI), as prescribed by Section 673 (2) of the
Community Services Block Grant Act (42 U.S.C 9902 (2)), for a family of
four for the State is:
(1) less than poverty line--25 points;
(2) more than poverty line, but less than 85 percent of State MHI--
15 points;
(3) between 85 and 100 percent of State MHI--10 points;
(4) equal or greater than, State MHI--0 points.
(iii) Experience. Applicant has evidence of at least 5 years of
successful experience in the type of activity proposed in the
preapplication for funds under this subpart. Evidence of successful
experience may be a description of experience supplied and certified by
the applicant, or a letter of support from appropriate local elected
officials explaining the applicant's experience. Experience--15 points.
(iv) Other. (A) Preapplication is for revolving fund and/or
technical assistance project--50 points.
(B) Applicant has evidence of substantial commitment of funds from
non-Federal sources for proposed project. An authorized representative
of the source organization of the non-Federal funds must provide
evidence that the funds are available and will be used for the proposed
project. More than 50 percent of the project costs from non-Federal
sources--15 points; more than 25 percent, but less than 50 percent of
project costs from non-Federal sources--10 points; between 5 and 25
percent of project costs from non-Federal sources--5 points.
(C) The anticipated development, expansion, or furtherance of
business enterprises as a result of the proposed project will create
jobs associated with the affected businesses. The number of jobs must
be evidenced by a written commitment from the business to be assisted.
One job per each $10,000 or less in grant funds expended--10 points.
One job per each $25,000 to $10,000 in grant funds expended--5 points.
(D) Grant projects utilizing funds available in accordance with
this subpart of less than $100,000--25 points; $100,000 to $200,000--15
points; more than $200,000, but not more than $500,000--10 points.
(v) Discretionary. (A) In certain cases when the applicant has not
received a previous grant in accordance with this subpart and the grant
applied for is not more than $500,000, the RDA may assign discretionary
points in addition to those that may be assigned in paragraphs
(b)(3)(i) through (iv) of this section. For grants of less than
$100,000--50 points; $100,000 to $200,000--30 points; more than
$200,000, but not more than $500,000--20 points.
(B) The RDA Administrator may additionally assign up to 100
discretionary points to projects requiring National Office reserve
funds. Assignment of discretionary points by the RDA Administrator will
be based on geographic distribution of funds, criteria which will
result in substantial employment improvement, mitigation of economic
distress of a community via the creation of jobs and/or the resolution
of emergency situations.
Sec. 4284.106 Purposes of grants.
(a) Grant funds may be used to finance and/or develop small and
emerging private business enterprises in rural areas including, but not
limited to, the following:
(1) Acquisition and development of land, easements, and rights-of-
way.
(2) Construction, conversion, enlargement, repairs or modernization
of buildings, plants, machinery, equipment, access streets and roads,
parking areas, utilities, and pollution control and abatement
facilities.
(3) Startup operating cost and working capital.
(4) Technical assistance for private business enterprises.
(5) Technical assistance for public passenger transportation
projects.
(6) Reasonable fees and charges for professional services necessary
for the planning and development of the project, including packaging.
Services must be provided by individuals licensed in accordance with
appropriate State accreditation associations.
(7) Refinancing of debts exclusive of interest incurred by, or on
behalf of, an association before an application for a grant when all of
the following conditions exist:
(i) The debts were incurred for the facility, or part thereof, or
service to be installed or improved with the grant, and
(ii) Arrangements cannot be made with the creditors to extend or
modify the terms of the existing debt.
(8) Providing financial assistance to third parties through a loan.
(9) Training, when necessary, in connection with technical
assistance and/or job training instruction related to potential
employment or job advancement for adult students.
(10) Production of television programs to provide information on
issues of importance to farmers and rural residents.
(11) The creation, expansion, and operation of rural distance
learning networks and other rural learning programs providing
educational and/or job training instruction to adult students which
will result in qualified employees necessary for the development of
small and emerging businesses as defined in this subpart.
(b) Grants, except grants for Television Demonstration programs and
technical assistance for public passenger transportation projects, may
be made only when there is a reasonable prospect that they will result
in development of small and emerging private business enterprises.
(c) Grant funds may be used jointly with funds furnished by the
grantee or from other sources, including RDA loan funds. Pursuant to
Pub. L. 95-334, other departments, agencies, and executive
establishments of the Federal Government may participate and provide
financial and technical assistance jointly with RDA. The amount of
participation by the other department, agency, or executive
establishment shall only be limited by its authorities other than
authorities which impose restrictions on joint financing.
Sec. 4284.107 Limitations on use of grant funds.
(a) Funds will not be used:
(1) To produce agriculture products through growing, cultivation,
and harvesting either directly or through horizontally integrated
livestock operations except for commercial nurseries, timber
operations, or limited agricultural production related to technical
assistance projects.
(2) To finance comprehensive areawide-type planning. This does not
preclude the use of grant funds for planning for a given project.
(3) For loans by grantees when the rates, terms, and charges for
those loans are not reasonable or would be for purposes not eligible in
accordance with Sec. 4284.106 of this subpart.
(4) For programs operated by cable television systems.
(5) To fund a part of a project which is dependent on other funding
unless there is a firm commitment of the other funding to ensure
completion of the project.
(6) To pay for technical assistance as defined in this subpart
which duplicates assistance provided to implement an action plan funded
by the Forest Service (FS) under the National Forest-Dependent Rural
Communities Economic Diversification Act for 5 continuous years from
the date of grant approval by the FS. To avoid duplicate assistance,
the grantee shall coordinate with FS and RDA to ascertain if a grant
has been made in a substantially similar geographical or defined local
area in a State for technical assistance under the above program. The
grantee will provide documentation to FS and RDA regarding the contact
with each agency. Under its program, the FS assists rural communities
dependent upon national forest resources by establishing rural forestry
and economic diversification action teams which prepare action plans.
Action plans are intended to provide opportunities to promote economic
diversification and enhance local economies dependent upon national
forest resources.
(b) At least 51 percent of the outstanding interest in the project
has membership, or is owned by, those who are either citizens of the
United States or reside in the United States after being legally
admitted for permanent residence.
Sec. 4284.108 Regional Commission Grants.
(a) Grants are sometimes made by Regional Commissions for projects
eligible for RDA assistance. RDA has agreed to administer such funds in
accordance with RDA regulations and the requirements of the Regional
Commission.
(b) The transfer of funds from a Regional Commission to RDA will be
based on specific applications determined to be eligible for an
authorized purpose in accordance with the requirements of RDA and the
Regional Commission.
(c) The ARC is authorized under the Appalachian Regional
Development Act of 1965, as amended, to serve the Appalachian region.
ARC grants are handled in accordance with the FmHA-ARC Agreement
(Exhibit A, Subpart H of Part 1942 of this title), which applies to all
ARC grants administered by RDA. Therefore, a separate Project
Management Agreement between RDA and ARC is not needed for each ARC
grant.
(d) Other Regional Commissions are those authorized under Title V
of the Public Works and Economic Development Act of 1965. Grants by
these Regional Commissions are handled in accordance with a separate
Project Management Agreement between the respective Regional Commission
and RDA for each grant administered by RDA (Guide 1 of this subpart).
Sec. 4284.109 [Reserved]
Sec. 4284.110 Other considerations.
(a) Civil Rights compliance requirements. All grants made in
accordance with this subpart are subject to the requirements of Title
VI of the Civil Rights Act of 1964, which prohibits discrimination on
the basis of race, color, and national origin as outlined in Subpart E
of Part 1901 of this title. In addition, the grants made in accordance
with this subpart are subject to the requirements of section 504 of the
Rehabilitation Act of 1973, which prohibits discrimination on the basis
of handicap; the requirements of the Age Discrimination Act of 1975,
which prohibits discrimination on the basis of age; and Title III of
the Americans with Disabilities Act, Pub. L. 101-336, which prohibits
discrimination on the basis of disability by private entities in places
of public accommodations. When RDA is administering an RCG and no RDA
RBEG/TDG funds are involved, the Regional Commission may make its own
determination of compliance with the above Acts, unless RDA is
designated compliance review responsibilities. RDA shall, in all cases,
be made aware of any findings of discrimination or noncompliance with
the requirements of the above Acts.
(b) Environmental requirements.--(1) General applicability. Unless
specifically modified by this section, the requirements of Subpart G of
Part 1940 of this title apply to this subpart. RDA will give particular
emphasis to ensuring compliance with the environmental policies
contained in Secs. 1940.303 and 1940.304 of Subpart G of Part 1940 of
this title. Although the purpose of the grant program established by
this subpart is to improve business, industry, and employment in rural
areas, this purpose is to be achieved, to the extent practicable,
without adversely affecting important environmental resources of rural
areas such as important farmland and forest lands, prime rangelands,
wetlands, and floodplains. Prospective recipients of grants, therefore,
must consider the potential environmental impacts of their applications
at the earliest planning stages and develop plans, grants, and projects
that minimize the potential to adversely impact the environment.
(2) Technical assistance and rural learning programs. The
application for a technical assistance project is generally excluded
from RDA's environmental review process by Sec. 1940.310(e)(1) of
Subpart G of Part 1940 of this title. However, as further specified in
Sec. 1940.333 of Subpart G of Part 1940 of this title, the grantee for
a technical assistance grant, in the process of providing technical
assistance, must consider the potential environmental impacts of the
recommendations provided to the recipient of the technical assistance.
Rural learning programs which do not include construction are treated
the same as technical assistance projects relative to environmental
requirements and purposes.
(3) Applications for direct construction project. The application
by a potential grantee who intends to directly use grant funds for a
nontechnical assistance project, such as a construction project, shall
be reviewed and processed in accordance with the applicable
requirements of Subpart G of Part 1940 of this title.
(4) Applications for grants to provide financial assistance to
third party recipients. As part of the preapplication, the applicant
must provide a complete Form FmHA 1940-20, ``Request for Environmental
Information,'' for each project specifically identified in its plan to
provide financial assistance to third parties who will undertake
eligible projects with such assistance. RDA will review the
preapplication, supporting materials, and the required Form FmHA 1940-
20 and initiate a Class II assessment for the preapplication. This
assessment will focus on the potential cumulative impacts of the
projects as well as any environmental concerns or problems that are
associated with individual projects and that can be identified at this
time from the information submitted. Because RDA's approval of this
type of grant application does not constitute RDA's commitment to the
use of grant funds for any identified third party projects (see
Sec. 4284.116 of this subpart), no public notification requirements for
a Class II assessment will apply to the preapplication. After the grant
is approved, each third party project to be assisted under the grant
will undergo the applicable environmental review and public
notification requirements in Subpart G of Part 1940 of this title prior
to RDA providing its consent to the grantee to assist the third party
project. If the preapplication reflects only one specific project which
is specifically identified as the third party recipient for financial
assistance, RDA may perform the appropriate environmental assessment in
accordance with the requirements of Subpart G of Part 1940 of this
title and forego initiating a Class II assessment with no public
notification. However, the applicant must be advised that if the
recipient or project changes after the grant is approved, the project
to be assisted under the grant will undergo the applicable
environmental review and public notification requirements in Subpart G
of Part 1940 of this title.
(5) Combined applications. Whenever an applicant files a
preapplication that includes a direct construction project and a plan
to provide financial assistance to third parties who will undertake
eligible projects, the following environmental requirements will apply:
(i) The proposed direct construction project(s) will be reviewed in
accordance with the requirements of paragraph (b)(3) of this section
prior to authorization of the application.
(ii) The plan to provide financial assistance to third parties will
be reviewed and processed in accordance with the requirements of
paragraph (b)(4) of this section. Additionally, the Class II assessment
required for the plan shall address and analyze the cumulative impacts
of all proposed projects, direct or third party, identified within the
preapplication.
(c) Excess capacity or transfer of employment. (1) If a proposed
grant is for more than $1 million and will increase direct employment
by more than 50 employees, the applicant will be requested to provide a
written indication to RDA which will enable RDA to determine that the
proposal will not result in a project which is calculated to, or likely
to, result in:
(i) The transfer of any employment or business activity from one
area to another (this limitation shall not prohibit assistance for the
expansion of an existing business entity through the establishment of a
new branch, affiliate, or subsidiary of such entity if the expansion
will not result in an increase in the unemployment in the area of
original location, or in any other area where such entity conducts
business operations unless there is reason to believe that such
expansion is being established with the intention of closing down the
operations of the existing business entity in the area of its original
location, or in any other area where it conducts such operations), or
(ii) An increase in the production of goods, materials, or
commodities or the availability of services or facilities in the area
when there is not sufficient demand for such goods, materials,
commodities, services, or facilities to employ the efficient capacity
of existing competitive commercial or industrial enterprises, unless
such financial or other assistance will not have an adverse effect upon
existing competitive enterprises in the area. The applicant's written
indication will consist of a resolution from the applicant and Form
FmHA 449-22, ``Certification of Non-Relocation and Market and Capacity
Information Report,'' from each existing and future occupant of the
site. The applicant may use Guide 2 of this subpart, available in any
RDA office, as an example in preparing the resolution. Future occupants
of the site must be certified by the Department of Labor (DOL) as
outlined in paragraph (c)(3) of this section for a period of 3 years
after the initial certification by DOL.
(2) The RDA will check each document for completeness and accuracy
and submit nine copies of each to the National Office for forwarding to
DOL.
(3) Grants shall not be made if the Secretary of Labor certifies
within 30 days after the matter has been submitted by the Secretary of
Agriculture that the provisions of paragraph (c)(1) of this section
have not been complied with. Information for obtaining this
certification will be submitted, in writing, by the applicant to RDA.
The information will be submitted to DOL by the RDA National Office.
Grant approval may be given and funds may be obligated, subject to the
DOL certification being received, provided RDA has made its own
separate determinations of paragraphs (c)(1) (i) and (ii) of this
section when the project is in excess of $1 million and affects over 50
employees.
(4) When a grant is being administered for a Regional Commission
and no RDA grant funds are being used, the requirements for DOL
determinations may be waived upon written request from the Regional
Commission. If the Regional Commission so desires, the request will be
included in the letter from the Regional Commission to RDA that gives
notice of transfer of funds and conditions under which the funds are to
be made available to the grantee. In such cases, the Letter of
Conditions from RDA to the grantee will not include the requirement for
DOL determinations.
(d) Management assistance. Grant recipients will be supervised, as
necessary, to ensure that projects are completed in accordance with
approved plans and specifications and that funds are expended for
approved purposes. Grants made in accordance with this subpart will be
administered under, and are subject to, 7 CFR Parts 3015, 3016, and
3017, as appropriate, and established RDA guidelines.
(e) National Historic Preservation Act of 1966. All projects will
be in compliance with the National Historic Preservation Act of 1966 in
accordance with Subpart F of Part 1901 of this title.
(f) Uniform Relocation and Real Property Acquisition Policies Act.
All projects must comply with the requirements set forth in Title 7,
Subtitle A, Part 21 of the Code of Federal Regulations.
(g) Floodplains and wetlands. All projects must comply with
Executive Order 11988, ``Floodplain Management,'' and Executive Order
11990, ``Protection of Wetlands.''
(h) Flood or mudslide hazard area precautions. If the grantee
financed project is in a flood or mudslide area, flood or mudslide
insurance must be provided.
(i) Termination of Federal requirements. Once the grantee has
provided assistance to projects from a revolving fund, in an amount
equal to the grant provided by RDA, the requirements imposed on the
grantee shall not be applicable to any new projects thereafter financed
from the revolving fund. Such new projects shall not be considered as
being derived from Federal funds.
(j) Intergovernmental review. RBEG/TDG projects are subject to the
provisions of Executive Order 12372, which requires intergovernmental
consultation with State and local officials. A revolving fund
established in whole, or in part, with grant funds will also be
considered a project for the purpose of intergovernmental review as
well as the specific projects funded with grant funds from the
revolving loan project. For each project to be assisted with a grant in
accordance with this subpart and for which the State has elected to
review the project under their intergovernmental review process, the
State Point of Contact must be notified. Notification, in the form of a
project description, can be initiated by the grantee. Any comments from
the State must be included with the grantee's request to use RDA grant
funds for the specific project. Prior to RDA's decision on the request,
compliance with requirements of intergovernmental consultation must be
demonstrated for each project. These requirements should be carried out
in accordance with 7 CFR 3015, Subpart V, ``Intergovernmental Review of
Department of Agriculture Programs and Activities,'' (see FmHA
Instruction 1940-J, available in any RDA office).
Sec. 4284.111 Application processing.
(a) Preapplications and applications. (1) The preapplication/
application review and approval procedures outlined in Sec. 1942.2 of
Subpart A of Part 1942 of this title will be followed, as appropriate.
The applicant shall use Standard Form (SF)-424.1, ``Application for
Federal Assistance (For Non-Construction),'' or SF-424.2, ``Application
for Federal Assistance (For Construction),'' as applicable, when
requesting financial assistance under this program. The applicant shall
be advised of the conditions/requirements (outlined in this subpart)
for receipt of grant funds at the time of the preapplication
conference. Upon notification on Form AD-622, ``Notice of
Preapplication Review Action,'' that the applicant is eligible for
funding, the following items will be submitted to RDA:
(i) SF-424.1 or SF-424.2 will be used for making application under
this program, as applicable.
(ii) For grants to establish a revolving loan fund, a proposed
Scope of Work detailing:
(A) Information as prescribed in Sec. 4284.114 of this subpart.
(B) Proposed project budget.
(C) Other requested information needed by RDA to make a grant award
determination.
(iii) For grants to establish revolving loan funds, rural learning
programs, and/or to provide technical assistance, the following forms
and documents will be part of the grant docket:
(A) Form FmHA 400-1, ``Equal Opportunity Agreement,'' for the
applicant and recipients of the technical assistance, loans under a
revolving loan fund, and rural learning projects if the recipients are
other than individuals.
(B) Form FmHA 400-4, ``Assurance Agreement,'' for the applicant and
recipients of the technical assistance, loans under a revolving loan
fund, and rural learning projects if the recipients are other than
individuals.
(C) Scope of Work prepared by the applicant, including a proposed
project budget.
(D) Form FmHA 1940-1, ``Request for Obligation of Funds,'' with
Section A of Attachment 1 of this subpart (available in any RDA office)
attached.
(iv) Dockets for nonrevolving fund grants will contain those items
specified in paragraphs (a)(1)(iii) (A), (B), and (D) of this subpart,
as well as other appropriate items specified in Subpart A of Part 1942
of this title.
(v) All dockets will contain executed Forms AD-1047,
``Certification Regarding Debarment, Suspension, and Other
Responsibility Matters--Primary Covered Transactions,'' and AD-1049,
``Certification Regarding Drug-Free Workplace Requirements (Grants)
Alternative I--For Grantees Other Than Individuals,'' required in FmHA
Instruction 1940-M, available in any RDA office.
(2) OGC review. RDA will request an opinion from the Regional
Attorney, OGC, that the applicant is an eligible applicant with
authority to carry out the purposes of the proposed grant. The
applicant will provide the necessary information to RDA for submission
to the Regional Attorney.
(b) Review of decision. When a determination is made that favorable
action will not be taken on a preapplication or application, the
applicant will be notified in writing of the reasons why the request
was not favorably considered. The notification to the applicant will
state that a review of this decision by RDA may be requested by the
applicant in accordance with Subpart B of Part 1900 of this title.
(c) Appraisals. When land is to be purchased in accordance with
Sec. 4284.106 (a) of this subpart, the RDA, to establish ``fair market
value,'' may require the applicant to provide an appraisal report
prepared by an independent qualified appraiser.
(d) Planning and performing development. The applicable provisions
of Sec. 1942.18 of Subpart A of Part 1942 of this title related to
planning and performing development are to be adhered to for
construction of grant projects. This includes requirements for actions
pertaining to:
(1) Professional services, design policies, preliminary engineering
and architectural reports and construction bids, contract awards, and
construction inspections.
(2) Concurrence in agreements between grantees and third parties.
(3) Preconstruction conferences.
Sec. 4284.112 [Reserved]
Sec. 4284.113 Plan to provide financial assistance to third parties.
(a) For applications involving establishment of a revolving fund to
provide financial assistance to third parties, the applicant shall
develop a plan which outlines the purpose and administration of the
fund. The plan will include:
(1) Planned projects to be financed.
(2) Sources of all non-RBEG funds.
(3) Amount of technical assistance (if any).
(4) Purpose of the loans.
(5) Number of jobs to be created with each project.
(6) Project priority and length of time involved in completion of
each project.
(7) Other information required by RDA.
(b) Each third party project receiving funds will be reviewed for
eligibility. When the applicant does not have a list of projects to be
completed, the applicant should advise RDA at the time a preapplication
is submitted.
Sec. 4284.114 Grants to provide financial assistance to third
parties, Television Demonstration programs, rural learning programs,
and technical assistance projects.
For applications involving a purpose other than a construction
project to be owned by the applicant, the applicant shall develop a
Scope of Work. The Scope of Work will be used to measure the
performance of the grantee. As a minimum, the Scope of Work should
contain the following:
(a) The specific purposes for which grant funds will be utilized,
i.e., technical assistance, revolving fund, etc.
(b) Timeframes or dates by which action surrounding the use of
funds will be accomplished.
(c) Who will be carrying out the purpose for which the grant is
made (key personnel should be identified).
(d) How the grant purposes will be accomplished.
(e) Documentation regarding the availability and amount of other
funds to be used in conjunction with the funds from the RBEG/Television
Demonstration program.
(f) For grants involving a revolving fund, the Scope of Work should
include those items listed in paragraphs (a) through (e) of this
section, as well as the following:
(1) Information which will establish/identify the need for the
revolving loan fund.
(2) Financial statements which will demonstrate the financial
ability of the applicant to administer the revolving loan fund. As a
minimum, the financial statements will include:
(i) Balance sheet.
(ii) Income statement.
(3) Detail on the applicant's experience in operating a revolving
loan fund, which includes the applicant's loan processing and servicing
procedures.
(g) For technical assistance, rural learning, and Television
Demonstration programs, the Scope of Work should include a budget based
on the budget contained in the application, modified or revised as
appropriate, which includes salaries, fringe benefits, consultant
costs, indirect costs, and other appropriate direct costs for the
project.
(h) For rural learning projects, the Scope of Work should include
those items listed in paragraphs (a) through (e) and (g) of this
section, as well as the following:
(1) Information which will establish/identify the need for the
project by small and emerging private businesses in rural areas.
(2) Detail on the applicant's experience in operating a rural
learning program.
(3) Detail on the applicant's experience in operating a rural
distance learning network, if applicable.
Sec. 4284.115 Docket preparation and Letter of Conditions.
(a) The applicable provisions of Sec. 1942.5 of Subpart A of Part
1942 of this title relating to preparation of loan dockets will be
followed in preparing grant dockets.
(b) The RDA will prepare a Letter of Conditions outlining the
conditions under which the grant will be made. It will include those
matters necessary to ensure that the proposed development is completed
in accordance with approved plans and specifications, that grant funds
are expended for authorized purposes, and that the terms of the Scope
of Work and requirements as prescribed in 7 CFR Parts 3015 and 3016 are
complied with.
Sec. 4284.116 Grant approval, fund obligation, grant closing, and
third party financial assistance.
(a) Grant approval. The RDA is authorized to approve grants made in
accordance with this subpart. Section A of Attachment 1 of this
subpart, available in any RDA office, shall become a permanent part of
Form FmHA 1940-1 when RBEG funds are involved, and the following
paragraphs will appear in the comment section of that form as
appropriate:
``The grantee understands the requirements for receipt of funds in
accordance with the Rural Business Enterprise Grant and Television
Demonstration Grant program. The grantee assures and certifies that it
is in compliance with all applicable laws, regulations, Executive
Orders, and other generally applicable requirements, including those
set out in Attachment 1 of Subpart B of Part 4284 of this chapter,
available in any RDA office, 7 CFR Parts 3015, 3016, 3017, and 3018,
including revisions through ________________ (date of grant approval)
and the Letter of Conditions.''
For grants involving the establishment of a revolving loan program,
the following statement shall also be added to the comment section of
Form FmHA 1940-1: ``The grantee furthermore agrees to use grant funds
for the purposes outlined in the Scope of Work approved by RDA.''
(1) Grants will be approved and closed in accordance with the
applicable parts of Subpart A of Part 1942 of this title, including
Secs. 1942.7 and 1942.17 (o) of this subpart and any instructions from
the Regional Attorney, OGC.
(2) An executed copy of the Scope of Work will be sent to the
applicant on the obligation date, along with a copy of Form FmHA 1940-1
and the required attachment.
(3) When Form FmHA 1940-1 has been executed by all parties, the
grant is closed.
(4) If the grant is not approved, the applicant will be notified in
writing of the reason(s) for rejection. The notification to the
applicant will state that a review of this decision by RDA may be
requested by the applicant in accordance with Subpart B of Part 1900 of
this title.
(b) Fund obligation and approval announcement. Funds will be
obligated and approval announcement made in accordance with the
provisions of Sec. 1942.5 (d) of Subpart A of Part 1942 of this title.
(c) Third party financial assistance. Approval of a grant to an
applicant who will use grant funds to provide financial assistance to a
third party does not constitute approval of the projects financed by
the grantee. The review, approval, and disbursement of funds for
specific projects financed by grantees will be completed in accordance
with applicable parts of this subpart.
Sec. 4284.117 Fund disbursement.
Except for grants for revolving loans, grant funds will be
disbursed by RDA on a reimbursement basis. Requests should not exceed
one advance every 30 days. The financial management system of the
recipient organization shall provide for effective control and
accountability of all funds, property, and other assets.
(a) As needed, but not more frequently than once every 30 days, an
original and one copy of SF-270, ``Request for Advance or
Reimbursement,'' may be submitted to RDA. Recipient's request for
advance shall not be made in excess of reasonable outlays for the month
covered.
(b) The grantee shall provide satisfactory evidence to RDA that all
officers of grantee organization authorized to receive and/or disburse
Federal funds are covered by such bonding and/or insurance requirements
as are normally required by the grantee.
(c) Release of technical assistance funds.
(1) The grantee will provide RDA with a project description and
intergovernmental review data as defined in Sec. 4284.110 (j) of this
subpart.
(2) The servicing official will review the project for eligibility.
Once determined eligible and satisfactory intergovernmental review
clearances have been received, the grantee may request funds as
outlined in paragraph (a) of this section.
(d) For grants to provide assistance to third parties through a
revolving fund, funds will be disbursed in accordance with USDA's
Uniform Federal Assistance Regulations, the items listed in paragraph
(c)(1) of this section, and the following:
(1) The grantee is responsible for providing RDA with environmental
review data. Each project will undergo the applicable environmental
review in accordance with Sec. 4284.110 (b) of this subpart.
(2) The grantee is responsible for providing RDA with
intergovernmental review clearances in accordance with Sec. 4284.110
(j) of this subpart. Each project will undergo the intergovernmental
review process.
(3) Once RDA has received clearances for intergovernmental review
and the environmental assessment is completed, the grantee may request
grant funds for that purpose by use of SF-270 as outlined in paragraph
(a) of this section.
Sec. 4284.118 Reporting.
Form SF-269, ``Financial Status Report,'' and a project performance
activity report will be required of all grantees on a quarterly basis
(due 15 working days after end of each quarter). A final project
performance activity report will be required with the last SF-269. The
final report may serve as the last quarterly report. Grantees shall
constantly monitor performance to ensure that time schedules are being
met, projected work by time periods is being accomplished, and other
performance objectives are being achieved. The project performance
activity reports shall include, but not be limited to, the following:
(a) A comparison of actual accomplishments to the objectives
established for that period;
(b) Reasons why established objectives were not met;
(c) Problems, delays, or adverse conditions which will affect
attainment of overall project objectives, prevent meeting time
schedules or objectives, or preclude the attainment of particular
project work elements during established time periods. This disclosure
shall be accompanied by a statement of the action taken or planned to
resolve the situation; and
(d) Objectives and timetables established for the next reporting
period.
Sec. 4284.119 Audit requirements.
The grantee will provide an audit report in accordance with Subpart
A of Part 1942 of this title. The audit requirements only apply to the
year(s) in which grant funds are received. Audits must be prepared in
accordance with Generally Accepted Government Auditing Standards using
the publication, ``Standards for Audit of Governmental Organizations,
Programs, Activities, and Functions.''
Sec. 4284.120 Programmatic changes.
The recipient shall obtain prior approval for any change to the
scope or objectives of the approved project. (For construction
projects, any material change in approved space utilization or
functional layout shall be considered a change in scope). Failure to
obtain prior approval of changes to the scope can result in suspension/
termination of grant funds.
Sec. 4284.121 Grant cancellation.
Grants may be cancelled by RDA by use of Form FmHA 1940-10,
``Cancellation of U.S. Treasury Check and/or Obligation.'' The RDA will
notify the applicant, by letter, that the grant has been cancelled. A
copy of the letter will be sent to the applicant's attorney and
engineer, as appropriate, and to the Regional Attorney, OGC, if the
Regional Attorney has been involved. The applicant will be provided
appeal rights, as appropriate, in accordance with Subpart B of Part
1900 of this title.
Sec. 4284.122 Grant servicing.
Grants will be serviced in accordance with Subpart E of Part 1951
of this title.
Sec. 4284.123 Subsequent grants.
Subsequent grants will be processed in accordance with the
requirements set forth in this subpart.
Secs. 4284.124-4284.197 [Reserved]
Sec. 4284.198 Exception authority.
The Administrator may, in individual cases, make an exception to
any requirement or provision of this subpart which is not inconsistent
with the authorizing statute, an applicable law, or decision of the
Comptroller General, if the Administrator determines that application
of the requirement or provision would adversely affect the Government's
interest and show how the adverse impact will be eliminated or
minimized if the exception is made.
Sec. 4284.199 Public availability of forms, regulations, and
instructions.
Copies of all forms, regulations, and instructions referenced in
this subpart are available in any RDA office.
Sec. 4284.200 OMB control number.
Guides to Subpart G
Guide 1--Project Management Agreement Between the
________________ Regional Commission and the Rural Development
Adminstration, Department of Agriculture Pertaining to (Grantee)
________________ County, ________________.
I. Introduction
A. The ________________ Regional Commission is providing a
(basic or supplemental) grant for (purpose) to (grantee), and the
U.S. Department of Agriculture, Rural Development Administration
(RDA) has approved and will administer that grant. The RDA has
determined that funds (can or cannot) be made available under its
funding program for this fiscal year for the project. The project
does meet all the requisites for assistance under Section 310B of
the Consolidated Farm and Rural Development Act, as amended (7
U.S.C. 1926). In order to accomplish these purposes, the
________________ Regional Commission's Federal Cochairman and the
RDA approval official hereby enter into this Agreement, which is in
accordance with 31 U.S.C. 686.
B. This Agreement is intended to cover the application phase,
construction phase, and final audit.
II. General
A. Project Cost. The project costs for the purposes of this
Agreement shall include the costs of construction, technical
services, legal services, land acquisition, permits and rights-of-
way, interest during construction and contingencies.
B. Grant. The ________________ Regional Commission shall make a
(basic or supplemental) grant of $____________ up to, but not
exceeding, ____________ percent of the total cost of project. These
funds will be transferred to the Treasury Account of RDA by Standard
Form 1151, ``Nonexpenditure Transfer Authorization.''
C. The undersigned RDA approval official on behalf of RDA, in
concurring to this Project Management Agreement, hereby assures the
Federal Cochairman that:
1. The estimated cost of the project is reasonable and the
(basic or supplemental) grant, with the funds to be supplied by the
applicant, are, in its judgement, sufficient to complete the
project.
2. The funds to be supplied by the applicant are available or
RDA is reasonably satisfied that the applicant has the capability of
supplying such funds.
3. RDA is reasonably satisfied that the facility will be
properly and efficiently administered, operated, and maintained and
that the applicant will provide sufficient funds to ensure the
successful and continuing operation of the facility.
D. The (grantee) is subject to Executive Order 11246 and will be
required to evidence compliance by execution of Forms FmHA 400-1,
``Equal Opportunity Agreement'' and FmHA 400-4, ``Assurance
Agreement.''
E. The (grantee) shall execute assurances of nonrelocation, if
applicable.
III. Construction Management
A. The forms and format for the documents shall conform to the
requirements in Subpart A of Part 1942 of this title. Generally, the
following items shall be included:
1. contract documents.
2. specifications.
3. plans.
B. RDA will approve the plans and specifications.
C. RDA will obtain a certification of adequacy from the Federal
Environmental Protection Agency (include only when applicable).
D. RDA will obtain a nonpollution certificate from the (State)
(agency) (include only when applicable).
E. RDA will make monthly inspections.
F. Contract change orders will not become effective until
approved by RDA.
G. Final inspection will be conducted by RDA.
IV. Financial Management
A. Financial management of the project shall be according to
Subpart A of Part 1942 of this title.
B. RDA will provide the ________________ Regional Commission
with a copy of the audit report.
C. If actual costs fall below the costs on which the grant was
calculated, the Federal and non-Federal shares will be reduced
proportionately.
D. RDA will conform to the financial reporting requirements for
transferred funds as required by OMB Circular No. A-34.
V. Compensation
Services rendered by RDA for the processing and administration
of Regional Commission grants in cases where neither RDA loan nor
grant funds are involved shall be on a reimbursable basis.
Reimbursement will be based on 5 percent of the amount of the grant
up to $50,000 and an additional 1 percent of any amount over the
first $50,000 of the Regional Commission grant. The full amount of
the reimbursement will be transferred to RDA at the time the grant
funds are transferred to RDA.
VI. No provision in this Agreement shall abrogate the legal
requirements of administrative responsibilities as set forth in the
Consolidated Farm and Rural Development Act or Section 509 of the
Public Works and Economic Development Act of 1965, as amended.
For the Regional Commission
----------------------------------------------------------------------
(Name)
----------------------------------------------------------------------
Federal Cochairman
____________________, 199______
For the Rural Development Administration, USDA
----------------------------------------------------------------------
(Name)
----------------------------------------------------------------------
RDA Approval Official
____________________, 199______
Guide 2--Resolution
Whereas the ________________________ (hereinafter called
grantee) desires to obtain financial assistance from the Rural
Development Administration (RDA), United States Department of
Agriculture, pursuant to Section 310B of the Consolidated Farm and
Rural Development Act, for the purpose of providing
----------------------------------------------------------------------
----------------------------------------------------------------------
(Describe briefly the nature of the project)
----------------------------------------------------------------------
----------------------------------------------------------------------
(Herein referred to as the facility) and as a condition to and
in consideration of receiving financial assistance from the RDA,
this resolution is being adopted.
Therefore, in consideration of the premises, the grantee agrees
as follows:
1. No private business enterprises shall be allowed to use or
occupy the facility if such use or occupancy would be calculated to,
or is likely to, result in the transfer from one area to another of
any employment or business activity provided by operations of the
private business enterprises. This limitation shall not be construed
to prohibit use and enjoyment of the facility by such private
business entity through the establishment of a new branch,
affiliate, or subsidiary if the establishment of such branch,
affiliate, or subsidiary will not result in the increase in
unemployment in the area of original location (or in any other area
where such entity conducts business operations), unless there is
reason to believe that such branch, affiliate, or subsidiary is
being established with the intention of closing down the operations
of the existing business entity in the area of its original location
(or in any other area where it conducts such operation).
2. No private business enterprises shall be allowed to use or
occupy the facilities if such use or occupancy would be calculated
to, or is likely to, result in an increase in the production of
goods, materials, or commodities, or the availability of services or
facilities in the area, where there is not sufficient demand for
such goods, materials, commodities, services or facilities to employ
the sufficient capacity of existing competitive commercial or
industrial enterprises, unless such financial or other assistance
will not have an adverse affect upon existing competitive
enterprises in the area.
3. Prior to allowing the use or occupancy of the facilities by
any private business enterprise, the grantee shall clear such use or
occupancy with the Manpower Administration, Department of Labor
(DOL), Washington, DC, by submitting information required by the DOL
for certification under the Act. This information shall be submitted
to RDA for transmittal to the DOL. The grantee agrees to make no
final commitment with any private business enterprise regarding such
use or occupancy if the DOL issues a negative certification under
the Act. The grantee shall obtain prior clearance in this matter for
a period of three years after the date of an affirmative
certification by the DOL on the application for financial assistance
now pending before the RDA.
This resolution shall be in force and effect immediately.
The voting was yeas ____________, nays ____________, absent
____________.
----------------------------------------------------------------------
(Name of grantee)
By---------------------------------------------------------------------
(Name and Title)
Certification
I, the undersigned, as (Secretary) or (Town Clerk as
appropriate), of the ________________, do hereby certify that the
foregoing resolution was duly adopted at a meeting of
________________ duly called and held on the ________ day of
____________ 19______ , and that such resolution has not been
rescinded or amended in any way. Dated this ____________ day of
____________, 19______.
(Seal)
(Town Clerk) or (Secretary as appropriate) of--------------------------
Dated: April 5, 1994.
Bob Nash,
Under Secretary, Small Community and Rural Development.
[FR Doc. 94-19408 Filed 8-8-94; 8:45 am]
BILLING CODE 3410-32-U
