2020-19288. OneRD Annual Notice of Guarantee Fee Rates, Periodic Retention Fee Rates, Loan Guarantee Percentage and Fee for Issuance of the Loan Note Guarantee Prior to Construction Completion for Fiscal Year 2021

AGENCY:

Rural Business-Cooperative Service, Rural Housing Service and Rural Utilities Service, USDA.

ACTION:

Notice.

SUMMARY:

The Rural Business-Cooperative Service (RBCS), Rural Housing Service (RHS), and the Rural Utilities Service (RUS), agencies of the Rural Development mission area within the U.S. Department of Agriculture (USDA), hereinafter collectively referred to as the Agency, offer loan guarantees through four programs: Community Facilities (CF) administered by RHS; Water and Waste Disposal (WWD) administered by the RUS; and Business and Industry (B&I) and Rural Energy for America Program (REAP) administered by the RBCS. This notice provides applicants with the Guarantee Fee rates, Guarantee percent for Guaranteed Loans, the Periodic Retention Fee, and Fee for Issuance of the Loan Note Guarantee Prior to Construction Completion for FY 2021, to be used when applying for guarantee loans under the aforementioned guarantee loan types. This notice is being published prior to the passage of a FY 2021 appropriation. Should the fees need to be adjusted after passage of the FY 2021 appropriation bill, the agency will publish a subsequent notice in the Federal Register.

DATES:

The fees in this notice are effective October 1, 2020.

FOR FURTHER INFORMATION CONTACT:

For information specific to this notice contact Michele Brooks, Director, Regulations Management, Rural Development Innovation Center—Regulations Management, USDA, 1400 Independence Avenue SW, STOP 1522, Room 4266, South Building, Washington, DC 20250-1522. Telephone: [phone]. Email [e-mail]. For information regarding implementation contact your respective Rural Development State Office listed here: http://www.rd.usda.gov/​browse-state.

SUPPLEMENTARY INFORMATION:

As set forth in 7 CFR part 5001, 407, 454, 455 and 456published on July 14, 2020 in Federal Register Vol. 85, page number 42494 which will be effective on October 1, 2020, the Agency is authorized to charge a guarantee fee, a periodic guarantee retention fee, a fee for the issuance of the loan note guarantee prior to construction completion and establish a loan guarantee percentage for guaranteed loans made under this rule loans. Pursuant to this and other applicable authority, and subject to the current appropriated authority, the Agency is establishing the following for FY 2021:

Loan type	Guarantee fee	Periodic guarantee retention fee	Loan guarantee percentage	Fee for issuance of loan note guarantee prior to construction completion
B&I	3.0%	0.5%	80%	0.5%
B&I Reduced Fee	1.0	0.5	80	0.5
CF	1.5	0.5	80	0.5
REAP	1.0	0.25	80	0.5
WWD	1.0	N/A	80	0.5

The initial guarantee fee is paid at the time the loan note guarantee is issued. The periodic guarantee retention fee is paid by the lender to the Agency once a year. Payment of the periodic guarantee retention fee is required in order to maintain the enforceability of the guarantee. The fee for issuance of the loan note guarantee prior to construction completion DOES NOT apply to all construction loans. This additional fee only applies to loans requesting to receive a loan note guarantee prior to project completion.

Unless precluded by a subsequent FY 2021 appropriation, these rates will apply to all guarantee loans obligated in FY 2021. The amount of the periodic retention fee on each guaranteed loan will be determined by multiplying the periodic retention fee rate by the outstanding principal loan balance as of December 31, multiplied by the percentage of guarantee.

Non-Discrimination Statement

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies, the USDA, its Agencies, offices, and employees, and institutions participating in, or administering, USDA programs are prohibited from discriminating based on race, color, national origin, religion, sex, gender identity (including gender expression), sexual orientation, disability, age, marital status, family/parental status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the responsible Agency or USDA's TARGET Center at [phone] (voice and TTY) or contact USDA through the Federal Relay Service at [phone]. Additionally, program information may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online at: http://www.ascr.usda.gov/​complaint_​filing_​cust.html and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the form. To request a copy of the complaint form, call [phone]. Submit your completed form or letter to USDA by:

(1) Mail: U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Washington, DC 20250-9410;

(2) Fax: [phone]; or

(3) Email: [e-mail].

USDA is an equal opportunity provider, employer, and lender.

Bette B. Brand,

Deputy Undersecretary, Rural Development.