[Federal Register Volume 61, Number 36 (Thursday, February 22, 1996)]
[Rules and Regulations]
[Pages 6761-6762]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-4018]
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Rules and Regulations
Federal Register
________________________________________________________________________
This section of the FEDERAL REGISTER contains regulatory documents
having general applicability and legal effect, most of which are keyed
to and codified in the Code of Federal Regulations, which is published
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Federal Register / Vol. 61, No. 36 / Thursday, February 22, 1996 /
Rules and Regulations
[[Page 6761]]
DEPARTMENT OF AGRICULTURE
Rural Housing Service
Rural Business-Cooperative Service
Rural Utilities Service
Farm Service Agency
7 CFR Part 1948
RIN 0570-AA15
Intermediary Relending Program Loan Limits
AGENCIES: Rural Housing Service, Rural Business-Cooperative Service,
Rural Utilities Service, and Farm Service Agency, USDA.
ACTION: Interim final rule with request for comments.
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SUMMARY: The Rural Business-Cooperative Service (RBS) is the successor
to the Rural Business and Cooperative Development Service (RBCDS),
which was the successor to the Rural Development Administration (RDA),
which was the successor to the Farmers Home Administration (FmHA).
RBS is amending the regulations for the Intermediary Relending
Program (IRP) to raise the loan limit. This action is needed to allow
intermediaries that have received and successfully used the maximum
amount of IRP loans allowed by the current regulations, and have need
for additional funds, to be eligible to apply for such additional
funds. The intended effect is to raise the maximum outstanding IRP
indebtedness of an intermediary to $4 million, from the current limit
of $2 million, for a period to end at the close of business on August
28, 1996. IRP loan funds per intermediary will not exceed $2 million
for loans approved after August 28, 1996.
DATES: Effective February 22, 1996. Comments must be received on or
before April 22, 1996.
ADDRESSES: Submit written comments in duplicate to the Director,
Regulations and Paperwork Management Division, Rural Economic and
Community Development, USDA, Ag. Box 0743, Washington, DC 20250-0743.
All written comments will be available for public inspection during
regular working hours at the above office, located in Room 6348, South
Agricultural Building, 14th and Independence Avenue SW, Washington DC.
FOR FURTHER INFORMATION CONTACT: M. Wayne Stansbery, Loan Specialist,
RBS, USDA, Ag. box 1521, Washington, DC 20250-1521, Telephone (202)
720-6819.
SUPPLEMENTARY INFORMATION:
Classification
This interim final rule has been determined to be ``not-
significant'' and has not been reviewed by OMB.
Program Affected
The catalog of Federal Domestic Assistance program impacted by this
action is: 10.767, Intermediary Relending Program.
Intergovernmental Review
As set forth in the final rule and related Notice to 7 CFR part
3015, subpart V, 48 FR 29112, June 24, 1983, this program is subject to
the provisions of Executive Order 12372 which requires
intergovernmental consultation with State and local officials. The
Agency conducts intergovernmental consultation in the manner delineated
in FmHA Instruction 1940-J, ``Intergovernmental Review of Farmers Home
Administration Programs and Activities.''
Paperwork Reduction Act
The information collection requirements contained in this
regulation have been approved by the Office of Management and Budget
(OMB) under the provisions of 44 U.S.C. Chapter 35 and have been
assigned OMB control number 0575-0130 in accordance with the Paperwork
Reduction Act of 1980 (44 U.S.C. 3507). This interim rule does not
revise or impose any new information collection or record keeping
requirements from those approved by OMB. 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, Ag. box 0743,
Washington, DC 20250.
Civil Justice Reform
This interim final rule has been reviewed under Executive Order
12778, Civil Justice Reform. In accordance with this rule: (1) All
state and local laws and regulations that are in conflict with this
rule will be preempted; (2) no retroactive effect will be given to this
rule; and (3) administrative proceedings in accordance with the
regulations of the agency at 7 CFR 1900 subpart B or those regulations
published by the Department of Agriculture to implement the provisions
of the National Appeals Division as mandated by the Department of
Agriculture Reorganization Act of 1994 must be exhausted before
bringing suit in court challenging action taken under this rule unless
those regulations specifically allow bringing suit at an earlier time.
This document has been reviewed in accordance with Executive Order
12778. It is the determination of this Agency that this action does not
unduly burden the Federal Court System in that it meets all applicable
standards provided in section 2 of the Executive Order.
Environmental Impact Statement
This action has been reviewed in accordance with FmHA Instruction
1940-G, ``Environmental Program.'' Rural Business-Cooperative Service
has determined that this 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.
Unfunded Mandate
Title II of the Unfunded Mandate Reform Act of 1995 (UMRA), Pub. L.
104-4, establishes requirements for Federal agencies to assess the
effects of their regulatory actions on state, local, and tribal
governments and the private sector. Under section 202 of the UMRA, RBS
must prepare a written statement, including a cost-benefit analysis,
for proposed and final rules with ``Federal Mandates'' that may result
in expenditures to State, local or tribal governments, in the
aggregate, or to the private sector, of $100 million or more
[[Page 6762]]
in any one year. When such a statement is needed for a rule, section
205 of UMRA generally requires RBS to identify and consider a
reasonable number of regulatory alternatives and adopt the least
costly, more cost effective or least burdensome alternative that
achieves the objectives of the rule.
This rule contains no federal Mandates (under the regulatory
provisions of Title II of the UMRA) for State, local, and tribal
governments or the private sector. Thus today's rule is not subject to
the requirements of sections 202 and 205 of UMRA.
Background
This regulatory package is an agency initiative to make the IRP
more effective at stimulating rural community economic development. The
current regulation prohibits approval of any IRP loan that would result
in any one intermediary having an outstanding IRP indebtedness
exceeding $2 million. RBS is still not encouraging initial loans of
more than $2 million. However, some intermediaries have received and
reloaned $2 million and have demand for additional funding to meet the
needs of the communities they serve.
The primary reason for this action is to allow subsequent loans to
those successful intermediaries that have reached the current limit.
Intermediaries in several States including; Vermont, Maine, Minnesota,
Michigan, Colorado, North Carolina, Oklahoma, and Louisiana are
currently at the limit of $2 million, and faced by additional demand
for funds. Because of this program's role in the President's Rural
Development Initiative, the fact that the efforts of some successful
lenders are impeded by the $2 million limit, and the potential of
attracting other lenders as a result of efforts to target the program
more effectively to underserved areas, a decision has been made to
increase the maximum loan limit to $4 million for a maximum period
ending August 28. The anticipated benefits are increased lending
activity, particularly by successful lenders and the creation of new
business opportunities and employment, particularly in areas
experiencing economic distress.
There are no anticipated costs associated with this decision. The
cost of expanding the potential of the program is already built into
the budget estimates and there should be no increase in delinquencies
because of this action.
Discussion of Interim Final Rule
It is the policy of this Department that rules relating to public
property, loans, grants, benefits or contracts shall be published for
comment notwithstanding the exemption of 5 U.S.C. 553 with respect to
such rules. However, the Agency is making this action effective upon
publication in the Federal Register without securing prior public
comment. It would be contrary to the public interest to wait for public
comment before implementing an increase in the loan ceiling. There is
an immediate need to provide funds to the public to help alleviate
severe economic hardship which exists in many rural areas as a result
of high unemployment and poverty level wages. Numerous intermediaries
have received the maximum of $2 million, have successfully used the
funds to assist rural businesses, and have urgent need for additional
loan funds. These intermediaries have proven their ability to play a
major and successful role in stimulating the economy and developing
jobs in rural areas experiencing high unemployment and depressed
economies. Increasing the loan ceiling quickly will allow them to
receive additional funds to continue to provide needed assistance.
Delaying action will only deprive them of opportunities to provide
assistance. Comments will be accepted for 60 days after publication
and, if appropriate, adjustments will be made in the regulation based
on the comments.
List of Subjects in 7 CFR Part 1948
Business and industry, Credit, Economic development, Rural areas.
Accordingly, Part 1948, Chapter XVIII, Title 7 of the Code of
Federal Regulations is amended as follows:
PART 1948--RURAL DEVELOPMENT
1. The authority citation for part 1948 continues to read as
follows:
Authority: 5 U.S.C. 301; 7 U.S.C. 1932 note; 7 CFR 2.23, and
2.70.
Subpart C--Intermediary Relending Program (IRP)
2. Section 1948.103 is amended by revising paragraph (c) (4) to
read as follows:
Sec. 1948.103 Eligibility requirements.
* * * * *
(c) * * *
(4) The total amount of Agency loan funds requested by the
intermediary plus the outstanding balance of existing IRP loan(s) will
meet one of the following conditions:
(i) IRP loan funds will not exceed $4 million per intermediary for
loans approved on or before August 28, 1996.
(ii) IRP loan funds will not exceed $2 million per intermediary for
loans approved after August 28, 1996.
* * * * *
Dated: February 7, 1996.
Wally B. Beyer,
Acting Under Secretary for Rural Economic and Community Development.
[FR Doc. 96-4018 Filed 2-21-96; 8:45 am]
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