USDA Seeks Public Comment on Proposed Rule Change to Rural Development Guaranteed Loans

On September 14, 2007, the USDA announced a public comment period for a proposed rule change. The rule change would combine four existing guaranteed loan programs; Community Facility, Water and Waste Disposal, Business and Industry, and Renewable Energy Systems and Energy Efficiency Improvement Programs; into a unified loan platform for enhanced delivery of these programs.

Public comments must be submitted by November 13, 2007 to be considered. Instructions for submission ofcomments are posted here, as well as in the federal register.

Rural Development Guaranteed Loans

AGENCY: Rural Business-Cooperative Service, Rural Housing Service, 

Rural Utilities Service, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: Rural Development, a mission area within the U.S. Department 

of Agriculture, is proposing a unified guaranteed loan platform for 

enhanced delivery of four existing Rural Development guaranteed loan 

programs--Community Facility; Water and Waste Disposal; Business and 

Industry; and Renewable Energy Systems and Energy Efficiency 

Improvement Projects. This proposed rule would eliminate the existing 

loan guarantee regulations for these four programs and consolidate them 

under a new, single part. 



In addition to consolidating these four programs, the proposed rulemaking 

incorporates provisions that will enable the Agency to better manage the 

risk associated with making and servicing guaranteed loans and that will 

reduce the cost of operating the guaranteed loan programs. Such provisions 

include incorporating specific project eligibility criteria, revisions to 

the requirements for lenders to participate in the programs, allowing 

approved lenders to become preferred lenders, and allowing guaranteed loan 

applications to be submitted with less documentation accompanying the 

application under certain conditions.



DATES: Comments on the proposed rule must be received on or before 

November 13, 2007. The comment period for the information collection 

under the Paperwork Reduction Act of 1995 continues through November 

13, 2007.



FOR FURTHER INFORMATION CONTACT: Mr. Michael Foore, Rural Development, 

Business and Cooperative Programs, U.S. Department of Agriculture, 1400 

Independence Avenue, SW., Stop 3201, Washington, DC 20250-3201; e-mail: 

Michael.Foore@wdc.usda.gov; telephone (202) 690-4730.