The U.S. Department of Agriculture (USDA) Rural Development is releasing its Fiscal Year 2021 rates and terms for the OneRD Guarantee Loan Initiative, which will help lenders apply for loan guarantees to support rural businesses, infrastructure, community facilities, and renewable energy.
Ahead of Federal fiscal year 2021, USDA is providing guarantee percentages, annual fees, periodic retention fees, and optional construction fee rates to help lenders apply for Rural Development's four flagship loan guarantee programs:
- Water and Waste Disposal Loan Guarantee Program;
- Community Facilities Guaranteed Loan Program;
- Business and Industry Guaranteed Loan Program; and
- Rural Energy for America Guaranteed Loan Program.
These fees take effect on October 1, 2020. Additional information is available on page 54343 of the September 1, 2020, Federal Register.
The OneRD Guarantee Loan Initiative is an effort to increase private investment in rural communities across the country by streamlining regulations to make it easier for lenders to access these four loan guarantee programs.
Through a series of regulatory reforms, USDA is eliminating duplicative processes and launching a single platform for Rural Development's four key loan guarantee programs. USDA is also standardizing requirements for credit reviews, loan processing, loan servicing, and loss claims. These measures will make the application process simpler and faster for lenders.
The regulatory changes will take effect on October 1, 2020. Additional information is available on page 42494 of the July 14, 2020, Federal Register.