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OneRD Guarantee

What is the OneRD secured loan initiative?

USDA has eliminated unnecessary regulations to increase private investment in rural businesses and economic development projects and to improve customer service within four flagship loan guarantee programs. The Agency implemented a standard set of requirements, processes and forms for these programs. Only lenders are eligible to apply. The programs are:

OneRD Warranty Notices and Regulations

Notice of Annual Fees for Fiscal Year 24

This notice provides applicants with the guarantee fee rates, the guarantee percentage for secured loans, the periodic retention fee, and the fee for issuance of the secured loan note before the completion of construction for the fiscal year (FY) 2024, which will be used when applying for guaranteed loans. under the types of secured loans listed above.

Regulation

This part contains regulations for Community Facilities, Water and Waste Disposal, Business and Industry, and Rural Energy for America Program loans guaranteed by the Agency and applies to lenders, holders, borrowers, and other parties involved in the manufacturing, warranty, possession and maintenance. and pay off said loans.

FY24 Funding Availability

Fiscal year 2024

FY 2024 Annual Notice of Fees and Warranty Fees

Ahead of fiscal year 2024, USDA published guarantee fees and percentages that will apply to four critical loan guarantee programs to support investments in rural businesses, infrastructure, and community development. The rates in this notice are effective October 1, 2023.

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Fiscal year 2024 obligations, remaining balances, and number of applications to date by program. Updated - February 15, 2024

Program Money Funds obligated to date Funding status -
Remaining balances
Total Pending Collateral Request Loan Amounts
Business & Industry Guaranteed Loan Program 3%&1% $1,548,359,126 $820,449,568 $727,909,558 $1,430,950,727
Rural Energy for America Guaranteed Loan Program $1,006,064,000 $82,539,400 $923,524,600 $437,391,010
Community Facilities Guaranteed Loan Program $197,080,000 $4,590,000 $192,490,000 $162,441,000
Guaranteed Loan Program for Water and Waste Disposal $15,160,000 $1,086,263 $14,073,737 $1,112,000

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Lender Help Desk

As USDA's four flagship secured loan programs are streamlined under the OneRD Secured Loan Initiative, a core team of program experts is available to help you prepare for the new policies and procedures included in the final rule.

Lenders can send questions to OneRDGuarantee@usda.gov .

Build America, Buy America Act

USDA assists agencies, personnel offices, award recipients, and subrecipients by providing information on the requirements of the Build America, Buy America Act (BABAA), guidance documents on the waiver and comment process, and a list of exemptions. published.

Learn more

How to apply

The Agency is making resources available to help lenders begin their applications for programs under the OneRD Guarantee Loan Initiative. Resources will be added to this website as they become available. Learn more about each resource below:

  • To apply for programs under this initiative, lenders are encouraged to complete the following steps:

    1. Please review the OneRD Guaranteed Loan Initiative Lenders Guide for eligibility, origination and application provisions.
    2. Download 5001-1 – Loan Guarantee Application Form and 5001-2 – Lender Agreement Form . Important notice : Potential applicants can view these forms in Internet Explorer (IE) and Edge browsers. In Chrome or Safari , you must first download the forms to view the form content. For assistance, contact OneRDGuarantee@usda.gov .
    3. Review the final rule
  • Submit Applications Online – Unregulated Lenders Seeking Approved Status

    All unregulated lenders must apply for approval status with the Agency to participate in programs under the OneRD Guarantee Loan Initiative. All lender approval authority previously granted is no longer valid. Rural Development has created a portal to upload all your documents to request approval status. To use this portal, complete the following steps:

    1. Review the sample document as an example of an introduction and cover letter to send first.
    2. Email your cover letter to OneRDlenderapproval@usda.gov . Upon receipt of that document, RD will send you a link to the Unregulated Lender Portal with instructions to upload and submit all supporting files listed in the sample document.

    For more information on eligibility and approval requirements, review the final rule.

    Lenders who are unable to submit their application package through this portal may contact OneRDlenderapproval@usda.gov for assistance.

  • Ahead of fiscal year 2024, USDA published guarantee rates and percentages that will apply to four critical loan guarantee programs to support investments in rural businesses, infrastructure, and community development. The rates in this notice are effective October 1, 2023.

    Rates and percentages for each program are listed below:

    Commercial and Industrial Loan Guarantee Program

    • Regular rates and percentages
      • Guarantee fee: 3%
      • Periodic Guarantee Withholding Fee: 0.55%
      • Loan guarantee percentage: 80%
      • Commission for Issuance of Security of Loan Notes Before Construction: 0.5%
    • Reduced rates and percentages
      • Guarantee fee: 1%
      • Periodic collateral retention fee: 0.5%
      • Loan guarantee percentage: 80%
      • Commission for Issuance of Security of Loan Notes Before Construction: 0.5%
    • Project in an isolated, high-cost rural area of Alaska that is not connected to a highway system
      • Guarantee fee: 1%
      • Periodic collateral retention fee: 0.5%
      • Loan guarantee percentage: 90%
      • Commission for Issuance of Security of Loan Notes Before Construction: 0.5%

    Guaranteed Loan Program for Water and Waste Disposal

    • Regular rates and percentages
      • Guarantee fee: 1%
      • Periodic Warranty Retention Fee: N/A
      • Loan guarantee percentage: 80%
      • Commission for Issuance of Security of Loan Notes Before Construction: 0.5%

    Community Facilities Guaranteed Loan Program

    • Regular rates and percentages
      • Guarantee fee: 1.25%
      • Periodic collateral retention fee: 0.5%
      • Loan guarantee percentage: 80%
      • Commission for Issuance of Security of Loan Notes Before Construction: 0.5%

    Rural Energy for America Guaranteed Loan Program

    • Regular rates and percentages
      • Guarantee fee: 1%
      • Periodic collateral retention fee: 0.25%
      • Loan guarantee percentage: 80%
      • Commission for Issuance of Security of Loan Notes Before Construction: 0.5%
  • Instructions

    Sample documents

    Forms

    Important Notice : Potential applicants can view these forms in Internet Explorer (IE) and Edge browsers. In Chrome or Safari, you must first download the forms to view the form content.

Frequent questions

Below are the frequently asked questions we have addressed. This list will grow as new questions are asked and answers are given.

  • Q: What programs are included in the OneRD Guarantee Loan Initiative?

    • Water and Waste Disposal Loan Guarantee Program;
    • Community Facilities Guaranteed Loan Program;
    • Guaranteed Loan Program for Businesses and Industries; and
    • Rural Energy for America program loan guarantees.

    Q: What are the main changes in this final rule?

    • Visit the OneRD Guaranteed Loan Initiative Fact Sheet for an overview of the changes included in the final rule.

    Q: When did the rule changes go into effect?

    • The changes took effect on October 1, 2020.

    Q: Who do I contact for more information?

  • Q: Will this regulation affect my collateral loan application for fiscal year 2020?

    • No. The changes to this regulation went into effect on October 1, 2020 and do not affect applications submitted before October 1, 2020.

    Q: When did the application windows open for the four OneRD Guaranteed Loan Initiative programs?

    • The application window for each program under the OneRD Guarantee Loan Initiative opened on October 1, 2020, applications are being accepted on a rolling basis.

    Q: When will forms and other materials to help me apply for loan guarantee programs under this initiative be available?

    • Forms and other application resources are now available on OneRDGurantee

    Q: Will USDA provide training to lenders to help them prepare for the new policies and procedures under the OneRD Guaranteed Loan Initiative?

    • Yes. USDA has hosted multiple listening sessions and office hours for lenders. Attendees and registrants received access to the recorded sessions. Future sessions will also be recorded and provided to registrants. Training sessions will be announced later and posted on the OneRDGuarantee page.

    Where can lenders apply?

    • Beginning October 1, 2020, lenders can apply for loan guarantees under the OneRD Guarantee Loan Initiative using the common application form on OneRDGuarantee.

    Can lenders pay brokers for referrals or packages under the regulation?

    • No. This is an ineligible use of loan guarantee funds. For more information, see 5001.122(d) of the regulation.

    What are the Agency's credit evaluation standards for lenders under this initiative?

    • See 5001.202 of the regulations for the Agency's credit evaluation standards that are based on the "Five Cs of Credit," which are character, capacity, capital, collateral, and condition.

    How can lenders obtain approval to participate in programs under the OneRD Guaranteed Loan Initiative?

    • USDA is providing automatic approval to participate in the four loan guarantee programs to regulated lenders in good standing who are supervised or created by state or federal regulatory agencies, enroll in the online electronic authentication system, and complete a new loan agreement. lender with the Agency. See Section 5001.130(b) of the regulations.
    • Unregulated lenders will be able to apply for approval to participate through a unique approval process that will last for five years. To apply for approval, unregulated lenders must submit a cover letter and the documentation described in Section 5001.130(c) to OneRDlenderapproval@usda.gov. Lenders can review a cover letter template and instructions on how to submit applications. This also applies to unregulated lenders that serve tribal trust lands, except that Section 5001.130(d) governs these applications.

    Is interim financing an option with OneRD guarantee?

    • Yes. See Section 5001.121(c)(6) of the regulation for more information.
  • Q: What are the eligible uses for a OneRD secured loan?

    Q: What are the loan requirements for a loan guarantee under this initiative?

    • The lender participating in the initiative programs has the responsibility of submitting quality loan applications that are supported by generally accepted prudent lending practices for commercial, public and project financing. The lender will determine the loan term, interest rate, and collateral requirements, although these must be approved by the Agency. .

    Q: What warranty is required?

    • The guarantee must have a documented value sufficient to protect the interests of the lender and the Agency. Lenders will discount collateral in accordance with a sound loan-to-value policy, with the discounted collateral value being at least equal to the loan amount. The lender must provide satisfactory justification for the discounts used. Hazard insurance is required on collateral (equal to the loan amount or depreciated replacement value, whichever is less).

    Q: Can OneRD Guarantee Loan Initiative programs be used to finance construction?

    • Yes. All programs under the initiative can issue a loan note guarantee prior to completion for projects that demonstrate the use of approved technologies. The applying lender must adequately mitigate project risk by meeting the requirements listed in Section 5001.205(e)(2) of the regulation. If the Agency approves the lender's proposal to provide loan note security prior to completion, the loan must identify payments required during the construction period and convert it to permanent financing. The loan must not include a balloon payment.

    Q: How much capital is required for new businesses and existing businesses?

    • All borrowers must have sufficient capital or equity to mitigate the current financial and operational risks of the business. Only REAP loans require a minimum of 25% of total project costs to be allocated to the project from other funds.

    Q: Are there feasibility study requirements?

    • The OneRD Guarantee Loan Initiative provides discretion and flexibility depending on the complexity of the project in addition to the loan amount. Lenders may provide an adequate discussion of project risks in the credit assessment or other application documents that may negate the need for an independent feasibility study.
    • For B&I loans over $1 million, the Agency has discretion in the scope of the feasibility study based on the complexity of the new business operation and the history of the borrower. The Agency may also reduce the scope of the feasibility study if the lender's analysis provided sufficient information and analysis on technical and economic feasibility that would be contained in a separate feasibility study.

    Q: What fees are associated with the OneRD Guarantee Loan Initiative?

    • All programs have an initial guarantee fee that is published annually in a Federal Register notice. Additional fees, such as a periodic collateral retention fee, will also be published annually.

    Q: What is the maximum loan guarantee amount for the initiative programs?

    • The loan guarantee percentage for programs under the initiative is published annually in a Federal Register notice. According to this year's annual notice, loans approved in fiscal year 2021 will receive an 80 percent guarantee regardless of loan size.
  • Q: Does this regulation apply to the CARES Act Program for Business and Industry?

    • No. The B&I CARES Act Program provisions are contained in 7 CFR 4279.190.

    Q: Does this regulation apply to the CARES Act Program for Business and Industry?

    • No. B&I CARES Act applications will be reviewed in accordance with B&I CARES Act regulations. Applicants should continue to use the B&I forms developed prior to the OneRD Guarantee Loan Initiative.

    Q: How should multistate lenders submit B&I CARES Act loan applications?

    • B&I CARES Act loans from multi-state lenders must be uploaded to the lender's dedicated OneRD Guarantee CloudVault, regardless of the loan amount.

    Q: How should state lenders submit applications for B&I CARES Act loans?

    • B&I CARES Act loans from state lenders must be filed with the appropriate DR State Office.
  • Q: Are Rural Energy for America Program (REAP) grants affected by the OneRD Guarantee Loan Initiative?

    • No. This initiative only affects loan guarantees. 7 CFR 4280 will continue to govern REAP grants.

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