To file an application for programs under this initiative, lenders are encouraged to complete the following steps:

1. Review the OneRD Guarantee Loan Initiative Lender Guide for eligibility, origination and application provisions.
2. Download the 5001-1 – Application for Loan Guarantee Form and the 5001-2 – Lender’s Agreement Form. Important Notice: Potential applicants can view these forms in the Internet Explorer (IE) and Edge browsers. In Chrome or Safari, you must first download the forms to view form content. For assistance, please contact OneRDGuarantee@usda.gov.
3. Review the final rule

Submit Requests Online: Non-Regulated Lenders Seeking Approved Status

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 All previously granted lender approval authority are no longer valid.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

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

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

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

Ahead of Fiscal Year 2023, USDA released fees and guarantee percentages that will apply to the four loan guarantee programs critical to supporting investments in rural businesses, infrastructure and community development. The fees in this notice are effective October 1, 2022.

Fees and percentages for each program are listed below:

Business and Industry Loan Guarantee Program

• Regular Fees and Percentages
  • Guarantee Fee: 3%
  • Periodic Guarantee Retention Fee: 0.5%
  • Loan Guarantee Percentage: 80%
  • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%
• Reduced Fees and Percentages
  • Guarantee Fee: 1%
  • Periodic Guarantee Retention Fee: 0.5%
  • Loan Guarantee Percentage: 80%
  • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%
• Project in a High Cost, Isolated Rural Area of the State of Alaska that is Not Connected to a Road System  
  • Guarantee Fee: 1%
  • Periodic Guarantee Retention Fee: 0.5%
  • Loan Guarantee Percentage: 90%
  • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%
     

Water and Waste Disposal Guaranteed Loan Program

• Regular Fees and Percentages
  • Guarantee Fee: 1%
  • Periodic Guarantee Retention Fee: N/A
  • Loan Guarantee Percentage: 80%
  • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%

Community Facilities Guaranteed Loan Program

• Regular Fees and Percentages
  • Guarantee Fee: 1.25%
  • Periodic Guarantee Retention Fee: 0.5%
  • Loan Guarantee Percentage: 80%
  • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%

Rural Energy for America Guaranteed Loan Program

• Regular Fees and Percentages
  • Guarantee Fee: 1%
  • Periodic Guarantee Retention Fee: .25%
  • Loan Guarantee Percentage: 80%
  • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%

Instructions

• EAuth LINC Instructions

Sample Documents

• Sample Approval Request Document
• Sample OneRD Loan Note Guarantee Form

Forms

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

• 5001-1 – Application for Loan Guarantee Form
• 5001-2 – Lender’s Agreement Form

• To apply for Strategic Economic and Community Development (SECD) reserved funding under the OneRD guarantee loan programs, applicants must submit their Form 1980-88 concurrent with the 5001-1 and any documentation required under the OneRD Guarantee Loan Initiative application guidelines. 
• OneRD programs covered by SECD reserved funding are the Water and Waste Disposal Loan Guarantee Program and the Community Facilities Guaranteed Loan Program.
• Visit the Strategic Economic Community Development program for more information. 

Q: Which programs are included under the OneRD Guarantee Loan Initiative?

• Water and Waste Disposal Loan Guarantees Program;
• Community Facilities Guaranteed Loan Program;
• Business and Industry Guaranteed Loan Program; and
• Rural Energy for America Program Loan Guarantees.

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

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

Q: When did changes in the regulation take effect?

• Changes took effect on Oct. 1, 2020.

Q: Whom do I contact for more information?

• You may submit questions to OneRDGuarantee@usda.gov

Q: Will this regulation affect my Fiscal Year 2020 guarantee loan application?

• No. Changes in this regulation took effect on Oct. 1. 2020 and do not affect applications filed prior to Oct. 1, 2020.

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

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

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

• Forms and other application resources are now available at OneRDGurantee

Q: Will USDA provide training to lenders to help prepare for the new policies and procedures under the OneRD Guarantee 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 at a later date and posted to the OneRDGuarantee page.

Where can lenders apply?

• As of Oct. 1, 2020, lenders may apply for loan guarantees under the OneRD Guarantee Loan Initiative using the common application form at OneRDGuarantee

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

• No. this is an ineligible use of loan guarantee funds. For more information, please refer to 5001.122 (d) in the regulation.

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

• Please refer to 5001.202 in the regulation for the Agency's credit evaluation standards that are based on the “Five C’s of Credit,” which are character, capacity, capital, collateral and conditions.

How can lenders become approved to participate in programs under the OneRD Guarantee Loan Initiative?

• USDA is providing automatic approval to participate in all 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 eAuthentication system, and complete a new lender’s agreement with the Agency. Please refer to Section 5001.130(b) of the regulation.
• Non-regulated lenders may seek approval to participate through a single approval process that will be valid for five years. To request approval, non-regulated lenders must submit a cover letter and documentation outlined in Section 5001.130(c) to OneRDlenderapproval@usda.gov Lenders may review a template for the cover letter and instructions on how to file requests. This also applies to non-regulated lending entities serving tribal trust lands except that Section 5001.130(d) governs these requests.

Is interim financing an option with OneRD guarantee?

• Yes. Please refer to Section 5001.121(c)(6) of the regulation for more information.

Q: What are the eligible uses for a OneRD guaranteed loan?

• Water and Waster Disposal Guaranteed Loan Program.
• Community Facilities Guaranteed Loan Program.
• Business and Industry Loan Guarantee Program.
• Rural Energy for America Guaranteed Loan Program.

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

• The lender participating in programs under the initiative has the responsibility to submit applications for quality loans that are underwritten with generally accepted prudent lending practices for commercial, public and project financing. The lender will determine the loan term, interest rate, and collateral requirements, though these must be approved by the Agency. .

Q: What Collateral Is Required?

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

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

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

Q: What amount of equity is required for nre businesses and existing businesses?

• All borrowers are required to have sufficient capital or equity to mitigate the ongoing financial and operational risks of the business. Only REAP loans require a minimum of 25% of total project costs from other funding be placed into the project.

Q: Are there feasibility study requirements?

• The OneRD Guarantee Loan Initiative provides discretion and flexibility based on the complexity of the project in addition to the loan amount. Lenders may provide adequate discussion of project risks in the credit evaluation or in other application documents which may negate the need for an independent feasibility study.
• For B&I loans more than $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 regarding the technical and economic feasibility that would be contained in an independent 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 guarantee retention fee, will also be published annually.

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

• 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 the loan size.

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

• No. Provisions of the B&I CARES Act Program are contained in 7 CFR 4279.190.

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

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

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

• B&I CARES Act loans from multi-state lenders should be uploaded to the lenders unique OneRD Guarantee CloudVault, regardless of loan amount.

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

• B&I CARES Act loans from in-state lenders should be filed with the appropriate RD State Office.

Q: Are Rural Energy for America Program (REAP) grants affected by the OneRD Guarantee Loan Initiative?

• No. This initiative only impacts loan guarantees. 7 C.F.R. 4280 will continue to govern REAP grants.

Stakeholder Presentation July 13, 2020

Lender Guide: Eligibility, Origination and Servicing Provisions

OneRD Guarantee Loan Initiative: Outline of Regulatory Changes

OneRD Guarantee Loan Initiative: Outline of Regulatory Changes - Spanish

EAUTH LINC Instructions

Sample Approval Request Document

• OneRD Guarantee Loan Initiative Fact Sheet
• OneRD Guarantee Loan Initiative Fact Sheet – Spanish
• Water and Waste Disposal Guaranteed Loan Program Fact Sheet
• Community Facilities Guaranteed Loan Program Fact Sheet
• Business and Industry Loan Guarantee Program Fact Sheet
• Rural Energy for America Guaranteed Loan Program Fact Sheet