U.S. flag

An official website of the United States government

Dot gov

Official websites use .gov
A .gov website belongs to an official government organization in the United States.

Https

Secure .gov websites use HTTPS
A lock () or https:// means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites.

OneRD Guarantee

What is the OneRD Guarantee Loan Initiative?

USDA has removed 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 program. Only lenders are eligible to apply. The programs are:

Subscribe to Updates
FY22 Annual NoticeHow To Apply Current Forms Submit a Lender Approval Request Final Rule Fact Sheet FAQS

FY22 Funding Availability

Fiscal Year 2022

Fiscal Year 2022 obligations, remaining balances and number of applications to date by program. Updated - December 8, 2021

Program Funding Funds Obligated YTD Funding Status -
Remaining Balances
Total Loan Amounts of Pending Guarantee Requests
Business & Industry Guaranteed Loan (1% +3%)  $539,348,259 $161,330,934 $378,017,325 $605,520,783
Rural Energy for America Guaranteed Loan Program $1,641,347,602.38 $7,782,000 $1,633,565,602 $220,385,823
Community Facilities Guaranteed Loan Program $500,000,000 $0 $500,000,000 $60,524,780
Water and Waste Disposal Guaranteed Loan Program  $123,059,011.11 $0 $123,059,011.11 $0

One RD Guarantee RSS FeedSubscribe to this RSS feed to stay up to date

Fiscal Year 2021

Fiscal Year 2021 obligations, remaining balances and number of applications to date by program. Updated - September 29, 2021

Program Funding Funds Obligated YTD Funding Status -
Remaining Balances
Total Loan Amounts of Pending Guarantee Requests
Business & Industry Guaranteed Loan (1% +3%)  $1,951,325,795 $1,607,599,092 $343,726,703 $679,021,010
Rural Energy for America Guaranteed Loan Program $538,889,822 $416,382,190 $122,507,632 $275,530,742
Community Facilities Guaranteed Loan Program $500,000,000 $146,852,190 $353,147,810 $98,598,127
Water and Waste Disposal Guaranteed Loan Program $89,212,325.00
(includes carry over funding from FY2020)
$34,972,869.65 $54,239,455.35 $0.00

2021 Lender Guide

This guide outlines resources and information to help lenders apply for programs under the OneRD Guarantee Loan Initiative.

Download PDF

Lender Help Desk

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

Lenders may submit questions to OneRDGuarantee@usda.gov.

 

How to Apply

The Agency is making resources available to help lenders get started on their applications to 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 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 2022, 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, 2021.

    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%

Frequently Asked Questions

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

  • 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?

  • 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?

    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.