One RD Guarantee
Beginning Oct. 1, 2020, this program was streamlined under the OneRD Guarantee Loan Initiative. For more information, visit www.rd.usda.gov/onerdguarantee
What does this program do?
This program helps private lenders provide affordable financing to qualified borrowers to improve access to clean, reliable water and waste disposal systems for households and businesses in rural areas.
Who may apply for this program?
Lenders need the legal authority, financial strength and sufficient experience to operate a successful lending program. This includes lenders that are subject to supervision and credit examination by the applicable agency of the United States or a State including:
- Federal and State-chartered banks.
- Savings and loans.
- Farm Credit Banks with direct lending authority.
- Credit unions.
Other non-regulated lending institutions may also be approved by the Agency under the criteria of the OneRD regulation.
Who may qualify for these loan guarantees?
Eligible borrowers are:
- Public bodies.
- Federally-recognized Tribes.
- Non-profit businesses.
- Additional entities may be eligible for other types of loan guarantees under the OneRD Guarantee Loan Initiative.
What is an eligible area?
- Rural areas with populations of 50,000 residents or less, which excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H)*, based on the latest decennial census of the United States and not in the urbanized area contiguous and adjacent to that city or town.
- Check an eligible rural area.
- The lender may be located anywhere in the United States.
* Exclusion of incarcerated populations. Populations of individuals incarcerated on a long-term or regional basis shall not be included in determining whether an area is "rural" or a "rural area".
How may funds be used?
Construct or improve facilities for:
- Drinking water
- Sanitary sewers
- Solid waste disposal
- Storm water disposal facilities
Depending on the circumstances, some funds may also be used for:
- Guarantee and lender fees
- Legal and engineering fees
- Land acquisition and equipment
- Additional borrower labor to install and extend service
- Initial operating expenses
- Capitalized interest
- Purchase of existing facilities to improve service or prevent loss of service.
- Debt refinancing in some instances.
- See Code of Federal Regulations 7 CFR, Part 5001 for a complete list.
What is the maximum amount of a loan guarantee?
The loan guarantee percentage is published annually in a Federal Register notice. WEP loans approved will receive an 80 percent guarantee.
What are the loan terms?
The lender, with Agency concurrence, will establish and justify the guaranteed loan term based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral including revenues taken as security, and the borrower’s repayment ability. The loan term will not exceed 40 years.
What are the interest rates?
- Interest rates are negotiated between the lender and borrower.
- Rates may be fixed or variable.
- Variable interest rates may not be adjusted more often than quarterly.
What are the applicable fees?
- There is an initial guarantee fee, currently 1 percent of the guaranteed amount.
- There is a fee for the Issuance of Loan Note Guarantee Prior to Construction of 0.5 percent.
- Reasonable and customary fees for loan origination are negotiated between the borrower and lender.
What are the underwriting requirements?
- The lender will conduct a credit evaluation using credit documentation procedures and underwriting processes that are consistent with generally accepted prudent lending practices and also consistent with the lender’s own policies, procedures and lending practices.
- The lender’s evaluation must address any financial or other credit weaknesses of the borrower and project and discuss risk mitigation requirements.
- The lender must analyze all credit factors to determine that the credit factors and guaranteed loan terms and conditions ensure guaranteed loan repayment.
- Credit factors to be analyzed include but are not limited to character, capacity, capital, collateral, and conditions.
- Are there additional requirements?
- The borrower must have the legal authority needed to construct, operate and maintain the proposed facilities and the services they provide.
- All facilities financed with the aid of a loan guarantee must be used for public purposes.
Who will service the loan?
The lender is responsible for servicing the entire loan and taking all servicing actions that a reasonably prudent lender would perform in servicing its own portfolio of loans that are not guaranteed.
How do we get started?
- Lenders: Contact a representative in your local RD office. For details visit our website at www.rd.usda.gov/OneRDGuarantee.
- Borrowers: Ask your private lender if they participate in USDA loan guarantee programs.
Who can answer questions?
Contact the local Rural Development office that serves your area.
What governs this program?
Code of Federal Regulations, 7 CFR 5001.
NOTE: Program details may change over time. Before you begin an application, please confirm you have the most current information by contacting a program specialist in your local RD office for assistance, or consult the program instructions listed in the section above titled "What Governs this Program?"
RD 5001-1, Application for Loan and Guarantee
- SAM.gov registration
Applicant’s Organizational Documents (Nonprofit Organizations Only)
Lender’s disclosure of conflicts of interest, if applicable
Environmental Assessment - Please contact your local area office to determine the level of environmental assessment required. Early submittal recommended. Funding cannot be determined until environmental review is complete.
Preliminary Engineering Report – in a format required by the lender
Lender’s credit evaluation
Proposed loan agreement
Appraisal (if required by lender)
Credit Report (if required by lender)
NOTE: Please select your state in the dropdown menu above to find the state office contact information and speak to a program specialist before attempting to fill out any forms or applications. This will save you time in completing your application.
Individual states may have particular requirements based on state and local regulations. Please contact the local RD office in the state where your project is located.
Project emissions, including those created by potential secondary beneficiaries, shall be examined for conformance to the Clean Air Act and the Environmental Protection Agency's National Primary and Secondary Ambient Air Quality Standards.
Iowa has two "non-attainment" areas. The following link from EPA lists all the nonattainment areas: http://www.epa.gov/airquality/greenbook/
For questions contact Air Quality Helpline with Iowa DNR: (877) AIR-IOWA (247-4692).
If the proposal will emit large quantities of air pollutants, contact your Rural Development loan specialist and provide the information from Iowa DNR's Air Quality Section. Specialists will review the information to ascertain the level of environmental review required.
To determine emissions from other facilities in the project area check the EPA website at www.epa.gov/echo/, then:
1. Click on "Air data", in the Facility Characteristics check the "other minor" box.
2. In the Geographic Location boxes click on region 7, State IOWA, and fill in county name, and search. Print out page for file.
Air permits can be viewed at: http://www.iowadnr.gov/air/prof/const/const.html
Approved Coastal Zone Management Area
Iowa does not have any coastal zone management areas. http://coast.noaa.gov/czm/mystate/
Coastal Barrier included in Coastal Barrier Resources System Natural Landmark
Iowa does not have any coastal barrier areas. http://www.fws.gov/cbra/Maps/index.html#LocatorMaps.
The National Park Service web site can be found at: www.nps.gov. Under “Find a Park,” click on Iowa to locate national monuments, national historic sites, and historic trails.
Place printout from the website in the file.
Prime Forest Lands
There are no national prime forest lands in Iowa. http://www.fs.fed.us/maps/forest-maps.shtml
For State Forests: Check the DNR website at http://www.iowadnr.gov/Destinations/StateForests.aspx.
Place a printout from the website in the file.
Iowa does not have any prime range land areas. http://www.fs.fed.us/maps/forest-maps.shtml.
Sole Source Aquifer Recharge Area
Iowa does not have any designated sole source aquifers as referenced at the EPA website https://www.epa.gov/dwssa
Wild or Scenic Rivers
Iowa does not have any Wild and Scenic River as defined under the Wild and Scenic Rivers Act of 1968 (16 U.S.C. 1271) as referenced at the National Park Service website www.rivers.gov.
The State of Iowa and the Nationwide Rivers Inventory have designated several areas as protected waterways. View the list at http://www.nps.gov/ncrc/programs/rtca/nri/states/ia.html.
Wilderness (designated or proposed under the Wilderness Act)
Iowa has no national wilderness areas.
You may access information national wilderness areas and related state areas at the following sites:
WILDERNESS AREA: www.wilderness.net
The Forest Service, Bureau of Land Management, Fish & Wildlife Service, and National Park Service are charged with stewardship of Wilderness Area lands while providing for appropriate human use and enjoyment. To find out more about these special places, see the site above, which is jointly managed by the University of Montana and the four federal agencies that manage wilderness areas. This is an interactive site where you may type in an address to determine if there is a wilderness area within the area of a proposed project.
• In the left column select “Maps, Data and Images” / select Maps / Under “Online Maps” in the first paragraph, select “GIS Maps” / top header of the website, Choose one of two options for your search.
• Zoom by Typing or Select a Wilderness.
• Find a Place / City / Road.
• Select “Go” which takes you to the area of interest – Along the bottom of the page is the color codes for “Wilderness Managed By ……………”
• Gear symbol in the top right hand corner allows you to save and / or print the map as a source document for the environmental report.
STATE WILDLIFE MANAGEMENT AREA: http://www.iowadnr.com/wildlife/wmamaps/index.html
• Click on the appropriate county on the left-hand side of the screen.
STATE PRESERVE: http://www.iowadnr.gov/Destinations/StatePreserves.aspx
There are no other additional requirements at the national level. If there are additional state-specific requirements they will be listed above.
Community Programs Director in Iowa
Area Office Contacts
Area 1 - Iowa Falls Area Office
840 Brooks Road
Iowa Falls, IA 50126
Phone: 641-648-5181 Ext. 4 Fax: 866-255-6573
Counties Served: Butler, Cerro Gordo, Floyd, Franklin, Grundy, Hardin, Marshall, Mitchell, Tama and Worth
Area 2 - Waverly Area Office
1510 3rd Street, SW
Waverly, IA 50677
Phone: 319-352-1715 Ext. 4 Fax: 866-255-6573
Counties Served: Allamakee, Black Hawk, Bremer, Buchanan, Chickasaw, Clayton, Delaware, Fayette, Howard, and Winneshiek
Area 3 - Tipton Area Office
127 West South Street
Tipton, IA 52772
Phone: 563-886-6006 Ext. 4 Fax: 866-255-6573
Counties Served: Benton, Cedar, Clinton, Dubuque, Iowa, Jackson, Johnson, Jones, Linn, and Scott
Area 4 - Mt. Pleasant Area Office
709 S. Iris Street, Suite 103
Mount Pleasant, IA 52641
Phone: 319-986-5800 Ext. 4 Fax: 855-251-2237
Counties Served: Des Moines, Henry, Jefferson, Keokuk, Lee, Louisa, Muscatine, Van Buren, and Washington
Area 5 - Albia Area Office
1709 South "B" Street
Albia, IA 52531
Phone: 641-932-3031 Ext. 4 Fax: 855-251-2237
Counties Served: Appanoose, Davis, Jasper, Lucas, Mahaska, Marion, Monroe, Poweshiek, Wapello, and Wayne
Area 6 - Indianola Area Office
909 East 2nd Avenue, Suite C
Indianola, IA 50125
Phone: 515-961-5365 Ext. 4 Fax: 855-251-2238
Counties Served: Adair, Clarke, Dallas, Decatur, Guthrie, Madison, Polk, Ringgold, Union, and Warren
Area 7 - Atlantic Area Office
511 West 7th Street
Atlantic, IA 50022
Phone: 712-243-2107 Ext. 4 Fax: 855-251-2238
Counties Served: Adams, Audubon, Cass, Fremont, Harrison, Mills, Montgomery, Page, Pottawattamie, Shelby, and Taylor
Area 8 - Le Mars Area Office
1100 12th Street SW, Suite C
Le Mars, IA 51031
Phone: 712-546-5149 Ext. 4 Fax: 855-251-2245
Counties Served: Cherokee, Crawford, Ida, Lyon, Monona, O'Brien, Osceola, Plymouth, Sioux, and Woodbury
Area 9 - Storm Lake Area Office
1619 North Lake Avenue
Storm Lake, IA 50588
Phone: 712-732-1851 Ext. 4 Fax: 855-251-2245
Counties Served: Buena Vista, Calhoun, Carroll, Clay, Dickinson, Emmet, Greene, Palo Alto, Pocahontas, and Sac
Area 10 - Humboldt Area Office
1301 6th Avenue North, Suite 1
Humboldt, IA 50548
Phone: 515-332-4411 Ext. 4 Fax: 855-251-2245
Counties Served: Boone, Hamilton, Hancock, Humboldt, Kossuth, Story, Webster, Winnebago, and Wright
There are currently no events scheduled.