USDA Cuts Red Tape to Increase Private Investment in Rural America
Department Invites Comment on Regulation Streamlining Through OneRD Guarantee Loan Initiative
(Washington, D.C., July 13, 2020) – U.S. Secretary of Agriculture Sonny Perdue today announced that the United States Department of Agriculture (USDA) is taking steps to increase private investment in rural communities across the country by making it easier for lenders to access four flagship loan programs.
- Water and Waste Disposal Loan Guarantees Program;
- Community Facilities Guaranteed Loan Program;
- Business and Industry Guaranteed Loan Program; and
- Rural Energy for America Guaranteed Loan Program.
- Launch a common loan note guarantee application and consistent forms for lenders to use across the four programs;
- Issue loan note guarantees to lenders within 48 hours after they provide documentation to prove the requirements of the conditional commitment have been met;
- Provide guarantee percentage and fee requirements to lenders through a single annual notice at the beginning of each fiscal year;
- Allow lenders to obtain approval for a loan guarantee prior to the beginning of construction projects. A one-time fee and other requirements may apply; and
- Provide automatic approval to lenders in good standing who are supervised or created by state or federal regulatory agencies to participate in all four programs. This expands the base of eligible lenders for the four guaranteed loan programs. Non-regulated lenders may seek approval to participate through a single certification process that will be valid for five years.