WASHINGTON, Aug. 31, 2020 – United States Department of Agriculture (USDA) Deputy Under Secretary for Rural Development Bette Brand today announced that USDA is implementing the OneRD Guarantee Loan Initiative, releasing new information on rates and terms that will help lenders apply for loan guarantees to support rural businesses, infrastructure and community facilities and increase private investments in rural America.
“Under the leadership of President Trump, USDA is committed to cutting red tape and streamlining investment, so we can be a better partner to America’s rural leaders in building prosperity.” Brand said.
Ahead of Fiscal Year 2021, USDA is providing guarantee percentages, annual fees, periodic retention fees, and optional construction fees to help lenders apply for the Agency’s four flagship loan guarantee programs. These programs are:
The fees in this notice are effective Oct. 1, 2020. Additional information is available in the Aug. 31, 2020, Federal Register (PDF, 203 KB).
Background:
Today’s announcement comes as part of the Administration’s commitment to cut red tape and streamline regulations to increase private investment under the OneRD Guarantee Loan Initiative.
On July 13, 2020, U.S. Secretary of Agriculture Sonny Perdue announced that 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 guarantee programs.
Through a series of regulatory reforms, USDA is eliminating duplicative processes and launching a single platform for the Agency’s four key loan guarantee programs.
USDA is also standardizing requirements for credit reviews, loan processing, loan servicing and loss claims. These measures will make the application process simpler and faster for lenders.
The regulatory changes will take effect on Oct. 1, 2020. Additional information is available on page 42494 of the July 14, 2020, Federal Register (PDF, 889 KB).
to receive updates from USDA on this initiative.
USDA Rural Development provides loans and grants to help expand economic opportunities and create jobs in rural areas. This assistance supports infrastructure improvements; business development; housing; community facilities such as schools, public safety and health care; and high-speed internet access in rural areas. For more information, visit www.rd.usda.gov.
#
