USDA's Rural Business Cooperative Service (RBCS) received funding and authority through Division B, title I of the CARES Act to provide for additional funds for use under the Business & Industry (B&I) Guaranteed Loan Program.  In accordance with the CARES Act, the purposes of the additional B&I funding is to prevent, prepare for and respond to the effects of the pandemic. It is the Agency’s intent that guaranteed loan funds will be primarily for working capital loan purposes to support business operations and facilities in rural areas. 

An interim rule was published for immediate implementation of  the B&I Coronavirus Aid, Relief, and Economic Security Act (CARES Act) on May 22, 2020 (V.85, No. 100, Pg. 31035) which supplemented the B&I Guaranteed Loan Program as implemented in 7 CFR part 4279, Guaranteed Loan Making and 7 CFR part 4287, Servicing - with inclusion of the new B&I CARES Act Guaranteed Loan Program (B&I CARES Act Program) in 7 CFR 4279.190 to provide assistance to businesses impacted by the coronavirus emergency.  The interim rule applied to applications submitted under the B&I CARES Act Guaranteed Loan Program through June 22,2020 or until program funds were expended. RBCS staff have successfully implemented the interim final requirements.

Since the publication of the interim rule, funds have been fully expended and the Agency received public comments from interested members of the public regarding the interim rule for consideration of making changes based on those comments. The Agency has determined that some clarifications and modifications should be made to the regulation to further improve program delivery. 

 With continuous interaction with stakeholders as well as receipt of public comments, the Agency has determined that some clarifications and modifications should be made to the regulation to further improve program delivery. This final rule will provide clarification and modification to further enhance opportunities for rural businesses to use the B&I program to directly respond to and alleviate the issues resulting from the National COVID-19 Public Health Emergency. This change in the final rule will help the program clarify their intent of eligible purposes.