The Rural Housing Service (RHS), the Rural Business-Cooperative Service (RBCS), and the Rural Utilities Service (RUS), agencies of the Rural Development mission area (Agency), published a final rule with comment on July 14, 2020 (85 FR 42494) that created a unified guaranteed loan platform for enhanced delivery of four existing guaranteed loan programs: Community Facilities (CF) administered by RHS; Water and Waste Disposal (WWD) administered by RUS; and Business and Industry (B&I) and Rural Energy for America (REAP) administered by the RBCS.  The final rule was effective on October 1, 2020, and Rural Development began operating under the new guarantee loan platform.

Collectively, Rural Development’s guaranteed loan programs work to assist in building and maintaining sustainable rural communities. Through the public comment period  and monthly office hours with lenders and staff, the Agency had solicited feedback on the requirements and policies contained in the rule implemented on October 1, 2020.  With identified areas for revision or clarification, the Agency plans to issue a second final rule with comment to make amendments to the regulation. The second OneRD final rule with comment incorporates revisions intended to simplify, clarify, improve, expand and enhance the delivery of the four guaranteed loan programs.  These provisions include, among others, clearly defining specific project eligibility criteria, revising the requirements for lenders to participate in the programs, and streamlining the documentation requirements for submission of guaranteed loan applications.