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The RUS will modify its coverage ratio requirements in 7 CFR part 1710.114 to add an additional set of ratios to be considered for compliance which will allow more flexibility for RUS Borrowers’ to meet their coverage ratios. In addition, (as detailed below) RUS will be adding the definitions for Modified Times Interest Earned Ratio (MTIER) and Modified Debt Service Coverage (MDSC) to 7 CFR part 1710.2 and update the definitions for Times Interest Earned Ratio (TIER), Debt Service Coverage (DSC), Operating Times Interest Earned Ratio (OTIER) and Operating Debt Service Coverage (ODSC) in 7 CFR part 1710.2 to utilize the data from the current RUS Financial and Operating Reports filed utilizing the RUS Data Collection System (DCS). These new and clarified terms will provide more clarity and ease of use for the program’s applicants, and is based on stakeholder feedback.

To implement these changes, RUS will publish this as a final rule without prior notice. The Administrative Procedure Act exempts from prior notice rules with any actions "relating to agency management or personnel or to public property, loans, grants, benefits, or contracts" (5 U.S.C. 553(a)(2)).