View Rule

View EO 12866 Meetings Printer-Friendly Version     Download RIN Data in XML

USDA/RBS RIN: 0570-AA85 Publication ID: Fall 2014 
Title: Business and Industry (B&I) Guaranteed Loan Program 
Abstract:

The Agency published a proposed rule for the Business and Industry Guaranteed Loan Program on September 15, 2014 (78 FR 22044), which, when finalized, would revise the 1996 B&I regulations.  While there have been some minor modifications to the B&I Guaranteed Loan Program regulations since 1996, this action is in response to the implement 2014 Farm Bill provisions and makes needed refinements to the regulation.  These changes are design to enhance the program, improve efficiency, correct minor inconsistencies, clarify the regulations, and ultimately reduce delinquencies. The Agency held several lender meetings throughout the country to see how changes to the program could benefit lenders who utilize the program. The proposed changes being considered may result in a lower the subsidy rate.  The rule, when finalized, is intended to increase lending activity, expand business opportunities, and create more jobs in rural areas, particularly in areas that have historically experienced economic distress.

 
Agency: Department of Agriculture(USDA)  Priority: Other Significant 
RIN Status: Previously published in the Unified Agenda Agenda Stage of Rulemaking: Final Rule Stage 
Major: No  Unfunded Mandates: No 
EO 13771 Designation: uncollected 
CFR Citation: 7 CFR 4287    7 CFR 4279   
Legal Authority: Consolidated Farm and Rural Development Act   
Legal Deadline:  None

Statement of Need:

With the passage of the 2014 Farm Bill, there is the need to conform certain portions of the B&I Guaranteed Loan Program regulations with requirements found in the 2014 Farm Bill, such as the addition of cooperative equity security guarantees, the locally and regionally grown agricultural food products initiative, and exceptions to the rural area definition. In addition, with the passage of time, the Agency proposed revisions intended to improve program delivery and administration, leverage program resources, better align the regulation with the program's goals and purposes, clarify the regulations, and reduce delinquencies and defaults. These proposed revisions may also improve program subsidy costs.  A reduction in program subsidy costs may increase funding availability for additional projects, further improving the economic conditions of rural America. This may result in increased lending activity, the expansion of business opportunities, and the creation of more jobs in rural areas.

Summary of the Legal Basis:

Consolidated Farm and Rural Development Act, as amended by the 2008 and 2014 Farm Bill.

Alternatives:

The only alternative would be the status quo, which is not an acceptable alternative.

Anticipated Costs and Benefits:

The benefits of the proposed rule include a possible reduction in loan losses, a lower subsidy rate, and streamline program delivery. The program changes have a cumulative effect of lowering the program cost; however, the amount of the change in cost cannot be estimated with any reasonable precision.

Risks:

There are no associated risks to the public health, safety or the environment.

Timetable:
Action Date FR Cite
Proposed Rule  09/15/2014  79 FR 55316   
Final Rule  09/00/2015 
Regulatory Flexibility Analysis Required: No  Government Levels Affected: None 
Federalism: No 
Included in the Regulatory Plan: Yes 
RIN Data Printed in the FR: No 
Agency Contact:
Brenda Griffin
Loan Specialist, B&I Processing Division
Department of Agriculture
Rural Business-Cooperative Service
Room 6847/Stop 3224, 1400 Independence Avenue SW.,
Washington, DC 20250
Phone:202 720-6802
Fax:202 720-6003
Email: brenda.griffin@wdc.usda.gov