Source: USDA, 7/13/20 U.S. Secretary of Agriculture Sonny Perdue today announced that
the United States Department of Agriculture (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 programs.“Under the leadership of President Trump, USDA is committed to cutting red tape and enhancing customer service so we can be a better partner to America’s rural leaders in building prosperity,” Secretary Perdue said. “These enhancements will make it easier for private lenders to use USDA programs to invest in rural businesses and grassroots rural economic development efforts.” USDA is seeking public
comment on a series of regulatory reforms known collectively as the OneRD
Guarantee Loan Initiative. Under the initiative, USDA will eliminate
duplicative processes and launch a single platform for four key loan programs: USDA also will
standardize requirements for credit reviews, loan processing, loan servicing
and loss claims. These measures will make the application process simpler and
faster for lenders. Among the reforms, USDA intends to:
- Launch a common loan note
guarantee application and consistent forms for lenders to use across the
four programs;
- Issue loan note guarantees to
lenders within 48 hours after they provide documentation to prove the
requirements of the conditional commitment have been met;
- Provide guarantee percentage and
fee requirements to lenders through a single annual notice at the
beginning of each fiscal year;
- Allow lenders to obtain approval
for a loan guarantee prior to the beginning of construction projects. A
one-time fee and other requirements may apply; and
- Provide
automatic approval to lenders in good standing who are supervised or
created by state or federal regulatory agencies to participate in all four
programs. This expands the base of eligible lenders for the four
guaranteed loan programs. Non-regulated lenders may seek approval to
participate through a single certification process that will be valid for
five years.
USDA plans to conduct a
series of listening sessions this summer on the proposed changes. For more
information on how to register, visit: www.rd.usda.gov/onerdguarantee. The changes will take effect on Oct. 1, 2020. Additional information is available in the July 13,
2020, Federal Register. Interested parties may join the OneRD Guarantee Loan Initiative subscription list to
receive updates from USDA on this regulatory change.
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