USDA implements the OneRD Guarantee Loan Initiative; encourages private investment in rural... Story Date: 9/4/2020
Source: USDA, 9/1/20
United States Department of Agriculture (USDA) Deputy Under
Secretary for Rural Development Bette Brand today announced that USDA is
implementing the OneRD Guarantee Loan Initiative, releasing new information on rates and
terms that will help lenders apply for loan guarantees to support rural
businesses, infrastructure and community facilities and increase private
investments in rural America.
“Under the leadership of President Trump, USDA is committed to cutting red tape and streamlining investment, so we can be a better partner to America’s rural leaders in building prosperity.” Brand said.
Ahead of Fiscal Year 2021, USDA is providing guarantee percentages, annual fees, periodic retention fees, and optional construction fees to help lenders apply for the Agency’s four flagship loan guarantee programs. These programs are:
The fees in this notice
are effective Oct. 1, 2020. Additional information is available on page 54343
in the Sept. 1, 2020, Federal Register (PDF, 244 KB).
Background:
Today’s announcement comes as part of the Administration’s commitment to cut red tape and streamline regulations to increase private investment under the OneRD Guarantee Loan Initiative.
On July 13, 2020, U.S.
Secretary of Agriculture Sonny Perdue announced that 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 guarantee programs.
Through a series of regulatory reforms, USDA is eliminating duplicative processes and launching a single platform for the Agency’s four key loan guarantee programs.
USDA is also
standardizing requirements for credit reviews, loan processing, loan servicing
and loss claims. These measures will make the application process simpler and
faster for lenders.
The regulatory changes
will take effect on Oct. 1, 2020. Additional information is available on page
42494 of the July 14, 2020, Federal Register (PDF, 889 KB).
Interested parties may
join the OneRD Guarantee Loan Initiative subscription list to
receive updates from USDA on this initiative.
To learn more about
investment resources for rural areas, interested parties should contact their USDA Rural Development
state office.
USDA Rural Development
provides loans and grants to help expand economic opportunities and create jobs
in rural areas. This assistance supports infrastructure improvements; business
development; housing; community facilities such as schools, public safety and
health care; and high-speed internet access in rural areas. For more
information, visit www.rd.usda.gov.