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Community Facilities/Water and Waste Disposal Guaranteed Programs 10/3/2019 Federal Register Notice

To which programs does the Notice apply?

• Community Facilities (CF) Guaranteed Loan Program; 7 CFR 3575 Subpart A

• Water and Waste Disposal (WEP) Guaranteed Loan Program; 7 CFR 1779

What does this Notice do?

Implements Sections 6402 and 6418 of the 2018 Farm Bill for Fiscal Year 2020

Section 6402

• Adopts the definition of Rural Area for a population of up to 50,000 for both the WEP and CF Guaranteed Programs

• Requires a reservation of CF guaranteed funds for projects serving populations of 20,000 or less

• Requires prioritization for WEP guaranteed funds for projects in rural areas of 10,000 or less

Through this Notice, RD is notifying potential applicants and the public of the new population limits for CF and WEP 

Guaranteed Loan Programs, as well as statutorily required reservation or prioritization of funding.

 

Section 6418

Provides authority for additional fees for Guaranteed Loans under the Consolidated Farm and Rural Development Act. 

Through this Notice, RD is announcing the fees it will charge on CF and WEP Guaranteed loans in FY 2020.

When is the Notice effective?

Starting 10/2/2019 CF and WEP Guaranteed Loan applications proposing to serve communities up to 50,000 in 

population can be submitted to Rural Development and processed up to the point of approval.

Starting 12/2/2019 Obligations of funds for CF and WEP approved Guaranteed Loans begins.

Who can I contact if I have questions?

Program Area Point of Contact

Community Facilities Please contact the appropriate State Office Community Programs 

Director https://www.rd.usda.gov/browse-state

Water and Waste Disposal Please contact the appropriate State Office Water and Environmental

Programs Director https://www.rd.usda.gov/browse-state
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How does it work?

Population

CF Guaranteed Loans WEP Guaranteed Loans

New Population 

Limits

Up to 50,000 Up to 50,000

How the Reservation

or Prioritization of 

Funds Works

Appropriated funds are reserved for projects serving 

20,000 or less population in the following manner: 

• 100% of the first $200,000,000

• 50% of the next $200,000,000 

• 25% of all amounts exceeding $400,000,000 

Based on the reservation of funds schedule outlined 

above, applications received where no funds are 

available (i.e. applications for projects in areas with 

more than 20,000 inhabitants, but only reserved 

funding is available) will not be processed by RHS and 

will be returned to the lender.

For FY 2020, the Agency will use National 

Office reserves to ensure that funding is 

prioritized for eligible projects in rural 

areas with a population of not more than 

10,000 people.

A Community Facilities Guaranteed Property Eligibility mapping tool is available on the RD website at 

https://eligibility.sc.egov.usda.gov/eligibility/welcomeAction.do?pageAction=CFG. 

Fees

CF Guaranteed Loans WEP Guaranteed Loans

Upfront 

Fee

1.5%

The fee is determined by multiplying the amount of the 

guarantee fee rate (1.5 percent) by the principal loan 

amount multiplied by the percent of guarantee.

1%

The fee is determined by multiplying the amount of 

the guarantee fee rate (1.0 percent) by the principal 

loan amount multiplied by the percent of guarantee.

Annual 

Renewal 

Fee

0.5%

The amount of the annual fee on each guaranteed loan will 

be determined by multiplying the annual fee rate (.5%) by 

the outstanding principal loan balance as of December 31, 

multiplied by the percentage of guarantee. 

For Loan Note Guarantees issued in FY 2020, the annual 

renewal fee will be assessed on December 31, 2020, and is 

due January 31, 2021

0.0%