Business, Electric and 

Telecom Section Loan 

Servicing Support Guide 

Together, America Prospers 
Table of Contents 

Introduction 3 

Role of the Servicing Office’s Business, 

Electric and Telecom Section 3 

Contact Information 4 

Payment Options 4 

Other Information 5 

Federal Financing Bank Loans 7 
USDA Rural Development BETS Loan Servicing Guide 

3 

Introduction 

Role of the Servicing Office’s Business, 

Electric and Telecom Section 

Your USDA Rural Electric or Telephone (RET), Rural Telephone Bank (RTB), 

Broadband (BBL), Rural Energy Savings Program (RESP) or Federal Financing 

Bank (FFB) loan is serviced by the Business, Electric and Telecom Section (BETS) 

located in our St. Louis-based Servicing Office. Our mission is to provide – through 

exemplary customer service – efficient loan servicing for USDA RD programs. 

BETS offers a variety of services designed 

to assist and support rural cooperatives 

and other organizations with USDA Rural 

Development loans. Following are descriptions 

of some of the ways we can help you. 

Payment Processing 

We can help you understand your billing 

statement, including such things as knowing 

how much, when, and where to make your 

payment. 

• Monthly billing statements are generated

around the tenth day of each month. You

will receive your statement about 10 days

before your payment due date.

• For all programs except FFB, your monthly

payment is first applied to all outstanding

interest through the current payment due 

date, then to any overdue principal

amounts, then to outstanding principal as

billed in your installment or amortization

schedule. Any overdue amounts will be

included in the next billing cycle and will

be visible on your statement.

For FFB loans, see page 7.

Amortization Schedules and Interest 

Rate Confirmations

At your request — and as soon as the day 

after an advance has been issued — we will 

supply an amortization schedule for new and 

existing advances. While it is not possible to 

provide an official interest rate confirmation, 

we can provide verification of the current 

interest rate on an advance. For FFB loans, 

see page 7. 

Quarterly Statements 

Quarterly statements are mailed about 15 days 

following the end of each quarter (March 31, 

June 30, September 30, and December 31). 

Quarterly statements include information from 

all loan programs, including the account number, dates and types of transactions, interest 

rate, principal, and deferred principal. At your 

request, we will also provide copies of prior 

quarterly statements. 
4 

USDA Rural Development BETS Loan Servicing Guide 

For questions, concerns, or requests 

regarding your loan or loans, please email 

BETS at rd.so.bets@usda.gov. 

Customer Initiated Payment (CIP) 

We strongly encourage you to use our 

Customer Initiated Payment (CIP) portal to 

make your payments. This free portal allows 

you to schedule payments up to 30 days 

before the due date provided on your bill. 

However, your payment must be scheduled 

by 8 p.m. eastern the business day before it 

is due. 

The effective date of your payment must be 

the due date or on the prior business day if 

the due date falls on a weekend or holiday. 

Online instructions are available at this link: 

https://rdupcip.sc.egov.usda.gov. 

For questions or concerns regarding CIP, 

email the Collections Branch (CB) at 

rd.cfo.cb@usda.gov, or call (314) 457-4023. 

Audit Confirmations

Confirmations to the auditor of record usually 

are mailed 15 days after the audit date. A copy 

will be provided to your auditor of record upon 

request. You can also ask us to release a copy 

to a designated third party. 

• For changes to your auditor of record or

audit date, please email your request to the

Technical Accounting Review Branch

at sm.rd.cmpl.tarb@usda.gov.

• Be sure to include your 6-digit borrower

identification number, the auditor’s name,

mailing address, and phone number.

NOTE: Without your approval, we cannot 

release audit information to an outside party 

other than the auditor of record. 

Managing Rollovers 

We usually email RET rollover letters within 

30 days of the interim maturity date. Your 

questions and completed forms must be 

returned to BETS by email at rd.so.bets@usda. 

gov by the deadline shown in the letter. For 

FFB loans, see page 7. 

Contact Information 

Payment Options 
5 

USDA Rural Development BETS Loan Servicing Guide 

Computation of current interest due: 

Here is the formula we use for computing 

current interest due: 

CID = ((PB * IR) * NDLP / NDCY) – IOP 

Fedwire Bank Routing 

ROUTING TRANSIT NO. 021030004 

TREAS NYC 

ACCOUNT (ALC) 12200408 

If Fedwire is your preferred payment method, 

be sure to include your 6-digit borrower 

identification number at the beginning of the 

remarks or reference field to ensure your 

payment is applied to the correct account. 

Other Information 

Daily Interest Accrual 

Our Commercial Loan Servicing System 

(CLSS) adds interest daily on the outstanding 

principal balance of RET, RTB, RESP and BBL 

loans. It calculates the actual number of days 

your balance is outstanding, up to and 

including the effective date your payment is 

received by the Cash Management 

Collections Branch. 

On your monthly billing statement, you will 

see you are billed interest accrued after the 

effective date of the prior month through 

the next month’s billing statement due date. 

However, your installment amount will not 

change. 

CLSS cannot apply payments toward a future 

date. As a result, payments made before the 

due date apply only toward interest accrued 

through the effective date; not to interest 

accrued after the effective date through the 

billing statement’s due date. 

The billing statement due date is always the 

last day of the month, whether that falls on 

a weekday, weekend, or holiday. Therefore, 

if you make an early payment, it results 

in an overpayment of loan interest. That 

overpayment applies toward the principal of 

your oldest RET loan, or to the present loan if 

no older loan exists. These payments are not 

considered prepayments. For FFB loans, see 

“Processing Payments” on page 7. 

Installment: $1,200 ($801.37 interest 

plus $398.63 principal) 

PB: $150,000 

IR: 6.5 percent 

NDCY: 365 

Last Payment 

Date: August 31, YYYY 

 Due Date: September 30, YYYY 

CID: (($150,000 * .065) * 25/365) 

= $667.81 

CID: (($150,000 * .065) * 35/365) 

= $934.93. Therefore, 

$265.07 will be applied to 

principal, rather than to the 

scheduled $398.63. 

CID: Current Interest Due 

PB: Principal Balance 

IR: Interest Rate 

NDLP: Number of days from last 

payment date that affected 

principal to the date of 

payment or billing due date 

NDCY: Number of days in the 

calendar year 

IOP: Amount of interest paid if 

interest-only payment was 

received 

Assumptions for examples 1 and 2 below: 

Example 1 – early payment on 

September 25, YYYY: 

Example 2 – late payment on 

October 5, YYYY: 

Therefore, $532.19 will be applied to principal, 

rather than to the scheduled $398.63. 
6 

USDA Rural Development BETS Loan Servicing Guide 

Definitions for Billing of Interest and Principal Due

Account Number: A number derived from 

a combination of information from the USDA 

Rural Development program, note designation, 

loan designation, and advance number. 

Current Interest: The interest part of the 

payment due, from the previous payment’s 

effective date through the billing statement due 

date. 

Date Due: The date your payment is due. 

Grand Total Due: The total of all amounts due 

for all programs. 

Net Total Due: The total amount of all amounts 

due on a particular statement. 

Note Designation: The number assigned to 

the promissory note. 

Other Amount Due: The amount due from 

other billing items. 

Other Billing Item: The designation that indicates other items due, such as refinancing fees 

or Section 9 interest (see definition to the right). 

Outstanding Principal: The balance of the 

principal amount still due. 

Overdue Amount: Any past-due amount to be 

included in total amount due. 

Payment Due: The total amount of principal, 

current interest, and other amounts due. 

Principal Due: The non-interest amount of 

the payment due. 

Program: The agency loan originator for the 

account referenced. 

Reference Number: Your 6-digit borrower 

identification number. 

Section 9 Interest: A fee assessed by FFB 

to cover expenses and contingencies. It 

accrues on the outstanding principal amount 

of each advance from the date on which the 

respective advance is made to the date on 

which the principal amount of the advance 

is due. The fee on each advance is equal 

to one-eighth of one percent (.0125) per 

annum of the unpaid principal balance of 

the advance. The fee on each advance is 

computed in the same manner accrued 

interest is computed under paragraph 6(b) 

of your loan note, and is due and payable at 

the same time accrued interest is due and 

payable under paragraph 7 of your loan note. 

The fee on each advance must be credited 

to USDA’s Rural Utilities Service as required 

by the Federal Credit Reform Act of 1990, 

amended (2 U.S.C. Section 661 – available at 

this link: https://tinyurl.com/3j7hh694.) 

Total Amount Due: The total amount due to 

USDA Rural Development. 

Totals: The sum of each field for all accounts.
Definitions for Statement of Loan Account and Transactions

Account Number: A number derived from 

a combination of information from the USDA 

Rural Development program, note designation, 

loan designation, and advance number. 

Balance as of Month, Day, Year: The total on 

this specific date of all unpaid balances for all 

loan accounts. 

Capitalized Interest: The outstanding amount 

of accrued interest capitalized on a quarterly 

basis. 

Date of Transaction: The effective date of a 

particular transaction or event. 

Deferred Principal Outstanding Balance: 

The amount of unpaid deferred principal. 

Event Name: The identification of the transaction processed or event for which balances are 

displayed. 

Interest Rate: The interest rate on the account 

as of the effective date of the transaction or 

event. 

Loan Designation: The letter and number 

assigned to your loan contract. 

Note Amount: The amount on the promissory 

note of a specific loan. 

Note Date: The date the promissory note’s 

provisions are effective. 

Note Designation: The identification number 

assigned to the promissory note. 

Paid or Applied: The amount you paid or 

applied to the account described in the event 

name column. 

Principal Outstanding Balance: The amount 

of unpaid principal.The total amount due to 

USDA Rural Development. 

Reference Number: Your identification 

number. 

Unadvanced Amount: The amount left for 

disbursement on a promissory note. 

Federal Financing Bank Loans 

FFB Amortization Schedules 

The Federal Financing Bank (FFB) generates and emails amortization schedules – including 

advance details and interest rates – the night before an advance date. 

To update your contact information and receive your amortization schedule from FFB, please email 

BETS at rd.so.bets@usda.gov and cc: FFB_Admin@treasury.gov.

FFB Rollovers 

FFB rollover letters usually are mailed using the U.S. Postal Service 45 days before the rollover date. 

You must return your completed forms to all parties listed in the rollover letter no later than the deadline noted. If you have questions about a rollover letter, email BETS at rd.so.bets@usda.gov. 

FFB Processing Payments 

You can make payments on FFB debt any time during the billing cycle. Your payment will be applied 

according to the bill – regardless of the effective date – as long as your payment is received on or 

before the due date. Unpaid balances due are charged daily interest. 

7 

USDA Rural Development BETS Loan Servicing Guide 
USDA is an equal opportunity provider, employer, and lender. 

Together, America Prospers 

RD-2304 

August 2023 

In accordance with federal civil rights law and U.S. Department 

of Agriculture (USDA) civil rights regulations and policies, the 

USDA, its agencies, offices, and employees, and institutions 

participating in or administering USDA programs are prohibited 

from discriminating based on race, color, national origin, 

religion, sex, gender identity (including gender expression), 

sexual orientation, disability, age, marital status, family or 

parental status, income derived from a public assistance 

program, political beliefs, or reprisal or retaliation for prior civil 

rights activity, in any program or activity conducted or funded 

by USDA (not all bases apply to all programs). Remedies and 

complaint filing deadlines vary. Those with disabilities who 

need alternative means of communication (for example, Braille, 

large print, audiotape, and American Sign Language, among 

others) can contact the responsible agency or USDA’s TARGET 

Center at (202) 720-2600 (voice and TTY), or contact USDA 

through the Federal Relay Service at (800) 877-8339. Program 

information also can be made available in languages other 

than English. 

To file a program discrimination complaint, complete the USDA 

Program Discrimination Complaint Form, AD-3027, available 

at this link: https://go.usa.gov/xzzfW, and at any USDA office. 

Or, write a letter addressed to USDA and provide all of the 

information requested in the form. Call (866) 632-9992 to 

request a copy of the complaint form. Submit your completed 

form or letter to USDA by: (1) postal mail: U.S. Department of 

Agriculture, Office of the Assistant Secretary for Civil Rights, 

1400 Independence Avenue, SW, Washington, D.C. 

20250-9410 (2) fax: (202) 690-7442, or (3) email: 

program.intake@usda.gov. 

USDA is an equal opportunity provider, employer, and lender.