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[Federal Register Volume 69, Number 191 (Monday, October 4, 2004)]
[Notices]
[Page 59185]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 04-22217]

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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service

Maximum Portion of Guarantee Authority Available for Fiscal Year 
2005

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: As set forth in 7 CFR 4279.107 (b) and 4279.119 (b)(4), each 
fiscal year the Agency shall establish a limit on the maximum portion 
of guarantee authority available for that fiscal year that may be used 
to guarantee loans with a guarantee fee of 1 percent or guaranteed 
loans with a guarantee percentage exceeding 80 percent.
    Allowing the guarantee fee to be reduced to 1 percent or exceeding 
the 80 percent guarantee on certain guaranteed loans that meet the 
conditions set forth in 7 CFR 4279.107 and 4279.119 will increase the 
Agency's ability to focus guarantee assistance on projects which the 
Agency has found particularly meritorious, such as projects in rural 
communities that remain persistently poor, which experience long-term 
population decline and job deterioration, are experiencing trauma as a 
result of natural disaster, or are experiencing fundamental structural 
changes in the economic base.
    Not more than 12 percent of the Agency's quarterly apportioned 
guarantee authority will be reserved for loan requests with a guarantee 
fee of 1 percent, and not more than 15 percent of the Agency's 
quarterly apportioned guarantee authority will be reserved for 
guaranteed loan requests with a guaranteed percentage exceeding 80 
percent. Once the above quarterly limits have been reached, all 
additional loans guaranteed during the remainder of that quarter will 
require a 2 percent guarantee fee and not exceed an 80 percent 
guarantee limit. As an exception to this paragraph and for the purposes 
of this notice, loans developed by the North American Development Bank 
(NADBank) Community Adjustment and Investment Program (CAIP) will not 
count against the 15 percent limit. Up to 50 percent of CAIP loans may 
have a guaranteed percentage exceeding 80 percent. The funding 
authority for CAIP loans is not derived carryover or recovered funding 
authority of the B&I Guaranteed Loan Program.
    Written requests by the Rural Development State Office for approval 
of a guaranteed loan with a 1 percent guarantee fee or a guaranteed 
loan exceeding 80 percent must be forwarded to the National Office, 
Attn: Director, Business and Industry Division, for review and 
consideration prior to obligation of the guaranteed loan. The 
Administrator will provide a written response to the State Office 
confirming approval or disapproval of the request.

EFFECTIVE DATE: October 4, 2004.

FOR FURTHER INFORMATION CONTACT: Fred Kieferle, Processing Branch 
Chief, Business and Industry Division, Rural Business-Cooperative 
Service, USDA, Stop 3224, 1400 Independence Avenue, SW., Washington, DC 
20250-3224, telephone (202) 720-7818.

SUPPLEMENTARY INFORMATION: This action has been reviewed and determined 
not to be a rule or regulation as defined in Executive Order 12866.

    Dated: September 22, 2004.
Peter J. Thomas,
Administrator.
[FR Doc. 04-22217 Filed 10-1-04; 8:45 am]
BILLING CODE 3410-XY-P
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