{"database": "openregs", "table": "cfr_sections", "is_view": false, "human_description_en": "where part_number = 4280 sorted by section_id", "rows": [["7:7:15.1.19.2.6.1.24.1", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.1 Purpose.", "RBS", "", "", "", "The Rural Economic Development Loan (REDL) and Grant (REDG) Programs provide financing to eligible Rural Utilities Service (RUS) electric or telecommunications borrowers (Intermediaries) to promote rural economic development and job creation projects."], ["7:7:15.1.19.2.6.1.24.10", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.18 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.11", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.19 REDG Grants.", "RBS", "", "", "[79 FR 76015, Dec. 19, 2014]", "Intermediaries receiving Grants must partially finance a Revolving Loan Fund that the Intermediary will operate and administer, by providing supplemental funds of at least 20 percent of the Grant. Grants are subject to 2 CFR parts 200, 400, 415, 417, 418, 421 as applicable."], ["7:7:15.1.19.2.6.1.24.12", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.20 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.13", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.21 Eligible REDG Ultimate Recipients and Projects.", "RBS", "", "", "", "The Intermediary may only make loans from the Revolving Loan Fund to entities located in a Rural area of a State. Eligible entities are as follows:\n\n(a) Non-profit entities, public bodies, or Federally-recognized Indian tribes Ultimate Recipients for:\n\n(1) Community development or Community Facility Projects that:\n\n(i) will create or save employment; and\n\n(ii) are open to and serve all Rural residents, and are owned by the Ultimate Recipient;\n\n(2) Business Incubators;\n\n(3) Facilities and equipment to provide education and training to residents of Rural Areas that will facilitate economic development;\n\n(4) Facilities and equipment to provide medical care to residents of Rural Areas. Equipment and facilities may be funded to enable eligible entities to provide medical training and related professional health care skills to rural health care providers;\n\n(5) Projects that utilize Advanced Telecommunications or computer networks to facilitate medical or educational services or job training; or\n\n(6) Project feasibility studies and Technical Assistance. A qualified Independent Provider must perform feasibility studies or Technical Assistance.\n\n(b) For-profit Ultimate Recipients for Projects under paragraphs (a)(3), (4), (5), or (6) of this section."], ["7:7:15.1.19.2.6.1.24.14", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.22 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.15", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.23 Requirements for lending from Revolving Loan Fund.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014]", "(a)  Supplemental contribution.  The Intermediary must establish a Revolving Loan Fund and contribute an amount equal to at least 20 percent of the Grant. The supplemental contribution must come from Intermediary's funds which may not be from other Federal Grants, unless permitted by law.\n\n(b)  Use of supplemental contribution.  The Intermediary's contribution will only be used to make REDG loans and not other investment purposes. The Intermediary's contribution must remain a permanent part of the Revolving Loan Fund until the Fund is terminated.\n\n(c)  REDG Zero-Interest Loan Requirements.  The Fund is made up of Rural Development and Intermediary contributions and must be loaned in accordance with one of the following 2 options:\n\n(1) The contribution may be used to fund the same Project that Rural Development is funding. The interest rate on that portion of the financing using Rural Development funds will be at zero percent. The interest rate on that portion of the financing using the Intermediary's contribution may be greater than zero percent but must be less than, or equal to, the prevailing prime rate. Using this option, loan security and recovery of loan losses must provide for the pro rata recovery and distribution between the Intermediary and Rural Development based on the respective amounts of each contribution to the total loan amount for the Project.\n\n(2) The Intermediary's contribution may be used to fund Projects separate from the Project financed with Rural Development funds, provided that the Project is eligible in accordance with \u00a7 4280.21.\n\n(3) Whether the Intermediary chooses the option under paragraph (c)(1) or paragraph (c)(2) of this section, its contribution must be used to fund an eligible Project within 3 years from the date of the Grant agreement. If the Intermediary fails to use its contribution within this 3-year period, Rural Development will terminate the Grant.\n\n(d)  Intermediary's supplemental funds.  Once revolved, monies from the Fund may be loaned at an interest rate called for in the Revolving Loan Fund Plan, not to exceed the prevailing prime rate.\n\n(e)  Eligible purposes only.  Until the total amount in the Fund has been loaned, all loans must be made for eligible purposes as stated in \u00a7 4280.21. After the Fund has been loaned, in accordance with \u00a7 4280.21 of this subpart, the Intermediary shall make loans to finance rural economic development purposes in accordance with the Revolving Loan Fund Plan. All loan repayments, including interest earned, must be deposited into the Fund.\n\n(f)  Termination for cause.  Rural Development will terminate the Fund and require repayment of the Grant funds if Rural Development determines that the Fund is not being operated according to the approved Revolving Loan Fund Plan, this subpart, or for other good cause determined by Rural Development, such as questionable prepayment of initial loans. As applicable, Rural Development will follow remedies for noncompliance, closeout and post-closeout adjustments and continuing responsibilities in accordance with 2 CFR 200.338-200.344 as codified by 2 CFR 400.1.\n\n(g) All REDG Loans must be made to Rural Ultimate Recipients."], ["7:7:15.1.19.2.6.1.24.16", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.24 Revolved funds.", "RBS", "", "", "", "Rural Development and the Intermediary's supplemental funds will be considered revolved after they have been loaned to Ultimate Recipients and subsequently repaid. Loans made from revolved funds will not require prior approval of Rural Development for creditworthiness or environmental clearance purposes. All other Federal compliance requirements, including those in this subpart, remain in effect."], ["7:7:15.1.19.2.6.1.24.17", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.25 Revolving Loan Fund Plan.", "RBS", "", "", "", "Each REDG Intermediary must adopt a Rural Development-approved plan that specifies that:\n\n(a) The initial loan made from the Fund will be at zero percent interest and have a maximum term of 10 years;\n\n(b) Loans made from loan repayments may carry an interest rate less than, or equal to, the prevailing prime rate. The Intermediary determines repayment terms and security arrangements on these loans.\n\n(c) Loans made from repayments of REDG loans must be for eligible Program purposes;\n\n(d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions; and\n\n(e) No changes will be made to a Rural Development-approved Revolving Loan Fund Plan without the prior written approval of Rural Development."], ["7:7:15.1.19.2.6.1.24.18", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.26 Administration and operation of the Revolving Loan Fund.", "RBS", "", "", "", "(a) The Intermediary will operate and administer the Revolving Loan Fund. The Intermediary may contract with a third party for administrative services regarding the Fund. However, the Intermediary must permanently retain all Project review, approval, and monitoring authority and responsibility. This authority and responsibility cannot be delegated to any other person or entity.\n\n(b) Up to 10 percent of Rural Development Grant funds may be applied toward operating expenses over the life of the Fund. Operating expenses include the costs of administering the Fund and Technical Assistance provided to Project owners by Independent Providers.\n\n(c) In cases where the Intermediary uses its supplemental contribution to the Revolving Loan Fund for a Project other than the Project that resulted in the Intermediary being awarded the Grant, the loan terms must not exceed 10 years and the interest rate must be less than, or equal to, the prevailing prime rate."], ["7:7:15.1.19.2.6.1.24.19", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.27 Ineligible purposes.", "RBS", "", "", "", "Zero-Interest Loans may not be used:\n\n(a) For activities that would adversely affect the environment, or activities that limit the choice of reasonable alternatives prior to satisfying Rural Development environmental requirements;\n\n(b) To pay off or refinance any existing indebtedness or costs of the Project that were incurred prior to Rural Development receipt of the Intermediary's completed application;\n\n(c) For any electric or telecommunications purpose or for the Intermediary's electric or telecommunications operations, for affiliated operations of the Intermediary, or for the benefit of other Intermediaries or their affiliated operations, except those purposes contained in \u00a7 4280.15(f);\n\n(d) To pay the salaries of any employee or owner of the Intermediary, its subsidiaries, or affiliates, except for salaries incurred in administering a Revolving Loan Fund established under the REDG Program;\n\n(e) For community antenna or cable television systems or facilities;\n\n(f) For residential purposes such as residential dwellings and land sites; facilities to provide entertainment television; to transfer property between owners without making improvements that will promote or sustain economic development in Rural Areas; or for personal, non-business related vehicles;\n\n(g) Where there is directly or indirectly a conflict of interest or the appearance of a conflict of interest in the Project; for Intermediaries this would include a situation in which the Intermediary, its officers, managers, Board of Directors, employees, their spouses, children, or close relatives, have a financial or ownership interest in the Project being funded, including its construction or development;\n\n(h) For any purpose when receipt of loan funds is conditioned upon the requirement that the Ultimate Recipient acquire electric or telecommunications service from the Intermediary or its affiliates;\n\n(i) For any gambling activity;\n\n(j) For a Project that would result in the transfer of existing employment or business activity more than 25 miles from its existing location;\n\n(k) For proposed Projects located in areas covered by the Coastal Barrier Resources Act (16 U.S.C. 3501-3510);\n\n(l) For any illegal activity or any activity involving prostitution;\n\n(m) For Agricultural Production, except where the Project is a farmer-owned cooperative or similar organization where the benefits of the Project are passed on to the farmer-owners, and the Agricultural Production is part of an integrated business that processes the agricultural products, and the Agricultural Production portion of the loan will not exceed 50% of the loan amount;\n\n(n) For any pass-through Grant funding activity (a Grant by the Intermediary to the Ultimate Recipient);\n\n(o) Provision of only local exchange voice telephone service; or\n\n(p) for any other purpose announced in a notice by Rural Development. This will not affect Grants that have already been awarded."], ["7:7:15.1.19.2.6.1.24.2", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.2 Policy.", "RBS", "", "", "", "(a)  REDL Program.  REDL Zero-Interest Loans are made to Intermediaries, to relend, at a zero-interest rate, to Ultimate Recipients. Ultimate Recipients are responsible for repayment to the Intermediary. The Intermediary must transmit Ultimate Recipient loan repayments to Rural Development.\n\n(b)  REDG Program.  Grants are made to Intermediaries to establish Revolving Loan Funds. REDG Zero-Interest Loans are made by the Intermediary from the Revolving Loan Fund to Ultimate Recipients for the purpose of financing specific, approved Projects. Ultimate Recipients are responsible for repayment to the Intermediary. The Ultimate Recipient's loan repayments are to be retained in the Revolving Loan Fund, which is maintained by the Intermediary, to finance other rural economic development Projects. Only the initial loan made by the Intermediary from the Revolving Loan Fund has to be at zero interest."], ["7:7:15.1.19.2.6.1.24.20", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.28 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.21", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.29 Supplemental financing required for the Ultimate Recipient Project.", "RBS", "", "", "", "(a) For REDL loans, either the Ultimate Recipient or the Intermediary must provide supplemental funds for the Project equal to at least 20 percent of the loan to the Intermediary. For REDG grants, the Intermediary must provide supplemental funds, to capitalize the Revolving Loan Fund, equal to at least 20 percent of the Grant to the Intermediary.\n\n(b) Funds provided by the Ultimate Recipient must be:\n\n(1) Cash or its equivalent;\n\n(2) Provided after Rural Development receives the completed application; and\n\n(3) Disbursed for an eligible Project within a three year period that begins on the day the Intermediary signs the Grant agreement.\n\n(c) Satisfactory evidence of the Ultimate Recipient's funds must be provided to Rural Development before it will advance any funds to the Intermediary."], ["7:7:15.1.19.2.6.1.24.22", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.30 Restrictions on the use of REDL or REDG funds.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014]", "(a)  Conflict of interest.  The Intermediary must not own or manage any Ultimate Recipient Project, unless the Project is acquired as a result of servicing a loan made from the Revolving Loan Fund. Conflicts of interest and all appearances of a conflict of interest are not permitted. The intermediary must also disclose in writing any potential conflicts of interest to the USDA awarding agency and maintain written standards of conduct covering conflicts of interest, including organizational conflicts of interest in accordance with 2 CFR 400.2(b).\n\n(b)  Fees.  The Intermediary may charge reasonable loan servicing fees, which are limited to one percent per year of the principal amount outstanding on the loan; reasonable professional service fees that are customary for the service being provided and in accordance with any standard fee schedules that have been established for the service; and reasonable expenses the Intermediary has incurred from Independent Providers.\n\n(c)  Interest earnings.  Any interest earned by the Intermediary on advances of Rural Development REDG or REDL funds prior to the disbursement for the Project, must be returned to Rural Development."], ["7:7:15.1.19.2.6.1.24.23", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7\u00a7 4280.31-4280.35 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.24", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.36 Other laws that contain compliance requirements for these Programs.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014; 81 FR 11052, Mar. 2, 2016]", "(a)  Equal employment opportunity.  For all construction contracts and Grants in excess of $10,000, the contractor must comply with Executive Order 11246, as amended by Executive Order 11375, and as supplemented by applicable Department of Labor regulations (41 CFR part 60). The applicant is responsible for ensuring that the contractor complies with these requirements.\n\n(b)  Equal opportunity and nondiscrimination.  Rural Development will ensure that equal opportunity and nondiscriminatory requirements are met in accordance with the Equal Credit Opportunity Act and 7 CFR part 15d, conducted by USDA. Rural Development will not discriminate against applicants on the bases of race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to contract); to the fact that all or part of the applicant's income derives from public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act.\n\n(c)  Civil rights compliance.  Recipients of Grants must comply with the Americans with Disabilities Act of 1990, Title VI of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation Act of 1973. This includes collection and maintenance of data on the race, sex, and national origin of the recipient's membership/ownership and employees. These data must be available to conduct compliance reviews in accordance with 7 CFR part 1901 subpart E, \u00a7 1901.204. Initial compliance reviews will be conducted with the Intermediary when Form RD 400-4, \u201cAssurance Agreement,\u201d is signed. For each loan or Grant an Intermediary receives, a new Form RD 400-4 must be completed. Each Ultimate Recipient must go through the same pre-award compliance review process and must also sign Form RD 400-4. For loans and Grants, a pre-award review is required before loan or Grant approval or any disbursement of funds. For Intermediaries, a post-award compliance review is required 90 days after closing the loan or Grant. This review is not required for Ultimate Recipients. Subsequent compliance reviews will be conducted 3 years from the date the post-award compliance review is completed for Intermediaries and 3 years from the date the pre-award compliance review is completed for Ultimate Recipients. Where Grant funds are used for a Revolving Loan Fund, compliance reviews are required for the Intermediaries for as long as the Fund is in operation. For Ultimate Recipients, compliance reviews are conducted until the loan is repaid to the Fund.\n\n(d)  Architectural barriers.  All facilities financed with Zero-Interest Loans that are open to the public or in which persons may be employed or reside must be designed, constructed, or altered to be readily accessible to and usable by disabled persons. Standards for these facilities must comply with the Architectural Barriers Act of 1968 (42 U.S.C. 4151-4157) and the \u201cUniform Federal Accessibility Standards\u201d, (41 CFR part 101-19.6, Appendix A).\n\n(e)  Uniform relocation assistance.  Relocations in connection with these Programs are subject to 49 CFR part 24 as referenced by 7 CFR part 21 except that the provisions in title III of the Uniform Act do not apply to these Programs.\n\n(f)  Drug-free workplace.  Grants made under these Programs are subject to the requirements contained in 2 CFR part 421 which implements the Drug-Free Workplace Act of 1988 (41 U.S.C. 8101  et seq. ). An Intermediary requesting a REDG Grant will be required to certify that it will establish and make a good faith effort to maintain a drug-free workplace program.\n\n(g)  Debarment and suspension.  The requirements of 2 CFR part 180 and Departmental Regulations 2 CFR part 417, Nonprocurement Debarment, and Suspension are applicable to these Programs.\n\n(h)  Intergovernmental review of Federal programs.  These Programs are subject to the requirements of Executive Order 12372 (3 CFR 1982 Comp., p. 197) and 2 CFR part 415, subpart C, which implements Executive Order 12372. Proposed Projects are subject to the State and local government review process contained in 2 CFR part 415, subpart C.\n\n(i)  Restrictions on lobbying.  The restrictions and requirements imposed by 31 U.S.C. 1352, and 2 CFR part 418, are applicable to these Programs.\n\n(j)  Earthquake hazards.  These Programs are subject to the seismic requirements of the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701-7706).\n\n(k)  Environmental requirements.  Actions taken under this subpart, including the loans made from the revolving loan fund using Agency funds, must comply with 7 CFR part 1970. However, revolving loan funds derived from repayments by third parties are not considered Federal financial assistance for the purposes of 7 CFR part 1970.\n\n(l)  Affirmative fair housing.  If applicable, the Intermediary will be required to comply with the Affirmative Fair Housing Act (42 U.S.C. 3601-3631).\n\n(m)  Flood hazard insurance.  These Programs are subject to the National Flood Insurance Act of 1968 and the Flood Disaster Protection Act of 1973, as amended by 42 U.S.C. 4001-4129.\n\n(n)  Audits.  These Programs are subject to 2 CFR part 200, subpart F, as codified in 2 CFR part 400.1."], ["7:7:15.1.19.2.6.1.24.25", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.37 Application forms and filing dates.", "RBS", "", "", "", "(a) The Intermediary may obtain forms that supplement the written narrative sections of its application from the Rural Development State Office for the State where the Intermediary is located.\n\n(b) An original copy only of the application is to be filed with the Rural Development State Office. No other copies are required."], ["7:7:15.1.19.2.6.1.24.26", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.38 Maximum amount of loans or Grants.", "RBS", "", "", "", "During any given fiscal year, Rural Development will publish an announcement of available loan and Grant funds and will indicate the maximum loan and Grant amounts for which an Intermediary or prospective Intermediary may apply. This announcement will also include contact information and application deadlines. All pending applications on file at RBS, including both loan and Grant applications, from the same Intermediary or prospective Intermediary for the same Project will be considered to be one application in determining that the maximum size of the application is in accordance with this section."], ["7:7:15.1.19.2.6.1.24.27", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.39 Contents of an application.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 81 FR 11052, Mar. 2, 2016]", "An application for a loan or a Grant must contain the following:\n\n(a) Required forms and certifications:\n\n(1) Standard Form 424, \u201cApplication for Federal Assistance,\u201d signed by an authorized representative of the Intermediary.\n\n(2) A Resolution of the Board of Directors signed by the directors and certified by the Intermediary's board secretary. The board resolution must indicate whether the Intermediary is requesting a loan or Grant, agree to the provisions of this subpart and the loan or Grant agreement including the Intermediary's 20 percent Fund contribution, and state that the Intermediary has the legal authority to enter into a loan or Grant agreement under these Programs;\n\n(3) Form AD 1047, \u201cCertification Regarding Debarment, Suspension, and other Responsibility Matters\u2014Primary Covered Transactions,\u201d and Form AD-1048, \u201cCertification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion\u2014Lower Tier Transactions.\u201d\n\n(4) Assurance statement for the Uniform Act signed by the Ultimate Recipient. This statement provides Rural Development with the required assurance statement that any relocations of persons or acquisitions of real property, as part of completing the Ultimate Recipient Project, will be handled in accordance with this statute.\n\n(5) RD Instruction 1940-Q, Exhibit A-1, applies if the loan is greater than $150,000 or the Grant is greater than $100,000;\n\n(6) SF LLL, \u201cDisclosure of Lobbying Activities,\u201d (if the Intermediary or the Ultimate Recipient engages in lobbying activities);\n\n(7) Form AD 1049, \u201cCertification Regarding Drug-Free Workplace Requirements,\u201d for Grants only;\n\n(8) Seismic certification if construction of a building is proposed. The Project owner certifies that any building constructed will comply with standards that reduce the damage caused by earthquakes;\n\n(9) Environmental documentation in accordance with 7 CFR part 1970.\n\n(10) RUS Form 7, \u201cFinancial and Statistical Report\u201d and RUS Form 7a \u201cInvestments, Loan Guarantees, and Loans,\u201d or similar information.\n\n(b) A written narrative section must be provided. This section consists of the following:\n\n(1) A Project description, including details of the work to be performed with Rural Development funds, and a business plan, including a discussion of management and prior experience of the Ultimate Recipient.\n\n(2) A discussion of how the Project meets each selection factor in \u00a7 4280.42(b).\n\n(3) A Revolving Loan Fund Plan is required if the Intermediary is applying for a Grant to establish a Revolving Loan Fund."], ["7:7:15.1.19.2.6.1.24.28", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.40 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.29", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.41 Environmental review of the application.", "RBS", "", "", "[81 FR 11052, Mar. 2, 2016]", "The Agency will review the environmental documentation in accordance with 7 CFR part 1970. Intermediaries will be informed by the Agency if additional information is required from the intermediary to complete the environmental review process. The environmental review process must be completed before the application can be considered for approval by the Agency."], ["7:7:15.1.19.2.6.1.24.3", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.3 Definitions.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014; 80 FR 9913, Feb. 24, 2015; 80 FR 15885, Mar. 26, 2015; 87 FR 38644, June 29, 2022]", "The following definitions are applicable to this subpart:\n\nAdvanced Telecommunications.  Using communications equipment for purposes, such as the simultaneous transmission of images and voice or the electronic transmission of data between multiple sites that do not consist primarily of providing local exchange voice or other routine communications.\n\nAgricultural Production.  The cultivation, production, growing, raising, feeding, housing, breeding, hatching, or managing of crops, plants, animals, fish, or birds, either for fiber, food for human consumption, or livestock feed.\n\nBusiness Incubator.  A facility in which small businesses can share premises, support staff, computers, software or hardware, telecommunications terminal equipment, machinery, janitorial services, utilities, or other overhead expenses, and where such businesses can receive Technical Assistance, financial advice, business planning services or other support.\n\nCommunity Facilities Project.  An eligible community facility under the Community Facility Direct or Guaranteed programs.\n\nConflict of interest.  A situation in which a person or entity has competing personal, professional, or financial interests that make it difficult for the person or business to act impartially. Regarding use of both grant and matching funds, Federal procurement standards prohibit transactions that involve a real or apparent conflict of interest for owners, employees, officers, agents, their immediate family members, partners, or an organization which is about to employ any of the parties indicated herein, having a financial or other interest in or tangible personal benefit from the outcome of the project; or that restrict open and free competition for unrestrained trade. Specifically, project funds may not be used for services or goods going to, or coming from, a person or entity with a real or apparent conflict of interest, including, but not limited to, owner(s) and their immediate family members.\n\nCushion of Credit.  The amount contributed by the Intermediary pursuant to 7 U.S.C. 940c.\n\nDirect Job.  A job that is created or saved by an Ultimate Recipient employer as a result of funding received from these Programs.\n\nEstablished Operation.  An entity that has engaged in the nature of the Project for more than one year.\n\nFull-Time Job.  A job for which a worker is scheduled to work 35 hours per week, or more, on a regular basis.\n\nGrant.  For the REDG Program only; a transfer of monies other than a loan, from Rural Development to an Intermediary for specific use in funding a Revolving Loan Fund from which loans are made to Ultimate Recipients. Grant funds must be repaid by the Intermediary to Rural Development in the event the Fund is unused for more than one year, misused, no longer needed for its intended purposes, or the Grant is terminated.\n\nIndependent Provider.  An entity or individual, other than the Intermediary or the Ultimate Recipient that is not owned by a subsidiary or an affiliate of the Intermediary or Ultimate Recipient or would otherwise have an interest in the Intermediary or Ultimate Recipient that would be a conflict of interest or have the appearance of a conflict of interest.\n\nIndirect Job.  A job that is created or saved as a result of a funded Project, but is not with the Ultimate Recipient.\n\nInfrastructure.  Facilities required to support private sector economic activity such as: Highways, streets, roads, and bridges; public transit; water supply; wastewater treatment; water resources; solid waste; and hazardous waste services.\n\nIntermediary.  An entity that is identified by RUS as an eligible borrower under the Rural Electrification Act and obtains a REDG Grant or a REDL Loan.\n\nPart-Time Job.  A job for which a worker is scheduled to work less than 35 hours per week, on a regular basis.\n\nPrograms.  The Rural Economic Development Loan (REDL) and the Rural Economic Development Grant (REDG) Programs.\n\nProject.  The facility, equipment, or activity of the Ultimate Recipient that is funded under one of the Programs.\n\nREDG.  The Rural Economic Development Grant Program.\n\nREDL.  The Rural Economic Development Loan Program.\n\nRevolving Loan Fund (or Fund).  A revolving loan fund that is created with Grant funds and the Intermediary's supplemental contribution under the REDG Program that makes loans and uses the loan repayments and interest earnings to make subsequent loans until the Fund is terminated.\n\nRevolving Loan Fund Plan.  A plan developed by the Intermediary and approved by Rural Development that governs the use of the Revolving Loan Fund. The plan must at least include a detailed explanation of the Intermediary's Fund administration policies and procedures and planned Fund use after the funds in the Revolving Loan Fund have revolved. Fund administration policies and procedures must at least include information regarding the review and approval of loans from the Fund.\n\nRural area.  This information will be taken from the most recent census data. Any area other than:\n\n(1) A city or town that has a population of greater than 50,000 inhabitants;\n\n(2) The urbanized area contiguous and adjacent to such a city or town; and\n\n(3) Which excludes certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I).\n\nRural Business-Cooperative Service (RBS).  The Rural Business-Cooperative Service, an agency within the Rural Development mission area of the USDA.\n\nRural Development.  For purposes of this regulation, The Rural Business-Cooperative Service (RBS), an Agency of the United States Department of Agriculture, or a successor Agency, will be referred to as Rural Development.\n\nRural Utilities Service (RUS).  The Rural Utilities Service, an Agency within the Rural Development mission area of the USDA.\n\nSeasonal Job.  A job whether Part-Time or Full-Time that begins and ends in accordance with a specified time period of less than a year and generally within a range less than four months.\n\nStart-Up Venture(s).  An entity that has engaged in the nature of the Project for less than one year. An entity that has operated in excess of one year, but which is about to enter into a new line of business, would be considered a Start-Up Venture.\n\nState.  Any of the 50 States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Marianas Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.\n\nTechnical Assistance.  Managerial, financial and operational analysis and consultation by Independent Providers to assist Project owners in identifying and evaluating problems or potential problems and to provide training that enables Project owners to successfully implement, manage, operate and maintain viable Projects.\n\nUltimate Recipient.  An entity or individual that receives a loan from an Intermediary. The Ultimate Recipient may be a for profit or not-for-profit entity such as, but not limited to, a sole proprietorship, a corporation, a cooperative, a partnership, or a Limited Liability Company. The Ultimate Recipient may also be a public body, such as, but not limited to, a political subdivision of a State or locality, or a Federally-recognized Indian tribe.\n\nUniform Act.  The Uniform Relocation Assistance and Real Property Acquisition Act of 1970 (42 U.S.C. 4601-4655).\n\nUSDA.  The United States Department of Agriculture.\n\nZero-Interest Loan.  A loan made by the Intermediary to the Ultimate Recipient with no interest and which will be repaid to the Intermediary by the Ultimate Recipient."], ["7:7:15.1.19.2.6.1.24.30", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.42 Application evaluation and selection.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 80 FR 9913, Feb. 24, 2015]", "(a) Rural Development will evaluate the application and score it based on the selection factors in this section. All applications will be ranked on a nationwide basis, based on the total points scored.\n\n(b) The application will be evaluated and scored using the information provided in accordance with \u00a7 4280.39(b)(2) of this subpart.\n\n(1)  Nature of the Project.  Rural Development will award up to 60 points based on whether the Project:\n\n(i) Is a for-profit business, Business Incubator, industrial building or park, or an infrastructure connection project (such as streets or utilities)\u201420 points;\n\n(ii) Provides Technical Assistance to rural businesses or rural residents, or educates or provides medical care to rural residents\u201420 points;\n\n(iii) Will enhance rural economic development by providing Advanced Telecommunications services and computer networks for medical, educational, and job training services. This review will be based on the application's telecommunications design\u201420 points.\n\n(2)  Number of direct full-time equivalent jobs created or saved within a 3-year period.  To calculate full-time equivalent Direct-Jobs, count two part-time jobs as one full-time job or three part-time or seasonal jobs as one full-time job. If the total numbers of part-time and seasonal jobs add up to a fraction, round up to the next whole number after combining same. Indirect-Jobs or non-Rural jobs cannot be used for this calculation.\n\n(3)  Supplemental funds for the Project.  Points will be based on a calculation of the amount of supplemental funds to be provided to the Project. All supplemental funds used in the following calculation must be disbursed to the Project between the date of Rural Development receipt of the application and 1 year after the first advance of funds by Rural Development:\n\n(4)  Unemployment rate for the county(ies) where the Project is physically located.  Rural Development will compare the current unemployment rate(s) in the county(ies) to the State and national unemployment rates, and, if applicable, award points under the following categories, whichever is greater:\n\n(5)  Per capita personal income for the county(ies) where the Project is physically located.  Rural Development will compare the per capita personal income in the county(ies) where the Project will be located to the national and State per capita personal income levels, and, if applicable, award points under the following categories, whichever is greater:\n\n(6)  Rural Area location.  (i) If the Project is physically located in an incorporated city or town or equivalent having a population of 1,249 or less, or if it is physically located in an unincorporated area, Rural Development will award 20 points.\n\n(ii) If the Project is physically located in an incorporated area having a population of 1,250 to 2500, Rural Development will award 10 points.\n\n(7)  Decline in population for the county where the Project is physically located.  If there has been a decline in population in the county where the Project will be located over the time period covered by the two most recent decennial Censuses to the present (or equivalent time frame if using a data source other than the decennial Census), Rural Development will award 10 points.\n\n(8)  Cushion of Credit Payments.  Rural Development will determine the level of Cushion of Credit Payments on deposit by the Intermediary, as follows:\n\n(9)  Initial loan and Grant.  If the loan or Grant application will result in the first award to an Intermediary under these Programs, Rural Development will award 10 points.\n\n(10)  County participation.  If the Project will be the first REDLG Project financed in a county Rural Development will award 10 points.\n\n(11) The business plan for the Applicant's Ultimate Recipient will be evaluated by Rural Development and must include:\n\n(i) A description of the business or Project plans, its management, and, if applicable, its products and operating plans. (The business plan evaluated by Rural Development for Advanced Telecommunications will be its telecommunications and engineering design)\u2014up to 15 points; and\n\n(ii) An appropriate financial plan, including actual balance sheets and income statements covering the most recent 3-year period (for applicants who have been in business this long), and projected balance sheets, income statements, and cash flow statements for the ensuing 3-year period, supported by assumptions showing the basis for the projections\u2014up to 20 points."], ["7:7:15.1.19.2.6.1.24.31", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.43 Discretionary points.", "RBS", "", "", "", "The RBS Administrator has the discretion to designate up to 25 points (no more than 5 points for each of the following elements) based on whether the Project:\n\n(a) Is located in a Rural Empowerment Zone, Rural Economic Area Partnership Zone, Rural Enterprise Community, or Champion Community;\n\n(b) Is located in a county that has experienced the loss, removal, or closing of a major source or sources of employment in the last 3 years which causes an increase of 2 percentage points or more in the county's most recent unemployment rate compared with the same period immediately before the dislocation;\n\n(c) Is located in a county that has experienced chronic or long-term economic deterioration;\n\n(d) Is located in a county that was designated a disaster area by the President of the United States that significantly affected rural economic development and job creation. The county must have been designated within 3 years prior to filing of the completed application with Rural Development; or\n\n(e) Is consistent with the Rural Development State Office's approved strategic plan and mission area objectives and is identified as a priority area for assistance in the States' plan."], ["7:7:15.1.19.2.6.1.24.32", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.44 Limitation on number of loans or Grants to an Intermediary.", "RBS", "", "", "", "Depending on the amount of funds available, Rural Development may publish an announcement limiting an Intermediary to one selected Grant application and two selected loan applications in a fiscal year."], ["7:7:15.1.19.2.6.1.24.33", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7\u00a7 4280.45-4280.46 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.34", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.47 Non-selection of applications.", "RBS", "", "", "", "Provided the application requirements have not changed, an application not selected will be reconsidered in 3 subsequent funding competitions for a total of four funding competitions. If an application is withdrawn, it can be resubmitted and will be evaluated as a new application."], ["7:7:15.1.19.2.6.1.24.35", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.48 Post selection period.", "RBS", "", "", "", "Rural Development will notify the Intermediary in writing if the application is selected. The documents to be executed by the Intermediary will include:\n\n(a) For a loan:\n\n(1) A Letter of Conditions with Project-specific terms and conditions;\n\n(2) A loan agreement with general terms and conditions;\n\n(3) A note covering the repayment terms of the loan; and\n\n(4) A legal opinion concerning the authority of the Intermediary to engage in the Project.\n\n(b) For a Grant:\n\n(1) A Letter of Conditions with Project-specific terms and conditions;\n\n(2) A Grant agreement with general terms and conditions; and\n\n(3) A legal opinion concerning the authority of the Intermediary to participate in the Revolving Loan Fund and to engage in the Project."], ["7:7:15.1.19.2.6.1.24.36", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.49 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.37", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.50 Disbursement of Zero-Interest Loan funds.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014]", "(a) For a REDL loan, Rural Development will disburse Zero-Interest Loan funds to the Intermediary in accordance with the terms of the executed loan agreement. All loan funds will be disbursed either as an advance to the Intermediary, in multiple advances, or as a reimbursement for eligible project costs, once the Intermediary has complied with Rural Development requirements.\n\n(b) The Intermediary must provide to the Ultimate Recipient all loan funds that the Intermediary receives from Rural Development within one year of receiving them. If the Intermediary does not re-lend Rural Development funds within one year, the loan funds, and all interest earned on the loan funds, must be returned to the Agency.\n\n(c) For a REDG loan, Rural Development will disburse Grant funds to the Intermediary in accordance with 2 CFR 200 as adopted by USDA in 2 CFR part 400 as applicable. Specifically, Rural Development will disburse the Grant funds in advance if the following requirements are met:\n\n(1) The Intermediary has established written procedures that will minimize the time elapsing between the transfer of funds from Rural Development and their disbursement to the Ultimate Recipient;\n\n(2) The management system of the Intermediary meets the requirements of 2 CFR part 200 as adopted by USDA in 2 CFR part 400, as applicable;\n\n(3) All necessary supplemental funds for the Project have been obligated or committed to the Revolving Loan Fund; and\n\n(4) The requests for cash advances made by the Intermediary are limited to the minimum amounts needed and timed to be in accordance with the actual immediate cash needs of the Ultimate Recipient for carrying out the Project."], ["7:7:15.1.19.2.6.1.24.38", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7\u00a7 4280.51-4280.52 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.39", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.53 Loan payments.", "RBS", "", "", "", "The Intermediary must make all REDL payments to Rural Development by electronic funds transfer or other means as specified in the loan documents."], ["7:7:15.1.19.2.6.1.24.4", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7\u00a7 4280.4-4280.12 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.40", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.54 Construction procurement requirements.", "RBS", "", "", "", "Construction, including bidding and awarding of contracts, must be conducted in a manner that provides maximum open and free competition."], ["7:7:15.1.19.2.6.1.24.41", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.55 Monitoring responsibilities.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014]", "(a) The Intermediary must monitor the Project to ensure that:\n\n(1) Funds are used only for the approved purposes as specified in the legal documents;\n\n(2) Disbursements and expenditures of funds are properly supported with certifications, invoices, contracts, bills of sale, or other forms of evidence, which are maintained on the premises of the Intermediary;\n\n(3) Project time schedules are being met, projected work by time periods is being accomplished, and other performance objectives are being achieved; and\n\n(4) The Project is in compliance with all applicable regulations.\n\n(b) Rural Development may inspect and copy records and documents that pertain to the Project. The Intermediary must retain these records for the term of the Project loan plus 2 years. In addition, Rural Development may also perform Project site visits and reviews of the use of loan or Grant proceeds.\n\n(c) Rural Development will review and monitor Grants in accordance with 2 CFR part 200, as adopted by USDA in 2 CFR parts 400, 415, 417, 418, and 421 as applicable."], ["7:7:15.1.19.2.6.1.24.42", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.56 Submission of reports and audits.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014]", "(a) In addition to any reports and audits required by 2 CFR part 200 and subpart F as adopted by USDA in 2 CFR part 400, the Intermediary must submit the following monitoring reports to Rural Development:\n\n(1)  Loan.  The Intermediary must submit Form RD 4280-1 \u201cSurvey of Recipients of Rural Economic Development Loan and Grant Program\u201d to Rural Development on an annual basis until it no longer owes money to USDA under the REDLG Program.\n\n(2)  Grant (Revolving Loan Fund).  The Intermediary must submit the Form RD 4280-1 to Rural Development on an annual basis until all projects financed with Rural Development Grant proceeds have been repaid or are otherwise retired, whichever occurs last. Thereafter, on a triennial basis until the fund is terminated, the Intermediary will submit to Rural Development the Form RD 4280-1, reporting on the activity of all loans made from the Revolving Loan Fund.\n\n(b) If the Intermediary does not have an existing loan with RUS, the Intermediary will submit a copy of its annual audit to Rural Development within 90 days of its completion. All REDL audits must be conducted in accordance with Generally Accepted Government Auditing Standards or Generally Accepted Accounting Principles and REDG audits in accordance with 2 CFR part 200 as adopted by USDA in 2 CFR part 400.\n\n(c) Rural Development may require Ultimate Recipients that receive loans financed with Grant funds provided under the REDG Program to submit annual audits to comply with Federal audit regulations. In accordance with 2 CFR part 200, as adopted by USDA in 2 CFR part 400, Ultimate Recipients that are nonprofit entities, or a State or local government, may be required to submit an audit subject to the threshold established in 2 CFR part 200, as adopted by in 2 CFR part 400."], ["7:7:15.1.19.2.6.1.24.43", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7\u00a7 4280.57-4280.61 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.44", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.62 Appeals.", "RBS", "", "", "", "An Intermediary may appeal any appealable adverse decision made by Rural Development that affects the Intermediary in accordance with 7 CFR part 11."], ["7:7:15.1.19.2.6.1.24.45", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.63 Exception authority.", "RBS", "", "", "", "Except as specified in paragraphs (a) through (c) of this section, the RBS Administrator may, on a case-by-case basis, make exceptions to any requirement or provision of this subpart, if such exception is necessary to implement the intent of the authorizing statute in a time of national emergency or in accordance with a Presidentially-declared disaster, or when such an exception is in the best interests of the Federal Government and is otherwise not in conflict with applicable law.\n\n(a)  Applicant eligibility.  No exception to applicant eligibility can be made.\n\n(b)  Project eligibility.  No exception to project eligibility can be made.\n\n(c)  Rural area definition.  No exception to the definition of rural area, as defined, can be made."], ["7:7:15.1.19.2.6.1.24.46", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7\u00a7 4280.64-4280.99 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.47", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.100 OMB control number.", "RBS", "", "", "", "The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0035. A person is not required to respond to this collection of information unless it displays a currently valid OMB control number."], ["7:7:15.1.19.2.6.1.24.5", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.13 Applicant eligibility.", "RBS", "", "", "", "Applicants that are not delinquent on any Federal debt or otherwise disqualified from participation in these Programs are eligible to apply. An applicant must be eligible under 7 U.S.C. 940c."], ["7:7:15.1.19.2.6.1.24.6", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.14 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.1.24.7", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.15 Ultimate Recipient Projects eligible for Rural Economic Development Loan funding.", "RBS", "", "", "[72 FR 29843, May 30, 2007, as amended at 85 FR 57085, Sept. 15, 2020]", "An Intermediary may receive REDL funds only when it has a pre-approved Ultimate Recipient and Project that have an immediate need for the Zero-Interest Loan. REDL funds may only be used by the Intermediary to make a Zero-Interest Loan to the Ultimate Recipient to finance financially viable economic development or job creation Projects in a Rural Area. Funds may only be used to provide the following assistance:\n\n(a) Start-Up Venture costs, including, but not limited to financing fixed assets such as real estate, buildings (new or existing), equipment, or working capital;\n\n(b) Business expansion;\n\n(c) Business Incubators;\n\n(d) Technical Assistance;\n\n(e) Project feasibility studies;\n\n(f) Advanced Telecommunications services and computer networks for medical, educational, and job training services;\n\n(g) Other Projects eligible under \u00a7 4280.21; or\n\n(h) Community Facilities Projects.\n\n(i) A borrower is permitted to use up to 10 percent of the amount provided under this subpart to construct, improve, or acquire broadband infrastructure related to the project financed, subject to the requirements of 7 CFR part 1980, subpart M."], ["7:7:15.1.19.2.6.1.24.8", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.16 REDL and REDG Loan terms.", "RBS", "", "", "", "REDL and REDG loans made by the Intermediary are governed by the following terms:\n\n(a) The maximum term of a loan is 10 years, including any principal deferment period. The Intermediary may choose a shorter term if desired.\n\n(b) Deferments on Zero-Interest Loans will automatically be granted by Rural Development upon request of the Intermediary as follows:\n\n(1) A deferral for up to 1 year for Projects involving an Established Operation; or\n\n(2) A deferral for up to 2 years for Projects involving a Start-Up venture or a Community Facilities Project whether or not such Project also receives funding under USDA Community Facilities funding programs.\n\n(c) The Intermediary must provide the Ultimate Recipient with the same loan terms as the Intermediary receives from Rural Development.\n\n(d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions."], ["7:7:15.1.19.2.6.1.24.9", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "A", "Subpart A\u2014Rural Economic Development Loan and Grant Programs", "", "\u00a7 4280.17 Additional REDL terms.", "RBS", "", "", "", "(a) The Intermediary is responsible for fully repaying the Zero-Interest Loan to RBS even if the Ultimate Recipient does not repay the Intermediary.\n\n(b) The Intermediary is responsible for remitting any partial or full payment to RBS at the time the Ultimate Recipient pays the Intermediary.\n\n(c) Unless deferred pursuant to \u00a7 4280.16(b) of this subpart, loan payments to Rural Development under the REDL Program are due monthly.\n\n(d) If the Intermediary does not have an outstanding loan with RUS, the Intermediary must immediately provide, as security for any REDL loan it receives, a Rural Development-approved irrevocable letter of credit that remains in effect until the loan is repaid."], ["7:7:15.1.19.2.6.2.24.1", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.101 Purpose.", "RBS", "", "", "", "This subpart contains the procedures and requirements for providing the following financial assistance under the Rural Energy for America Program (REAP):\n\n(a) Grants, or a combination grant and guaranteed loan, for the purpose of purchasing and installing Renewable Energy Systems (RES) and Energy Efficiency Improvements (EEI);\n\n(b) Grants to assist agricultural producers and rural small businesses by conducting Energy Audits (EA) and providing recommendations and information on Renewable Energy Development Assistance (REDA); and\n\n(c) Grants or guaranteed loans, or a combination grant and guaranteed loan to an applicant or borrower pursuant to 7 CFR 1980, Subpart M Special Authority to Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs. A Borrower or applicant receiving funding as referenced in paragraphs (a) or (b) of this section is permitted to use up to 10 percent of the amount provided under this subpart to construct, improve, or acquire broadband infrastructure related to the project financed, subject to the requirements of 7 CFR 1980, Subpart M."], ["7:7:15.1.19.2.6.2.24.10", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.110 General applicant, application, and funding provisions.", "RBS", "", "", "", "(a)  Satisfactory progress.  An applicant that has received one or more grants and/or guaranteed loans under this program must make satisfactory progress, as determined by the Agency, toward completion of any previously funded projects before the applicant will be considered for subsequent funding. This may include a review of the applicant compliance with Agency reporting requirements. Satisfactory progress for EA and REDA grants is defined as at least 50 percent of previous EA or REDA awards expended at the time the Agency makes its eligibility determination.\n\n(b)  Application submittal.  Applications must be submitted in accordance with the provisions of this subpart unless otherwise specified in a  Federal Register  notice. Grant applications and combined grant and guaranteed loan applications for financial assistance under this subpart may be submitted at any time.\n\n(1)  Grant applications.  Complete grant applications will be accepted on a continuous basis, with awards made based on the application's score and subject to available funding.\n\n(2)  Combined grant and guaranteed loan applications.  Applications requesting a RES or EEI grant and a guaranteed loan under this subpart will be accepted on a continuous basis, with awards made based on the grant application's score and subject to available funding.\n\n(c)  Application limits.  An applicant applying for a grant or a combined grant and guaranteed loan is limited to competing one RES application and one EEI application under this subpart in any one Federal fiscal year. An applicant that proposes to install the same EEI or RES (including hybrid) across multiple facilities can be considered one project and be submitted in one application.\n\n(d)  Application modification.  Once submitted and prior to Agency award, if an applicant modifies the scope of the project described in its application, the application will be treated as a new application. The submission date of record for such modified applications will be the date the Agency receives the modified information, and the application will be processed and scored by the Agency as a new application under this subpart.\n\n(e)  Incomplete applications.  Applicants must submit complete applications in order to be considered for funding. If an application is incomplete, the Agency will identify those parts of the application that are incomplete and provide a written explanation to the applicant for possible future resubmission. Upon receipt of a complete application by the appropriate Agency office, the Agency will complete its evaluation and will compete the application in accordance with the procedures specified in \u00a7\u00a7 4280.122 or 4280.156 as applicable.\n\n(f)  Application withdrawal.  During the period between the submission of an application and the execution of award documents for an application selected for funding, the applicant must notify the Agency, in writing, if the project is no longer viable or the applicant no longer is requesting financial assistance for the project. When the applicant notifies the Agency, the selection will be rescinded and/or the application withdrawn.\n\n(g)  Technical report.  The following technologies: Hydrogen, ocean energy, geothermal electric generation, anaerobic digesters and biogas, biomass, hybrid applications, RES with storage components, and EEI or technologies as amended via  Federal Register  notification or posted on the Agency's website, must provide a technical report as specified in \u00a7\u00a7 4280.118(d) 4280.119(b)(4), and 4280.120(b)(3) and 4280.120(b)(4), and must comply with the provisions specified in paragraphs (g)(1) through (3), as applicable, of this section:\n\n(1)  Technical report format and detail.  The information in the technical report must follow the format specified in \u00a7 4280.120(b)(3), \u00a7 4280.120(b)(4), and Appendices A through C of this subpart, as applicable. Supporting information may be submitted in other formats. Design drawings and process flowcharts are encouraged as exhibits. In addition, information must be provided, in sufficient detail, to:\n\n(i) Allow the Agency to determine the technical merit of the applicant's project under \u00a7 4280.117;\n\n(ii) Allow the calculation of simple payback as defined in \u00a7 4280.103;\n\n(iii) For RES Projects, enable the calculation of the percentage of historical use of energy compared to the amount of renewable energy that will be generated once the project is operating at its steady state operating level. If the project is closely associated with a residence, demonstration must be made that 50 percent or more of the projected renewable energy will benefit the agricultural operation or rural small business; and\n\n(iv) Demonstrate that the RES or EEI will operate or perform over the project's useful life in a reliable, safe, and a cost-effective manner, which may include but is not limited to addressing project design, installation, operation, maintenance, and warranties.\n\n(2)  Technical report modifications.  If a technical report is prepared prior to the applicant's selection of a final design, equipment vendor, or contractor, or other significant decision, it may be modified and resubmitted to the Agency, provided that the overall scope of the project is not materially changed as determined by the Agency. Changes in the technical report may require additional environmental documentation in accordance with 7 CFR part 1970.\n\n(3)  Hybrid projects.  If the application is for a hybrid project, technical reports as applicable must be prepared for each technology that comprises the hybrid project.\n\n(h)  Time limit on use of grant funds.  Except as provided in paragraph (h)(1) of this section, grant funds not expended within 2 years from the date the Financial Assistance Agreement was signed by the Agency will be returned to the Agency.\n\n(1)  Time extensions.  The Agency may extend the 2-year time limit for a period not to exceed 24 months if the Agency determines, at its sole discretion, that the grantee is unable to complete the project for reasons beyond the grantee's control. Grantees must submit a request for the no-cost extension no later than 30 days before the two-year anniversary of executing the Financial Assistance Agreement. This request must describe the extenuating circumstances that were beyond their control to complete the project for which the grant was awarded, and why an approval is in the government's best interest.\n\n(2)  Return of funds to the Agency.  Funds remaining after grant closeout that exceed the amount the grantee is entitled to receive under the Financial Assistance Agreement will be returned to the Agency."], ["7:7:15.1.19.2.6.2.24.11", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.111 Notifications.", "RBS", "", "", "", "(a)  Eligibility.  If an applicant and/or their application are determined by the Agency to be eligible for participation, the Agency will notify the applicant or lender in writing of the eligibility determination.\n\n(b)  Ineligibility.  If an applicant and/or their application are determined to be ineligible at any time, the Agency will inform the applicant or lender, as applicable, in writing of the decision, reasons therefore, and any appeal rights, if applicable. No further processing of the application will occur.\n\n(c)  Funding determinations.  Each applicant and/or lender, as applicable, will be notified of the Agency's decision on their application. If unfunded in a competition, the application will compete in the next available competition and will continue competing until either awarded or the application has competed in the maximum number of competitions in a fiscal year. The Agency will then issue an adverse funding determination for the unsuccessful application. If the Agency's decision is not to fund an application, the Agency will include in the notification any applicable appeal or review rights."], ["7:7:15.1.19.2.6.2.24.12", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.112 Applicant eligibility.", "RBS", "", "", "", "To receive a RES or EEI grant under this subpart, an applicant must meet the requirements specified in paragraphs (a) through (g) of this section.\n\n(a)  Type of applicant.  The applicant must be an agricultural producer or rural small business at the time of application.\n\n(b)  Ownership and control.  The applicant must at the time of application and, if an award is made, for the useful life of the project as described in the Financial Assistance Agreement:\n\n(1) Own the project; and\n\n(2) Own or control the site for the project. If the grantee does not maintain ownership of the project and ownership or control of the site, then grant funds may be recovered from the grantee by the Agency in accordance with Departmental Regulations.\n\n(c)  End Users.  If the controlling interest in the applicant entity is otherwise eligible and a legal transaction between two parties for the sale of energy in an open market is being proposed, the Agency will not consider the energy end-users as part of the analysis of the eligibility of the applicant. If the proposed end-user would be an ineligible applicant, such as an entity which is residential in nature or a non-profit entity, and the REAP applicant entity is a newly formed special-purpose entity with substantially the same ownership as the sole proposed end-user, then the REAP applicant entity is not eligible.\n\n(d)  Revenues and expenses.  The applicant must have available at the time of application satisfactory sources of revenue in an amount sufficient to provide for the operation, management, maintenance, and any debt service of the project for the useful life of the project. In addition, the applicant must control the revenues and expenses of the project, including its operation and maintenance. Notwithstanding the provisions of this paragraph, the applicant may employ a qualified consultant under contract to manage revenues and expenses of the project and its operation and/or maintenance.\n\n(e)  Legal authority and responsibility.  Each applicant must have the legal authority necessary to apply for and carry out the purpose of the grant.\n\n(f)  Unique Entity Identifier (UEI).  All applicants must register for a UEI as part of the registration process. Generally, the UEI number is included on Standard Form-424, \u201cApplication for Federal Assistance.\u201d\n\n(g)  System for Awards Management (SAM).  Unless exempt under 2 CFR 25.110, the applicant must:\n\n(1) Be registered in the SAM prior to submitting an application;\n\n(2) Maintain an active SAM registration with current information at all times while an application is pending and until final fund disbursement has been made."], ["7:7:15.1.19.2.6.2.24.13", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.113 Project eligibility.", "RBS", "", "", "", "For a project to be eligible to receive a RES or EEI grant under this subpart, the proposed project must meet each of the requirements specified in paragraphs (a) through (e) of this section. Subsequent EEI projects must meet the requirements specified in paragraph (a)(5)(ii) of this section. The applicant is cautioned against taking any actions or incurring any obligations prior to the Agency completing the environmental review that would either limit the range of alternatives to be considered or that would have an adverse effect on the environment, such as the initiation of construction. If the applicant takes any such actions or incurs any such obligations, it could result in project ineligibility.\n\n(a) The project must be for:\n\n(1) The purchase of a new RES;\n\n(2) The purchase of a refurbished RES;\n\n(3) The retrofitting of an existing RES;\n\n(4) For the purposes of this subpart, only those hydroelectric sources with a rated power of 30 megawatts or less are eligible, or\n\n(5) Making an EEI that will allow less energy to be used on an annual basis than the original building and/or equipment being improved or replaced as provided in a vendor/installer certification or as demonstrated in an energy assessment or energy audit as applicable.\n\n(i)  Types of improvements.  Eligible EEI include, but are not limited to:\n\n(A) Efficiency improvements to existing RES; and\n\n(B) Construction of a new energy efficient building only when the building is used for the same purpose as the existing building, and, based on an energy assessment or energy audit, as applicable, it will be more cost effective to construct a new building and will use less energy on annual basis than improving the existing building.\n\n(ii)  Subsequent EEI projects.  A proposed EEI project that replaces an EEI project previously funded under this subpart may or may not be eligible for funding.\n\n(A) If the proposed EEI project would replace the same specific EEI equipment that had previously received funds under this subpart prior to the end of the useful life, as specified in the Financial Assistance Agreement, then the proposed improvement project, even if it is more energy efficient than the previously funded improvement, is ineligible.\n\n(B) If the proposed EEI project would replace the same specific EEI equipment that had previously received funds under this subpart at or after the end of the useful life, as specified in the Financial Assistance Agreement, then the proposed improvement is eligible for funding under this subpart provided the EEI is more energy efficient than the previously funded improvement. If the proposed EEI is not more energy efficient than the previously funded improvement, then it is not eligible for funding under this subpart.\n\n(b) The project must utilize commercially available technology;\n\n(c) The project must have technical merit, as determined using the procedures specified in \u00a7 4280.117; and\n\n(d) The project must be located in a rural area in a State if the type of applicant is a rural small business, or in a rural or non-rural area in a State if the type of applicant is an agricultural producer and the application supports the production, processing, vertical integration, or marketing of agricultural products. If the agricultural producer's operation is in a non-rural area, then the application can only be for RES or EEI components of the business operation that are directly related to and their use and purpose is limited to the agricultural production operation, such as vertically integrated operations, and are part of and co-located with the agricultural production operation.\n\n(e) For a RES project, where a residence is closely associated with and shares an energy metering device with an agricultural operation or rural small business to be served by the RES project, 50 percent or more of the energy to be generated by the RES project must be used by the agricultural operation or rural small business. This also includes projects which will virtually net meter or credit energy to be generated by the RES project to a residence off-site from the project and owned by the applicant. The application must contain sufficient documentation to evaluate this provision which may include using either of the methods identified in paragraphs (e)(1) through (2) of this section.\n\n(1) Provide a renewable energy site assessment or other documentation including calculations that demonstrate, based on historical energy use, that 50 percent or more of the energy to be produced by the RES project will be used in the agricultural operation or rural small business. This includes documentation on historical residential energy use. The Agency may request additional data to determine residential versus business or agricultural operation usage. The actual percentage of energy determined to benefit the rural small business or agricultural operation will be used to determine eligible project costs; or\n\n(2) The applicant may install, or elect to conditionalize funding upon the installation of, a device (such as a second meter) that restricts 100 percent of the energy generated by the RES project to be used only by the agricultural operation or rural small business.\n\n(f) An applicant is permitted to use up to 10 percent of the amount provided under this subpart to construct, improve, or acquire broadband infrastructure, subject to the requirements of 7 CFR 1980, Subpart M, Special Authority to Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs."], ["7:7:15.1.19.2.6.2.24.14", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.114 Ineligible projects.", "RBS", "", "", "", "The Agency will not award funding under this part for any projects identified in this section, unless otherwise noted.\n\n(a) Research and development projects and projects that involve technology that is not commercially available;\n\n(b) Business operations that derive more than 10 percent of annual gross revenue from gambling activity. Gambling activities include any lease income from space or machines used for gambling activities. State or Tribal-authorized lottery proceeds, as approved by the Agency, conducted for the purpose of raising funds for the approved project are excluded;\n\n(c) Business operations deriving income from activities of a sexual nature or illegal activities;\n\n(d) Residential RES or EEI projects, including farm labor housing, apartment complexes, and owner-occupied bed and breakfasts, except for-profit nursing homes and assisted living facilities that provide full-time medical care for residents, and for-profit hotels that provide short-term housing;\n\n(e) Racetracks or facilities for conducting either professional or amateur races of animals, or by professional or amateur drivers or jockeys, or any other type of racing;\n\n(f) RES projects that co-fire with fossil fuels, natural gas or petroleum-based products or materials such as coal and other non-renewable fuels, oils, and chemicals, and tires or plastic;\n\n(g) Projects where 50 percent or more of the costs are ineligible or where project costs as defined in the application do not meet the definition of a renewable energy system or energy efficiency improvement, including projects submitted for labor costs only. Project costs associated with an EEI that are not clearly identified in the energy assessment or audit will be considered ineligible costs; and\n\n(h) Projects proposing two or more different types of RES technologies that are not incorporated into a unified system and projects proposing two or more different types of RES technologies at two or more locations."], ["7:7:15.1.19.2.6.2.24.15", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.115 RES and EEI grant funding.", "RBS", "", "", "", "(a)  Grant amounts.  The amount of grant funds that will be made available to an eligible RES or EEI project under this subpart will not exceed 25 percent of eligible project costs. Eligible project costs are specified in paragraph (c) of this section.\n\n(1)  Minimum request.  Unless otherwise specified in a  Federal Register  notice, the minimum request for a RES grant application is $2,500 and the minimum request for an EEI grant application is $1,500.\n\n(2)  Maximum request.  Unless otherwise specified in a  Federal Register  notice, the maximum request for a RES grant application is $500,000 and the maximum request for an EEI grant application is $250,000.\n\n(3)  Maximum grant assistance.  Unless otherwise specified in a  Federal Register  notice, the maximum amount of grant assistance to one person or entity under this subpart will not exceed $750,000 per Federal fiscal year.\n\n(b)  Matching funds and other funds.  The applicant is responsible for securing the remainder of the total project costs not covered by grant funds.\n\n(1) Without specific statutory authority, other Federal grant funds cannot be used to meet the matching funds requirement. A copy of the statutory authority must be provided to the Agency to verify if the other Federal grant funds can be used to meet the matching funds requirement under this subpart.\n\n(2) Passive third-party equity contributions are acceptable for RES projects, including equity raised from the sale of Federal tax credits.\n\n(c)  Eligible Project Costs.  Eligible project costs are only those costs incurred after a complete application has been received by the Agency and are associated with the items identified in paragraphs (c)(1) through (6) of this section. Each item identified in paragraphs (c)(1) through (6) of this section is only an eligible project cost if it is directly related to and its use and purpose is limited to the RES or EEI.\n\n(1) Purchase and installation of new or refurbished equipment.\n\n(2) Construction, retrofitting, replacement, and improvements.\n\n(3) EEI identified by vendor/installer certification or in the applicable energy assessment or energy audit.\n\n(4) Fees for construction permits and licenses and fees required by an interconnection agreement.\n\n(5) Professional service fees related to the project for qualified consultants, contractors, installers, and other third-party services.\n\n(6) For an eligible RES in which a residence is closely associated with the rural small business or agricultural operation the installation of a second meter to separate the residence from the portion of the project that benefits the rural small business or agricultural operation, as applicable.\n\n(d)  Ineligible project costs.  Ineligible project costs for RES and EEI projects include, but are not limited to:\n\n(1) Costs for agricultural tillage equipment, used equipment, and vehicles;\n\n(2) Construction or equipment costs that would be incurred regardless of the installation of a RES or EEI.\n\n(3) Lease payments, including lease to own or capitalized leases;\n\n(4) Any project cost that creates a conflict of interest or an appearance of a conflict of interest as provided in \u00a7 4280.106;\n\n(5) Funds used for political or lobbying activities; and\n\n(6) Funds used to pay off any Federal direct or guaranteed loans or other Federal debts.\n\n(e)  Award amount considerations.  In determining the amount of a RES or EEI grant awarded, the Agency will take into consideration the following six criteria:\n\n(1) The type of RES to be purchased;\n\n(2) The estimated quantity of energy to be generated by the RES;\n\n(3) The expected environmental benefits of the RES;\n\n(4) The quantity of energy savings expected to be derived from the activity, as certified by the vendor/installer as applicable, or demonstrated by an energy audit or energy assessment;\n\n(5) The estimated period of time for the energy savings generated by the activity to equal the cost of the activity; and\n\n(6) The expected energy efficiency of the RES."], ["7:7:15.1.19.2.6.2.24.16", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.116 Grant applications\u2014general.", "RBS", "", "", "", "(a)  General.  Separate applications must be submitted for RES and EEI projects. An original, hardcopy or electronic, of each application is required.\n\n(b)  Application content.  Applications for RES projects or EEI projects must contain the information specified in \u00a7 4280.118 unless the requirements of either \u00a7 4280.119(a) or \u00a7 4280.120(a) are met. If the requirements of \u00a7 4280.119(a) are met, the application may contain the information specified in \u00a7 4280.119(b). If the requirements of \u00a7 4280.120(a) are met, the application may contain the information specified in \u00a7 4280.120(b). For RES Projects only, the Agency may require a feasibility study based on the scope of the project to the applicant's overall operations, including new facilities with significant impacts on an existing operation, or when the application information or technical report does not provide sufficient documentation and analysis of the project's engineering, technical, financial, or market feasibility, or the economic viability of the project including any feedstock or off-take agreements, that are needed to evaluate whether a project will be successful. The elements of an acceptable feasibility study may vary by project scope and should be prepared by a qualified and independent third party.\n\n(c)  Evaluation of applications.  The Agency will evaluate each RES and EEI grant application and make a determination as to whether the application meets the criteria specified in paragraphs (c)(1) through (4).\n\n(1) The application is complete, as defined in \u00a7 4280.103;\n\n(2) The Applicant is eligible according to \u00a7 4280.112;\n\n(3) The project is eligible according to \u00a7 4280.113; and\n\n(4) The proposed project has technical merit as determined under \u00a7 4280.117."], ["7:7:15.1.19.2.6.2.24.17", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.117 Determination of technical merit.", "RBS", "", "", "", "The Agency will determine the technical merit of all proposed projects for which complete applications are submitted under \u00a7\u00a7 4280.118, 4280.119, and 4280.120 under this subpart using the procedures specified in this section. Only projects that have been determined by the Agency to have technical merit are eligible for funding under this subpart.\n\n(a)  General.  The Agency will use the information provided in the applicant's application and/or technical report to determine whether or not the project has technical merit. In making this determination, the Agency may engage the services of other Government agencies or other recognized industry experts in the applicable technology field, at its discretion, to evaluate and rate the technical report. The technical report can also be provided in the technical feasibility section of the feasibility study, when required, instead of completing a separate technical report.\n\n(b)  Technical report areas.  The areas that the Agency will evaluate in the technical reports when making the technical merit determination are specified in paragraphs (b)(1) through (5) of this section.\n\n(1)  EEI whose total project costs are $80,000 or less.  The following areas will be evaluated in making the technical merit determination:\n\n(i) Project description;\n\n(ii) Qualifications of EEI provider(s); and\n\n(iii) Vender/Installer certification, energy assessment, or energy audit.\n\n(2)  RES whose total project costs are $80,000 or less.  The following areas will be evaluated in making the technical merit determination:\n\n(i) Project description;\n\n(ii) Resource assessment;\n\n(iii) Project economic assessment; and\n\n(iv) Qualifications of key service providers.\n\n(3)  EEI whose total project costs are greater than $80,000.  The following areas will be evaluated in making the technical merit determination:\n\n(i) Project information;\n\n(ii) Energy assessment or energy audit; and\n\n(iii) Qualifications of the contractor or installers.\n\n(4)  RES whose total project costs are less than $200,000, but more than $80,000.  The following areas will be evaluated in making the technical merit determination:\n\n(i) Project description;\n\n(ii) Resource assessment;\n\n(iii) Project economic assessment;\n\n(iv) Project construction and equipment; and\n\n(v) Qualifications of key service providers.\n\n(5)  RES whose total project costs are $200,000 and greater.  The following areas will be evaluated in making the technical merit determination:\n\n(i) Qualifications of the project team;\n\n(ii) Agreements and permits;\n\n(iii) Resource assessment;\n\n(iv) Design and engineering;\n\n(v) Project development;\n\n(vi) Equipment procurement and installation; and\n\n(vii) Operations and maintenance.\n\n(c)  Pass/Pass with conditions/fail assignments.  The Agency will assign each area of the technical report, as specified in paragraph (b) of this section, a \u201cpass,\u201d \u201cpass with conditions,\u201d or \u201cfail.\u201d An area will receive a \u201cpass\u201d if the information provided for the area has no weaknesses and meets or exceeds any requirements specified for the area. An area will receive a \u201cpass with conditions\u201d if the information provided for the area has minor weaknesses which could be conditionalized and reasonably resolved by the applicant. Otherwise, if the information provided for the area is conclusively deemed to be a major weakness or if the area has not been addressed by the applicant, the area will receive a \u201cfail.\u201d\n\n(d)  Determination.  The Agency will compile the results for each area of the technical report to determine if the project has technical merit.\n\n(1) A project whose technical report receives a \u201cpass\u201d in each of the applicable technical report areas will be considered to have \u201ctechnical merit.\u201d\n\n(2) A project whose technical report receives a \u201cpass with conditions\u201d in one or more the applicable areas will be considered to have \u201cconditional technical merit.\u201d\n\n(3) A project whose technical report receives a \u201cfail\u201d in any one technical report area will be considered to be without technical merit.\n\n(e)  Further processing of applications.  A project that is determined to have \u201ctechnical merit\u201d or \u201cconditional technical merit\u201d is eligible for further consideration for funding. Projects with \u201cconditional technical merit\u201d would be subject to funding conditions that would need to be met to ensure full technical merit prior to completion of the project. A project that is determined to be \u201cwithout technical merit\u201d is considered to be an incomplete application and therefore is not eligible to compete for funding."], ["7:7:15.1.19.2.6.2.24.18", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.118 Grant applications for RES and EEI projects with total project costs of $200,000 and greater.", "RBS", "", "", "", "Grant applications for RES and EEI projects with total project costs of $200,000 and greater must provide the information specified in paragraphs (a) through (c) of this section, as applicable. Each applicant is encouraged, but is not required, to self-score the project using the evaluation criteria in \u00a7 4280.121.\n\n(a)  Forms and certifications.  Each application must contain the forms and certifications specified in paragraphs (a)(1) through (10), as applicable, of this section, except paragraph (a)(5) is optional.\n\n(1) Form RD 4280-3C, \u201cApplication for Renewable Energy Systems and Energy Efficiency Improvement Projects Total Project Costs of $200,000 or Greater\u201d.\n\n(2) Form SF-424, \u201cApplication for Federal Assistance.\u201d\n\n(3) Form SF-424C, \u201cBudget Information\u2014Construction Programs.\u201d\n\n(4) Form SF-424D, \u201cAssurances\u2014Construction Programs.\u201d\n\n(5) Identify the ethnicity, race, and gender of the applicant. Identify if the borrower is a veteran. This information is optional and is not required for a complete application but may be used by the Agency to award priority points.\n\n(6) Environmental documentation in accordance with 7 CFR part 1970. The applicant should contact the Agency to determine what documentation is required to be provided.\n\n(7) The applicant must identify whether or not the applicant has a known relationship or association with an Agency employee. If there is a known relationship, the applicant must identify each Agency employee with whom the applicant has a known relationship.\n\n(8) Certification that the applicant is a legal entity in good standing (as applicable) and operating in accordance with the laws of the State(s) or Tribe(s) where the applicant has a place of business.\n\n(9) Certification by the applicant that the equipment required for the project is available, can be procured and delivered within the proposed project development schedule, and will be installed in conformance with manufacturer's specifications and design requirements. This would not be applicable when equipment is not part of the project.\n\n(10) Certification by the applicant that the project will be constructed in accordance with applicable laws, regulations, agreements, permits, codes, and standards.\n\n(b)  Applicant information.  Provide information specified in paragraphs (b)(1) through (4) of this section to allow the Agency to determine the eligibility of the applicant.\n\n(1)  Type of applicant.  Eligible applicants must meet the definition of agricultural producer or rural small business as defined in \u00a7 4280.103. Agricultural producers seeking funding for a RES or EEI project may apply as either a rural small business or as an agricultural producer, provided they meet the applicable eligibility requirements. The applicant must provide the primary North American Industry Classification System (NAICS) code applicable to the applicant's business concern and certify on the Agency approved application form that they meet the definition of agricultural producer or rural small business. The Agency reserves the right to request supporting documentation to verify applicant eligibility.\n\n(2)  Applicant description.  Describe the ownership of the applicant, including the information specified in paragraphs (b)(2)(i) and (ii) of this section as applicable. Include a description of the applicant's farm/ranch/business operation, including how long the applicant has been in operation.\n\n(i) Describe how the applicant meets the ownership and control requirements as identified in \u00a7 4280.112(b).\n\n(ii) For each entity(ies) it controls or entity(ies) it is controlled by, provide a list of the individual owners with their contact information. Describe the relationship between the applicant and the other entity(ies), including percent ownership and control, management, passive investor ownership, and as applicable products exchanged. Organizational charts to demonstrate structure should be submitted when applicable.\n\n(3)  Financial information.  Financial information is required on the total operation of the applicant and all entity(ies) it controls or entity(ies) that control the applicant.\n\n(i) All financial information ( e.g.,  financial statements, balance sheets, financial projections, income statements) must be submitted in accordance with accounting practices acceptable to the Agency. Such practices can include, but are not limited to, Generally Accepted Accounting Principles (GAAP) and the industry's standard accounting practice.\n\n(ii) For sole proprietorships and other situations where business assets are held personally, financial statements must be prepared using only the assets and liabilities directly attributable to the business. Assets, plus any improvements must be valued at the lower of cost or market value.\n\n(iii) The Agency may request additional financial statements, financial models, cash flow information, updated financial statements, and other related financial information to determine the financial feasibility of a Project. Required financial statements:\n\n(A)  Historical financial statements.  Provide Agency-acceptable historical balance sheets and income statements the lesser of the last 3 fiscal years or all years of operation.\n\n(B)  Current balance sheet and income statement.  Provide a current Agency-acceptable balance sheet and year-to-date income statement dated within 90 days of submission of the complete application.\n\n(C)  Pro forma financial statements.  Provide balance sheets, income statements, and cash flow statements or financial model starting from the current financial statements through a minimum of 2 years of the project performing at full operational capacity or stable operations. Financial projections must be supported by a list of assumptions showing the basis for the projections.\n\n(4)  Previous grants and loans.  State whether the applicant has received and accepted any grants or guaranteed loan commitments under this subpart or any guaranteed loans under 7 CFR 5001. If the applicant has, identify each such grant award or guaranteed loan commitment and describe the progress the applicant has made on each project for which the grant or loan was received, including projected schedules and actual completion dates.\n\n(c)  Project information.  Provide information concerning the proposed project as a whole and its relationship to the applicant's operations, including the following:\n\n(1) Identification as to whether the project is for a RES or an EEI project. Include a description and the location of the project.\n\n(2) A description of the process that will be used to conduct all procurement transactions to demonstrate compliance with \u00a7 4280.125(a)(1).\n\n(3) Indicate if the proposed project will have a positive effect on resource conservation ( e.g.,  water, soil, forest), public health ( e.g.,  potable water, air quality), and the environment ( e.g.,  compliance with the U.S. Environmental Protection Agency's (EPA) renewable fuel standard(s), greenhouse gases, emissions, particulate matter).\n\n(4) Identify the amount of funds and the source(s) the applicant is proposing to use for the project. Provide written commitments for funds at the time the application is submitted to receive points under this scoring criterion.\n\n(i) If financial resources come from the applicant, documentation may include bank statements that demonstrates availability of funds.\n\n(ii) If a third party is providing financial assistance, the applicant must submit a commitment letter signed by an authorized official of the third party. The letter must be specific to the project and must identify the dollar amount and any applicable rates and terms. If the third-party commitment is a loan, the commitment must be firm; a letter-of-intent or pre-qualification letter subject to underwriting requirements or contingencies are not acceptable. An acceptable condition may be based on the receipt of the REAP grant or an appraisal.\n\n(d)  Technical report.  Each application must contain a technical report prepared in accordance with \u00a7 4280.110(g) and Appendix A or C, as applicable, of this subpart.\n\n(e)  Construction planning and performing development.  Each application submitted must be in accordance with \u00a7 4280.125 for planning, designing, bidding, contracting, and constructing RES and EEI projects as applicable."], ["7:7:15.1.19.2.6.2.24.19", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.119 Grant applications for RES and EEI projects with total project costs of less than $200,000, but more than $80,000.", "RBS", "", "", "", "Grant applications for RES and EEI projects with total project costs of less than $200,000, but more than $80,000, may provide the information specified in this section or, if the applicant elects to do so, the information specified in \u00a7 4280.118. In order to submit an application under this section, the criteria specified in paragraph (a) of this section must be met. The content for applications submitted under this section is specified in paragraph (b) of this section. Unless otherwise specified in this subpart, the construction planning and performing development procedures and the payment process that will be used for awards for applications submitted under this section are specified in paragraphs (c) and (d), respectively, of this section.\n\n(a)  Criteria for submitting applications for projects with total project costs of less than $200,000, but more than $80,000.  In order to submit an application under this section, each of the conditions specified in paragraphs (a)(1) through (7) of this section must be met.\n\n(1) The applicant must be eligible in accordance with \u00a7 4280.112.\n\n(2) The project must be eligible in accordance with \u00a7 4280.113.\n\n(3) Total project costs must be less than $200,000, but more than $80,000.\n\n(4) Construction planning and performing development must be performed in compliance with paragraph (c) of this section. The applicant or the applicant's prime contractor assumes all risks and responsibilities of project development.\n\n(5) The applicant or the applicant's prime contractor is responsible for all interim financing, including during construction.\n\n(6) The applicant agrees not to request reimbursement from funds obligated under this program until after project completion and is operating in accordance with the information provided in the application for the project.\n\n(7) The applicant must maintain insurance as required under \u00a7 4280.123(b), except business interruption insurance is not required.\n\n(b)  Application content.  Applications submitted under this section must contain the information specified in paragraphs (b)(1) through (4) of this section. Each applicant is encouraged, but is not required, to self-score the project using the evaluation criteria in \u00a7 4280.121.\n\n(1)  Forms and certifications.  The application must contain the items identified in \u00a7 4280.118(a), except that Form RD 4280-3B, \u201cApplication for Renewable Energy Systems and Energy Efficiency Improvement Projects Total Project Costs of Less than $200,000, But More Than $80,000\u201d may be used instead of the form noted in \u00a7 4280.118 (a)(1). In addition, the applicant must submit a certification that the applicant meets each of the criteria for submitting an application under this section as specified in paragraph (a) of this section.\n\n(2)  Applicant information.  The application must contain the items identified in \u00a7 4280.118(b), except that the information specified in \u00a7 4280.118(b)(3) is not required. The Agency reserves the right to request supporting documentation to verify applicant eligibility.\n\n(3)  Project information.  The application must contain the items identified in \u00a7 4280.118(c).\n\n(4)  Technical report.  Each application must contain a technical report in accordance with \u00a7 4280.110(g) and Appendix A or B, as applicable, of this subpart.\n\n(c)  Construction planning and performing development.  Applicants submitting applications under this section must comply with the requirements specified in paragraphs (c)(1) through (3) of this section for construction planning and performing development.\n\n(1)  General.  Paragraphs (a)(1), (2), and (4) of \u00a7 4280.125 apply.\n\n(2)  Small acquisition and construction procedures.  Small acquisition and construction procedures are those relatively simple and informal procurement methods that are sound and appropriate for a procurement of services, equipment, and construction of a RES or EEI project with a total project cost of not more than $200,000. The applicant is solely responsible for the execution of all contracts under this procedure, and Agency review and approval is not required.\n\n(3)  Contractor forms.  Applicants must have each contractor sign, as applicable:\n\n(i) Form RD 400-6, \u201cCompliance Statement,\u201d for contracts exceeding $10,000; and\n\n(ii) Form AD-1048, \u201cCertification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion\u2014Lower Tier Covered Transactions,\u201d for contracts exceeding $25,000.\n\n(d)  Payment process for applications for RES and EEI projects with total project costs of less than $200,000, but more than $80,000.\n\n(1) Upon completion of the project, the grantee must submit to the Agency a copy of the contractor's certification of final completion for the project and a statement that the grantee accepts the work completed. At its discretion, the Agency may require the applicant to have an inspector certify that the project is constructed and installed correctly.\n\n(2) The RES or EEI project must be constructed, installed, and operating as described in the technical report prior to disbursement of funds. For RES, the system must be operating at the steady state operating level described in the technical report for a period of not less than 30 days, unless this requirement is modified by the Agency, prior to disbursement of funds. Any modification to the 30-day steady state operating level requirement will be based on the Agency's review of the technical report and will be incorporated into the Letter of Conditions.\n\n(3) Prior to making payment, the Agency will be provided with Form RD 1924-9, \u201cCertificate of Contractor's Release,\u201d and Form RD 1924-10, \u201cRelease by Claimants,\u201d or similar forms, executed by all persons who furnished materials or labor in connection with the contract."], ["7:7:15.1.19.2.6.2.24.2", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.102 Organization of subpart.", "RBS", "", "", "", "(a) Sections 4280.103 through 4280.111 discuss definitions; exception authority; review or appeal rights; conflict of interest; USDA Departmental Regulations; other applicable laws; ineligible applicants, grantees, and owners; general applicant, application, and funding provisions; and notifications, which are applicable to all of the funding programs under this subpart.\n\n(b) Sections 4280.112 through 4280.125 discuss the requirements specific to RES and EEI grants. Sections 4280.112 and 4280.113 discuss, respectively, applicant and project eligibility. Section 4280.114 addresses ineligible projects. Section 4280.115 addresses funding provisions for these grants. Sections 4280.116 through 4280.120 address grant application content, technical merit determination, and required documentation. Sections 4280.121 through 4280.124 address the scoring, selection, awarding and administering, and servicing of these grant applications. Section 4280.125 addresses construction planning and development.\n\n(c) Section 4280.137 presents the process by which the Agency will make combined loan guarantee and grant funding available for RES and EEI projects.\n\n(d) Sections 4280.149 through 4280.159 present the process by which the Agency will make EA and REDA grant funding available. These sections cover applicant and project eligibility, grant funding, application content, evaluation, scoring, selection, awarding and administering, and servicing.\n\n(e) Appendices A through C cover technical report requirements. Appendix A applies to EEI projects; Appendix B applies to RES projects with Total Project Costs of Less Than $200,000, but more than $80,000; and Appendix C applies to RES projects with Total Project Costs $200,000 and Greater. Appendices A and B do not apply to RES and EEI projects with Total Project Costs of $80,000 or less, respectively. Instead, technical report requirements for these projects are found in \u00a7 4280.120.\n\n(f) Appendix D covers contents of feasibility study."], ["7:7:15.1.19.2.6.2.24.20", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.120 Grant applications for RES and EEI projects with total project costs of $80,000 or less.", "RBS", "", "", "", "Grant applications for RES and EEI projects with total project costs of $80,000 or less must provide the information specified in this section or, if the applicant elects to do so, the information specified in either \u00a7\u00a7 4280.118 or 4280.119. In order to submit an application under this section, the criteria specified in paragraph (a) of this section must be met. The content for applications submitted under this section is specified in paragraph (b) of this section. Unless otherwise specified in this subpart, the construction planning and performing development procedures and the payment process that will be used for awards for applications submitted under this section are specified in paragraphs (c) and (d), respectively, of this section.\n\n(a)  Criteria for submitting applications for RES and EEI projects with total project costs of $80,000 or less.  In order to submit an application under this section, each of the conditions specified in paragraphs (a)(1) through (7) of this section must be met.\n\n(1) The applicant must be eligible in accordance with \u00a7 4280.112.\n\n(2) The project must be eligible in accordance with \u00a7 4280.113.\n\n(3) Total project costs must be $80,000 or less.\n\n(4) Construction planning and performing development must be performed in compliance with paragraph (c) of this section. The applicant or the applicant's prime contractor assumes all risks and responsibilities of project development.\n\n(5) The applicant or the applicant's prime contractor is responsible for all interim financing, including during construction.\n\n(6) The applicant agrees not to request reimbursement from funds obligated under this program until after the project has been completed and is operating in accordance with the information provided in the application for the project.\n\n(7) The applicant must maintain insurance as required under \u00a7 4280.123(b), except business interruption insurance is not required.\n\n(b)  Application content.  Applications submitted under this section must contain the information specified in paragraphs (b)(1) through (4), as applicable. Each applicant is encouraged, but is not required, to self-score the project using the evaluation criteria in \u00a7 4280.121.\n\n(1)  Forms and certifications.  Each application must contain the forms and certifications specified in paragraphs (b)(1)(i) through (x), as applicable, of this section except that paragraph (b)(1)(v) is optional.\n\n(i) Form RD 4280-3A, \u201cApplication for Renewable Energy Systems and Energy Efficiency Improvement Projects Total Project Costs of $80,000 or Less\u201d.\n\n(ii) Form SF-424, \u201cApplication for Federal Assistance\u201d.\n\n(iii) Form SF-424C, \u201cBudget Information for Construction Programs\u201d.\n\n(iv) Form SF-424D, \u201cAssurances for Construction Programs\u201d.\n\n(v) Identify the ethnicity, race, and gender of the applicant. Identify if the borrower is a veteran. This information is optional and is not required for a complete application but may be used by the Agency to award priority points.\n\n(vi) Environmental documentation in accordance with 7 CFR part 1970. The applicant should contact the Agency to determine what documentation is required to be provided.\n\n(vii) Certification by the applicant that:\n\n(A) The applicant meets each of the applicant eligibility criteria found in \u00a7 4280.112. The Agency reserves the right to request supporting documentation to verify applicant eligibility;\n\n(B) The proposed project meets each of the project eligibility requirements found in \u00a7 4280.113;\n\n(C) The design, engineering, testing, and monitoring will be sufficient to demonstrate that the proposed project will meet its intended purpose;\n\n(D) The equipment required for the project is available, can be procured and delivered within the proposed project development schedule, and will be installed in conformance with manufacturer's specifications and design requirements. This would not be applicable when equipment is not part of the project;\n\n(E) The project will be constructed in accordance with applicable laws, regulations, agreements, permits, codes, and standards;\n\n(F) The applicant meets the criteria for submitting an application for projects with total project costs of $80,000 or less;\n\n(G) The applicant will abide by the open and free competition requirements in compliance with \u00a7 4280.125(a)(1); and\n\n(H) For bioenergy projects, any and all woody biomass feedstock from National Forest System land or public lands cannot be otherwise used as a higher value wood-based product.\n\n(viii) State whether the applicant has received any grants and/or guaranteed loans under this subpart, or any guaranteed loans under 7 CFR part 5001. If the applicant has, identify each such grant and/or loan and describe the progress the applicant has made on each project for which the grant and/or loan was received, including projected schedules and actual completion dates.\n\n(ix) The applicant must identify whether or not the applicant has a known relationship or association with an Agency employee. If there is a known relationship, the applicant must identify each Agency employee with whom the applicant has a known relationship.\n\n(x) The applicant is a legal entity in good standing (as applicable) and operating in accordance with the laws of the State(s) or Tribe where the applicant has a place of business.\n\n(2)  General.  For both RES and EEI project applications:\n\n(i) Identify whether the project is for a RES or an EEI project;\n\n(ii) Identify the primary NAICS code applicable to the applicant's operation if known or a description of the operation in enough detail for the Agency to determine the primary NAICS code;\n\n(iii) Indicate if the proposed project will have a positive effect on resource conservation ( e.g.,  water, soil, forest), public health ( e.g.,  potable water, air quality), and the environment ( e.g.,  compliance with the EPA's renewable fuel standard(s), greenhouse gases, emissions, particulate matter); and\n\n(iv) Identify the amount of matching funds and other funds and the source(s) the applicant is proposing to use for the project. In order to receive points under this scoring criterion, written commitments for funds ( e.g.,  a Letter of commitment, bank statement) must be submitted when the application is submitted.\n\n(A) If financial resources come from the applicant, documentation may include a bank statement that demonstrates availability of funds.\n\n(B) If a third party is providing financial assistance, the applicant must submit a commitment letter signed by an authorized official of the third party. The letter must be specific to the project, identify the dollar amount and any applicable rates and terms. If the third-party commitment is a loan, the commitment must be firm, a letter-of-intent or pre-qualification letter, subject to underwriting requirements or contingencies are not acceptable. An acceptable condition may be based on the receipt of the REAP grant or an appraisal.\n\n(3)  Technical report for EEI.  Each EEI application submitted under this section must include a technical report in accordance with \u00a7 4280.110(g) and paragraphs (b)(3)(i) through (iv) of this section.\n\n(i)  Project description.  Provide a description of the proposed EEI, including its intended purpose and a vendor/installer certification that the EEI project meets the requirements for being commercially available.\n\n(ii)  Qualifications of EEI provider(s).  Provide a certification by the vendor/installer that:\n\n(A) They are qualified to complete the project as intended, including the number of years of experience with the proposed EEI technology. Any contractor or installer with less than 2 years of experience may be required to provide additional information in order for the Agency to determine if they are a qualified installer/contractor.\n\n(B) The EEI system will operate and perform over the project's useful life in a reliable and cost-effective manner; and\n\n(iii)  Energy assessment.  Provide a copy of the energy assessment (or energy audit) performed for the project as required under Section C of Appendix A to this subpart and the qualifications of the person which completed the energy assessment.\n\n(iv)  Simple payback.  Provide an estimate of simple payback, including all calculations, documentation, and any assumptions.\n\n(4)  Technical report for RES.  Each RES application submitted under this section must include a technical report in accordance with \u00a7 4280.110(g) and paragraphs (b)(4)(i) through (iv) of this section.\n\n(i)  Project description.  Provide a description of the project, including its intended purpose and a vendor/installer certification that the RES project meets the requirements for being commercially available. Appendix B contains instructions for how a project is to be constructed and installed. Identify the project's location and describe the project site.\n\n(ii)  Resource assessment.  Provide vendor/installer certified projections on energy to be replaced and/or generated once the proposed system is operating at its steady state operating level, including the quality and availability of the renewable resource to the project. If there is a residence closely associated with the RES project, include the historical amount of energy used by the residence and the historical amount of energy used by the agricultural operation or rural small business, as applicable, to satisfactorily demonstrate 50% or more of proposed generation will benefit the agricultural operation or rural small business;\n\n(iii)  Project economic assessment.  Describe the projected financial performance of the proposed project. The description must address total project costs, revenues accrued from the sale or crediting of energy, quantity and value of energy offset, and revenue from byproducts. Include applicable investment and other production incentives and indicate if they are a one time or reoccurring incentive. Provide an estimate of simple payback, including all calculations, documentation, and any assumptions; and\n\n(iv)  Qualifications of key service providers.  Provide a certification by the vendor/installer that:\n\n(A) They are qualified to complete the project as intended, including the number of similar systems installed previously and any professional credentials, licenses, and relevant experience. If specific numbers are not available for similar systems, you may submit an estimation of the number of similar systems; and\n\n(B) The RES system will operate and perform over the project's useful life in a reliable and cost-effective manner.\n\n(c)  Construction planning and performing development for applications submitted under this section.  All applicants submitting applications under this section must comply with the requirements specified in paragraphs (c)(1) through (3) of this section for construction planning and performing development.\n\n(1)  General.  Paragraphs (a)(1), (2), and (4) of \u00a7 4280.125 apply.\n\n(2)  Small acquisition and construction procedures.  Small acquisition and construction procedures are those relatively simple and informal procurement methods that are sound and appropriate for a procurement of services, equipment and construction of a RES or EEI project with a total project cost of not more than $80,000. The applicant is solely responsible for the execution of all contracts under this procedure, and Agency review and approval is not required.\n\n(3)  Contractor forms.  Applicants must have each contractor sign, as applicable:\n\n(i) Form RD 400-6, \u201cCompliance Statement\u201d for contracts exceeding $10,000; and\n\n(ii) Form AD-1048, \u201cCertification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion lower Tier Covered Transactions\u201d for contracts exceeding $25,000.\n\n(d)  Payment process for applications for RES and EEI projects with total project costs of $80,000 or less.  (1) Upon completion of the project, the grantee must submit to the Agency a copy of the contractor's certification of final completion for the project and a statement that the grantee accepts the work completed. At its discretion, the Agency may require the applicant to have an inspector certify that the project is constructed and installed correctly.\n\n(2) The RES or EEI project must be constructed, installed, and currently be operating as described in the technical report prior to disbursement of funds. For RES, the system must be operating at the steady state operating level described in the technical report for a period of not less than 30 days, unless this requirement is modified by the Agency, prior to disbursement of funds. Any modification to the 30-day steady state operating level requirement will be based on the Agency's review of the technical report and will be incorporated into the Letter of Conditions.\n\n(3) Prior to making payment, the grantee must provide the Agency with Form RD 1924-9 and Form RD 1924-10, or similar forms, executed by all persons who furnished materials or labor in connection with the contract."], ["7:7:15.1.19.2.6.2.24.21", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.121 Scoring RES and EEI grant applications.", "RBS", "", "", "[86 FR 22309, Apr. 27, 2021, as amended at 90 FR 30560, July 10, 2025]", "Agency personnel will score each complete and eligible RES and EEI application based on the scoring criteria specified in this section, unless otherwise specified in a  Federal Register  notice, with a maximum score of 100 points possible.\n\n(a)  Environmental benefits.  A maximum of 5 points will be awarded for this criterion based on whether the applicant has indicated in the application that the proposed project will have a positive effect on resource conservation ( e.g.,  water, soil, forest), public health ( e.g.,  potable water, air quality), and the environment ( e.g.,  compliance with EPA's renewable fuel standard(s), greenhouse gases, emissions, particulate matter). If the project will have a positive impact on:\n\n(1) Any one of the three impact areas, 1 point will be awarded.\n\n(2) Any two of the three impact areas, 3 points will be awarded.\n\n(3) All three impact areas, 5 points will be awarded.\n\n(b)  Energy generated, replaced, or saved.  A maximum of 25 points will be awarded for this criterion. Applications for RES and EEI projects are eligible for points under both paragraphs (b)(1) and (2) of this section.\n\n(1)  Quantity of energy generated or saved per REAP grant dollar requested.  A maximum of 10 points will be awarded for this sub-criterion. For RES and EEI projects, points will be awarded for either the amount of renewable energy generation per grant dollar requested, which includes those projects that are replacing energy usage with a renewable source; or the actual annual average energy savings over the most recent 12, 24, 36, 48, or 60 consecutive months of operation per grant dollar requested. Points will not be awarded for more than one category.\n\n(i)  RES.  The quantity of energy generated or replaced per grant dollar requested will be determined by dividing the projected total annual energy generated or replaced by the RES or RES retrofit (minus energy for residential use), which will be converted to BTUs, by the grant dollars requested. Points will be awarded based on the annual amount of energy generated or replaced (minus energy for residential use) per grant dollar requested for the proposed RES project. In cases where there are ineligible pre-application costs, the entire quantity of energy produced by the system is utilized for this scoring criteria as long as the use of energy produced is eligible. The Agency will award up to 10 points as determined using paragraphs (b)(1)(i)(A) and (B) of this section. If the annual amount of energy generated or replaced per grant dollar requested is:\n\n(A) 50,000 BTUs average annual energy generated or replaced per grant dollar requested or higher, 10 points will be awarded; or\n\n(B) Less than 50,000 BTUs annual energy generated or replaced per grant dollar requested, points will be awarded according to the results of taking the energy generated or replaced per grant dollar requested/50,000 \u00d7 10 points. The points awarded are rounded to the nearest hundredth of a point.\n\n(ii)  EEI.  The Agency will award up to 10 points under this sub-criterion based on the average annual energy saved per grant dollar requested for the EEI project. The Agency will award up to 10 points as determined under paragraph (b)(1)(ii)(A) and (B) of this section. If the average annual energy saved per grant dollar requested is:\n\n(A) 50,000 BTUs average annual energy saved per grant dollar requested or higher, 10 points will be awarded; or\n\n(B) Less than 50,000 BTUs average annual energy saved per grant dollar requested, points will be awarded according to the result of taking the energy saved per grant dollar requested/50,000 \u00d7 10 points. The points awarded are rounded to the nearest hundredth of a point.\n\n(2)  Quantity of energy replaced, generated, or saved.  A maximum of 15 points will be awarded for this sub-criterion. Points will be awarded on the basis of whether the project is for energy replacement, energy savings, or energy generation; points will not be awarded for more than one category.\n\n(i)  Energy replacement.  The Agency will award points under this sub-criterion for a RES project based on the amount of energy replaced by the project compared to the amount of energy used by the applicable process(es) over a 12-month period. If the estimated energy produced is more than 150 percent of the energy used by the applicable process(es), the project will be scored as an energy generation project under paragraph (b)(2)(ii) of this section.\n\n(A)  Documentation for energy replacement.  For a RES project to qualify as energy replacement, the applicant must provide documentation in its application on prior energy use incurred by the applicant. Proposed energy use, such as that attributed to an expansion, is not considered in the replacement calculation. For a RES project involving new construction and being installed to serve the new facility, the project can be classified as energy replacement only if the applicant can document prior energy use from a facility that is within plus or minus 10 percent of the size of the facility it is replacing. The estimated quantities of energy must be converted to either BTUs, watts, or similar energy equivalents to facilitate scoring.\n\n(B)  Calculation.  Energy replacement is determined by dividing the quantity of renewable energy that the RES project is estimated would have been generated if it were in place over the most recent 12-month period by the quantity of energy actually consumed over the same period by the applicable energy process(es) that is(are) consuming energy.\n\n(C)  Awarding of points.  Using the results from paragraph (b)(2)(i)(B) of this section, if the percentage of energy replacement is:\n\n( 1 ) Greater than 50 percent, 15 points will be awarded;\n\n( 2 ) Greater than 25 percent, but equal to or less than 50 percent, 10 points will be awarded; or\n\n( 3 ) Equal to or less than 25 percent, 5 points will be awarded.\n\n(ii)  Energy generation.  If the proposed RES is intended for production of energy or is a proposed retrofitting of an existing RES which increases the amount of energy generated, the Agency will award 10 points.\n\n(iii)  Energy saved.  The Agency will award up to 15 points under this sub-criterion for an EEI project based on the percentage of estimated energy saved by the installation of the project as determined by the projections in the applicable energy assessment or energy audit. If the estimated energy expected to be saved over the same period used in the energy assessment or energy audit, as applicable, will be:\n\n(A) 50 percent or greater, 15 points will be awarded;\n\n(B) 35 percent up to, but not including 50 percent, 10 points will be awarded;\n\n(C) 20 percent up to, but not including 35 percent, 5 points will be awarded; or\n\n(D) Less than 20 percent, no points will be awarded.\n\n(c)  Commitment of funds.  A maximum of 15 points will be awarded for this criterion based on the percentage of written commitment an applicant has from its fund sources that are documented with a complete application.\n\n(1)  Calculation.  The percentage of written commitment is calculated as follows: Percentage of written commitment = total amount of funds for which written commitments have been submitted with the application/total amount of matching funds and other funds required.\n\n(2)  Awarding of points.  Using the result from paragraph (c)(1) of this section, the Agency will award points as shown in paragraphs (c)(2)(i) through (iii) of this section.\n\n(i) If the percentage of written commitments is 100 percent of the matching funds, 15 points will be awarded.\n\n(ii) If the percentage of written commitments is less than 100 percent, but more than 50 percent, points will be awarded as follows: ((Percentage of written commitments \u221250 percent)/(50 percent)) \u00d7 15 points, where points awarded are rounded to the nearest hundredth of a point.\n\n(iii) If the percentage of written commitments is 50 percent or less, no points will be awarded.\n\n(d)  Previous grantees and borrowers.  A maximum of 15 points will be awarded for this criterion based on whether the applicant has received and accepted a REAP grant award or guaranteed loan commitment under 7 CFR part 4280 of this title or a guaranteed loan commitment under either this part or 7 CFR part 5001 of this title.\n\n(1) If the applicant has never received and accepted a grant award or a guaranteed loan commitment under either this part or 7 CFR part 5001 of this title, 15 points will be awarded.\n\n(2) If the applicant has not received and accepted a grant award or guaranteed loan commitment under this subpart, or a guaranteed loan commitment under 7 CFR part 5001 of this title within the 2 previous Federal fiscal years, 5 points will be awarded.\n\n(3) If the applicant has received a grant award or guaranteed loan commitment under this subpart, or a guaranteed loan commitment under 7 CFR part 5001 of this title within the 2 previous Federal fiscal years, no points will be awarded.\n\n(e)  Existing business.  A maximum of 5 points will be awarded for an existing agricultural producer business or rural small business that meets the definition of existing business in \u00a7 4280.103 of this part.\n\n(f)  Simple payback.  A maximum of 15 points will be awarded for this criterion based on the simple payback of the project as defined in \u00a7 4280.103. Points will be awarded for either RES or EEI; points will not be awarded for more than one category.\n\n(1)  RES.  If the simple payback of the proposed project is:\n\n(i) Less than 10 years, 15 points will be awarded;\n\n(ii) 10 years up to but not including 15 years, 10 points will be awarded;\n\n(iii) 15 years up to and including 25 years, 5 points will be awarded; or\n\n(iv) Longer than 25 years, no points will be awarded.\n\n(2)  EEI.  If the simple payback of the proposed project is:\n\n(i) Less than 4 years, 15 points will be awarded;\n\n(ii) 4 years up to but not including 8 years, 10 points will be awarded;\n\n(iii) 8 years up to and including 12 years, 5 points will be awarded; or\n\n(iv) Longer than 12 years, no points will be awarded.\n\n(g)  Size of request.  For grant applications requesting $250,000 or less for RES, or $125,000 or less for EEI, an additional 10 points may be awarded such that a maximum score of 100 points is possible. All other applications will have a maximum possible score of 90 points.\n\n(h)  State Director and Administrator priority points.  A maximum of 10 points are available for this criterion. A State Director, for its State allocation under this subpart, or the Administrator, for making awards from the National Office reserve, may award up to 10 points to an application based on the conditions specified in paragraphs (h)(1) through (5) of this section. In no case shall an application receive more than 10 points under this criterion.\n\n(1) The application is for an under-represented technology.\n\n(2) Selecting the application helps achieve geographic diversity, which may include points based upon the size of the funding request.\n\n(3) The applicant is a member of an unserved or under-served population described as follows:\n\n(i) Owned by a veteran, including but not limited to individuals as sole proprietors, members, partners, stockholders, etc., of not less than 20 percent. In order to receive points, applicants must provide a statement in their applications to indicate that owners of the project have Veteran status.\n\n(ii) [Reserved]\n\n(4) Selecting the application helps further a Presidential initiative or a Secretary of Agriculture priority.\n\n(5) The proposed project is located in a Federally declared disaster area. Declarations must be within the last 2 calendar years.\n\n(6) The proposed project is located in an area where 20 percent or more of its population is living in poverty, as defined by the United States Census Bureau, underserved community(ies) or has experienced long-term population decline, or loss of employment."], ["7:7:15.1.19.2.6.2.24.22", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.122 Selecting RES and EEI grant applications for award.", "RBS", "", "", "", "Unless otherwise provided for in a  Federal Register  notice, RES and EEI grant applications will be processed in accordance with this section. Complete applications will be evaluated, processed, and subsequently ranked, and will compete for funding, subject to the availability of grant funding. Each State will receive two grant allocations, an allocation of grant funds restricted to funding requests of $20,000 or less, and an allocation of grant funds which are unrestricted and can fund any size funding request.\n\n(a)  RES and EEI grant applications.  Complete RES and EEI grant applications, including combination grant and guaranteed loan requests, regardless of the amount of funding requested, are eligible to compete in two competitions within a Federal fiscal year\u2014a State competition and a National competition.\n\n(1) To be competed in the State and National competitions, complete applications must be received by the applicable State Office by 4:30 p.m. local time no later than March 31. If March 31 falls on a non-business day or a federally-observed holiday, the next Federal business day will be considered the last day for receipt of a complete application. Complete applications received after this date and time will be processed in the subsequent fiscal year.\n\n(2) All eligible RES and EEI grant applications that remain unfunded after completion of the State competition will be competed in a National competition.\n\n(b)  RES and EEI grant applications requesting $20,000 or less.  Complete RES and EEI grant applications, including combination grant and guaranteed loan requests, requesting $20,000 or less are eligible to compete in up to five competitions\u2014two State competitions and a National set-aside competition for grants of $20,000 or less, as well as the two competitions referenced in paragraph (a) of this section.\n\n(1) For complete RES and EEI grant applications for grants requesting $20,000 or less, there will be two State competitions each Federal fiscal year. Complete applications for $20,000 or less that are received by the Agency by 4:30 p.m. local time on October 31 of the Federal fiscal year will be competed against each other. Complete applications for $20,000 or less that are received by the Agency by 4:30 p.m. local time on March 31 of the Federal fiscal year and any applications for $20,000 or less that were not ready to compete or were not funded from the prior competition, will be competed against each other. If either October 31 or March 31 falls on a weekend or a federally observed holiday, the next Federal business day will be considered the last day for receipt of a complete application. Complete applications received after 4:30 p.m. local time on March 31, regardless of the postmark on the application, will be processed in the subsequent fiscal year.\n\n(2) All eligible RES and EEI grant applications requesting $20,000 or less that remain unfunded after completion of the State competition for applications received by March 31 will be competed in the National competition.\n\n(c)  Ranking of applications.  The Agency will rank complete eligible applications using the scoring criteria specific in \u00a7 4280.121. Higher scoring applications will receive first consideration.\n\n(d)  Funding selected applications.  As applications are funded, if insufficient funds remain to fund the next highest scoring application, the Agency may elect to fund a lower scoring application. Before this occurs, the Agency will provide the applicant of the higher scoring application the opportunity to reduce the amount of the applicant's grant request to the amount of funds available. If the applicant agrees to lower its grant request, the applicant must certify that the purposes of the project will be met and provide the remaining total funds needed to complete the project. If two or more applications score the same and if remaining funds are insufficient to fund each such application, the Agency will notify the applicants that they may either accept a proportional amount of funds or submit their total request for the next available competition. At its discretion, the Agency may also elect to allow any remaining multi-year funds to be carried over to the next fiscal year rather than selecting a lower scoring application.\n\n(e)  Handling of ranked applications not funded.  Based on the availability of funding, a ranked application might not be funded. Handling of unfunded applications depends on whether the request is more or less than $20,000.\n\n(1) All complete and eligible applications requesting $20,000 or less may be competed in up to five competitions within a Federal fiscal year and if not selected for funding, the Agency will discontinue consideration of the applications.\n\n(2) The Agency will discontinue consideration for funding all complete and eligible applications requesting more than $20,000 that are not selected for funding after the State and National competitions for the Federal fiscal year.\n\n(f)  Commencement of the project.  Not all grant applications that compete for funding will receive an award. Thus, the applicant assumes all risks if the applicant chooses to purchase the proposed equipment or start construction of the proposed project after the complete application has been received by the Agency, but before the applicant is notified as to whether or not they have been selected for an award."], ["7:7:15.1.19.2.6.2.24.23", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.123 Awarding and administering RES and EEI grants.", "RBS", "", "", "", "The Agency will award and administer RES and EEI grants in accordance with Departmental Regulations and with paragraphs (a) through (h) of this section.\n\n(a)  Letter of Conditions.  A Letter of Conditions will be prepared by the Agency, establishing conditions that must be agreed to by the applicant before any obligation of funds can occur. Upon reviewing the conditions and requirements in the Letter of Conditions, the applicant must complete, sign, and return the Form RD 1942-46, \u201cLetter of Intent to Meet Conditions,\u201d and Form RD 1940-1, \u201cRequest for Obligation of Funds,\u201d to the Agency if they accept the conditions of the grant; or if certain conditions cannot be met, the applicant may propose alternate conditions to the Agency. The Agency must concur with any changes proposed to the Letter of Conditions by the applicant before the application will be further processed.\n\n(b)  Insurance requirements.  Agency approved insurance coverage must be maintained for 3 years after the Agency has approved the final performance report unless this requirement is waived or modified by the Agency in writing. Insurance coverage shall include, but is not limited to:\n\n(1) Property insurance, such as fire and extended coverage, will normally be maintained on all structures and equipment.\n\n(2) Liability.\n\n(3) National flood insurance is required in accordance with 7 CFR part 1806, subpart B, if applicable.\n\n(4) Business interruption insurance for projects with total project costs of more than $200,000.\n\n(c)  Forms and certifications.  The forms specified in paragraphs (c)(1) through (5) of this section will be attached to the Letter of Conditions referenced in paragraph (a) of this section. The forms specified in paragraphs (c)(1) through (4) of this section and all of the certifications must be submitted prior to grant approval. The form specified in paragraph (c)(5) of this section, which is to be completed by contractors, does not need to be returned to the Agency, but must be kept on file by the grantee.\n\n(1) Form RD 1942-46, \u201cLetter of Intent to Meet Conditions.\u201d\n\n(2) Form RD 1940-1.\n\n(3) Form SF-LLL, \u201cDisclosure of Lobbying Activities,\u201d if the grant exceeds $100,000 and/or if the grantee has made or agreed to make payment using funds other than Federal appropriated funds to influence or attempt to influence a decision in connection with the application.\n\n(4) Form RD 400-4, \u201cAssurance Agreement,\u201d or successor form.\n\n(5) Form AD-1048, as signed by the contractor or other lower tier party.\n\n(d)  Evidence of matching funds and other funds.  If an applicant submitted written evidence of matching funds and other funds with the application, the applicant is responsible for ensuring that such written evidence is still in effect ( i.e.,  not expired) when the grant is executed. If the applicant did not submit written evidence of matching funds and other funds with the application, the applicant must submit such written evidence that is in effect before the Agency will execute the Financial Assistance Agreement. In either case, written evidence of matching funds and other funds needed to complete the project must be provided to the Agency before execution of the Financial Assistance Agreement and must be in effect ( i.e.,  must not have expired) at the time Financial Assistance Agreement is executed.\n\n(e)  System for Award Management (SAM) registration.  Before the Financial Assistance Agreement can be executed, the applicant's UEI number must be registered in the SAM and a valid ( e.g.  non-expired) Commercial and Government Entity (CAGE) code must be submitted to the Agency.\n\n(f)  Financial Assistance Agreement.  Once the requirements specified in paragraphs (a) through (e) of this section have been met, the Financial Assistance Agreement can be executed by the grantee and the Agency. The Agreement should be signed as soon as possible, but no later than within 6 months of obligation of funds or grant funds may be de-obligated by the Agency. The grantee must abide by all requirements contained in the Financial Assistance Agreement, this subpart, and any other applicable Federal statutes or regulations. Failure to follow these requirements might result in termination of the grant and adoption of other available remedies.\n\n(g)  Grant approval.  The grantee will be sent a copy of the executed Form RD 1940-1 and the Financial Assistance Agreement.\n\n(h)  Power purchase agreement.  Where applicable, the grantee shall provide to the Agency a copy of the executed power purchase agreement within 12 months from the date that the Financial Assistance Agreement is executed, unless otherwise approved by the Agency."], ["7:7:15.1.19.2.6.2.24.24", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.124 Servicing RES and EEI grants.", "RBS", "", "", "", "The Agency will service RES and EEI grants in accordance with the requirements specified in Departmental Regulations; 7 CFR part 3; 7 CFR 1951 Subparts E and O; the Financial Assistance Agreement; and paragraphs (a) through (k) of this section.\n\n(a)  Inspections.  Grantees must permit periodic inspection of the project records and operations by a representative of the Agency.\n\n(b)  Programmatic changes.  Grantees may make changes to an approved project's costs, scope, contractor, or vendor subject to the provisions specified in paragraphs (b)(1) through (3) of this section. If the changes result in lowering the project's score to below what would have qualified the application for award, the Agency will not approve the changes.\n\n(1)  Prior approval.  The grantee must obtain prior Agency approval for any change to the scope, contractor, or vendor of the approved project. Changes in project cost will require Agency approval as outlined in paragraph (b)(1)(iii) of this section.\n\n(i) Grantees must submit requests for programmatic changes in writing to the Agency for Agency approval.\n\n(ii) Failure to obtain prior Agency approval of any such change could result in such remedies as suspension, termination, and recovery of grant funds.\n\n(iii) Prior Agency approval is required for all increases in project costs. Prior Agency approval is required for a decrease in project cost only if the decrease would have a negative effect on the long-term viability of the project. A decrease in project cost that does not have a negative impact on long-term viability requires Agency review and approval prior to disbursement of funds.\n\n(2)  Changes in project cost or scope.  If there is a significant change in project cost or any change in project scope, then the grantee's funding needs, eligibility, and scoring, as applicable, will be reassessed. Decreases in Agency funds will be based on revised project costs and other factors, including Agency regulations used at the time of grant approval.\n\n(3)  Change of contractor or vendor.  When seeking a change, the grantee must submit to the Agency a written request for approval. The proposed contractor or vendor must have qualifications and experience acceptable to the Agency. The written request must contain sufficient information, which may include a revised technical report as required under \u00a7 4280.118(e), 4280.119(b)(4), 4280.120(b)(3), or 4280.120(b)(4), as applicable, to demonstrate to the Agency's satisfaction that such change maintains project integrity. If the Agency determines that project integrity continues to be demonstrated, the grantee may make the change. If the Agency determines that project integrity is no longer demonstrated, the change will not be approved and the grantee has the following options: Continue with the original contractor or vendor; find another contractor or vendor that has qualifications and experience acceptable to the Agency to complete the project; or terminate the grant by providing a written request to the Agency. No additional funding will be available from the Agency if costs for the project have increased. The Agency decision will be provided in writing.\n\n(c)  Transfer of ownership.  After the Financial Assistance Agreement for the project has been executed, the grantee may request, in writing, a transfer of the Financial Assistance Agreement to another entity. Subject to Agency approval provided in writing, the Financial Assistance Agreement may be transferred to another entity provided:\n\n(1) The entity is determined by the Agency to be an eligible entity under this subpart; and\n\n(2) The type of RES or EEI technology and the scope of the project for which the Agency funds will be used remain unchanged.\n\n(d)  Disposition of acquired property.  Grantees must abide by the disposition requirements outlined in Departmental Regulations.\n\n(e)  Financial management system and records.  The grantee must provide for financial management systems and maintain records as specified in paragraphs (f)(1) and (2) of this section.\n\n(1)  Financial management system.  The grantee will provide for a financial system that will include:\n\n(i) Accurate, current, and complete disclosure of the financial results of each grant;\n\n(ii) Records that identify adequately the source and application of funds for grant-supporting activities, together with documentation to support the records. Those records must contain information pertaining to grant awards and authorizations, obligations, unobligated balances, assets, liabilities, outlays, and income; and\n\n(iii) Effective control over and accountability for all funds. The grantee must adequately safeguard all such assets and must ensure that funds are used solely for authorized purposes.\n\n(2)  Records.  The grantee will retain financial records, supporting documents, statistical records, and all other records pertinent to the grant for a period of at least 3 years after completion of grant activities except that the records must be retained beyond the 3-year period if audit findings have not been resolved or if directed by the United States. The Agency and the Comptroller General of the United States, or any of their duly authorized representatives, must have access to any books, documents, papers, and records of the grantee that are pertinent to the specific grant for the purpose of making audit, examination, excerpts, and transcripts.\n\n(f)  Audit requirements.  If applicable, grantees must provide an annual audit in accordance with 7 CFR part 3052. The Agency may exercise its right to do a program audit after the end of the project to ensure that all funding supported eligible project costs.\n\n(g)  Grant disbursement.  As applicable, grantees must disburse grant funds as scheduled in accordance with the appropriate construction and inspection requirements in \u00a7\u00a7 4280.119, 4280.120 or 4280.125 as applicable. Unless required by third parties providing cost sharing payments to be provided on a pro-rata basis with other funds, grant funds will be disbursed after all other funds have been expended.\n\n(1) Unless authorized by the Agency to do so, grantees may submit requests for reimbursement no more frequently than monthly. Ordinarily, payment will be made within 30 days after receipt of a proper request for reimbursement.\n\n(2) Grantees must not request reimbursement for the Federal share of amounts withheld from contractors to ensure satisfactory completion of work until after it makes those payments.\n\n(3) Payments will be made by electronic funds transfer.\n\n(4) Grantees must use SF-271, \u201cOutlay Report and Request for Reimbursement for Construction Programs,\u201d or other format prescribed by the Agency to request grant reimbursements. Fund requests must at a minimum include documentation of costs and evidence of payment(s), including payment date(s). Failure to provide sufficient documentation of costs and evidence of payment, including payment date, may result in denied reimbursement.\n\n(5) For a grant awarded to a project with total project costs of $200,000 and greater, grant funds will be disbursed in full after the project is completed, is operational, and has met or exceeded the steady state operating level as set out in the grant award requirements. Grant funds may also be disbursed through 90 percent of grant disbursement. The final 10 percent of grant funds will be held by the Agency until construction of the project is completed, the project is operational, and the project has met or exceeded the steady state operating level as set out in the grant award requirements. In addition, the Agency reserves the right to request additional information or testing if upon a final site visit or review of documentation, the 30-day steady state operating level is not found acceptable to the Agency.\n\n(h)  Monitoring of project.  Grantees are responsible for ensuring that all activities are performed within the approved scope of work and that funds are only used for approved purposes.\n\n(1) Grantees shall constantly monitor performance to ensure that:\n\n(i) Time schedules are being met;\n\n(ii) Projected work is being accomplished by projected time periods;\n\n(iii) Financial resources are being appropriately expended by contractors (if applicable); and\n\n(iv) Any other performance objectives identified in the scope of work are being achieved.\n\n(2) To the extent that resources are available, the Agency will monitor grantees to ensure that activities are performed in accordance with the Agency-approved scope of work and to ensure that funds are expended for approved purposes. The Agency's monitoring of grantees neither:\n\n(i) Relieves the grantee of its responsibilities to ensure that activities are performed within the scope of work approved by the Agency and that funds are expended for approved purposes only; nor\n\n(ii) Provides recourse or a defense to the grantee should the grantee conduct unapproved activities, engage in unethical conduct, engage in activities that are or that give the appearance of a conflict of interest, or expend funds for unapproved purposes.\n\n(i)  Reporting requirements.  Financial and project performance reports must be provided by grantees and contain the information specified in paragraphs (i)(1) through (3) of this section.\n\n(1)  Federal financial reports.  Between grant approval and completion of project ( i.e.,  construction), SF-425, \u201cFederal Financial Report\u201d will be required of all grantees as applicable on a semiannual basis. The grantee will complete the project within the total sums available to it, including the grant, in accordance with the scope of work and any necessary modifications thereof prepared by grantee and approved by the Agency.\n\n(2)  Project performance reports.  Between grant approval and completion of project ( i.e.,  construction), grantees must provide semiannual project performance reports and a final project development report containing the information specified in paragraphs (i)(2)(i) and (ii) of this section. These reports are due 30 working days after June 30 and December 31 of each year.\n\n(i)  Semiannual project performance reports.  Each semiannual project performance report must include the following:\n\n(A) A comparison of actual accomplishments to the objectives for that period;\n\n(B) Reasons why established objectives were not met, if applicable;\n\n(C) Reasons for any problems, delays, or adverse conditions which will affect attainment of overall program objectives, prevent meeting time schedules or objectives, or preclude the attainment of particular objectives during established time periods. This disclosure must be accompanied by a statement of the action taken or planned to resolve the situation; and\n\n(D) Objectives and timetables established for the next reporting period.\n\n(ii)  Final project development report.  The final project development report must be submitted 90 days after project completion and include:\n\n(A) A detailed project funding and expense summary; and\n\n(B) A summary of the project's installation/construction process, including recommendations for development of similar projects by future Applicants to the program.\n\n(3)  Project completion requirements.  Once the project has been constructed, the grantee must provide the Agency as applicable via form RD 4280-3D \u201cAnnual Outcome Project Performance Certification\u201d, a certification that their system has for the past year performed at the steady operating level as described in the technical report of their application, and whether projected jobs created or saved have occurred, or certify that it has not performed as described. If it has not performed, a description of the circumstances which have occurred and affected system performance must be reported, along with the actual performance of the subject REAP project, and the actual number of jobs created or saved as a direct result of the REAP project.\n\n(i)  RES.  Three total annual outcome project performance certifications or reports are required for RES projects. The first is due at the completion of the first full calendar year following the year in which the project was completed. The remaining are required for subsequent calendar years.\n\n(ii)  EEI.  Two total annual outcome performance certifications or reports are required for EEI projects. The first is due at completion of the first full calendar year following the year in which the project was completed. The second is required for the subsequent calendar year.\n\n(j)  Grant close-out.  Grant close-out must be performed in accordance with the requirements specified in 2 CFR part 200."], ["7:7:15.1.19.2.6.2.24.25", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.125 Construction planning and performing development.", "RBS", "", "", "", "(a)  General.  The following requirements are applicable to all procurement methods specified in paragraph (f) of this section.\n\n(1)  Maximum open and free competition.  All procurement transactions, regardless of procurement method and dollar value, must be conducted in a manner that provides maximum open and free competition. Procurement procedures must not restrict or eliminate competition. Competitive restriction examples include, but are not limited to, the following: Placing unreasonable requirements on firms in order for them to qualify to do business; noncompetitive practices between firms; organizational conflicts of interest; and unnecessary experience or excessive bonding requirements. In specifying material(s), the grantee and its consultant will consider all materials normally suitable for the project commensurate with sound engineering practices and project requirements. The Agency will consider any recommendation made by the grantee's consultant concerning the technical design and choice of materials to be used for such a project. If the Agency determines that a design or material, other than those that were recommended, should be considered by including them in the procurement process as an acceptable design or material in the project, the Agency will provide such applicant or grantee with a comprehensive justification for such a determination. The justification will be documented in writing.\n\n(2)  Equal employment opportunity.  For all construction contracts and grants in excess of $10,000, the contractor must comply with Executive Order 11246, as amended by Executive Order 11375 and Executive Order 13672, and as supplemented by applicable Department of Labor regulations (41 CFR part 60). The applicant, or the lender and borrower, as applicable, is responsible for ensuring that the contractor complies with these requirements.\n\n(3)  Surety.  The Agency will require surety on any contract for procurement exceeding $100,000, except as provided for in paragraph (a)(3)(iv) of this section. For contracts of lesser amounts, the grantee may require surety.\n\n(i) Surety covering both performance and payment will be required. The United States, acting through the Agency, will be named as co-obligee on all surety unless prohibited by State or Tribal law. Surety may be provided as specified in paragraphs (a)(3)(i)(A) or (B) of this section.\n\n(A) Surety in the amount of 100 percent of the contract cost may be provided using either:\n\n( 1 ) A bank letter of credit; or\n\n( 2 ) Performance bonds and payment bonds. Companies providing performance bonds and payment bonds must hold a certificate of authority as an acceptable surety on Federal bonds as listed in Treasury Circular 570 as amended and be legally doing business in the State where the project is located.\n\n(B) Cash deposit in escrow of at least 50 percent of the contract amount. The cash deposit cannot be from funds awarded under this subpart.\n\n(ii) The surety will normally be in the form of performance bonds and payment bonds; however, when other methods of surety are necessary, bid documents must contain provisions for such alternative types of surety. The use of surety other than performance bonds and payment bonds requires concurrence by the Agency after submission of a justification to the Agency together with the proposed form of escrow agreement or letter of credit.\n\n(iii) When surety is not provided, contractors must furnish evidence of payment in full for all materials, labor, and any other items procured under the contract in an Agency-approved form.\n\n(iv) The Agency may make exceptions to surety for any of the situations identified in paragraphs (a)(3)(iv)(A) through (E) of this section.\n\n(A) Small acquisition and construction procedures as specified in \u00a7 4280.119(c) and (d) or \u00a7 4280.120(c) and (d) as applicable are used.\n\n(B) The proposed project is for equipment purchase and installation only and the contract costs for the equipment purchase and installation are $200,000 or less.\n\n(C) The proposed project is for equipment purchase and installation only and the contract costs for the equipment purchase and installation are more than $200,000 and the following requirements can be met:\n\n( 1 ) The project involves two or fewer subcontractors; and\n\n( 2 ) The equipment manufacturer or provider must act as the general contractor.\n\n(D) Other construction projects that have only one contractor performing work.\n\n(E) The grantee agrees to request reimbursement of grant funds only after the contractors have furnished evidence of payment in full and evidence there are no outstanding liens regarding any materials, labor, and any other items procured under the contract, and the systems are deemed operational.\n\n(4)  Grantees accomplishing work.  In some instances, grantees may wish to perform a part of the work themselves. Grantees may accomplish construction by using their own personnel and equipment, provided the grantees possess the necessary skills, abilities, and resources to perform the work and there is not a negative impact to their business operation. For a grantee to provide a portion of the work, with the remainder to be completed by a contractor:\n\n(i) A clear understanding of the division of work must be established and delineated in the contract;\n\n(ii) Grantees are not eligible for payment for their own work as it is not an eligible project cost;\n\n(iii) Warranty requirements applicable to the technology must cover the grantee's work; and\n\n(iv) Inspection and acceptance of the grantee's work must be completed by either:\n\n(A) An inspector that will:\n\n( 1 ) Inspect, as applicable, and accept construction; and\n\n( 2 ) Furnish inspection reports; or\n\n(B) A licensed engineer that will:\n\n( 1 ) Prepare design drawings and specifications;\n\n( 2 ) Inspect, as applicable, and accept construction; and\n\n( 3 ) Furnish inspection reports.\n\n(b)  Forms used.  Technical service and procurement documents must be approved by the Agency and may be used only if they are customarily used in the area and protect the interest of the applicant and the Government with respect to compliance with items such as the drawings, specifications, payments for work, inspections, completion, nondiscrimination in construction work and acceptance of the work. The Agency will not become a party to a construction contract or incur any liability under it. No contract will become effective until concurred in writing by the Agency. Such concurrence statement must be attached to and made a part of the contract.\n\n(c)  Technical services.  Unless the requirements of paragraph (c)(4) of this section can be met, all RES and EEI projects with total project costs greater than $1,000,000 require:\n\n(1) The design, installation monitoring, testing prior to commercial operation, and project completion certification be completed by a licensed professional engineer (PE) or team of licensed PEs. Licensed PEs may be \u201cin-house\u201d PEs or contracted PEs.\n\n(2) Any contract for design services must be subject to Agency concurrence.\n\n(3) Engineers must be licensed in the State where the project is to be constructed.\n\n(4) The Agency may grant an exception to the requirements of paragraphs (c)(1) through (3) of this section if the following requirements are met:\n\n(i) State or Tribal law does not require the use of a licensed PE; and\n\n(ii) The project is not complex, as determined by the Agency, and can be completed to meet the requirements of this program without the services of a licensed PE.\n\n(d)  Design policies.  Unless the applicant plans to request a lump sum reimbursement of grant funds at the end of construction and 30 days of successful operation, regardless of total project costs, final plans and specifications must be reviewed by the Agency and approved prior to the start of construction. Facilities funded by the Agency must meet the following design requirements, as applicable:\n\n(1)  Environmental requirements.  Actions taken under this subpart must comply with the environmental review requirements in accordance with 7 CFR part 1970. Project planning and design must not only be responsive to the grantee's needs but must consider the environmental consequences of the proposed project. Project design must incorporate and integrate, where practicable, mitigation measures that avoid or minimize adverse environmental impacts. Environmental reviews serve as a means of assessing environmental impacts of project proposals, rather than justifying decisions already made. Applicants may not take any action on a project proposal that will have an adverse environmental impact or limit the choice of reasonable project alternatives being reviewed prior to the completion of the Agency's environmental review. If such actions are taken, the Agency has the right to withdraw and discontinue processing the application.\n\n(2)  Architectural barriers.  All facilities intended for or accessible to the public or in which physically handicapped persons may be employed must be developed in compliance with the Architectural Barriers Act of 1968 (42 U.S.C. 4151  et seq. ) as implemented by 41 CFR 101-196, section 504 of the Rehabilitation Act of 1973 (42 U.S.C. 1474  et seq. ) as implemented by 7 CFR parts 15 and 15b, and Titles II and III of the Americans with Disabilities Act of 1990 (42 U.S.C. 12101  et seq. ).\n\n(3)  Energy/environment.  Project design shall consider cost effective energy-efficient and environmentally-sound products and services.\n\n(4)  Seismic safety.  All new structures, fully or partially enclosed, used or intended for sheltering persons or property will be designed with appropriate seismic safety provisions in compliance with the Earthquake Hazards Reduction Act of 1977 (42 U.S.C. 7701  et seq. ), and E.O. 12699, Seismic Safety of Federal and Federally Assisted or Regulated New Building Construction. Designs of components essential for system operation and substantial rehabilitation of structures that are used for sheltering persons or property shall incorporate seismic safety provisions to the extent practicable as specified in 7 CFR part 1792, subpart C.\n\n(e)  Contract methods.  This paragraph identifies the three types of contract methods that can be used for projects funded under this subpart. The procurement methods, which are applicable to each of these contract methods, are specified in paragraph (f) of this section.\n\n(1)  Traditional method or design-bid-build.  The services of the consulting engineer or architect and the general construction contractor must be procured in accordance with the following paragraphs.\n\n(i)  Solicitation of offers.  Solicitation of offers must:\n\n(A) Incorporate a clear and accurate description of the technical requirements for the material, product, or service to be procured. The description must not, in competitive procurements, contain features that unduly restrict competition. The description may include a statement of the qualitative nature of the material, product or service to be procured, and when necessary will set forth those minimum essential characteristics and standards to which it must conform if it is to satisfy its intended use. When it is impractical or uneconomical to make a clear and accurate description of the technical requirements, a \u201cbrand name or equal\u201d description may be used to define the performance or other salient requirements of a procurement. The specific features of the named brands which must be met by offerors must be clearly stated.\n\n(B) Clearly specify all requirements which offerors must fulfill and all other factors to be used in evaluating bids or proposals.\n\n(ii)  Contract pricing.  Cost plus a percentage of cost method of contracting must not be used.\n\n(iii)  Unacceptable bidders.  The following will not be allowed to bid on, or negotiate for, a contract or subcontract related to the construction of the project:\n\n(A) An engineer or architect as a person who has prepared plans and specifications or who will be responsible for monitoring the construction;\n\n(B) Any entity in which the grantee's architect or engineer is an officer, employee, or holds or controls a substantial interest in the grantee;\n\n(C) The grantee's governing body officers, employees, or agents;\n\n(D) Any member of the grantee's immediate family or partners in paragraphs (e)(1)(iii)(A), (B), or (C) of this section; or\n\n(E) An entity which employs, or is about to employ, any person in paragraph (e)(1)(iii)(A), (B), (C), or (D) of this section.\n\n(iv)  Contract award.  Contracts must be made only with responsible parties possessing the potential ability to perform successfully under the terms and conditions of a proposed procurement. Consideration must include, but not be limited to, matters such as integrity, record of past performance, financial and technical resources, and accessibility to other necessary resources. Contracts must not be made with parties who are suspended or debarred.\n\n(2)  Design/build method.  The design/build method, where the same person or entity provides design and engineering work, as well as construction or installation, may be used with Agency written approval.\n\n(i)  Concurrence information.  The applicant will request Agency concurrence by providing the Agency at least the information specified in paragraphs (e)(2)(i)(A) through (H) of this section.\n\n(A) The grantee's written request to use the design/build method with a description of the proposed method.\n\n(B) A proposed scope of work describing in clear, concise terms the technical requirements for the contract. It shall include a nontechnical statement summarizing the work to be performed by the contractor, the results expected, and a proposed construction schedule showing the sequence in which the work is to be performed.\n\n(C) A proposed firm-fixed-price contract for the entire project which provides that the contractor will be responsible for any extra cost which result from errors or omissions in the services provided under the contract, as well as compliance with all Federal, State, local, and Tribal requirements effective on the contract execution date.\n\n(D) Where noncompetitive negotiation is proposed and found, by the Agency, to be an acceptable procurement method, then the Agency will evaluate documents indicating the contractor's performance on previous similar projects in which the contractor acted in a similar capacity.\n\n(E) A detailed listing and cost estimate of equipment and supplies not included in the construction contract but which are necessary to properly operate the project.\n\n(F) Evidence that a qualified construction inspector who is independent of the contractor has or will be hired.\n\n(G) Preliminary plans and outline specifications. However, final plans and specifications must be completed and reviewed by the Agency prior to the start of construction.\n\n(H) The grantee's attorney's opinion and comments regarding the legal adequacy of the proposed contract documents and evidence that the grantee has the legal authority to enter into and fulfill the contract.\n\n(ii)  Agency concurrence of design/build method.  The Agency will review the material submitted by the applicant. When all items are acceptable, the Agency approval official will concur in the use of the design/build method for the proposal.\n\n(iii)  Forms used.  Agency approved contract documents must be used provided they are customarily used in the area and protect the interest of the applicant and the Agency with respect to compliance with items such as the drawings, specifications, payments for work, inspections, completion, nondiscrimination in construction work, and acceptance of the work. The Agency will not become a party to a construction contract or incur any liability under it. No contract shall become effective until concurred, in writing, by the Agency. Such concurrence statement must be attached to and made a part of the contract.\n\n(iv)  Contract provisions.  Contracts will have a listing of attachments and must contain the following:\n\n(A) The contract sum;\n\n(B) The dates for starting and completing the work;\n\n(C) The amount of liquidated damages, if any, to be charged;\n\n(D) The amount, method, and frequency of payment;\n\n(E) Surety provisions that meet the requirements of paragraph (a)(3) of this section;\n\n(F) The requirement that changes or additions must have prior written approval of the Agency as identified in the letter of conditions;\n\n(G) Contract review and concurrence. The grantee's attorney will review the executed contract documents, including performance and payment bonds, and will certify that they are in compliance with Federal, State, or Tribal law, and that the persons executing these documents have been properly authorized to do so. The contract documents, engineer's recommendation for award, and bid tabulation sheets will be forwarded to the Agency for concurrence prior to awarding the contract. All contracts will contain a provision that they are not effective until they have been concurred, in writing, by the Agency;\n\n(H) This part does not relieve the grantee of any responsibilities under its contract. The grantee is responsible for the settlement of all contractual and administrative issues arising out of procurement entered into in support of Agency funding. These include, but are not limited to, source evaluation, protests, disputes, and claims. Matters concerning violation of laws are to be referred to the applicable local, State, Tribal, or Federal authority; and\n\n(3)  Construction management.  Construction managers as a constructor (CMc) acts in the capacity of a general contractor and is financially and professionally responsible for the construction. This type of construction management is also referred to as construction manager \u201cAt Risk.\u201d The construction contract is between the grantee and the CMc. The CMc in turn subcontracts for some or all of the work. The CMc will need to carry the Agency required 100 percent surety and insurance, as required under paragraph (a)(3) of this section. Projects using construction management must follow the requirements of (e)(2)(i) through (iv) of this section.\n\n(f)  Procurement methods.  Procurement must be made by one of the following methods: Competitive sealed bids (formal advertising); competitive negotiation; or noncompetitive negotiation. Competitive sealed bids (formal advertising) are the preferred procurement method for construction contracts.\n\n(1)  Competitive sealed bids.  In competitive sealed bids (formal advertising), sealed bids are publicly solicited and a firm-fixed-price contract (lump sum or unit price) is awarded to the responsible bidder whose bid, conforming with all the material terms and conditions of the invitation for bids, is lowest, price and other factors considered. When using this method, the following will apply:\n\n(i) At a sufficient time prior to the date set for opening of bids, bids must be solicited from an adequate number of qualified sources. In addition, the invitation must be publicly advertised.\n\n(ii) The invitation for bids, including specifications and pertinent attachments, must clearly define the items or services needed in order for the bidders to properly respond to the invitation under paragraph (f)(1) of this section.\n\n(iii) All bids must be opened publicly at the time and place stated in the invitation for bids.\n\n(iv) A firm-fixed-price contract award must be made by written notice to that responsible bidder whose bid, conforming to the invitation for bids, is lowest. When specified in the bidding documents, factors such as discounts and transportation costs will be considered in determining which bid is lowest.\n\n(v) The applicant, with the concurrence of the Agency, will consider the amount of the bids or proposals, and all conditions listed in the invitation. On the basis of these considerations, the applicant will select and notify the lowest responsible bidder. The contract will be awarded using an Agency-approved form.\n\n(vi) Any or all bids may be rejected by the grantee when it is in their best interest.\n\n(2)  Competitive negotiation.  In competitive negotiations, proposals are requested from a number of sources. Negotiations are normally conducted with more than one of the sources submitting offers (offerors). Competitive negotiation may be used if conditions are not appropriate for the use of formal advertising and where discussions and bargaining with a view to reaching agreement on the technical quality, price, other terms of the proposed contract and specifications are necessary. If competitive negotiation is used for procurement, the following requirements will apply:\n\n(i) Proposals must be solicited from two qualified sources, unless otherwise approved by the Agency, to permit reasonable competition consistent with the nature and requirements of the procurement.\n\n(ii) The request for proposal must identify all significant evaluation factors, including price or cost where required, and their relative importance.\n\n(iii) The grantee must provide mechanisms for technical evaluation of the proposals received, determination of responsible offerors for the purpose of written or oral discussions, and selection for contract award.\n\n(iv) Award may be made to the responsible offeror whose proposal will be most advantageous to the grantee, price and other factors considered. Unsuccessful offerors must be promptly notified.\n\n(v) Owners may utilize competitive negotiation procedures for procurement of architectural/engineering and other professional services, whereby the offerors' qualifications are evaluated, and the most qualified offeror is selected, subject to negotiations of fair and reasonable compensation.\n\n(3)  Noncompetitive negotiation.  Noncompetitive negotiation is procurement through solicitation of a proposal from only one source. Noncompetitive negotiation may be used when the award of a contract is not feasible under small acquisition and construction procedures, competitive sealed bids (formal advertising) or competitive negotiation procedures. Circumstances under which a contract may be awarded by noncompetitive negotiations are limited to the following:\n\n(i) After solicitation of a number of sources, competition is determined inadequate; or\n\n(ii) No acceptable bids have been received after formal advertising.\n\n(4)  Additional procurement methods.  The grantee may use additional innovative procurement methods provided the grantee receives prior written approval from the Agency. Contracts will have a listing of attachments and the minimum provisions of the contract will include:\n\n(i) The contract sum;\n\n(ii) The dates for starting and completing the work;\n\n(iii) The amount of liquidated damages to be charged;\n\n(iv) The amount, method, and frequency of payment;\n\n(v) Whether or not surety bonds will be provided; and\n\n(vi) The requirement that changes or additions must have prior written approval of the Agency.\n\n(g)  Contracts awarded prior to applications.  Owners awarding construction or other procurement contracts prior to filing an application, must provide evidence that is satisfactory to the Agency that the contract was entered into without intent to circumvent the requirements of Agency regulations.\n\n(1)  Modifications.  The contract shall be modified to conform to the provisions of this subpart. Where this is not possible, modifications will be made to the extent practicable and, as a minimum, the contract must comply with all State and local laws and regulations as well as statutory requirements and executive orders related to the Agency financing.\n\n(2)  Consultant's certification.  Provide a certification by an engineer, licensed in the State where the facility is constructed, that any construction performed complies fully with the plans and specifications.\n\n(3)  Owner's certification.  Provide a certification by the owner that the contractor has complied with applicable statutory and executive requirements related to Agency financing.\n\n(h)  Contract administration.  Contract administration must comply with 7 CFR 1780.76. If another authority, such as a Federal, State, or Tribal agency, is providing funding and requires oversight of inspections, change orders, and pay requests, the Agency will accept copies of their reports or forms as meeting oversight requirements of the Agency."], ["7:7:15.1.19.2.6.2.24.26", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7\u00a7 4280.126-4280.136 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.2.24.3", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.103 Definitions.", "RBS", "", "", "[86 FR 22309, Apr. 27, 2021, as amended at 87 FR 38644, June 29, 2022]", "The following definitions are applicable to the capitalized terms used in this part.\n\nAdministrator.  The Administrator of Rural Business-Cooperative Service within the Rural Development Mission Area of the U.S. Department of Agriculture (USDA).\n\nAgency.  The Rural Business-Cooperative Service or successor agency assigned by the Secretary of Agriculture to administer the Rural Energy for America Program. References to the National Office, Finance Office, State Office, or other Agency offices or officials should be read as prefaced by \u201cAgency\u201d or \u201cRural Development\u201d as applicable.\n\nAgricultural producer.  A person, including non-profits, directly engaged in the production of agricultural products through labor management and operations, including the cultivating, growing, and harvesting of plants and crops (including farming); breeding, raising, feeding, or housing of livestock (including ranching); forestry products; hydroponics; nursery stock; or aquaculture, whereby 50 percent or greater of their gross income is derived from the operations. The percentage is calculated as the average of gross agricultural operations income of the concern divided by the gross total income of the concern for the five most recent years. If the concern has been in operation for less than 60 months, use average gross agricultural operations income and gross total income for as long as the concern has been in operation.\n\nAnaerobic digester.  A Renewable Energy System that uses animal waste or other renewable biomass and may include other organic substrates to produce digestate and biogas that may be sold in a gaseous or compressed liquid state or used to produce thermal or electrical energy.\n\nApplicant.  (1) Except for EA and REDA grants, the agricultural producer or rural small business that is seeking a grant, or a combination of a grant and guaranteed loan, under this subpart.\n\n(2) For EA and REDA grants, a unit of State, Tribal, or local government; a land-grant college or university or other institution of higher education; a rural electric cooperative; a public power entity; council; or an Instrumentality of a State, Tribal, or local government that is seeking an EA or REDA grant under this subpart.\n\nBioenergy project.  A RES that produces fuel, biogas, thermal energy, or electric power from a renewable biomass source only.\n\nBiofuel.  A fuel derived from renewable biomass.\n\nBiogas.  Gaseous fuel (including landfill and sewage waste treatment gas) derived from the degradation and decomposition of renewable biomass.\n\nByproduct.  An incidental or secondary product, regardless of whether it has a readily identifiable commercial use or value, generated under normal operations of the proposed project that can be reasonably measured and monitored.\n\nCommercially available.  A system that meets the requirements of either paragraph (1) or (2) of this definition.\n\n(1) A domestic or foreign system that:\n\n(i) Has both a proven and reliable operating history and proven performance data for at least 1 year specific to the use and operation to the proposed application;\n\n(ii) Is based on established design and installation procedures and practices and is replicable;\n\n(iii) Has professional service providers, trades, large construction equipment providers, and laborers who are familiar with installation procedures and practices;\n\n(iv) Has proprietary and balance of system equipment and spare parts that are readily available;\n\n(v) Has service that is readily available to properly maintain and operate the system; and\n\n(vi) Has an existing established warranty that is valid in the United States for major parts and labor; or\n\n(2) A domestic or foreign system that has been certified by a recognized industry organization whose certification standards are acceptable to the Agency.\n\nComplete application.  An application that contains all parts necessary for the Agency to determine applicant and project eligibility, the financial feasibility and technical merit of the project, and contains sufficient information to determine a priority score for the application, if applicable.\n\nCosts incurred.  A cost will be considered incurred when payment for costs associated with the project have been issued. If payment was in the form of a check, the date of the check will be considered the date the cost was incurred. If payment was in the form of an electronic payment, the date that the payment was issued from the grantee/producer/borrower account will be considered the date the cost was incurred.\n\nCouncil.  As defined, under the Resource Conservation and Development Program, at 16 U.S.C. 3451.\n\nDepartmental regulations.  The regulations of the Agency's Office of Chief Financial Officer (or successor office) as codified in 2 CFR chapter IV.\n\nDesign/Build method.  A method of project development whereby all design, engineering, procurement, construction, and other related project activities are performed under a single contract. The contractor is solely responsible and accountable for successful delivery of the project to the grantee as applicable.\n\nEligible project costs.  Those expenses approved by the Agency for the project as eligible uses of funds.\n\nEnergy assessment.  An Agency-approved report assessing energy use, cost, and efficiency by analyzing energy bills and surveying the target building and/or equipment sufficiently to provide an Agency-approved energy assessment.\n\n(1) If the project's total project cost is greater than $80,000, the energy assessment must be conducted by either an energy auditor or an energy assessor or an individual supervised by either an energy assessor or energy auditor. The final energy assessment must be validated and signed by the energy assessor or energy auditor who conducted the energy assessment or by the supervising energy assessor or energy auditor of the individual who conducted the assessment, as applicable.\n\n(2) If the project's total project cost is $80,000 or less, the energy assessment may be conducted in accordance with paragraph (1) of this definition or by an individual or entity that has at least 3 years of experience and completed at least five energy assessments or energy audits on similar type projects.\n\nEnergy assessor.  A qualified consultant who has at least 3 years of experience and completed at least five energy assessments or energy audits on similar type projects and who adheres to generally recognized engineering principles and practices.\n\nEnergy audit.  A comprehensive report that meets an Agency-approved standard prepared by an energy auditor or an individual supervised by an energy auditor that documents current energy usage; recommended potential improvements (typically called energy conservation measures) and their costs; energy savings from these improvements; dollars saved per year; and simple payback. The methodology of the energy audit must meet professional and industry standards. The final energy audit must be validated and signed off by the energy auditor who conducted the audit or by the supervising energy auditor of the individual who conducted the audit, as applicable.\n\nEnergy auditor.  A qualified consultant that meets one of the following criteria:\n\n(1) A certified energy auditor certified by the Association of Energy Engineers;\n\n(2) A certified energy manager certified by the Association of Energy Engineers;\n\n(3) A licensed professional engineer in the State in which the audit is conducted with at least 1-year experience and who has completed at least two similar type energy audits; or\n\n(4) An individual with a 4-year engineering or architectural degree with at least 3 years of experience and who has completed at least five similar type energy audits.\n\nEnergy efficiency improvement (EEI).  Improvements to or replacement of an existing building or systems and/or equipment, owned by the applicant, that reduces energy consumption on an annual basis.\n\nExisting business.  A business that has been in operation for at least 1 full year. The following will be treated as existing businesses provided there is not a significant change in operations of the existing business: Mergers by an existing business with a new or existing business, a change in the business name, or a new business and an existing business applying as co-applicants.\n\nFeasibility study.  A report including an opinion or finding conducted by an independent qualified consultant(s) evaluating the economic, market, technical, financial, and management feasibility of a proposed project or operation in terms of its expectation for success as outlined in Appendix D of this Subpart.\n\nFederal fiscal year.  The 12-month period beginning October 1 of each year and ending on September 30 of the following year; it is designated by the calendar year in which it ends.\n\nFinancial Assistance Agreement (Form RD 4280-2, Rural Business-Cooperative Service Financial Assistance Agreement).  An agreement between the Agency and the grantee setting forth the provisions under which the grant will be administered.\n\nFinancial feasibility.  The ability of a project to achieve sufficient income, credit, and cash flow to financially sustain a project over the long term and meet all debt obligations.\n\nGeothermal direct generation.  A system that uses thermal energy directly from a geothermal source.\n\nGeothermal electric generation.  A system that uses thermal energy from a geothermal source to produce electricity.\n\nHybrid.  A combination of two or more renewable energy technologies that are incorporated into a unified system to support a single project.\n\nHydroelectric source.  A RES producing electricity using various types of moving water including, but not limited to, diverted run-of-river water, in-stream run-of-river water, and in-conduit water.\n\nHydrogen project.  A system that produces hydrogen derived from a renewable biomass or water using wind, solar, ocean (including tidal, wave, current, and thermal) geothermal or hydroelectric sources as an energy transport medium in the production of mechanical or electric power or thermal energy.\n\nImmediate family(ies).  Individuals who live in the same household or who are closely related by blood, marriage, or adoption, such as a spouse, domestic partner, parent, child, sibling, aunt, uncle, grandparent, grandchild, niece, nephew, or first cousin.\n\nInspector.  A qualified consultant who has at least 3 years of experience and has completed at least five inspections on similar type projects.\n\nInstitution of Higher Education.  As defined in 20 U.S.C. 1002(a).\n\nInstrumentality.  An organization recognized, established, and controlled by a State, Tribal, or local government, for a public purpose or to carry out special purposes.\n\nInterconnection agreement.  A contract containing the terms and conditions governing the interconnection and parallel operation of the grantee's electric generation equipment and the utility's electric power system or a grantee's biogas production system and gas pipeline.\n\nMatching funds.  Those project funds required by 7 U.S.C. 8107 to be made available by the applicant in order to be eligible to receive the grant, or combined grant and guaranteed loan. Funds provided by the applicant in excess of matching funds are not matching funds. Unless authorized by statute, other Federal grant funds cannot be used to meet a matching funds requirement.\n\nOcean energy.  Energy created by use of various types of moving water in the ocean and other large bodies of water ( e.g.,  Great Lakes) including, but not limited to, tidal, wave, current, and thermal changes.\n\nPassive investor.  An equity investor that does not actively participate in management and operation decisions of the applicant or any affiliate of the applicant as evidenced by a contractual agreement.\n\nPerson.  An individual or entity organized under the laws of a State or a Tribe.\n\nPower purchase agreement.  The terms and conditions governing the sale and transportation of power produced by the applicant to another party.\n\nPublic Power Entity.  Is defined using the definition of \u201cState utility\u201d as defined in section 217(A)(4) of the Federal Power Act (16 U.S.C. 824q(a)(4)). As of this writing, the definition \u201cmeans a State or any political subdivision of a State, or any agency, authority, or Instrumentality of any one or more of the foregoing, or a corporation that is wholly owned, directly or indirectly, by any one or more of the foregoing, competent to carry on the business of developing, transmitting, utilizing, or distributing power.\u201d\n\nQualified Consultant(s).  An independent third-party person possessing the knowledge, expertise, and experience to perform the specific task required.\n\nRated Power.  The maximum amount of energy that can be created at any given time.\n\nRefurbished.  Refers to a piece of equipment or RES that has been brought into a commercial facility, thoroughly inspected, and worn parts replaced and has a warranty that is approved by the Agency or its designee.\n\nRenewable biomass.  (1) Materials, pre-commercial thinnings, or invasive species from National Forest System land or public lands (as defined in section 103 of the Federal Land Policy and Management Act of 1976 (43 U.S.C. 1702)) that:\n\n(i) Are byproducts of preventive treatments that are removed to reduce hazardous fuels; to reduce or contain disease or insect infestation; or to restore ecosystem health;\n\n(ii) Would not otherwise be used for higher-value products; and\n\n(iii) Are harvested in accordance with applicable law and land management plans and the requirements for old-growth maintenance, restoration, and management direction of paragraphs (2), (3), and (4) of subsection (e) of section 102 of the Healthy Forests Restoration Act of 2003 (16 U.S.C. 6512) and large-tree retention of subsection (f) of Section 102; or\n\n(2) Any organic matter that is available on a renewable or recurring basis from non-Federal land or land belonging to an Indian or Indian Tribe that is held in trust by the United States or subject to a restriction against alienation imposed by the United States, including the following items:\n\n(i) Renewable plant material (including feed grains; other agricultural commodities; other plants and trees; and algae); and\n\n(ii) Waste material including crop residue; other vegetative waste material (including wood waste and wood residues); animal waste and byproducts (including fats, oils, greases, and manure); and food waste and yard waste.\n\nRenewable energy.  Energy derived from:\n\n(1) A wind, solar, renewable biomass, ocean (including tidal, wave, current, and thermal), geothermal or hydroelectric Source; or\n\n(2) Hydrogen derived from renewable biomass or water using an energy source described in paragraph (1).\n\nRenewable energy development assistance (REDA).  Assistance provided by eligible grantees to agricultural producers and rural small businesses including education, applicability, and implementation of renewable energy technologies and resources. The REDA may consist of renewable energy site assessments or renewable energy technical assistance.\n\nRenewable energy site assessment.  A report provided to an agricultural producer or rural small business providing information regarding and recommendations for the use of commercially available renewable energy technologies in its operation. The report must be prepared by a qualified consultant and must contain the information specified in Sections A through C of Appendix B.\n\nRenewable Energy System (RES).  A system that produces usable energy from a renewable energy source and may include:\n\n(1) Distribution components necessary to move energy produced by such system to initial point of sale; and\n\n(2) other components and ancillary infrastructure of such system, such as a storage system; however, such system may not include a mechanism for dispensing energy at retail.\n\nRenewable energy technical assistance.  Assistance provided to agricultural producers and rural small businesses on how to use renewable energy technologies and resources in their operations.\n\nRetrofitting.  A modification to an existing building or installed equipment that incorporates a function or feature(s)not included in the original design when built or for the replacement of existing components with components that improve the original design and does not impact original warranty if the warranty is still in existence.\n\nRural or rural area.  Any area of a State not in a city or town that has a population of more than 50,000 inhabitants, not in the urbanized area contiguous and adjacent to a city or town that has a population of more than 50,000 inhabitants, and excluding certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I).\n\n\n\n In making this determination, the Agency will use the latest decennial census of the United States. The following exclusions apply:\n\n(1) Any area in the urbanized area contiguous and adjacent to a city or town that has a population of more than 50,000 inhabitants that has been determined to be \u201crural in character\u201d as follows:\n\n(i) The determination that an area is \u201crural in character\u201d will be made by the Under Secretary of Rural Development. The process to request a determination under this provision is outlined in paragraph (1)(ii) of this definition. The determination that an area is \u201crural in character\u201d under this definition will apply to areas that are within:\n\n(A) An urbanized area that has two points on its boundary that are at least 40 miles apart, which is not contiguous or adjacent to a city or town that has a population of greater than 150,000 inhabitants or the urbanized area of such a city or town; or\n\n(B) An urbanized area contiguous and adjacent to a city or town of greater than 50,000 inhabitants that is within \n 1/4  mile of a rural area.\n\n(ii) Units of local government may petition the Under Secretary of Rural Development for a \u201crural in character\u201d designation by submitting a petition to the appropriate Rural Development State Director for recommendation to the Administrator on behalf of the Under Secretary. The petition shall document how the area meets the requirements of paragraph (1)(i)(A) or (B) of this definition and discuss why the petitioner believes the area is \u201crural in character,\u201d including, but not limited to, the area's population density, demographics, and topography and how the local economy is tied to a rural economic base. Upon receiving a petition, the Under Secretary will consult with the applicable Governor or leader in a similar position and request comments to be submitted within 5 business days, unless such comments were submitted with the petition. The Under Secretary will release to the public a notice of a petition filed by a unit of local government not later than 30 days after receipt of the petition by way of publication in a local newspaper and posting on the Agency's website at  https://www.rd.usda.gov,  and the Under Secretary will make a determination not less than 15 days, but no more than 60 days, after the release of the notice. Upon a negative determination, the Under Secretary will provide to the petitioner an opportunity to appeal a determination to the Under Secretary, and the petitioner will have 10 business days to appeal the determination and provide further information for consideration. The Under Secretary will make a determination of the appeal in not less than 15 days, but no more than 30 days.\n\n(iii) Rural Development State Directors may also initiate a request to the Under Secretary to determine if an area is \u201crural in character.\u201d A written recommendation should be sent to the Administrator, on behalf of the Under Secretary, that documents how the area meets the statutory requirements of paragraph (1)(i)(B) of this definition and discusses why the State Director believes the area is \u201crural in character,\u201d including, but not limited to, the area's population density, demographics, topography, and how the local economy is tied to a rural economic base. Upon receipt of such a request, the Administrator will review the request for compliance with the \u201crural in character\u201d provisions and make a recommendation to the Under Secretary. Provided a favorable determination is made, the Under Secretary will consult with the applicable Governor or leader in a similar position and request comments within 10 business days, unless the comments were submitted with the request. A public notice will be published by the State Office in accordance with paragraph (1)(ii) of this definition. There is no appeal process for requests made on the initiative of the State Director.\n\n(2) An area that is attached to the urbanized area of a city or town with more than 50,000 inhabitants by a contiguous area of urbanized census blocks that is not more than two census blocks wide. Applicants from such an area should work with their Rural Development State Office to request a determination of whether their project is located in a rural area under this provision.\n\n(3) For the Commonwealth of Puerto Rico, the island is considered rural and eligible except for the San Juan Census Designated Place (CDP) and any other CDP with greater than 50,000 inhabitants. Areas within CDPs with greater than 50,000 inhabitants, other than the San Juan CDP, may be determined to be rural if they are \u201cnot urban in character.\u201d\n\n(4) For the State of Hawaii, all areas within the State are considered rural and eligible except for the Honolulu CDP within the County of Honolulu and any other CDP with greater than 50,000 inhabitants. Areas within CDPs with greater than 50,000 inhabitants, other than the Honolulu CDP, may be determined to be rural if they are \u201cnot urban in character.\u201d\n\n(5) For the purpose of defining a rural area in the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands, the Agency shall determine what constitutes rural and rural area based on available population data.\n\nRural small business.  A small business that is located in a rural area or that can demonstrate the proposed project for which assistance is being applied for under this part is located in a rural area.\n\nSimple payback.  The estimated simple payback of a project funded under this part as calculated using paragraphs (1) or (2), as applicable, of this definition.\n\n(1) EEI projects simple payback = (total project costs) \u00f7 (dollar value of energy saved).\n\n(i) Energy saved will be determined by subtracting the projected energy (determined by the method in paragraph (1)(i)(B) of this definition) to be consumed from the historical energy consumed (determined by the method in paragraph (1)(i)(A) of this definition), and converting the result to a monetary value using a constant value or price of energy (determined by the method in paragraph (1)(i)(C) of this definition).\n\n(A) Actual energy used in the original building and/or equipment, as applicable, prior to the EEI project, must be based on the actual average annual total energy used in British thermal units (BTU) over the most recent 12, 24, 36, 48, or 60 consecutive months of operation. Attach utility bills to document applicant entity's historical energy consumption quantity.\n\n(B) Projected energy use if the proposed EEI project had been in place for the original building and/or equipment, as applicable, for the same time period used to determine that actual energy use under paragraph (1)(i)(A) of this definition.\n\n(C) Value or price of energy must be the actual average price paid over the same time period used to calculate the actual energy used under paragraph (1)(i)(A) of this definition. When calculating the actual average price of energy, only include energy charges directly reduced by the unit of energy being replaced or saved. Attach utility bills to document applicant entity's average price of energy.\n\n(ii) The EEI projects simple payback calculation does not allow applicants to monetize EEI benefits other than the dollar amount of the energy savings the agricultural producer or rural small business realizes as a result of the improvement.\n\n(2) RES projects simple payback = (total project costs) \u00f7 (dollar value of energy units replaced, credited, sold, or used and fair market value of byproducts as applicable in a typical year).\n\n(i) Value of energy replaced will be calculated based on the applicant entity's historical energy consumption with actual average price paid for the energy replaced, following the methodology outlined in paragraph (1)(i) of this definition. Attach utility bills to document applicant entity's historical energy consumption quantity and actual average price of energy.\n\n(ii) Value of energy credited or sold will be calculated based on the amount of energy units to be credited or sold at the proposed rate per unit, as documented in utility net metering or crediting policies and/or a power purchase agreement. Attach utility net metering or crediting policies and/or a power purchase agreement to document energy quantity and proposed rate for energy credited or sold.\n\n(iii) If proposed energy will be used in a new facility, value of energy used will be calculated based on the amount of energy units to be used at the documented price per unit of conventional fuel alternative. Attach documentation of market price per unit of conventional fuel alternative.\n\n(iv) Value of byproducts produced by and used in the project or related enterprises should be documented at the fair market value to be received for the byproducts in a typical year. Attach documentation of market value price to be received for byproducts and documentation to support byproduct sales or direct use.\n\n(v) The RES projects simple payback calculation does not include any one-time benefits such as but not limited to construction and investment-related benefits, nor credits which do not provide annual income to the project, such as tax credits.\n\nSmall business  means,\n\n(1) An entity or utility, as applicable, as further defined in subparagraphs (i) through (iv) and paragraph (2) of this definition. With the exception of the entities identified in this paragraph, all other non-profit entities are not small businesses for the purposes of REAP program eligibility:\n\n(i) A private for-profit entity, including a sole proprietorship, partnership, or corporation;\n\n(ii) A cooperative (including a cooperative qualified under section 501(c)(12) of the Internal Revenue Code);\n\n(iii) An electric utility (including a Tribal or governmental electric utility) that provides service to rural consumers and operates independent of direct government control; or\n\n(iv) A Tribal corporation or other Tribal business entities that are chartered under Section 17 of the Indian Reorganization Act (25 U.S.C. 477) or have similar structures and relationships with their Tribal governments and are acceptable to the Agency. The Agency will determine the small business status of such Tribal entity without regard to the resources of the Tribal government; and\n\n(2) An entity that meets Small Business Administration size standards in accordance with 13 CFR part 121 and criteria of \u00a7 121.301 as applicable to financial assistance programs, including (i) or (ii) below. The size of the concern alone and the size of the concern combined with other entity(ies) it controls or entity(ies) it is controlled by, must not exceed the size standard thresholds designated for the industry in which the concern alone or the concern and its controlling entity(ies), whichever is higher, is primarily engaged.\n\n(i) The concern's tangible net worth is not in excess of $15 million and average net income (excluding carry-over losses) for the preceding two completed fiscal years is not in excess of $5.0 million; or\n\n(ii) The size of the concern does not exceed the Small Business Administration (SBA) size standard thresholds designated for the industry in which it is primarily engaged, as measured by number of employees or annual receipts. Industry size standard designations to be utilized are listed in the Small Business Administration's (SBA) table of size standards found in 13 CFR part 121.201. Number of employees and annuals receipts are calculated as follows:\n\n(A) Number of employees is calculated as the average number of all individuals employed by a concern on a full-time, part-time, or other basis, based upon numbers of employees for each of the pay periods for the preceding completed 12 calendar months. If a concern has not been in business for 12 months, the average number of employees is used for each of the pay periods during which it has been in business.\n\n(B) Annual receipts are calculated as average total income plus cost of goods sold for the for the five most recent years. If a concern has been in operation for less than 60 months, average annual receipts for as long as the concern has been in operation are used.\n\nSmart Utility.  The use of broadband facilities and equipment that is only available internally by a recipient during the economic life of the assets financed by an Agency loan, grant, or loan guarantee.\n\nState.  Any of the 50 States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.\n\nSteady state operating level  means that there is an adequate and consistent supply of the applicable renewable energy resource(s) for the project, both on a short-term (current) and long-term basis, and the renewable energy system and process(es) are operating at projected capacity, consistently yielding an adequate quantity and quality of renewable energy.\n\nTotal eligible project costs.  The sum of all eligible project costs.\n\nTotal project costs.  The sum of all costs associated with a completed project.\n\nUnderserved community(ies).  Communities (including urban or rural communities and Indian tribal communities) that have limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer-to-consumer direct markets and that have either a high rate of hunger or food insecurity or a high poverty rate as reflected in the most recent decennial census or other Agency-approved census.\n\nUsed equipment.  Any equipment that has been used and is provided in an \u201cas is\u201d condition.\n\nUseful life  means estimated durations of utility placed on a variety of assets, including buildings, machinery, equipment, vehicles, electronics, and furniture. Useful life estimations terminate at the point when assets are expected to become obsolete, require major repairs, or cease to deliver economical results.\n\nVeteran.  A veteran is a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable as defined in title 38 U.S.C. 101(2)."], ["7:7:15.1.19.2.6.2.24.4", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.104 Exception authority.", "RBS", "", "", "", "The Administrator may, on a case-by-case basis, grant an exception to any requirement or provision of this subpart provided that such an exception is in the best financial interests of the Federal Government. Exercise of this authority cannot be in conflict with applicable law."], ["7:7:15.1.19.2.6.2.24.5", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.105 Review or appeal rights.", "RBS", "", "", "", "Agency Applicants or grantees may have appeal or review rights for Agency decisions made under this part. Agency decisions that are adverse to the individual participant are appealable, while matters of general applicability are not subject to appeal; however, such decisions are reviewable for appealability by the National Appeals Division (NAD). All appeals will be conducted by NAD and will be handled in accordance with 7 CFR part 11. The applicant or grantee can appeal any Agency decision that directly and adversely affects them."], ["7:7:15.1.19.2.6.2.24.6", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.106 Conflict of interest.", "RBS", "", "", "", "(a)  General.  No conflict of interest or appearance of conflict of interest will be allowed. Conflict of interest means a situation in which a person has personal, professional, or financial interests that prevent, or appears to prevent the person from acting impartially. For purposes of this subpart, conflict of interest includes, but is not limited to, distribution or payment of grant, guaranteed loan funds, and matching funds to a beneficiary or immediate family member of the applicant.\n\n(b)  Assistance to employees, relatives, and associates.  The Agency will process any requests for assistance under this subpart in accordance with 7 CFR part 1900, subpart D.\n\n(c)  Member/delegate clause.  No member of or delegate to Congress shall receive any share or part of this grant or any benefit that may arise there from; but this provision shall not be construed to bar, as a contractor under the grant, a publicly held corporation whose ownership might include a member of Congress."], ["7:7:15.1.19.2.6.2.24.7", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.107 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.2.24.8", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.108 U.S. Department of Agriculture departmental regulations and laws that contain other compliance requirements.", "RBS", "", "", "", "(a)  Departmental regulations.  All projects funded under this subpart are subject to the provisions of the Departmental regulations, as applicable, which are incorporated by reference herein.\n\n(b)  Equal opportunity and nondiscrimination.  The Agency will ensure that equal opportunity and nondiscrimination requirements are met in accordance with the Equal Credit Opportunity Act, 15 U.S.C. 1691  et seq.  and 7 CFR part 15d, Nondiscrimination in Programs and Activities Conducted by the United States Department of Agriculture. The Agency will not discriminate against applicants on the basis of race, color, religion, national origin, sex, marital status, disability, or age (provided that the applicant has the capacity to contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act, 15 U.S.C. 1601  et seq.\n\n(c)  Civil rights compliance.  Recipients of grants must comply with the Americans with Disabilities Act of 1990, 42 U.S.C. 12101  et seq.,  Title VI of the Civil Rights Act of 1964,  42 U.S.C. 2000d et seq.,  and Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794. This includes collection and maintenance of data on the race, sex, and national origin of the recipient's membership/ownership and employees. These data must be available to conduct compliance reviews in accordance with 7 CFR 1901.204.\n\n(1) Initial compliance reviews will be conducted by the Agency prior to funds being obligated for programs.\n\n(2) When compliance reviews are applicable to the grant, one subsequent compliance review following project completion is required. This will occur after the last disbursement of grant funds has been made.\n\n(d)  Environmental analysis.  Actions taken under this subpart must comply with 7 CFR part 1970. Prospective applicants are advised to contact the Agency to determine environmental requirements as soon as practicable after they decide to pursue any form of financial assistance directly or indirectly available through the Agency.\n\n(1) Any required environmental review must be completed by the Agency prior to the Agency obligating any funds.\n\n(2) The applicant will be notified of all specific compliance requirements, including, but not limited to, the publication of public notices, and consultation with State or Tribal Historic Preservation Offices and the U.S. Fish and Wildlife Service.\n\n(3) A site visit by the Agency may be scheduled, if necessary, to determine the scope of the review.\n\n(e)  Discrimination complaints \u2014(1)  Who may file.  Persons or a specific class of persons believing they have been subjected to discrimination prohibited by this section may file a complaint personally, or by an authorized representative with USDA, Director, Office of Adjudication, 1400 Independence Avenue SW, Washington, DC 20250.\n\n(2)  Time for filing.  A complaint must be filed no later than 180 days from the date of the alleged discrimination, unless the time for filing is extended by the designated officials of USDA or Rural Development."], ["7:7:15.1.19.2.6.2.24.9", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.109 Ineligible applicants, grantees, and owners.", "RBS", "", "", "", "Applicants, grantees, and owners will be ineligible to receive funds under this subpart as discussed in paragraphs (a) and (b) of this section.\n\n(a) If an applicant, grantee, or owner has an outstanding judgment obtained by the U.S. in a Federal Court (other than in the United States Tax Court), is delinquent in the payment of Federal income taxes, or is delinquent on a Federal debt, the applicant, grantee, or owner is not eligible to receive a grant or combined grant and guaranteed loan until the judgment is paid in full or otherwise satisfied or the delinquency is resolved.\n\n(b) If an applicant, grantee, or owner is debarred from receiving Federal assistance, the applicant, grantee, or owner is not eligible to receive a grant or combined grant and guaranteed loan under this subpart."], ["7:7:15.1.19.2.6.2.25.27", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.137 Combined grant and guaranteed loan funding requirements.", "RBS", "", "", "", "The requirements for a RES or EEI project for which an applicant is seeking a combined grant and guaranteed loan are specified in this section.\n\n(a)  Eligibility.  All applicants must be eligible under the requirements specified in \u00a7 4280.112. If the applicant is seeking a loan, the applicant must also meet the borrower eligibility requirements specified in 7 CFR 5001.126. Lenders must meet eligibility requirements specified in 7 CFR 5001.130-132. Projects must meet the project eligibility requirements specified in \u00a7\u00a7 4280.113, 7 CFR parts 5001.102 (b) and (c) and 5001.106-107, as applicable. For projects that include New Markets Tax Credits, the guaranteed loan portion of the combined funding request must meet provisions found in 5001.141.\n\n(b)  Funding.  Funding provided under this section is subject to the limits described in paragraphs (b)(1) through (2) of this section.\n\n(1) The amount of any combined grant and guaranteed loan shall not exceed 75 percent of eligible project costs and the grant portion shall not exceed 25 percent of eligible project costs. Loan amount provisions of 7 CFR part 5001.406(d) apply, except for (d)(2). For purposes of combined funding requests, eligible project costs are based on the total costs associated with those items specified in \u00a7 4280.115(c) and 7 CFR part 5001.121(d), except for (d)(2). The applicant must provide the remaining total funds needed to complete the project.\n\n(2) The minimum guaranteed loan request allowed is $5,000, with the grant portion of the funding request being at least $1,500 for EEI projects and at least $2,500 for RES projects.\n\n(c)  Loan origination provisions.  Provisions found in 7 CFR parts 5001.201 through 5001.208 apply to the guaranteed loan portion of a combined grant and guaranteed loan funding request.\n\n(d)  Application provisions and documentation.  When applying for combined funding, the applicant/borrower must provide all documentation outlined in this section and the lender must submit grant and guaranteed loan application information simultaneously.\n\n(1) Applications must include the following documentation, including the requisite forms and certifications, specified in \u00a7\u00a7 4280.118, 4280.119, or 4280.120 as applicable, for the grant request, except that applicants submitting a properly completed 5001-1 form only need to submit the applicable RD 4280-3 form containing the applicant's CAGE code and properly signed certifications. The guaranteed loan applications are filed in accordance with 7 CFR part 5001.301 where they will be processed in accordance with 7 CFR parts 5001.303 and 5001.307, and as follows:\n\n(2) Where both the grant application and the guaranteed loan application provisions request the same documentation, form, or certification, such documentation, form, or certification may be submitted once; the combined application does not need to contain duplicate documentation, forms, and certifications.\n\n(e)  Loan provisions.  Provisions found in 7 CFR parts 5001.401 through 5001.408 apply to the guaranteed loan portion of a combined funding request.\n\n(f)  Guarantee provisions.  Provisions found in 7 CFR parts 5001.450 through 5001.459 apply to the guarantee on the guaranteed loan portion of a combined funding request.\n\n(g)  Servicing provisions.  Provisions found in 7 CFR parts 5001.501 through 5001.524 apply to the guaranteed loan portion of a combined funding request.\n\n(h)  Evaluation, scoring, and award.  The Agency will evaluate each combined application according to \u00a7 4280.116(c) and 7 CFR part 5001.315 (a) and (b). The Agency will select applications according to applicable procedures specified in \u00a7 4280.122(a) and (b) unless modified by this section. A combination loan and grant request will be selected based upon the grant score of the project. The Agency will score combined funding applications based upon the grant score as noted in \u00a7 4280.121. Projects will be ranked and selected for award according to applicable competition procedures specified in \u00a7 4280.122 (c), unless modified by this section or via a  Federal Register  notification.\n\n(i)  Interest rate and terms of loan.  The interest rate and terms of the guaranteed loan for the loan portion of the combined funding request will be determined based on the procedures specified in 7 CFR parts 5001.401 and 5001.402.\n\n(j)  Other provisions.  In addition to the requirements specified in paragraphs (a) through (i) of this section, the combined funding request is subject to the other requirements specified in this subpart, including, but not limited to, processing and servicing requirements, as applicable, as described in paragraphs (j)(1) through (4) of this section.\n\n(1) All other provisions of \u00a7\u00a7 4280.101 through 4280.111 apply to the grant portion of the combined funding request and all other provisions as applicable of 7 CFR parts 5001.1 through 5001.10 apply to the guaranteed loan portion of the combined funding request.\n\n(2) All other provisions of \u00a7\u00a7 4280.112 through 4280.124 apply to the grant portion of the combined funding request and \u00a7 4280.125 applies if the project for which the grant is sought has a total project cost of $200,000 and greater.\n\n(3) All guarantee loan and grant combination applications that are ranked, but not funded, will be processed in accordance with provisions found in \u00a7 4280.122(d), (e), and (f).\n\n(4) Applicants whose combination applications are approved for funding must utilize both the loan and the grant. The guaranteed loan will be closed prior to grant funds being disbursed. The Agency reserves the right to reduce the total loan guarantee and grant award, as appropriate, if construction costs are less than projected or if funding sources differ from those provided in the application.\n\n(5) Ineligible project provisions of \u00a7\u00a7 5001.115 and 5001.119, and ineligible use of funds provision of \u00a7 5001.122 apply to the guaranteed loan portion of the combined funding request. Borrower ineligibility provisions of \u00a7 5001.127 are also applicable."], ["7:7:15.1.19.2.6.2.25.28", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7\u00a7 4280.138-4280.148 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.2.26.29", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.149 Applicant eligibility.", "RBS", "", "", "", "To be eligible for an EA grant or a REDA grant under this subpart, the applicant must meet each of the criteria, as applicable, specified in paragraphs (a) through (d) of this section. The Agency will determine an applicant's eligibility.\n\n(a) The applicant must be one of the following:\n\n(1) A unit of State, Tribal, or local government;\n\n(2) A land-grant college or university, or other institution of higher education;\n\n(3) A rural electric cooperative;\n\n(4) A public power entity;\n\n(5) An instrumentality of a State, Tribal, or local government; or\n\n(6) A council, as defined under the Resource Conservation and Development Program, at 16 U.S. C. 3451.\n\n(b) The applicant must have sufficient capacity to perform the EA or REDA activities proposed in the application to ensure success. The Agency will make this assessment based on the information provided in the application.\n\n(c) The applicant must have the legal authority necessary to apply for and carry out the purpose of the grant.\n\n(d) The applicant must:\n\n(1) Be registered in the SAM prior to submitting an application;\n\n(2) Maintain an active SAM registration with current information at all times until final fund disbursement has been made.\n\n(3) Provide its UEI number in each application it submits to the Agency. Generally, the UEI number is included on SF-424."], ["7:7:15.1.19.2.6.2.26.30", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.150 Project eligibility.", "RBS", "", "", "", "To be eligible for an EA or a REDA grant, the grant funds for a project must be used by the grantee to assist agricultural producers or rural small businesses in one of the purposes specified in paragraphs (a) and (b) of this section, and must also comply with paragraphs (c) through (f) of this section.\n\n(a) Conducting and promoting energy audits as defined in 4280.103.\n\n(b) Conducting and promoting REDA by providing to agricultural producers and rural small businesses recommendations and information on how to improve the energy efficiency of the operations and to use renewable energy technologies and resources in their operations.\n\n(c) EA and REDA can be provided only to a project located in a rural area unless the grantee of such project is an agricultural producer. If the project is owned by an agricultural producer, the project for which such services are being provided may be located in either a rural or non-rural area and the EA or REDA can only be for an EEI or RES on components that support the production, processing, vertical integration, or marketing of agricultural products. If the agricultural producer's operation is in a non-rural area, then the Energy Audit or REDA can only be for RES or EEI components of the business operation that are directly related to and their use and purpose is limited to the agricultural production operation, such as vertically integrated operations, and are part of and co-located with the agricultural production operation.\n\n(d) The EA or REDA must be provided to a recipient in a State.\n\n(e) The applicant must have a place of business in a State.\n\n(f) The applicant is cautioned against taking any actions or incurring any obligations prior to the Agency completing the environmental review that would either limit the range of alternatives to be considered or that would have an adverse effect on the environment, such as the initiation of construction. If the applicant takes any such actions or incurs any such obligations, it could result in project ineligibility."], ["7:7:15.1.19.2.6.2.26.31", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.151 Ineligible projects.", "RBS", "", "", "", "Ineligible projects for EA and REDA grants include, but are not limited to:\n\n(a) Research related projects.\n\n(b) Feasibility studies of any nature.\n\n(c) Projects where funding is not targeted directly to assisting agricultural producers or rural small businesses.\n\n(d) Projects to develop computer software or programs.\n\n(e) Projects where 50 percent or more of the costs are in-eligible or where project costs as defined in the application do not meet the definition of providing energy audits or renewable energy development assistance.\n\n(f) Projects which propose to provide energy audits or renewable energy development assistant for residential purposes."], ["7:7:15.1.19.2.6.2.26.32", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.152 Grant funding for Energy Audit and Renewable Energy Development Assistance.", "RBS", "", "", "", "(a)  Maximum grant amount.  The maximum aggregate amount of EA and REDA grants awarded to any one recipient under this subpart cannot exceed $100,000 in a Federal fiscal year. Grant funds awarded for EA and REDA projects may be used only to pay eligible project costs, as described in paragraph (b) of this section. Ineligible project costs are listed in paragraph (c) of this section. Provisions for EA applications are listed in paragraph (d)of this section.\n\n(b)  Eligible project costs.  Eligible project costs for EA and REDA are those costs incurred after the date a complete application has been received by the Agency and that are directly related to conducting and promoting EA and REDA, which include but are not limited to:\n\n(1) Salaries;\n\n(2) Travel expenses;\n\n(3) Office supplies ( e.g.,  paper, pens, file folders); and\n\n(4) Expenses charged as a direct cost or as an indirect cost of up to a maximum of 5 percent for administering the grant.\n\n(c)  Ineligible project costs.  Ineligible project costs for EA and REDA grants include, but are not limited to:\n\n(1) Payment for any construction-related activities;\n\n(2) Purchase or lease of equipment;\n\n(3) Payment of any judgment or debt owed to the United States;\n\n(4) Any goods or services provided by a person or entity who has a conflict of interest as provided in \u00a7 4280.106;\n\n(5) Any costs of preparing the application package for funding under this subpart; and\n\n(6) Funding of political or lobbying activities.\n\n(7) Funding to train individuals to become qualified to perform EA or REDA assistance.\n\n(8) Payment or waiver of student tuition.\n\n(d)  EA.  A grantee that conducts energy audits must require that, as a condition of providing the EA assistance, the agricultural producer or rural small business pay at least 25 percent of the cost of the energy audit. Further, the amount paid by the agricultural producer or rural small business will be retained by the grantee as a contribution towards the cost of the energy audit and considered program income. The grantee may use the program income to further the objectives of their project or EA services offered during the grant period in accordance with Departmental Regulations. The 25% to be paid by an agricultural producer or rural small business does not count towards the commitment of funds scoring criteria noted in 4280.155(f)."], ["7:7:15.1.19.2.6.2.26.33", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.153 EA and REDA grant applications\u2014content.", "RBS", "", "", "", "(a) Unless otherwise specified in a  Federal Register  notice, applicants may only submit one EA grant application and one REDA grant application each Federal fiscal year. No combination (EA and REDA) applications will be accepted.\n\n(b) Applicants must submit complete applications consisting of the elements specified in paragraphs (b)(1) through (7) of this section, except that paragraph (b)(3), is optional. Applications will be evaluated based only on information submitted by the applicant in the application.\n\n(1) Form SF-424.\n\n(2) Form SF-424A, \u201cBudget Information\u2014Non Construction Programs.\u201d\n\n(3) Identify the ethnicity, race, and gender of the applicant. This information is optional and is not required for a complete application.\n\n(4) Certification that the applicant is a legal entity in good standing (as applicable) and operating in accordance with the laws of the State(s) or Tribe where the applicant has a place of business.\n\n(5) The applicant must identify whether or not the applicant has a known relationship or association with an Agency employee. If there is a known relationship, the applicant must identify each Agency employee with whom the applicant has a known relationship.\n\n(6) A proposed scope of work to include the following items:\n\n(i) A brief summary including a project title describing the proposed project;\n\n(ii) Goals of the proposed project;\n\n(iii) Geographic scope or service area of the proposed project and the method and rationale used to select the service area;\n\n(iv) Identification of the specific needs for the service area and the target audience to be served. The number of agricultural producers and/or rural small businesses to be served must be identified including name and contact information, if available, as well as the method and rationale used to select the agricultural producers and/or rural small businesses;\n\n(v) Timeline describing the proposed tasks to be accomplished and the schedule for implementation of each task. Include whether organizational staff, consultants, or contractors will be used to perform each task. If a project is located in multiple States, resources must be sufficient to complete all projects;\n\n(vi) Marketing strategies to include a discussion on how the applicant will be marketing and providing outreach activities to the proposed service area ensuring that agricultural producers and/or rural small businesses are served;\n\n(vii) Applicant's experience as follows:\n\n(A) If applying for a REDA grant, the applicant's experience in completing similar REDA activities, such as renewable energy site assessments and renewable energy technical assistance provided directly to agricultural producers and rural small businesses, including the number of similar projects the applicant has performed and the number of years the applicant has been performing a similar service.\n\n(B) If applying for an EA grant, the number of energy audits the applicant has completed and the number of years the applicant has been performing those services;\n\n(C) For all applicants, the amount of experience in administering EA, REDA, or similar activities as applicable to the purpose of the proposed project. Provide discussion if the applicant has any existing programs that can demonstrate the achievement of energy savings or energy generation with the agricultural producers and/or rural small businesses the applicant has served. If the applicant has received one or more awards within the last 5 years in recognition of its renewable energy, energy savings, or energy-based technical assistance, please describe the achievement;\n\n(viii) Itemized budget; and\n\n(ix) Identify the amount of matching funds and other funds and the source(s) the applicant is proposing to use for the project. Provide written commitments for matching funds and other funds at the time the application is submitted.\n\n(A) If financial resources come from the applicant, documentation may include a bank statement that demonstrates availability of funds.\n\n(B) If a third party is providing financial assistance to the project, the applicant must submit a commitment letter signed by an authorized official of the third party. The letter must be specific to the project, identify the dollar amount being provided and any applicable rates and terms."], ["7:7:15.1.19.2.6.2.26.34", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.154 Evaluation of EA and REDA grant applications.", "RBS", "", "", "", "The Agency will evaluate EA and REDA grant applications, based only upon information submitted in the application, to determine if:\n\n(a) The application is complete, as defined in \u00a7 4280.103 and as per \u00a7 4280.153;\n\n(b) The applicant is eligible according to \u00a7 4280.149;\n\n(c) The project is eligible according to \u00a7 4280.150 and 4280.151, including 50% or more of proposed project costs are eligible; and\n\n(d) Grant funding provisions according to \u00a7 4280.152 are met."], ["7:7:15.1.19.2.6.2.26.35", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.155 Scoring EA and REDA grant applications.", "RBS", "", "", "", "The Agency will score each EA and REDA application using the criteria specified in paragraphs (a) through (f) of this section, with a maximum score of 100 points possible. Unless otherwise altered via a  Federal Register  notification, the project must score a minimum of 40 points to be eligible to compete for funding.\n\n(a)  Geographic scope of project in relation to identified need.  A maximum of 20 points can be awarded.\n\n(1) If the applicant's proposed or existing service area is state-wide or includes all or parts of multiple states, and the scope of work has identified needs throughout that service area, 20 points will be awarded.\n\n(2) If the applicant's proposed or existing service area consists of multiple counties in a single state and the scope of work has identified needs throughout that service area, 15 points will be awarded.\n\n(3) If the applicant's service area consists of a single county or municipality and the scope of work has identified needs throughout that service area, 10 points will be awarded.\n\n(b)  Number of agricultural producers/rural small businesses to be served.  A maximum of 20 points will be awarded for this criterion based on the proposed number of ultimate recipients to be assisted and if the applicant has provided the names and contact information for the ultimate recipients to be assisted.\n\n(1) If the applicant plans to provide EA or REDA to:\n\n(i) Up to 10 ultimate recipients, 2 points will be awarded.\n\n(ii) Between 11 and up to and including 25 ultimate recipients, 5 points will be awarded.\n\n(iii) More than 25 ultimate recipients, 10 points will be awarded.\n\n(2) If the applicant provides a list with at least 50 percent of the total number of proposed ultimate recipients ready to be assisted, including their name and contact information, an additional 10 points may be awarded.\n\n(c)  Marketing and outreach plan.  A maximum of 5 points will be awarded for this criterion. If the scope of work included in the application provides a satisfactory discussion of each of the following criteria, one point for each can be awarded.\n\n(1) The goals of the project;\n\n(2) Identified need;\n\n(3) Targeted ultimate recipients;\n\n(4) Timeline and action plan; and\n\n(5) Marketing and outreach strategies and supporting data for strategies.\n\n(d)  Applicant's organizational experience in completing the EA or REDA proposed activity.  A maximum of 25 points will be awarded for this criterion based on the experience of the organization in providing EA or REDA as applicable to the purpose of the proposed project. The organization must have been in business and provided services for the number of years as identified in the paragraphs below. Experience of contractors proposed in the application to perform the services may be applied to this scoring criteria as long as the experience relates to the same type of activity,  e.g.,  energy audit experience for an EA application.\n\n(1) More than 10 years of experience, 25 points will be awarded.\n\n(2) At least 5 years and up to and including 10 years of experience, 20 points will be awarded.\n\n(3) At least 2 years and up to and including 5 years of experience, 10 points will be awarded.\n\n(4) Less than 2 years of experience, no points will be awarded.\n\n(e)  Potential of project to produce energy savings or generation and its attending environmental benefits.  A maximum of 10 points will be awarded for this criterion under both paragraphs (e)(1) and (2) of this section\n\n(1) If the applicant (does not include entities the applicant will contract with) has an existing program that can demonstrate the achievement of energy savings or energy generation with the agricultural producers and/or rural small businesses it has served, 5 points will be awarded.\n\n(2) If the applicant (does not include entities the applicant will contract with) provides evidence that it has received one or more awards ( e.g.,  recognition, not funding awards) within the last 5 years in recognition of its renewable energy, energy savings, or energy-based technical assistance, up to a maximum of 5 points will be awarded as follows:\n\n(i) International/national\u20143 points for each.\n\n(ii) Regional/State\u20142 points for each.\n\n(iii) Local\u20141 point for each.\n\n(f)  Commitment of funds.  A maximum of 20 points will be awarded for this criterion if written documentation from each source providing matching funds and other funds are submitted with the application. Compare eligible commitment of funds to the amount of grant requested to derive percentage to be used for scoring.\n\n(1) If the applicant proposes to match 50 percent or more of the grant funds requested, 20 points will be awarded.\n\n(2) If the applicant proposes to match 20 percent or more but less than 50 percent of the grant funds requested, 15 points will be awarded.\n\n(3) If the applicant proposes to match 5 percent or more but less than 20 percent of the grant funds requested, 10 points will be awarded.\n\n(4) If the applicant proposes to match less than 5 percent of the grant funds requested, no points will be awarded."], ["7:7:15.1.19.2.6.2.26.36", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.156 Selecting EA and REDA grant applications for award.", "RBS", "", "", "", "Unless otherwise provided for in a  Federal Register  notice, EA and REDA grant applications will be processed in accordance with this section. EA and REDA grant funding is maintained at the National Office and applications compete for funds only once in a nationwide competition.\n\n(a)  Application competition.  Complete EA and REDA applications received by the Agency by 4:30 p.m. local time on January 31 will be competed against each other. If January 31 falls on a weekend or a Federally observed holiday, the next Federal business day will be considered the last day for receipt of a complete application. Complete applications received after 4:30 p.m. local time on January 31, regardless of the postmark on the application, will be processed in the subsequent fiscal year. Unless otherwise specified in a  Federal Register  notice, the two highest scoring applications from each State, based on the scoring criteria established under \u00a7 4280.155, will compete for initial funding. If undersubscribed on eligible applications, the third highest scoring application from each state shall be requested for National Office review and potential competition, ranking and funding, until funds are expended.\n\n(b)  Ranking of applications.  All applications submitted to the National Office under paragraph (a) of this section will be ranked in priority score order. All applications that are ranked and meet the minimum scoring threshold will be considered for selection for funding.\n\n(c)  Selection of applications for funding.  Using the ranking created under paragraph (a) of this section, the Agency will consider the score an application has received compared to the scores of other ranked applications, with higher scoring applications receiving first consideration for funding. If two or more applications score the same and if remaining funds are insufficient to fund each such application, the Agency will distribute the remaining funds to each such application on a pro-rata basis. At its discretion, the Agency may also elect to redirect unused funds into the RES/EEI program or allow any remaining multi-year funds to be carried over to the next fiscal year rather than funding on a pro-rata basis.\n\n(d)  Handling of ranked applications not funded.  Based on the availability of funding, a ranked application submitted for EA or REDA funds may not be funded. Such ranked applications will not be carried forward into the next Federal fiscal year's competition."], ["7:7:15.1.19.2.6.2.26.37", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.157 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.2.26.38", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.158 Awarding and administering EA and REDA grants.", "RBS", "", "", "", "The Agency will award and administer EA and REDA grants in accordance with Departmental Regulations and with the procedures and requirements specified in \u00a7 4280.123, except as specified in paragraphs (a) through (b) of this section.\n\n(a) Instead of complying with \u00a7 4280.123(b), the grantee must provide satisfactory evidence to the Agency that all officers of grantee organization authorized to receive and/or disburse Federal funds are covered by such bonding and/or insurance requirements as are normally required by the grantee.\n\n(b) The power purchase agreement specified in \u00a7 4280.123 (h) is not required."], ["7:7:15.1.19.2.6.2.26.39", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.159 Servicing EA and REDA grants.", "RBS", "", "", "", "The Agency will service EA and REDA grants in accordance with the requirements specified in Departmental Regulations, the Financial Assistance Agreement, 7 CFR part 3, 7 CFR 1951 Subparts E and O, and the requirements in \u00a7 4280.124, except as specified in paragraphs (a) through (d) of this section.\n\n(a)  Grant disbursement.  The Agency will determine, based on the applicable Departmental Regulations, whether disbursement of a grant will be by advance or reimbursement. Form SF-270, Request for Advance or Reimbursement, must be completed by the grantee and submitted to the Agency no more often than monthly to request either advance or reimbursement of funds.\n\n(b)  Semiannual performance reports.  Project performance reports shall include, but not be limited to, the following:\n\n(1) A comparison of actual accomplishments to the objectives established for that period ( e.g.,  the number of EA performed, number of recipients assisted, and the type of assistance provided for REDA);\n\n(2) A list of recipients, each recipient's location, and each recipient's NAICS code;\n\n(3) Problems, delays, or adverse conditions, if any, that have in the past or will in the future affect attainment of overall project objectives, prevent meeting time schedules or objectives, or preclude the attainment of particular project work elements during established time periods. This disclosure shall be accompanied by a statement of the action taken or planned to resolve the situation;\n\n(4) Objectives and timetable established for the next reporting period.\n\n(c)  Final performance report.  A final performance report will be required with the final Federal financial report within 90 days after project completion. The final performance report must contain the information specified in paragraphs (c)(1)(i) or (ii) of this section, as applicable.\n\n(1) For EA projects, the final performance report must provide complete information regarding:\n\n(i) The number of audits conducted,\n\n(ii) A list of recipients (agricultural producers and rural small businesses) with each recipient's NAICS code,\n\n(iii) The location of each recipient,\n\n(iv) The cost of each audit and documentation showing that the recipient of the EA provided 25 percent of the cost of the audit, and\n\n(v) The expected energy saved for each audit conducted if the audit is implemented.\n\n(2) For REDA projects, the final performance report must provide complete information regarding:\n\n(i) The number of recipients assisted, and the type of assistance provided,\n\n(ii) A list of recipients with each recipient's NAICS code,\n\n(iii) The location of each recipient, and\n\n(iv) The expected renewable energy that would be generated if the projects were implemented.\n\n(d)  Outcome project performance report.  One year after submittal of the final performance report, the grantee will provide the Agency a final status report on the number of projects that are proceeding with the grantee's recommendations, including the amount of energy saved and the amount of renewable energy generated, as applicable."], ["7:7:15.1.19.2.6.2.26.40", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7\u00a7 4280.160-4280.165 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.2.26.41", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "B", "Subpart B\u2014Rural Energy for America Program General", "", "\u00a7 4280.166 OMB control number.", "RBS", "", "", "", "The report and recordkeeping requirements contained in this part have been approved by the Office of Management and Budget and have been assigned OMB control number 0570-0067"], ["7:7:15.1.19.2.6.4.27.1", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.301 Purpose and scope.", "RBS", "", "", "", "(a) This subpart contains the policies and procedures by which the Agency will administer the Rural Microentrepreneur Assistance Program (RMAP). The purpose of the Program is to support the development and ongoing success of rural microentrepreneurs and microenterprises. To accomplish this purpose, the Program will make direct loans and provide grants to selected Microenterprise Development Organizations. Selected Microenterprise Development Organization will use the funds to:\n\n(1) Provide microloans to rural microentrepreneurs and microenterprises;\n\n(2) Provide business-based training and technical assistance to rural microborrowers and potential microborrowers as an essential part of the microlending process;\n\n(3) Perform other such activities as deemed appropriate by the Secretary to ensure the development and ongoing success of rural microenterprises.\n\n(b) The Agency will make direct loans to microlenders for the purpose of providing fixed interest rate microloans to rural microentrepreneurs for business startup and for growing microenterprises in compliance with \u00a7\u00a7 4280.311 and 4280.312. Eligible microlenders will also be eligible to receive microlender technical assistance grants to provide technical assistance and training to microenterprises that have received or are seeking a microloan under this program in compliance with \u00a7 4280.313.\n\n(c) To allow for extended opportunities for technical assistance and training, the Agency will make technical assistance-only grants to Microenterprise Development Organizations that have sources of funding other than program funds for making or facilitating microloans."], ["7:7:15.1.19.2.6.4.27.10", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.312 Loan approval and closing.", "RBS", "", "", "", "(a)  Loan approval and obligating funds.  The loan will be considered approved on the date the signed copy of Form RD 1940-1, \u201cRequest for Obligation of Funds,\u201d is executed by the Agency. Form RD 1940-1 authorizes funds to be obligated and may be executed by the Agency after the microlender has signed the document, provided that the microlender has the legal authority to contract for a loan and to enter into required agreements, including an Agency-approved loan agreement, and meets all program loan requirements.\n\n(b)  Letter of conditions.  Upon reviewing the conditions and requirements in the letter of conditions, the applicant must complete, sign, and return Form RD 1942-46, \u201cLetter of Intent to Meet Conditions,\u201d to the Agency; or if certain conditions cannot be met, the applicant may propose alternate conditions. The Agency will review any requests for changes to the letter of conditions and may approve only minor changes that do not materially affect the microlender and remain within the program requirements. Changes in legal entities prior to loan closing will not be approved.\n\n(c)  Loan closing.  (1) Prior to loan closing, microlenders must provide evidence that the RMRF and LLRF bank accounts have been set up and the LLRF has been or will be funded as described in \u00a7 4280.311(g)(4). Such evidence shall consist of:\n\n(i) A pre-authorized debit form allowing the Agency to withdraw payments from the RMRF account, and in the event of a repayment workout, from the LLRF account;\n\n(ii) An Agency-approved automatic deposit authorization form, from the depository institution providing the Agency with the RMRF account number, into which funds may be deposited at time of disbursement to the microlender;\n\n(iii) A statement from the depository institution as to the amount of cash in the LLRF account;\n\n(iv) An Agency-approved promissory note and a loan agreement for each loan to the MDO must be executed at loan closing. The loan agreement will be prepared by the Agency using Form RD 4274-4, \u201cIntermediary Relending Program/Rural Microentrepreneur Assistance Program Loan Agreement,\u201d and reviewed by the MDO prior to loan closing; and\n\n(v) An appropriate security agreement on the LLRF and RMRF accounts must be executed at loan closing.\n\n(2) At loan closing, the microlender must certify that:\n\n(i) All requirements of the letter of conditions have been met; and\n\n(ii) There has been no material adverse change in the microlender, its key personnel, or its financial condition since the issuance of the letter of conditions. If one or more adverse changes have occurred, the microlender must explain the changes and the Agency must determine that the microlender remains eligible and qualified to participate as an MDO.\n\n(3) The microlender will provide sufficient evidence that no lawsuits or other legal issues are pending or threatened that would adversely affect the security of the microlender when Agency security instruments are filed."], ["7:7:15.1.19.2.6.4.27.11", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.313 Grant provisions.", "RBS", "", "", "", "Grants offered under this program will be made to eligible MDOs in such amounts and requirements for microlenders with a loan(s) from the Agency, and for MDOs that seek only a TA grant from the Agency. Competition for these funds will occur as a part of the application and qualification process of becoming a microlender or grant recipient. No entity will receive grant funding as both a microlender and a TA-only provider. RMAP microlenders are not eligible for TA-only grant funding and an MDO receiving TA-only grant funding is not eligible for microlender grant funding. Failure to meet scoring benchmarks will preclude an applicant from receiving loan and/or grant dollars. Once an MDO is participating as a microlender, TA grant funds will be made available annually based on the MDO's lending balances and the availability of funds.\n\n(a)  Microlender grants.  The Agency shall make microlender TA grants to microlenders to assist them in providing marketing, management, and other TA to rural microentrepreneurs and microenterprises that have received or are seeking one or more microloans from the microlender. The capacity of a microlender to provide an integrated program of microlending and TA will be evaluated during the scoring process with their loan application and then annually in determining the amount of annual grant funds. An eligible MDO selected to be a microlender will be eligible to receive a microlending TA grant if it receives funding to provide microloans under this program. Microlender applicants for loan funding to establish or replenish a revolving loan fund originally capitalized under this program, may simultaneously apply for TA grant funds in an amount not to exceed 25 percent of the requested loan amount.\n\n(1) Technical assistance grants to microlenders will be awarded annually on a non-competitive basis in an amount based on the MDO's outstanding loan balance as of June 30, subject to satisfactory program performance of the microlender and the availability of funds. Satisfactory performance includes the timely payment of program loan(s) and the submission of periodic reports to the Agency. Annual TA grants to a microlender, subject to the availability of funds, will be made in an amount to replenish the microlender's TA fund to an amount equal to 20 percent of the outstanding principal balance of loans made by the microlender to ultimate recipients unless otherwise published in an annual program funding notice. If available grant funds are not sufficient to fully replenish each microlender's TA funds to 20 percent of their outstanding loan balance, the available funds will be distributed proportionately based on the percentage of available funds to the total amount of annual TA grant funds requested.\n\n(2) Any grant dollars obligated but not spent by the microlender from their initial or subsequent grants will be subtracted from the subsequent year's grant eligibility calculation to ensure that obligations cover only microloans made and active and that the MDO's total grant funds available for TA do not exceed the established 20 percent threshold.\n\n(3) The microlender will agree to use TA grant funds exclusively for providing TA assistance and training to eligible microentrepreneurs and microenterprises, with the exception that up to 10 percent of the grant funds may be used to cover the microlender's administrative expenses. Grant funds may not be used to make loan payments.\n\n(b)  Technical assistance only grants.  Grants will be competitively made to MDOs for the purpose of providing TA and training to prospective microborrowers. Technical assistance-only grants will be provided to eligible MDOs that seek to provide business-based TA and training to eligible microentrepreneurs and microenterprises, but do not seek funding as a microlender for an RMRF.\n\n(1) The amount of a TA-only grant under this program will not exceed 10 percent of the amount of authorized appropriations available in any Federal FY for TA-only grants.\n\n(2) Technical assistance only grants will have a grant term not to exceed 12 months from the date the grant agreement is signed.\n\n(3) Technical assistance only grantees will be required to:\n\n(i) Refer clients to internal or external non-program funded lenders for loans of $50,000 or less, and\n\n(ii) Collect data regarding such clients. Technical assistance-only grantees will be considered successful if a minimum of 1-in-5 TA clients are referred for a microloan and are operating a business within 18 months of receiving TA from the MDO.\n\n(c)  Matching requirement.  The MDO is required to provide a match of not less than 15 percent of the total amount of the grant in the form of matching funds, indirect costs, or in-kind goods or services. Unless specifically permitted by laws other than the statute authorizing RMAP, matching contributions must be made up of non-Federal funds.\n\n(d)  Administrative expenses.  Not more than 10 percent of a grant received by an MDO for a Federal FY may be used to pay administrative expenses. Microlenders must annually submit a budget of proposed administrative expenses for Agency approval. The Agency has the right to deny the requested amount, even if it is at 10 percent or less, and to fund administrative expenses at a lower level.\n\n(1) Administrative expenses should be kept to a minimum. As such, the applicant MDO is required in the application materials to provide an administrative budget plan indicating the amount of funding it will need for administrative purposes. Applicants will be scored accordingly, with those using less than 10 percent of the grant funds for administrative purposes being scored higher than those using 10 percent of the grant funds for administrative purposes.\n\n(2) While operating the program, the selected grantee will be expected to adhere to the estimates it provides in its application and annual budget. If for any reason the MDO cannot meet those expectations, it must contact the Agency in writing with justification to request a budget adjustment. Budget adjustments will be considered only if the adjustment result for administrative expenses is within the 10 percent limitation.\n\n(3) Microlenders that exceed 10 percent for administrative expenses will be considered in performance default and may be subject to Agency actions including the forfeiting of funds.\n\n(e)  Ineligible grant purposes.  Grant funds, matching funds, indirect costs, and in-kind goods and services may not be used for:\n\n(1) Grant application preparation costs;\n\n(2) Costs incurred prior to the obligation date of the grant;\n\n(3) Capital improvements;\n\n(4) Political or lobbying activities;\n\n(5) Assistance to any ineligible entity;\n\n(6) Payment of any judgment or debt owed; or\n\n(7) Payment of any loan.\n\n(f)  Facilitation of access to capital.  Technical assistance-only grantees will be expected to provide training and TA services to the extent that access to capital for eligible microentrepreneurs and microenterprises is facilitated by referral to either an internal or external non-program loan fund so that these clients may take advantage of available financing programs.\n\n(g)  Grant agreement.  For any grant to an MDO or microlender, the Agency will notify the approved applicant in writing, using an Agency-approved grant agreement, setting out the conditions under which the grant will be made. The form will include those matters necessary to ensure that the proposed grant is completed in accordance with the proposed project, that grant funds are expended for authorized purposes, and that the applicable requirements prescribed in the relevant Agency regulations are complied with."], ["7:7:15.1.19.2.6.4.27.12", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.314 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.4.27.13", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.315 MDO application and submission information.", "RBS", "", "", "", "(a)  Initial and subsequent applications.  Applications shall be submitted in accordance with the provisions of this subpart unless adjusted by the Agency in an annual  Federal Register  document. The information required in \u00a7\u00a7 4280.315 and 4280.316 is necessary for an application to be considered complete. Only those applicants that meet the basic eligibility requirements in \u00a7 4280.310 will have their applications fully scored and considered for participation in the program under this section. When preparing applications, applicants are strongly encouraged to review the application requirements and scoring criteria in \u00a7 4280.316 and provide documentation that will support a competitive score.\n\n(b)  Content and form of submission.  All applicants must provide the information specified in paragraph (c) of this section. Additional application information is required in paragraph (d) of this section depending on the type of application being submitted.\n\n(c)  Application information for all applicants.  All applicants must provide the following information and forms fully completed and with all attachments:\n\n(1) Standard Form-424, \u201cApplication for Federal Assistance\u201d for grants.\n\n(2) Standard Form-424A, \u201cBudget Information\u2014Non-Construction Programs.\u201d\n\n(3) For entities applying for program loan funds to become an RMAP microlender only, Form RD 1910-11, \u201cCertification of No Federal Debt.\u201d\n\n(4) Form RD 400-8, \u201cCompliance Review\u201d or sufficient demographic information for Agency completion of Form RD 400-8.\n\n(5) Demonstration that the applicant is eligible to apply to participate in the program by submission of documentation as follows:\n\n(i) If a nonprofit entity, evidence that the applicant organization meets the citizenship requirements and a copy of the applicant's bylaws and articles of incorporation, which include evidence that the applicant is legally considered a non-profit organization;\n\n(ii) If an Indian tribe, evidence that the applicant is a federally recognized Indian tribe, and that the Indian tribe neither operates nor is currently served by an existing MDO;\n\n(iii) If a public institution of higher education, evidence that the applicant is a public institution of higher education; and\n\n(iv) For nonprofit applicants only, a Certificate of Good Standing, not more than six (6) months old, from the Office of the Secretary of State in the State, or tribal equivalent, in which the applicant is located. If the applicant has offices in more than one state, then the state in which the applicant is organized and licensed will be considered the home location.\n\n(6) Certification by the applicant that it cannot obtain sufficient credit elsewhere to fund the activities called for under the program with similar rates and terms.\n\n(d)  Type of application specific information.  In addition to the information required under paragraph (c) of this section, the following information is also required, as applicable:\n\n(1) An applicant with more than 3 years of experience as an MDO outside of the program seeking to participate as an RMAP microlender must provide sufficient documentation to validate its years of experience.\n\n(2) An applicant with 3 years or less experience as an MDO outside of the program seeking to participate as an RMAP microlender must provide the additional information specified in \u00a7 4280.316(c).\n\n(3) An applicant seeking status as a microlender must identify in its application which cost-share option(s) the applicant will utilize, as described in \u00a7 4280.311(d), to meet the Federal cost-share requirement. If the applicant will utilize the RMRF-level option, the applicant shall identify the amount(s) and source(s) of the non-Federal share.\n\n(4) An applicant seeking TA-only grant funds must provide the additional information specified in \u00a7 4280.316(d).\n\n(e)  Application limits.  Microenterprise Development Organizations may only submit and have pending for consideration one application at any given time, which is for either microlender funds or TA-only funds.\n\n(f)  Completed applications.  Applications that fulfill the requirements specified in paragraphs (a) through (e) of this section will be fully reviewed, scored, and ranked by the Agency in accordance with the provisions of \u00a7 4280.316."], ["7:7:15.1.19.2.6.4.27.14", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.316 Application scoring.", "RBS", "", "", "", "Applications will be scored based on the criteria specified in this section using only the information submitted in the application. The total available points per application are 100 as shown in paragraphs (a) through (e) of this section. Awards will be based on the points ranking, with the highest scoring applications being funded first from the available funding.\n\n(a)  Application requirements for all applicants.  All applicants must submit the eligibility and application information described in \u00a7 4280.315. The maximum points available in this part of the application are 45. In addition to the eligibility information, all applicants will submit:\n\n(1) An organizational chart clearly showing the positions and naming the individuals in those positions. Of particular interest to the Agency are management positions and those positions essential to the operation of microlending and TA programming. Up to 5 points will be awarded based on the completeness of the organizational chart and management experience.\n\n(2) Resumes for each of the individuals shown on the organizational chart and indicated as key to the operation of the activities to be funded under the program. There should be a corresponding resume for each of the key individuals noted and named on the organizational chart. Points will be awarded based on the quality of the resumes and on the ability of the key personnel to administer the program. Up to 5 points will be awarded.\n\n(3) A succession plan to be followed in the event of the departure of personnel key to the operation of the applicant's RMAP activities. Up to 5 points will be awarded.\n\n(4) Information indicating an understanding of microenterprise development concepts. Provide those parts of your policy and procedures manual that deal with the provision of loans, management of loan funds, and provision of TA. Up to 5 points will be awarded.\n\n(5) The applicant's most recent, and two-year's previous, financial statements. Points will be awarded based on the demonstrated ability of the applicant to maintain or grow its fund balance, its ability to manage one or more federal programs, and its capacity to manage multiple funding sources, including restricted and non-restricted funding sources, income, earnings, and expenditures. Up to 10 points will be awarded.\n\n(6) A copy of the applicant's organizational mission statement. The mission statement will be rated based on its relative connectivity to microenterprise development and general economic development and may or may not be a part of a larger statement. Up to 5 points will be awarded.\n\n(7) Information regarding the geographic service area to be served, which must be rural as defined, and include the number of counties or other jurisdictions to be served. Note that the applicant will not be scored on the size of the service area, but on its ability to fully cover the service area as described. Up to 10 points will be awarded.\n\n(b)  Program loan application requirements for MDOs seeking to participate as RMAP microlenders with more than 3 years of experience.  In addition to the information required under paragraph (a) of this section, applicants with more than three (3) years of experience as a microlender, including non-RMAP microloans, must also provide the information specified in paragraphs (b)(1) through (5) of this section. The total number of points available under this section (in addition to the up to 45 points available in paragraph (a) of this section) is 55.\n\n(1)  History of provision of microloans.  The applicant must provide data regarding its history of making microloans for the three years previous to this application by answering the questions in paragraphs (b)(1)(i) through (v) of this section. This information should be provided clearly and concisely in numerical format as the data will be used to calculate points as noted. Up to a maximum of 20 points may be awarded under this criterion.\n\n(i) Number and amount of microloans made during each of the three previous years.\n\n(ii) Number and amount of microloans made in rural areas, as defined, in each of the three years prior to the year in which the application is submitted. If the history of providing microloans in rural areas shows at least one loan made in:\n\n(A) Three or more consecutive years immediately prior to the application, 5 points will be awarded;\n\n(B) At least two of the years but not more than the three consecutive years immediately prior to this application, 3 points will be awarded;\n\n(C) At least 6 months, but not more than one year immediately prior to this application, 1 point will be awarded.\n\n(iii) Calculate and enter the total number of microloans made in rural areas as a percentage of the total number of all microloans made for each of the past three years. If the percentage of the total number of microloans made in rural areas is:\n\n(A) 75 percent or more, 5 points will be awarded;\n\n(B) At least 50 percent but less than 75 percent, 3 points will be awarded;\n\n(C) At least 25 percent but less than 50 percent, 1 point will be awarded.\n\n(iv) Enter the dollar amount of microloans made in rural areas as a percentage of the dollar amount of the total portfolio (rural and non-rural) of microloans made for each of the previous three years. If the percentage of the dollar amount of the microloans made in rural areas is:\n\n(A) 75 percent or more of the total amount, 5 points will be awarded;\n\n(B) At least 50 percent but less than 75 percent, 3 points will be awarded;\n\n(C) At least 25 percent but less than 50 percent, 1 point will be awarded.\n\n(v) Each applicant shall compare the diversity of its entire microloan portfolio to the demographic makeup of its service area (as determined by the latest applicable decennial census for the state) based on the number of microloans made during the three years preceding the subject application. Demographic groups shall include gender, racial and ethnic minority status, and disability (as defined in the Americans with Disabilities Act). Points will be awarded on the basis of how close the MDO's microloan portfolio matches the demographic makeup of its service area. A maximum of 5 points will be awarded.\n\n(A) If at least one loan has been made to each of the three demographic groups and if the percentage of loans made to each demographic group is 5 percent or less of their demographic makeup, 5 points will be awarded.\n\n(B) If at least one loan has been made to each demographic group and if the percentage of loans made to each demographic group is each between 5 to 10 percent or less of the demographic makeup, 3 points will be awarded.\n\n(C) If at least one loan has been made to each demographic group and if the percentage of loans made to one or more of the demographic groups is greater than 10 percent of the demographic makeup, 1 point will be awarded.\n\n(D) If no loans have been made to two or more demographic groups, no points will be awarded.\n\n(2)  Portfolio management.  The applicant's ability to manage its portfolio will be determined based on the data provided in response to paragraphs (b)(2)(i) and (ii) of this section and scored accordingly. The maximum number of points under this criterion is 10.\n\n(i) Enter the total number of the applicant's microloans paying on time for the three previous years. If the total number of microloans paying on time at the end of each year over the prior three years is:\n\n(A) 95 percent or more, 5 points will be awarded;\n\n(B) At least 85 percent but less than 95 percent, 3 points will be awarded;\n\n(C) Less than 85 percent, 0 points will be awarded.\n\n(ii) Enter the total number of microloans currently 30 to 90 days in arrears, or that have been written off over the three previous years. If the total number of these microloans is:\n\n(A) 5 percent or less of the total portfolio, 5 points will be awarded;\n\n(B) More than 5 percent, 0 points will be awarded.\n\n(3)  History of provision of technical assistance.  The Applicant's history of provision of TA to microentrepreneurs and microenterprises, and its ability to reach diverse communities, will be scored based on the data specified in paragraphs (b)(3)(i) through (iii) of this section. Applicants may use a chart to provide this information as they deem appropriate. The maximum number of points under this criterion is 15.\n\n(i) Provide the total number of rural and non-rural microentrepreneurs and microenterprises that received both microloans and TA services for each of the previous three years. Of this total number, provide the percentage of rural microentrepreneurs and rural microenterprises that received both microloans and TA services for each of the previous three years. If the provision of both microloans and TA services to rural microentrepreneurs and rural microenterprises is demonstrated at a rate of:\n\n(A) 75 percent or more, 5 points will be awarded;\n\n(B) At least 50 percent but less than 75 percent, 3 points will be awarded;\n\n(C) At least 25 percent but less than 50 percent, 1 point will be awarded.\n\n(ii) Provide the percentage of the total number of rural microentrepreneurs and rural microenterprises by racial and ethnic minority, disabled, and/or gender that received both microloans and TA services for each of the previous three years. If the demonstrated provision of microloans and TA services to these rural microentrepreneurs and rural microenterprises is at a rate of:\n\n(A) 75 percent or more, 5 points will be awarded;\n\n(B) At least 50 percent but less than 75 percent, 3 points will be awarded;\n\n(C) At least 25 percent but less than 50 percent, 1 point will be awarded.\n\n(iii) Provide the ratio of TA clients that also received microloans, rounding to the nearest whole number, during each of the previous three years. If the ratio of clients receiving TA services to clients receiving microloans is:\n\n(A) Between 1:1 and 1:5, 5 points will be awarded.\n\n(B) Between 1:6 and 1:8, 3 points will be awarded.\n\n(C) A ratio of either 1:9 or 1:10, 1 point will be awarded.\n\n(4)  Ability to provide technical assistance.  In addition to providing a statistical history of their provision of TA to microentrepreneurs, microenterprises, and microborrowers, applicants must provide a narrative of not more than five pages describing the teaching and training methods used by the applicant organization to provide such TA and discussing the outcomes of their endeavors. Technical assistance is defined in \u00a7 4280.302. The narrative will be scored as specified in paragraphs (b)(4)(i) through (iii) of this section. Points may be awarded for each of the categories. The maximum number of points under this criterion is 5.\n\n(i) Applicants that have used more than one method of training and TA ( e.g.,  classroom training, peer-to-peer discussion groups, individual assistance, distance learning) will be awarded 2 points.\n\n(ii) Applicants that provide success stories to demonstrate the effects of TA on their clients will be awarded 2 points.\n\n(iii) Applicants that provide evidence that they require evaluations by the clients of their training programs and indicate that the average level of evaluation scores is \u201cgood\u201d or higher will be awarded 1 point.\n\n(5)  Proposed administrative expenses to be spent from TA grant funds.  The maximum number of points under this criterion is 5. If the percentage of grant funds to be used for administrative purposes is:\n\n(i) Less than 5 percent of the TA grant funds, 5 points will be awarded;\n\n(ii) Equal to 5 percent but less than 8 percent, 3 points will be awarded;\n\n(iii) Equal to 8 percent or greater, 0 points will be awarded.\n\n(c)  Application requirements for MDOs seeking to participate as RMAP microlenders with 3 years or less experience.  In addition to the information required under paragraph (a) of this section, an applicant MDO with 3 years or less experience that is applying to be a microlender must submit the information specified in paragraphs (c)(1) through (8) of this section. The total number of points available under this paragraph, in addition to the maximum of 45 points available in paragraph (a) of this section, is 55, for a total of 100.\n\n(1) The applicant must provide a narrative work plan that clearly indicates its intention for the use of loan and grant funds. Provide goals and milestones for planned microlending and TA activities. In relation to the information requested in paragraph (a) of this section, the applicant must describe how it will incorporate its mission statement, utilize its employees, and maximize its human and capital assets to meet the goals of this program. The applicant must provide its strategic plan and organizational development goals and clearly indicate its lending goals for the five years after the date of application. The narrative work plan should be not more than five pages in length. Up to a maximum of 10 points will be awarded.\n\n(2) The applicant will provide the date that it began business as an MDO or other provider of business education and/or facilitator of capital. This date will reflect when the applicant became licensed to do business by the Secretary of State, or tribal equivalent, in which it is registered and engaged regularly paid staff to conduct business on a daily basis. If the applicant has been in business for:\n\n(i) More than 2 years but less than 3 years, 5 points will be awarded;\n\n(ii) At least 1 year, but not more than 2 years, 3 points will be awarded;\n\n(iii) At least 6 months, but not more than 1 year, 1 point will be awarded;\n\n(iv) Less than 6 months, or more than 3 full years, 0 points will be awarded. (If more than 3 full years, the applicant must apply under the provisions for MDOs with more than 3 years of experience as specified in paragraph (b) of this section.)\n\n(3) The applicant must describe in detail any microenterprise development training received by it as a whole, or its employees as individuals, to date. The narrative may refer reviewers to already submitted resumes to save space. The training received will be rated on its topical variety, the quality of the description, and its relevance to the organization's strategic plan. The applicant should not submit training brochures or conference announcements. Up to a maximum of 10 points will be awarded.\n\n(4) The applicant must indicate its current number of employees, those that concentrate on rural microentrepreneurial development, and the current average caseload for each. Indicate how the caseload ratio does or does not optimize the applicant's ability to perform the services described in the work plan. Discuss how Agency grant funds will be used to assist with TA program delivery and how funding of the program loan application will affect the portfolio. Up to 5 points will be awarded.\n\n(5) Applicants may submit a maximum of five (5) letters of support with one point awarded for each letter. Support letters should be signed and dated and come from potential beneficiaries and other local organizations. Letters received from Congressional members and technical assistance providers will not be included in the count of support letters received. Additionally, identical form letters signed by multiple potential beneficiaries and/or local organizations will not be included in the count of support letters received. The applicant must indicate any training organizations with which it has a working relationship. Provide contact information for references regarding the applicant's capacity to perform the work in the plan provided. Up to a maximum of five (5) points will be awarded.\n\n(6) Describe any plans for continuing training relationship(s), including ongoing or future training plans and goals, and the timeline for the same. Up to 5 points will be awarded.\n\n(7) The applicant will describe its internal benchmarking system for determining client success, reporting on client success, and following client success for up to 5 years after completion of a training relationship. Up to 10 points will be awarded.\n\n(8) The applicant will identify its proposed administrative expenses to be spent from TA grant funds. The maximum total number of points under this criterion is 5. If the percentage of grant funds to be used for administrative purposes is:\n\n(i) Less than or equal to 5 percent of the TA grant funds, 5 points will be awarded;\n\n(ii) More than 5 percent but less than 8 percent, 3 points will be awarded;\n\n(iii) Equal to 8 percent or greater, 0 points will be awarded.\n\n(d)  Application requirements for MDOs seeking TA-only grants.  Technical assistance-only grants may be provided to MDOs that are not RMAP microlenders seeking to provide training and technical assistance to rural microentrepreneurs and rural microenterprises. An applicant seeking a TA-only grant must submit the information specified in paragraphs (d)(1) through (4) of this section. The total number of points available under this section, in addition to the 45 points available in paragraph (a) of this section, is 55, for a total of 100 points.\n\n(1)  History of provision of TA.  Each applicant's history of provision of TA to microentrepreneurs and microenterprises, and its ability to reach diverse communities, will be scored based on the data specified in paragraphs (d)(1)(i) through (iii) of this section. The maximum number of points under this criterion is 20.\n\n(i) Provide the total number of rural and non-rural microentrepreneurs and microenterprises that received both TA services and resultant microloans for each of the previous three years. Of this total number, provide the percentage of rural microentrepreneurs and rural microenterprises that received both TA services and resultant microloans for each of the previous three years. If the provision of both TA services and resultant microloans to rural microentrepreneurs and rural microenterprises is demonstrated at a rate of:\n\n(A) 75 percent or more, 5 points will be awarded;\n\n(B) At least 50 percent but less than 75 percent, 3 points will be awarded;\n\n(C) At least 25 percent but less than 50 percent, 1 point will be awarded.\n\n(ii) Provide the percentage of the total number of rural microentrepreneurs by racial and ethnic minority, disabled, and/or gender that received both microloans and TA services for each of the previous three years. If the demonstrated provision of TA and resultant microloans to these rural microentrepreneurs when compared to the total number of microentrepreneurs assisted, is at a rate of:\n\n(A) 75 percent or more, 10 points will be awarded;\n\n(B) At least 50 percent but less than 75 percent, 7 points will be awarded;\n\n(C) At least 25 percent but less than 50 percent, 5 points will be awarded.\n\n(iii) Provide the ratio of TA clients that also received microloans during each of the last three years, rounded to the nearest whole number. If the ratio of clients receiving TA to clients receiving microloans is:\n\n(A) Between 1:1 and 1:5, 5 points will be awarded.\n\n(B) Between 1:6 and 1:8, 3 points will be awarded.\n\n(C) Either 1:9 or 1:10, 1 point will be awarded.\n\n(2)  Ability to provide TA.  In addition to providing a statistical history of their provision of TA to microentrepreneurs, microenterprises, and microborrowers, applicants must provide a narrative of not more than five pages describing the teaching and training method(s) used by the applicant organization to provide TA and discussing the outcomes of their endeavors. The narrative will be scored as specified in paragraphs (d)(2)(i) through (iv) of this section. The maximum number of points under this criterion is 20.\n\n(i) Applicants that have used more than one method of training and TA ( e.g.,  classroom training, peer-to-peer discussion groups, individual assistance, and distance learning) will be awarded 5 points.\n\n(ii) Applicants that provide success stories to demonstrate the effects of TA on their clients will be awarded points under either of the following paragraphs, but not both:\n\n(A) News stories that highlight businesses made successful as a result of the applicant's TA; 5 points will be awarded.\n\n(B) Internal stories that highlight businesses made successful as a result of TA, 3 points.\n\n(iii) Applicants that provide evidence that they require evaluations by the clients of their training programs will be awarded 3 points. Applicants will provide the total number of evaluations received and the average score from the evaluations received. An additional two points will be awarded if the total evaluation scores are above an average of 3.0 on a five-point scale, with points determined by the client ratings on a declining scale as follows:\n\n(A) Extremely Satisfied, 5 points.\n\n(B) Satisfied, 4 points.\n\n(C) Average, 3 points.\n\n(D) Dissatisfied, 2 points.\n\n(E) Very Unsatisfied, 1 point.\n\n(iv) Applicants that present well-written narrative information regarding their programs and services to be delivered and their outreach efforts within the service area that is clearly and concisely written and is five pages or less will be awarded up to a maximum of 5 points.\n\n(3)  Technical assistance plan.  Submit a concise plan for the provision of TA explaining how the funds will benefit the current program and how it will allow the applicant to expand its non-program microlending activities. Up to 10 points will be awarded.\n\n(4)  Proposed administrative expenses to be spent from TA grant funds.  The maximum number of points under this criterion is 5. If the percentage of grant funds to be used for administrative purposes is:\n\n(i) Less than or equal to 5 percent of the TA grant funds, 5 points will be awarded;\n\n(ii) More than 5 percent but less than 8 percent, 3 points will be awarded;\n\n(iii) Equal to 8 percent or greater, 0 points will be awarded.\n\n(e)  Re-application requirements for participating microlenders with more than 5 years of experience as a microlender under this program.  (1) Microlender applicants with more than 5 years of experience as an MDO under this program may choose to submit a shortened loan/grant application that includes the following:\n\n(i) A letter of request for funding stating the amount of loan and/or grant funds being requested;\n\n(ii) An indication of the loan and/or grant amounts being requested accompanied by a completed Form SF 424 and any pertinent attachments;\n\n(iii) An indication of the number and percent of the MDO's microentrepreneurs and microenterprises remaining in business for two years or more after microloan disbursement from program funds; and\n\n(iv) A recent resolution of the applicant's Board of Directors approving the application for debt.\n\n(2) The Agency, using this request and data available in the reports submitted under previous funding(s), will review the overall program performance of the applicant over the life of its participation in the program to determine its continued qualification for subsequent funds. Requirements include:\n\n(i) A loan default rate of 5 percent or less;\n\n(ii) A pattern of delinquencies during the period of participation in this program of 10 percent or less;\n\n(iii) A pattern of use of TA dollars that indicates at least one in ten TA clients receive a microloan;\n\n(iv) A statement discussing the need for more funding, accompanied by account documentation showing the amounts in each of the RMRF and LLRF accounts established to date; and\n\n(v) A pattern of compliance with program reporting requirements.\n\n(3) Shortened applications under this section will be rated on a pass or fail basis. Passing applications will be assigned a score of 90 points and will be ranked accordingly in the quarterly competitions. Failing applications under this section will be scored 0 and experienced MDOs may be required to complete the application requirements of paragraph (b) of this section."], ["7:7:15.1.19.2.6.4.27.15", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.317 Selection of applications for funding.", "RBS", "", "", "", "All eligible applications received will be scored using the scoring criteria specified in \u00a7 4280.316 and funded in descending order from the highest total score to applications receiving 60 points, subject to the authorization of appropriations for the Federal FY. If two or more applications have the same score and available funds cannot fund the individual projects, the Administrator may prioritize such applications to help the program achieve overall geographic diversity.\n\n(a)  Timing and submission of applications.  (1) All applications must be submitted as a complete application in one package of materials. Packages must be in the order of appearance in \u00a7 4280.315. Applications that are disorganized or otherwise not ready for evaluation will be returned to the applicant and not considered for funding.\n\n(2) Applications will be accepted on a continuing basis at any Rural Development State Office and will compete nationally for available funds on a quarterly basis using Federal fiscal quarters.\n\n(3) Applications received will be reviewed, scored, and ranked quarterly. Unless withdrawn by the applicant, the Agency will retain unsuccessful applications that score 60 points or more for consideration in subsequent reviews, through a total of four quarterly reviews. Applications unsuccessful after competing for funds in four quarters will be returned to the applicant.\n\n(b)  Availability of funds.  If an Application is received, scored, and ranked, but insufficient funds remain to fully fund the project, the Agency may elect to fund an Application requesting a smaller amount that has a lower score. Before this occurs, the Agency, as applicable, will provide the higher scoring applicant the opportunity to reduce the amount of its request to the amount of funds available. If the applicant agrees to lower its request, it must certify that the purposes of the project can be met, and the project is financially feasible at the lower amount.\n\n(c)  Applicant notification.  The Agency will notify applicants regarding their selection or non-selection, provide appeal rights of unsuccessful applicants, and provide closing procedures for the loan and/or grant awardees.\n\n(d)  Closing.  Awardees unable to complete closing for an approved obligation within 90 days or an extended date approved by the Agency will forfeit their funding award in accordance with \u00a7 4280.311(e)(9)."], ["7:7:15.1.19.2.6.4.27.16", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7\u00a7 4280.318-4280.319 [Reserved]", "RBS", "", "", "", ""], ["7:7:15.1.19.2.6.4.27.17", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.320 Grant administration.", "RBS", "", "", "", "(a)  Oversight.  Any MDO receiving a grant under this program is subject to Agency oversight, with site visits and inspection of records occurring at the discretion of the Agency. In addition, MDOs receiving a grant under this subpart must submit reports, as specified in paragraphs (a)(1) through (3) of this section.\n\n(1) On a quarterly basis, within 30 days after the end of each Federal fiscal quarter, the microlender will provide to the Agency an Agency-approved quarterly report containing such information as the Agency may require to ensure that funds provided are being used for the purposes for which the grant was made, including:\n\n(i) Narrative reporting information as required by Office of Management and Budget (OMB) circulars and successor regulations. This narrative will include information on the MDO's TA, training, and/or enhancement activity, and grant expenses, milestones met, or unmet, explanation of difficulties, observations and other such information;\n\n(ii) If requesting grant funds at the time of reporting, an executed SF-270 form and a brief description of the proposed activity-based expenditures are required.\n\n(2) If a microlender has more than one grant from the Agency, a separate report must be made for each grant.\n\n(3) Other reports may be required by the Agency from time to time in the event of poor performance or other such occurrences that require more than the usual set of reporting information.\n\n(b)  Payments.  The Agency will make grant payments not more often than quarterly. The first grant payment may be made in advance and will equal no more than one fourth of the grant award. Other payment requests must be submitted on Standard Form 270 and will only be paid if the MDO's reports are up to date and approved."], ["7:7:15.1.19.2.6.4.27.18", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.321 Grant and loan servicing.", "RBS", "", "", "", "In addition to the ongoing oversight of the participating MDOs, all grants will be serviced in accordance with applicable regulations, including 7 CFR part 1951, subparts E and O, 7 CFR part 3, and the Office of Management and Budget (OMB) regulations including, but not limited to, 2 CFR parts 200, 215, 220, 230, and OMB Circulars A-110 and A-133. Loans to microlenders will be serviced in accordance with 7 CFR part 1951, subparts E, O, and R, and OMB Circular A-129."], ["7:7:15.1.19.2.6.4.27.19", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.322 Loans from the microlenders to microentrepreneurs.", "RBS", "", "", "", "The primary purpose of making a program loan to a microlender is to enable that microlender to make microloans to rural microenterprises and microentrepreneurs. It is the responsibility of each microlender to make microloans in such a fashion that the terms and conditions of the microloan will support microborrower success while enabling the microlender to repay its loan from the Agency. It is the responsibility of each microborrower to repay the microlender in accordance with the terms and conditions agreed to with the microlender. The microlender is responsible for full repayment to the Agency of its loan regardless of the performance of its microloan portfolio.\n\n(a)  Maximum microloan amount.  The maximum amount of a microloan made under this program will be $50,000. The total outstanding balance of microloans to any microborrower may not exceed $50,000.\n\n(b)  Microloan terms and conditions.  The terms and conditions for microloans made by microlenders will be negotiated between the prospective microborrower and the microlender, with the following limitations:\n\n(1) No microloan may have a term of more than 10 years;\n\n(2) The interest rate charged to the microborrower will be established at or before the microloan closing and at such a rate that the microloan is affordable to the microborrower and provides a reasonable margin of earnings to the microlender.\n\n(c)  Microloan insurance requirements.  The microlender has full discretion to require reasonable hazard, key person, and other insurance coverage from the microborrower as part of the loan transaction.\n\n(d)  Credit elsewhere test.  Microborrowers will be subject to a \u201ccredit elsewhere\u201d test so that the microlender will make loans only to those borrowers that cannot obtain business funding of $50,000 or less at affordable rates and on acceptable repayment terms. Each microborrower file must contain evidence that the microborrower has sought credit elsewhere or that the rates and terms available within the community at the time were outside the range of the microborrower's affordability. Evidence may include a comparison of rates, loan limitations, terms, or other requirements from other funding sources. Denial letters from other lenders are not required.\n\n(e)  Fair credit requirements.  To ensure fairness, microlenders must publicize their rates and terms on a regular basis. Microlenders are also subject to Fair Credit lending practices and Federal nondiscrimination requirements as stated in \u00a7 4280.305.\n\n(f)  Eligible microloan purposes.  Agency loan funds may be used to make microloans as defined in \u00a7 4280.302 for any legal business purpose not identified in \u00a7 4280.323 as an ineligible purpose. Microlenders may make microloans for qualified business activities and expenses including, but not limited to:\n\n(1) Working capital;\n\n(2) The purchase of furniture, fixtures, supplies, inventory or equipment;\n\n(3) Debt refinancing;\n\n(4) Business acquisitions; and\n\n(5) The purchase or lease of real estate that is already improved and will be used for the location of the subject business only, provided no demolition or construction will be accomplished with program funds. Neither interior decorating, nor the affixing of chattel to walls, floors, or ceilings are considered to be demolition or construction.\n\n(g)  Military personnel.  Military personnel who are or seek to be a microentrepreneur and are on active duty with six months or less remaining in their active duty status may receive a microloan and/or TA and training if they are otherwise qualified to participate in the program."], ["7:7:15.1.19.2.6.4.27.2", 7, "Agriculture", "XLII", "", "4280", "PART 4280\u2014LOANS AND GRANTS", "D", "Subpart D\u2014Rural Microentrepreneur Assistance Program", "", "\u00a7 4280.302 Definitions and abbreviations.", "RBS", "", "", "[86 FR 26353, May 14, 2021, as amended at 87 FR 38644, June 29, 2022]", "(a)  General definitions.  The following definitions apply to the terms used in this subpart.\n\nAdministrative expenses.  Those expenses incurred by a Microenterprise Development Organization for the operation of services under this program. Not more than 10 percent of technical assistance grant funds may be used for such expenses.\n\nAgency.  USDA Rural Development, Rural Business-Cooperative Service or its successor organization.\n\nAgricultural production.  The cultivation, growing, or harvesting of plants and crops (including farming), breeding, raising, feeding, or housing of livestock (including ranching).\n\nApplicant.  The legal entity, also referred to as a Microenterprise Development Organization, submitting an application to participate in the program.\n\nApplication.  The required forms and documentation submitted by a Microenterprise Development Organization for acceptance into the program.\n\nAward.  The written documentation, executed by the Agency after the application is approved, containing the terms and conditions for provision of financial assistance to the applicant. Financial assistance may constitute a loan or a grant, or both.\n\nBusiness incubator.  An organization that provides temporary premises at below market rates, technical assistance in developing business or marketing plans, technical services, use of equipment, or other facilities or services to rural microentrepreneurs and microenterprises starting or growing a business. The business incubator may also provide access to capital through direct loans or referrals to loan programs.\n\nClose relative.  Individuals who live in the same household or who are closely related by blood, marriage, or adoption, such as a spouse, domestic partner, parent, child, sibling, aunt, uncle, grandparent, grandchild, niece, nephew, or first cousin.\n\nDefault.  The condition that exists when a borrower is not in compliance with the promissory note, the loan and/or grant agreement, or other related documents evidencing the loan from the Agency or the Microenterprise Development Organization.\n\nDelinquency.  Failure by a Microenterprise Development Organization or microborrower to make a scheduled loan payment by the due date or within any grace period as stipulated in the promissory note and loan agreement.\n\nEligible project cost.  The total cost of a microborrower's project for which a microloan is being sought from a microlender, less any costs identified as ineligible in \u00a7 4280.323.\n\nFacilitation of access to capital.  For purposes of this program, facilitation of access to capital means assisting a client of the technical assistance only grantee in obtaining a microloan, whether or not the microloan is wholly or partially capitalized by funds provided under this program.\n\nFederal fiscal year (FY ). The 12-month period beginning October 1 of any given year and ending on September 30 of the following year.\n\nFull-time equivalent employee (FTE).  The Agency uses the Bureau of Labor Statistics definition of full-time jobs as its standard definition. For purposes of this program, a full-time job is a job that has at least 35 hours in a work week. As such, one full-time job with at least 35 hours in a work week equals one FTE; two part-time jobs with combined hours of at least 35 hours in a work week equals one FTE, and three seasonal jobs equals one FTE. If an FTE calculation results in a fraction, it should be rounded up to the next whole number.\n\nIndian tribe.  Means the term as defined in 25 U.S.C. 5304(e).\n\nLoan loss reserve fund (LLRF).  A deposit account that each microlender must establish and maintain in an amount equal to not less than 5 percent of the total amount owed by the microlender under this program to the Agency. This account can be used to pay any shortage in the rural microloan revolving fund caused by delinquencies or losses on microloans.\n\nMicroborrower.  A microentrepreneur or microenterprise that has received loans or financial assistance from a microlender under this program in an amount of $50,000 or less.\n\nMicroenterprise.  Microenterprise means:\n\n(i) A sole proprietorship located in a rural area, as defined; or\n\n(ii) A business entity located in a rural area, as defined, with not more than 10 full-time-equivalent employees. Such businesses may include any type of legal business that meets local standards of decency, though certain business types may be ineligible as defined in \u00a7 4280.323 Business types may also include agricultural producers provided they meet the stipulations in this definition.\n\nMicroenterprise development organization (MDO).  A domestic organization that is a non-profit entity; an Indian tribe; or a public institution of higher education with loan or assistance programs for the benefit of rural microentrepreneurs and microenterprises. An MDO will:\n\n(i) Provide training and technical assistance;\n\n(ii) Make microloans or facilitate access to capital or other related services; and\n\n(iii) Have a demonstrated record of delivering services to rural microentrepreneurs, or an effective plan to develop a program to deliver services to rural microentrepreneurs.\n\nMicroentrepreneur.  An owner and operator, or prospective owner and operator, of a rural microenterprise who is unable to obtain sufficient training, technical assistance, or credit other than under this section. All microentrepreneurs assisted under this regulation must be located in rural areas.\n\nMicrolender.  An MDO that has been approved by the Agency for participation under this subpart to make microloans and provide an integrated program of training and technical assistance to its microborrowers and prospective microborrowers.\n\nMicroloan.  A business loan of not more than $50,000 for eligible purposes to a microborrower with a fixed interest rate and a term not to exceed 10 years.\n\nMilitary personnel.  Individuals, regardless of rank or grade, currently in active United States military service with less than 6 months remaining in their active duty service requirement.\n\nNonprofit entity.  An entity chartered as a nonprofit entity under State or Tribal Law.\n\nProgram.  The Rural Microentrepreneur Assistance Program (RMAP).\n\nRural Microloan Revolving Fund (RMRF).  An exclusive account on which the Agency will hold a first lien and from which microloans will be made by the MDO. All payments from microborrowers and reimbursements from the LLRF will be deposited into the RMRF account. Loan payments will be made to the Agency by the microlender from the RMRF.\n\nRural or rural area.  Any area of a State not in a city or town that has a population of more than 50,000 inhabitants, not in the urbanized area contiguous and adjacent to a city or town that has a population of more than 50,000 inhabitants, and excluding certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I).\n\n\n\n In making this determination, the Agency will use the latest decennial census of the United States. The following exclusions apply:\n\n(i) Any area in the urbanized area contiguous and adjacent to a city or town that has a population of more than 50,000 inhabitants that is attached to the urbanized area of a city or town with more than 50,000 inhabitants by a contiguous area of urbanized census blocks that is not more than two census blocks wide. Applicants from such an area should work with their Rural Development State Office to request a determination of whether their project is located in a rural area under this provision.\n\n(ii) For the Commonwealth of Puerto Rico, the island is considered Rural and eligible except for the San Juan Census Designated Place (CDP) and any other CDP with greater than 50,000 inhabitants. Areas within CDPs with greater than 50,000 inhabitants, other than the San Juan CDP, may be determined to be rural if they are \u201cnot urban in character.\u201d\n\n(iii) For the State of Hawaii, all areas within the State are considered rural and eligible except for the Honolulu CDP within the County of Honolulu and any other CDP with greater than 50,000 inhabitants. Areas within CDPs with greater than 50,000 inhabitants, other than the Honolulu CDP, may be determined to be rural if they are \u201cnot urban in character.\u201d\n\n(iv) For the purpose of defining a rural area in the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands, the Agency shall determine what constitutes rural and rural area based on available population data.\n\nState.  Any of the 50 States of the United States, the Commonwealth of Puerto Rico, the District of Columbia, the U.S. Virgin Islands, Guam, American Samoa, the Commonwealth of the Northern Mariana Islands, the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands.\n\nTechnical assistance (TA) and training.  A function performed for the benefit of a private business enterprise or a community which is a problem-solving activity such as market research, product and/or service improvement, feasibility study, worker training programs, etc., to assist in the economic development of a rural area.\n\nTechnical assistance grant.  A grant from the Agency, the funds of which are used to provide TA and training.\n\n(b)  Abbreviations.  The following abbreviations apply to the terms used in this subpart.\n\nFTE \u2014Full-time employee.\n\nFY \u2014Fiscal year.\n\nLLRF \u2014Loan loss reserve fund.\n\nMDO \u2014Microenterprise Development Organization.\n\nRMAP \u2014Rural Microentrepreneur Assistance Program.\n\nRMRF \u2014Rural microloan revolving fund.\n\nTA \u2014Technical assistance."]], "truncated": false, "filtered_table_rows_count": 145, "expanded_columns": [], "expandable_columns": [], "columns": ["section_id", "title_number", "title_name", "chapter", "subchapter", "part_number", "part_name", "subpart", "subpart_name", "section_number", "section_heading", "agency", "authority", "source_citation", "amendment_citations", "full_text"], "primary_keys": ["section_id"], "units": {}, "query": {"sql": "select section_id, title_number, title_name, chapter, subchapter, part_number, part_name, subpart, subpart_name, section_number, section_heading, agency, authority, source_citation, amendment_citations, full_text from cfr_sections where \"part_number\" = :p0 order by section_id limit 101", "params": {"p0": "4280"}}, "facet_results": {"title_number": {"name": "title_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=4280", "results": [{"value": 7, "label": 7, "count": 145, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=4280&title_number=7", "selected": false}], "truncated": false}, "agency": {"name": "agency", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=4280", "results": [{"value": "RBS", "label": "RBS", "count": 145, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=4280&agency=RBS", "selected": false}], "truncated": false}, "part_number": {"name": "part_number", "type": "column", "hideable": false, "toggle_url": "/openregs/cfr_sections.json?part_number=4280", "results": [{"value": "4280", "label": "4280", "count": 145, "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json", "selected": true}], "truncated": false}}, "suggested_facets": [{"name": "subpart", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=4280&_facet=subpart"}, {"name": "subpart_name", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=4280&_facet=subpart_name"}, {"name": "amendment_citations", "toggle_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=4280&_facet=amendment_citations"}], "next": "7~3A7~3A15~2E1~2E19~2E2~2E6~2E4~2E27~2E2,7~3A7~3A15~2E1~2E19~2E2~2E6~2E4~2E27~2E2", "next_url": "https://www.pawtectors.org/openregs/cfr_sections.json?part_number=4280&_next=7~3A7~3A15~2E1~2E19~2E2~2E6~2E4~2E27~2E2%2C7~3A7~3A15~2E1~2E19~2E2~2E6~2E4~2E27~2E2&_sort=section_id", "private": false, "allow_execute_sql": true, "query_ms": 2004.9004477914423, "source": "Federal Register API & Regulations.gov API", "source_url": "https://www.federalregister.gov/developers/api/v1", "license": "Public Domain (U.S. Government data)", "license_url": "https://www.regulations.gov/faq"}