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94 rows where part_number = 1980 sorted by section_id
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| 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 |
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| 29:29:8.1.1.1.15.1.30.1 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | A | Subpart A—Complaints, Investigations, Findings and Preliminary Orders | § 1980.100 Purpose and scope. | OSHA | (a) This part implements procedures under section 806 of the Corporate and Criminal Fraud Accountability Act of 2002, Title VIII of the Sarbanes-Oxley Act of 2002 (Sarbanes-Oxley or Act), enacted into law July 30, 2002, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, enacted into law July 21, 2010. Sarbanes-Oxley provides for employee protection from retaliation by companies, their subsidiaries and affiliates, officers, employees, contractors, subcontractors, and agents because the employee has engaged in protected activity pertaining to a violation or alleged violation of 18 U.S.C. 1341, 1343, 1344, or 1348, or any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders. Sarbanes-Oxley also provides for employee protection from retaliation by nationally recognized statistical rating organizations, their officers, employees, contractors, subcontractors or agents because the employee has engaged in protected activity. (b) This part establishes procedures pursuant to Sarbanes-Oxley for the expeditious handling of retaliation complaints made by employees, or by persons acting on their behalf and sets forth the Secretary's interpretations of the Act on certain statutory issues. These rules, together with those codified at 29 CFR part 18, set forth the procedures for submission of complaints under Sarbanes-Oxley, investigations, issuance of findings and preliminary orders, objections to findings and orders, litigation before administrative law judges, post-hearing administrative review, withdrawals, and settlements. | |||||
| 29:29:8.1.1.1.15.1.30.2 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | A | Subpart A—Complaints, Investigations, Findings and Preliminary Orders | § 1980.101 Definitions. | OSHA | As used in this part: (a) Act means section 806 of the Corporate and Criminal Fraud Accountability Act of 2002, Title VIII of the Sarbanes-Oxley Act of 2002, Pub. L. 107-204, July 30, 2002, codified at 18 U.S.C. 1514A, as amended by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, Pub. L. 111-203, July 21, 2010. (b) Assistant Secretary means the Assistant Secretary of Labor for Occupational Safety and Health or the person or persons to whom he or she delegates authority under the Act. (c) Business days means days other than Saturdays, Sundays, and Federal holidays. (d) Company means any company with a class of securities registered under section 12 of the Securities Exchange Act of 1934 (15 U.S.C. 78 l ) or any company required to file reports under section 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78 o (d)) including any subsidiary or affiliate whose financial information is included in the consolidated financial statements of such company. (e) Complainant means the employee who filed a complaint under the Act or on whose behalf a complaint was filed. (f) Covered person means any company, including any subsidiary or affiliate whose financial information is included in the consolidated financial statements of such company, or any nationally recognized statistical rating organization, or any officer, employee, contractor, subcontractor, or agent of such company or nationally recognized statistical rating organization. (g) Employee means an individual presently or formerly working for a covered person, an individual applying to work for a covered person, or an individual whose employment could be affected by a covered person. (h) Nationally recognized statistical rating organization means a credit rating agency under 15 U.S.C. 78c(61) that: (1) Issues credit ratings certified by qualified institutional buyers, in accordance with 15 U.S.C. 78 o -7(a)(1)(B)(ix), with respect to: (i) Financial institutions, brokers, or dealers; (ii) Insurance companies; (… | |||||
| 29:29:8.1.1.1.15.1.30.3 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | A | Subpart A—Complaints, Investigations, Findings and Preliminary Orders | § 1980.102 Obligations and prohibited acts. | OSHA | (a) No covered person may discharge, demote, suspend, threaten, harass or in any other manner retaliate against, including, but not limited to, intimidating, threatening, restraining, coercing, blacklisting or disciplining, any employee with respect to the employee's compensation, terms, conditions, or privileges of employment because the employee, or any person acting pursuant to the employee's request, has engaged in any of the activities specified in paragraphs (b)(1) and (2) of this section. (b) An employee is protected against retaliation (as described in paragraph (a) of this section) by a covered person for any lawful act done by the employee: (1) To provide information, cause information to be provided, or otherwise assist in an investigation regarding any conduct which the employee reasonably believes constitutes a violation of 18 U.S.C. 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders, when the information or assistance is provided to or the investigation is conducted by— (i) A Federal regulatory or law enforcement agency; (ii) Any Member of Congress or any committee of Congress; or (iii) A person with supervisory authority over the employee (or such other person working for the employer who has the authority to investigate, discover, or terminate misconduct); or (2) To file, cause to be filed, testify, participate in, or otherwise assist in a proceeding filed or about to be filed (with any knowledge of the employer) relating to an alleged violation of 18 U.S.C. 1341, 1343, 1344, or 1348, any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders. | |||||
| 29:29:8.1.1.1.15.1.30.4 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | A | Subpart A—Complaints, Investigations, Findings and Preliminary Orders | § 1980.103 Filing of retaliation complaints. | OSHA | (a) Who may file. An employee who believes that he or she has been retaliated against by a covered person in violation of the Act may file, or have filed on the employee's behalf, a complaint alleging such retaliation. (b) Nature of filing. No particular form of complaint is required. A complaint may be filed orally or in writing. Oral complaints will be reduced to writing by OSHA. If the complainant is unable to file the complaint in English, OSHA will accept the complaint in any language. (c) Place of filing. The complaint should be filed with the OSHA office responsible for enforcement activities in the geographical area where the employee resides or was employed, but may be filed with any OSHA officer or employee. Addresses and telephone numbers for these officials are set forth in local directories and at the following Internet address: http://www.osha.gov. (d) Time for filing. Within 180 days after an alleged violation of the Act occurs or after the date on which the employee became aware of the alleged violation of the Act, any employee who believes that he or she has been retaliated against in violation of the Act may file, or have filed on the employee's behalf, a complaint alleging such retaliation. The date of the postmark, facsimile transmittal, electronic communication transmittal, telephone call, hand-delivery, delivery to a third-party commercial carrier, or in-person filing at an OSHA office will be considered the date of filing. The time for filing a complaint may be tolled for reasons warranted by applicable case law. For example, OSHA may consider the time for filing a complaint equitably tolled if a complainant mistakenly files a complaint with the another agency instead of OSHA within 180 days after becoming aware of the alleged violation. | |||||
| 29:29:8.1.1.1.15.1.30.5 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | A | Subpart A—Complaints, Investigations, Findings and Preliminary Orders | § 1980.104 Investigation. | OSHA | (a) Upon receipt of a complaint in the investigating office, OSHA will notify the respondent of the filing of the complaint, of the allegations contained in the complaint, and of the substance of the evidence supporting the complaint. Such materials will be redacted, if necessary, in accordance with the Privacy Act of 1974, 5 U.S.C. 552a, et seq., and other applicable confidentiality laws. OSHA will also notify the respondent of its rights under paragraphs (b) and (f) of this section and § 1980.110(e). OSHA will provide an unredacted copy of these same materials to the complainant (or complainant's legal counsel, if complainant is represented by counsel) and to the Securities and Exchange Commission. (b) Within 20 days of receipt of the notice of the filing of the complaint provided under paragraph (a) of this section, the respondent may submit to OSHA a written statement and any affidavits or documents substantiating its position. Within the same 20 days, the respondent may request a meeting with OSHA to present its position. (c) During the investigation, OSHA will request that each party provide the other parties to the whistleblower complaint with a copy of submissions to OSHA that are pertinent to the whistleblower complaint. Alternatively, if a party does not provide its submissions to OSHA to the other party, OSHA will provide them to the other party (or the party's legal counsel if the party is represented by counsel) at a time permitting the other party an opportunity to respond. Before providing such materials to the other party, OSHA will redact them, if necessary, consistent with the Privacy Act of 1974, 5 U.S.C. 552a, and other applicable confidentiality laws. OSHA will also provide each party with an opportunity to respond to the other party's submissions. (d) Investigations will be conducted in a manner that protects the confidentiality of any person who provides information on a confidential basis, other than the complainant, in accordance with part 70 of this title. (e)(1) A complaint will b… | |||||
| 29:29:8.1.1.1.15.1.30.6 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | A | Subpart A—Complaints, Investigations, Findings and Preliminary Orders | § 1980.105 Issuance of findings and preliminary orders. | OSHA | [80 FR 11880, Mar. 5, 2015, as amended at 86 FR 1789, Jan. 11, 2021] | (a) After considering all the relevant information collected during the investigation, the Assistant Secretary shall issue, within 60 days of the filing of the complaint, written findings as to whether or not there is reasonable cause to believe that the respondent has retaliated against the complainant in violation of the Act. (1) If the Assistant Secretary concludes that there is reasonable cause to believe that a violation has occurred, the Assistant Secretary will accompany the findings with a preliminary order providing relief to the complainant. The preliminary order will include all relief necessary to make the employee whole, including reinstatement with the same seniority status that the complainant would have had but for the retaliation; back pay with interest; and compensation for any special damages sustained as a result of the retaliation, including litigation costs, expert witness fees, and reasonable attorney fees. Interest on back pay will be calculated using the interest rate applicable to underpayment of taxes under 26 U.S.C. 6621 and will be compounded daily. The preliminary order will also require the respondent to submit appropriate documentation to the Social Security Administration allocating any back pay award to the appropriate calendar quarters. (2) If the Assistant Secretary concludes that a violation has not occurred, the Assistant Secretary will notify the parties of that finding. (b) The findings, and where appropriate, the preliminary order will be sent by means that allow OSHA to confirm delivery to all parties of record (and each party's legal counsel if the party is represented by counsel). The findings, and where appropriate, the preliminary order will inform the parties of the right to object to the findings and/or order and to request a hearing, and of the right of the respondent to request an award of attorney fees not exceeding $1,000 from the administrative law judge (ALJ) regardless of whether the respondent has filed objections, if the complaint was frivolous or brough… | ||||
| 29:29:8.1.1.1.15.2.30.1 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | B | Subpart B—Litigation | § 1980.106 Objections to the findings and the preliminary order and request for a hearing. | OSHA | [80 FR 11880, Mar. 5, 2015, as amended at 86 FR 1789, Jan. 11, 2021] | (a) Any party who desires review, including judicial review, of the findings and preliminary order, or a respondent alleging that the complaint was frivolous or brought in bad faith who seeks an award of attorney fees under the Act, must file any objections and/or a request for a hearing on the record within 30 days of receipt of the findings and preliminary order pursuant to § 1980.105(b). The objections and/or request for a hearing must be in writing and state whether the objections are to the findings and/or the preliminary order, and/or whether there should be an award of attorney fees. The date of the postmark, facsimile transmittal, or electronic transmittal is considered the date of filing; if the objection is filed in person, by hand-delivery or other means, the objection is filed upon receipt. Objections must be filed with the Chief Administrative Law Judge, U.S. Department of Labor, in accordance with 29 CFR part 18, and copies of the objections must be served at the same time on the other parties of record, the OSHA official who issued the findings and order, the Assistant Secretary, and the Associate Solicitor, Division of Fair Labor Standards, U.S. Department of Labor. (b) If a timely objection is filed, all provisions of the preliminary order will be stayed, except for the portion requiring preliminary reinstatement, which will not be automatically stayed. The portion of the preliminary order requiring reinstatement will be effective immediately upon the respondent's receipt of the findings and preliminary order, regardless of any objections to the order. The respondent may file a motion with the Office of Administrative Law Judges for a stay of the Assistant Secretary's preliminary order of reinstatement, which shall be granted only based on exceptional circumstances. If no timely objection is filed with respect to either the findings or the preliminary order, the findings and/or preliminary order will become the final decision of the Secretary, not subject to judicial review. | ||||
| 29:29:8.1.1.1.15.2.30.2 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | B | Subpart B—Litigation | § 1980.107 Hearings. | OSHA | [80 FR 11880, Mar. 5, 2015, as amended at 86 FR 1789, Jan. 11, 2021] | (a) Except as provided in this part, proceedings will be conducted in accordance with the rules of practice and procedure for administrative hearings before the Office of Administrative Law Judges, codified at subpart A of part 18 of this title. (b) Upon receipt of an objection and request for hearing, the Chief Administrative Law Judge will promptly assign the case to an ALJ who will notify the parties of the day, time, and place of hearing. The hearing is to commence expeditiously, except upon a showing of good cause or unless otherwise agreed to by the parties. Hearings will be conducted de novo, on the record. ALJs have broad discretion to limit discovery in order to expedite the hearing. (c) If both the complainant and the respondent object to the findings and/or order, the objections will be consolidated and a single hearing will be conducted. (d) Formal rules of evidence will not apply, but rules or principles designed to assure production of the most probative evidence will be applied. The ALJ may exclude evidence that is immaterial, irrelevant, or unduly repetitious. | ||||
| 29:29:8.1.1.1.15.2.30.3 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | B | Subpart B—Litigation | § 1980.108 Role of Federal agencies. | OSHA | (a)(1) The complainant and the respondent will be parties in every proceeding and must be served with copies of all documents in the case. At the Assistant Secretary's discretion, the Assistant Secretary may participate as a party or as amicus curiae at any time at any stage of the proceeding. This right to participate includes, but is not limited to, the right to petition for review of a decision of an ALJ, including a decision approving or rejecting a settlement agreement between the complainant and the respondent. (2) Parties must send copies of documents to OSHA and to the Associate Solicitor, Division of Fair Labor Standards, U.S. Department of Labor, only upon request of OSHA, or when OSHA is participating in the proceeding, or when service on OSHA and the Associate Solicitor is otherwise required by these rules. (b) The Securities and Exchange Commission, if interested in a proceeding, may participate as amicus curiae at any time in the proceeding, at the Commission's discretion. At the request of the Securities and Exchange Commission, copies of all documents in a case must be sent to the Commission, whether or not the Commission is participating in the proceeding. | |||||
| 29:29:8.1.1.1.15.2.30.4 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | B | Subpart B—Litigation | § 1980.109 Decision and orders of the administrative law judge. | OSHA | (a) The decision of the ALJ will contain appropriate findings, conclusions, and an order pertaining to the remedies provided in paragraph (d) of this section, as appropriate. A determination that a violation has occurred may be made only if the complainant has demonstrated by a preponderance of the evidence that protected activity was a contributing factor in the adverse action alleged in the complaint. (b) If the complainant has satisfied the burden set forth in the prior paragraph, relief may not be ordered if the respondent demonstrates by clear and convincing evidence that it would have taken the same adverse action in the absence of any protected activity. (c) Neither OSHA's determination to dismiss a complaint without completing an investigation pursuant to § 1980.104(e) nor OSHA's determination to proceed with an investigation is subject to review by the ALJ, and a complaint may not be remanded for the completion of an investigation or for additional findings on the basis that a determination to dismiss was made in error. Rather, if there otherwise is jurisdiction, the ALJ will hear the case on the merits or dispose of the matter without a hearing if the facts and circumstances warrant. (d)(1) If the ALJ concludes that the respondent has violated the law, the order will provide all relief necessary to make the employee whole, including, reinstatement with the same seniority status that the complainant would have had but for the retaliation; back pay with interest; and compensation for any special damages sustained as a result of the retaliation, including litigation costs, expert witness fees, and reasonable attorney fees. Interest on back pay will be calculated using the interest rate applicable to underpayment of taxes under 26 U.S.C. 6621 and will be compounded daily. The order will also require the respondent to submit appropriate documentation to the Social Security Administration allocating any back pay award to the appropriate calendar quarters. (2) If the ALJ determines that the respondent has … | |||||
| 29:29:8.1.1.1.15.2.30.5 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | B | Subpart B—Litigation | § 1980.110 Decision and orders of the Administrative Review Board. | OSHA | [80 FR 11880, Mar. 5, 2015, as amended at 85 FR 30621, May 20, 2020; 86 FR 1789, Jan. 11, 2021] | (a) Any party desiring to seek review, including judicial review, of a decision of the ALJ, or a respondent alleging that the complaint was frivolous or brought in bad faith who seeks an award of attorney fees, must file a written petition for review with the ARB. The parties should identify in their petitions for review the legal conclusions or orders to which they object, or the objections may be deemed waived. A petition must be filed within 14 days of the date of the decision of the ALJ. The date of the postmark, facsimile transmittal, or electronic communication transmittal will be considered to be the date of filing; if the petition is filed in person, by hand delivery or other means, the petition is considered filed upon receipt. The petition must be served on all parties and on the Chief Administrative Law Judge at the time it is filed with the ARB. Copies of the petition for review must be served on the Assistant Secretary and on the Associate Solicitor, Division of Fair Labor Standards, U.S. Department of Labor. (b) If a timely petition for review is filed pursuant to paragraph (a) of this section, the decision of the ALJ will become the final order of the Secretary unless the ARB, within 30 days of the filing of the petition, issues an order notifying the parties that the case has been accepted for review. If a case is accepted for review, the decision of the ALJ will be inoperative unless and until the ARB issues an order adopting the decision, except that any order of reinstatement will be effective while review is conducted by the ARB, unless the ARB grants a motion by the respondent to stay the order based on exceptional circumstances. The ARB will specify the terms under which any briefs are to be filed. The ARB will review the factual determinations of the ALJ under the substantial evidence standard. If no timely petition for review is filed, or the ARB denies review, the decision of the ALJ will become the final order of the Secretary. If no timely petition for review is filed, the resulting fi… | ||||
| 29:29:8.1.1.1.15.3.30.1 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | C | Subpart C—Miscellaneous Provisions | § 1980.111 Withdrawal of complaints, findings, objections, and petitions for review; settlement. | OSHA | (a) At any time prior to the filing of objections to the Assistant Secretary's findings and/or preliminary order, a complainant may withdraw his or her complaint by notifying OSHA, orally or in writing, of his or her withdrawal. OSHA then will confirm in writing the complainant's desire to withdraw and determine whether to approve the withdrawal. OSHA will notify the parties (and each party's legal counsel if the party is represented by counsel) of the approval of any withdrawal. If the complaint is withdrawn because of settlement, the settlement must be submitted for approval in accordance with paragraph (d) of this section. A complainant may not withdraw his or her complaint after the filing of objections to the Assistant Secretary's findings and/or preliminary order. (b) The Assistant Secretary may withdraw the findings and/or preliminary order at any time before the expiration of the 30-day objection period described in § 1980.106, provided that no objection has been filed yet, and substitute new findings and/or a new preliminary order. The date of the receipt of the substituted findings and/or order will begin a new 30-day objection period. (c) At any time before the Assistant Secretary's findings and/or order become final, a party may withdraw objections to the Assistant Secretary's findings and/or order by filing a written withdrawal with the ALJ. If the case is on review with the ARB, a party may withdraw a petition for review of an ALJ's decision at any time before that decision becomes final by filing a written withdrawal with the ARB. The ALJ or the ARB, as the case may be, will determine whether to approve the withdrawal of the objections or the petition for review. If the ALJ approves a request to withdraw objections to the Assistant Secretary's findings and/or order, and there are no other pending objections, the Assistant Secretary's findings and/or order will become the final order of the Secretary. If the ARB approves a request to withdraw a petition for review of an ALJ decision, and there are… | |||||
| 29:29:8.1.1.1.15.3.30.2 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | C | Subpart C—Miscellaneous Provisions | § 1980.112 Judicial review. | OSHA | [80 FR 11880, Mar. 5, 2015, as amended at 85 FR 30622, May 20, 2020] | (a) Within 60 days after the issuance of a final order (including a decision issued by the Secretary upon his or her discretionary review) for which judicial review is available, any person adversely affected or aggrieved by the order may file a petition for review of the order in the United States Court of Appeals for the circuit in which the violation allegedly occurred or the circuit in which the complainant resided on the date of the violation. (b) A final order is not subject to judicial review in any criminal or other civil proceeding. (c) If a timely petition for review is filed, the record of a case, including the record of proceedings before the ALJ, will be transmitted by the ARB or the ALJ, as the case may be, to the appropriate court pursuant to the Federal Rules of Appellate Procedure and the local rules of such court. | ||||
| 29:29:8.1.1.1.15.3.30.3 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | C | Subpart C—Miscellaneous Provisions | § 1980.113 Judicial enforcement. | OSHA | Whenever any person has failed to comply with a preliminary order of reinstatement, or a final order, including one approving a settlement agreement, issued under the Act, the Secretary may file a civil action seeking enforcement of the order in the United States district court for the district in which the violation was found to have occurred. Whenever any person has failed to comply with a preliminary order of reinstatement, or a final order, including one approving a settlement agreement, issued under the Act, a person on whose behalf the order was issued may file a civil action seeking enforcement of the order in the appropriate United States district court. | |||||
| 29:29:8.1.1.1.15.3.30.4 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | C | Subpart C—Miscellaneous Provisions | § 1980.114 District court jurisdiction over retaliation complaints. | OSHA | (a) If the Secretary has not issued a final decision within 180 days of the filing of the complaint, and there is no showing that there has been delay due to the bad faith of the complainant, the complainant may bring an action at law or equity for de novo review in the appropriate district court of the United States, which will have jurisdiction over such an action without regard to the amount in controversy. A party to an action brought under this paragraph shall be entitled to trial by jury. (b) A proceeding under paragraph (a) of this section shall be governed by the same legal burdens of proof specified in § 1980.109. An employee prevailing in any action under paragraph (a) of this section shall be entitled to all relief necessary to make the employee whole, including: (1) Reinstatement with the same seniority status that the employee would have had, but for the retaliation; (2) The amount of back pay, with interest; (3) Compensation for any special damages sustained as a result of the retaliation; and (4) Litigation costs, expert witness fees, and reasonable attorney fees. (c) Within seven days after filing a complaint in federal court, a complainant must file with OSHA, the ALJ, or the ARB, depending on where the proceeding is pending, a copy of the file-stamped complaint. A copy of the complaint also must be served on the OSHA official who issued the findings and/or preliminary order, the Assistant Secretary, and the Associate Solicitor, Division of Fair Labor Standards, U.S. Department of Labor. | |||||
| 29:29:8.1.1.1.15.3.30.5 | 29 | Labor | XVII | 1980 | PART 1980—PROCEDURES FOR THE HANDLING OF RETALIATION COMPLAINTS UNDER SECTION 806 OF THE SARBANES-OXLEY ACT OF 2002, AS AMENDED | C | Subpart C—Miscellaneous Provisions | § 1980.115 Special circumstances; waiver of rules. | OSHA | In special circumstances not contemplated by the provisions of this part, or for good cause shown, the ALJ or the ARB on review may, upon application, after three days notice to all parties, waive any rule or issue any orders that justice or the administration of the Act requires. | |||||
| 7:7:14.1.1.1.9.2.12.1 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.401 Introduction. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 54 FR 4, Jan. 3, 1989; 54 FR 42483, Oct. 17, 1989; 55 FR 19245, May 8, 1990; 57 FR 45969, Oct. 5, 1992; 58 FR 229, Jan. 5, 1993; 61 FR 67633, Dec. 23, 1996] | (a) Direct Business and Industry (B&I) loans are disbursed by the Agency under this subpart. B&I loan guarantees are to be processed and serviced under the provisions of subparts A and B of part 4279 and subpart B of part 4287 of this title. Any processing or servicing activity conducted pursuant to this subpart involving authorized assistance to relatives, or business or close personal associates, is subject to the provisions of part 1900 subpart D of this chapter. Applicants for this assistance are required to identify any known relationship or association with any Agency employee. (b) The purpose of the B&I program is to improve, develop or finance business, industry and employment and improve the economic and environmental climate in rural communities, including pollution abatement and control. This purpose is achieved through bolstering the existing private credit structure through guarantee of quality loans which will provide lasting community benefits. It is NOT intended that the guarantee authority be used for marginal or substandard loans or to “bail out” lenders having such loans. (c) This subpart and its appendices (especially appendix I and appendix K) also contain regulations for Drought and Disaster (D&D) and Disaster Assistance for Rural Business Enterprises (DARBE) guaranteed loans authorized by section 331 of the Disaster Assistance Act of 1988 (Pub. L. 100-387) and section 401 of the Disaster Assistance Act of 1989 (Pub. L. 101-82). D&D loans must be to alleviate distress caused to rural business entities, directly or indirectly, by drought, hail, excessive moisture, or related conditions occurring in 1988, or to provide for the guarantee of loans to such rural business entities that refinance or restructure debt as a result of losses incurred, directly or indirectly, because of such natural disasters and are limited to a guarantee of principal only. DARBE loans must be to alleviate distress caused to rural business entities, directly or indirectly, by drought, freeze, storm, excessive moistur… | |||
| 7:7:14.1.1.1.9.2.12.10 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.414 Fees and charges by lender and others. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 45258, Nov. 9, 1988] | [See Subpart A, § 1980.22] (a) All fees and charges must be specifically documented and justified on the Form RD 449-1 or on an addendum to the application at the time the loan request is submitted to Rural Development for processing. Allowable fees will be those reasonably and customarily charged borrowers in similar circumstances in the ordinary course of business and are subject to Rural Development review and approval. (b) Packaging fees include services rendered by the lender or others in connection with preparation of the application and seeing the project through to final decision. These services may or may not be performed by an investment banker. If an investment banker provides needed assistance in addition to the packaging of the loan, additional charges may be added to the packaging fee. The maximum allowable packaging fees are 2 percent of the total principal amount of the loan up to $1 million and on all amounts over $1 million, an additional one-fourth percent up to total maximum fee of $50,000. Packaging fees, investment banker fees and other fees and charges not specifically provided for in this section are permitted subject to Rural Development review and approval. Loan proceeds may be used to pay fees as specifically authorized under §§ 1980.411(a)(12) and (13). Packaging fees, investment banker fees, and any other fees or charges shall not be paid from loan proceeds. | |||
| 7:7:14.1.1.1.9.2.12.11 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.415-1980.418 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.12 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.419 Eligible lenders. | RHS | [See Subpart A, § 1980.13.] Administrative A. Par (a) of subpart A, § 1980.13 requires National Office approval for any variations. B. Par (b)(4) of subpart A, § 1980.13, State Director submits information to National Office with recommendations. C. With prior written approval of the Rural Development National Office, a new eligible lender may be substituted for the original lender provided the new lender agrees to assume all original loan requirements including liabilities, servicing responsibilities and acquiring legal title to the unguaranteed portion of the loan. Such approval will be granted by the National Office only when a lender discontinues lending operations or other extreme situations require a substitution of lender. If approved by the National Office, the State Director will submit to the Finance Office Form RD 1980-42. “Notice of Substitution of Lender.” A. Par (a) of subpart A, § 1980.13 requires National Office approval for any variations. B. Par (b)(4) of subpart A, § 1980.13, State Director submits information to National Office with recommendations. C. With prior written approval of the Rural Development National Office, a new eligible lender may be substituted for the original lender provided the new lender agrees to assume all original loan requirements including liabilities, servicing responsibilities and acquiring legal title to the unguaranteed portion of the loan. Such approval will be granted by the National Office only when a lender discontinues lending operations or other extreme situations require a substitution of lender. If approved by the National Office, the State Director will submit to the Finance Office Form RD 1980-42. “Notice of Substitution of Lender.” | ||||
| 7:7:14.1.1.1.9.2.12.13 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.420 Loan guarantee limits. | RHS | The percentage of guarantee, up to the maximum allowed by this section, is a matter of negotiation between the lender and Rural Development. (a) For loans of $2 million or less, the maximum percentage of guarantee is 90 percent. (b) For loans over $2 million but not over $5 million, the maximum percentage of guarantee is 80 percent. (c) For loans in excess of $5 million, the maximum percentage of guarantee is 70 percent. (d) Lenders and borrowers will propose the percentage of guarantee. Rural Development informs lenders and borrowers in writing on Form RD 449-14 of any percentage of guarantee less than proposed by the lender and borrower, and the reasons therefore. Rural Development determines the percentage of guarantee after considering all credit factors involved, including but not limited to: (1) Borrower's management. The borrower's management, and when appropriate, equity capital, history of operation, marketing plan, raw material requirements, and availability of necessary supporting utilities and services; (2) Collateral. Collateral for the loan; (3) Financial condition. Financial condition of borrower or borrower's principals, if appropriate; (4) Lender's exposure. The lender's exposure before and after the loan, and any applicable limits on the lender's lending authority; and (5) Trends and conditions. Current trends and economic conditions. | ||||
| 7:7:14.1.1.1.9.2.12.14 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.421-1980.422 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.15 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.423 Interest rates. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 54 FR 28022, July 5, 1989] | (a) Guaranteed loans. Rates will be negotiated between the lender and the borrower. They may be either fixed or variable as long as they are legal. Interest rates will be those rates customarily charged borrowers in similar circumstances in the ordinary course of business and are subject to Rural Development review and approval. Should any part of the loan(s) be sold by the lender, Rural Development, in its analysis, will take into consideration in approving the lender's interest rate, the rate at which guaranteed loans are being sold or traded in the secondary market. (1) A variable interest rate must be a rate that is tied to a base rate published periodically in a recognized national or regional financial publication specifically agreed to by the lender and borrower. The variable interest rate may be adjusted at different intervals during the term of the loan but the adjustments may not be more often than quarterly. The intervals between interest rate adjustments will be specified in the Loan Agreement. The lender must incorporate within the variable rate promissory note at loan closing, the provision for adjustment of payment installments coincident with an interest rate adjustment. This will assure that the outstanding principal balance is properly amortized within the prescribed loan maturity to eliminate the possibility of a balloon payment at the end of the loan. (2) Under a Memorandum of Understanding between Rural Development and the Farm Credit Administration dated September 25, 1974, the interest rate on loans made by the Bank for Cooperatives, Federal Land Banks and Production Credit Associations may be a variable rate based on their administrative and borrowing costs. (3) Any change in the interest rate between the date of issuance of the Form RD conditional Commitment For Guarantee,” and before the issuance of the Loan Note Guarantee must be approved by the State Director. Approval of such change will be shown on an amendment to Form RD 449-14. (4) It is permissible to have one interest rate … | |||
| 7:7:14.1.1.1.9.2.12.16 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.424 Term of loan repayment. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 56 FR 8271, Feb. 28, 1991] | (a) Principal and interest on the loan will be due and payable as provided in the promissory note except, any interest accrued as the result of the borrower's default on the guaranteed loan(s) over and above that which would have accrued at the normal note rate on the guaranteed loan(s) will not be guaranteed by Rural Development. The lender will structure repayments as established in the loan agreement between the lender and borrower. Ordinarily, such installments will be scheduled for payment as agreed upon by the lender and applicant but on terms that reasonably assure repayment of the loan. However, the first installment to include a repayment of principal may be scheduled for payment after the project is operable and has begun to generate income, but such installment will be due and payable within three years from the date of the promissory note and at least annually thereafter. Interest will be due at least annually from the date of the note. Ordinarily, monthly payments will be expected, except for seasonal-type businesses. (b) The maximum time allowable for final maturity for an Rural Development guaranteed B&I loan will be limited to thirty (30) years for land, buildings and permanent fixtures; the usable life of the machinery and equipment purchased with loan funds, but not to exceed fifteen (15) years; and seven (7) years for the working capital portion of the loan. The term for a loan that is being refinanced may be based on the collateral the lender will take to secure the loan. (c) The maximum time allowable for final maturity of an Rural Development insured loan for community facilities will not exceed forty (40) years. (d) Rural Development will not guarantee any loan in which the promissory note or any other document provides for the payment of interest upon interest. Administrative It is permissible for lenders to structure the borrower's financial proposal under the multi-note option as provided for in paragraph III A.2. of Form RD 449-35, “Lender's Agreement,” in the following ways: … | |||
| 7:7:14.1.1.1.9.2.12.17 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.425 Availability of credit from other sources. | RHS | (a) Inability to obtain credit elsewhere is not a requirement for guaranteed assistance under this subpart. (b) To be eligible for an insured loan under this subpart, the borrower must be unable to obtain the required credit from private or cooperative sources at reasonable rates and terms, taking into consideration prevailing private and cooperative rates and terms in the community in or near the borrower's location(s) for loans for similar purposes and period of time. The borrower's inability to obtain such credit elsewhere will be determined in accordance with subpart A of part 1942 of this chapter. | ||||
| 7:7:14.1.1.1.9.2.12.18 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.426-1980.431 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.19 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.432 Environmental review requirements. | RHS | [81 FR 11047, Mar. 3, 2016] | [See subpart A, § 1980.40 and 7 CFR part 1970.] Administrative Loans made under this part must be in compliance with the environmental review requirements in accordance with 7 CFR part 1970. | |||
| 7:7:14.1.1.1.9.2.12.2 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.402 Definitions. | RHS | [71 FR 33185, June 8, 2006] | (a) The following general definitions are applicable to the terms used in this subpart. Adjusted tangible net worth. Tangible balance sheet equity plus allowed tangible asset appreciation and subordinated owner debt. Allowed tangible asset appreciation. The difference between the current net book value recorded on the financial statements (original cost less cumulative depreciation) of real property assets and the lesser of their current market value or original cost, where current market value is determined using an appraisal satisfactory to the Agency. Area of high unemployment. An area in which a B&I loan guarantee can be issued, consisting of a county or group of contiguous counties or equivalent subdivisions of a State which, on the basis of the most recent 12-month average or the most recent annual average data, has a rate of unemployment 150 percent or more of the national rate. Data used must be those published by the Bureau of Labor Statistics, U.S. Department of Labor. Biogas. Biomass converted to gaseous fuel. Biomass. Any organic material that is available on a renewable or recurring basis including agricultural crops, trees grown for energy production, wood waste and wood residues, plants, including aquatic plants and grasses, fibers, animal waste and other waste materials, fats, oils, greases, including recycled fats, oils and greases. It does not include paper that is commonly recycled or unsegregated solid waste. Borrower. A borrower may be a cooperative organization, corporation, partnership, trust or other legal entity organized and operated on a profit or nonprofit basis; an Indian Tribe on a Federal or State reservation or other Federally recognized tribal group; a municipality, county or other political subdivision of a State; or an individual. Such borrower must be engaged in or proposing to engage in improving, developing or financing business, industry and employment and improving the economic and environmental climate in rural areas, including pollution abatement and control. … | |||
| 7:7:14.1.1.1.9.2.12.20 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.433 Flood or mudslide hazard area precautions. | RHS | (See subpart A, § 1980.42.) Administrative The State Director is responsible for determining if a project is located in a special flood or mudslide hazard area. Refer to subpart B of part 1806 of this chapter [RD Instruction 426.2]. The State Director is responsible for determining if a project is located in a special flood or mudslide hazard area. Refer to subpart B of part 1806 of this chapter [RD Instruction 426.2]. | ||||
| 7:7:14.1.1.1.9.2.12.21 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.434 Equal opportunity and nondiscrimination requirements. | RHS | (See subpart A § 1980.41.) Administrative The State Director will assure that equal opportunity and nondiscrimination requirements are met. If there is indication of noncompliance with these requirements, such facts will be reported by the Compliance Reviewing Officer or Rural Development Official in writing to the Administrator, ATTN: Equal Opportunity Officer. The State Director will assure that equal opportunity and nondiscrimination requirements are met. If there is indication of noncompliance with these requirements, such facts will be reported by the Compliance Reviewing Officer or Rural Development Official in writing to the Administrator, ATTN: Equal Opportunity Officer. | ||||
| 7:7:14.1.1.1.9.2.12.22 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.435-1980.440 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.23 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.441 Borrower equity requirements. | RHS | [71 FR 33187, June 8, 2006] | (a) A minimum of 10 percent tangible balance sheet equity will be required for existing businesses at loan closing. A minimum of 20 percent tangible balance sheet equity will be required for new businesses at loan closing. For energy projects, the minimum tangible balance sheet equity requirement range will be between 25 percent and 40 percent. Criteria for considering the minimum equity required for an individual application will be based on: existing businesses with successful financial and management history vs. start-up businesses; personal/corporate guarantees offered; contractual relationships with suppliers and buyers; credit rating; and strength of the business plan/feasibility study. Where the application is a request to refinance outstanding Federal direct or guaranteed loans, without any new financing, the equity requirement may be determined using adjusted tangible net worth. An application that combines a refinancing loan or guarantee request with a new loan or guarantee request is subject to the standard, unadjusted, equity requirement except as provided in paragraphs (a)(1) or (a)(2) of this section. Increases or decreases in the equity requirements may be imposed or granted as follows: (1) A reduction in the equity requirement for existing businesses may be permitted by the Administrator. In order for a reduction to be considered, the borrower must furnish the following: (i) Collateralized personal and corporate guarantees, including any parent, subsidiary, or affiliated company, when feasible and legally permissible, and (ii) Pro forma and historical financial statements that indicate the business to be financed meets or exceeds the median quartile (as identified in the Risk Management Association's Annual Statement Studies or similar publication) for the current ratio, quick ratio, debt-to-worth ratio, debt coverage ratio, and working capital. (2) The approval official may require more than the minimum equity requirements provided in this paragraph if the official makes a written determinati… | |||
| 7:7:14.1.1.1.9.2.12.24 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.442 Feasibility studies. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 58 FR 40039, July 27, 1993] | A feasibility study by a recognized independent consultant will be required for all loans, except as provided in this paragraph. The cost of the study will be borne by the borrower and may be paid from funds included in the loan. The loan approval official may make an exception to the requirement of a feasibility study for loans to existing businesses when the financial history of the business, the current financial condition of the business, and guarantees or other collateral offered for the loan are sufficient to protect the interest of the lenders and Rural Development. Rural Development will thoroughly document the justification for the exception to the feasibility study for such businesses. An acceptable feasibility study should include but not be limited to: (a) Economic feasibility. Information related to the project site, availability of trained or trainable labor; utilities; rail, air and road service to the site; and the overall economic impact of the project. (b) Market feasibility. Information on the sales organization and management, nature and extent of market area, marketing plans for sale of projected output, extent of competition and commitments from customers or brokers. (c) Technical feasibility. Technical feasibility reports shall be prepared by individuals who have previous experience in the design and analysis of similar facilities and/or processes as are proposed in the application. The technical feasibility reports shall address the suitability of the selected site for the intended use, including an environmental impact analysis. The report shall be based upon verifiable data and contain sufficient information and analysis so that a determination may be made on the technical feasibility of achieving the levels of income and/or production that are projected in the financial statements. The report shall also identify any constraints or limitations in these financial projections and any other facility or design related factors which might affect the success of the enterprise. The rep… | |||
| 7:7:14.1.1.1.9.2.12.25 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.443 Collateral, personal and corporate guarantees and other requirements. | RHS | (a) Collateral. (1) The lender is responsible for seeing that proper and adequate collateral is obtained and maintained in existence and of record to protect the interest of the lender, the holder, and Rural Development. (2) Collateral must be of such a nature that repayment of the loan is reasonably assured when considered with the integrity and ability of project management, soundness of the project, and applicant's prospective earnings. Collateral may include, but is not limited to the following: Land, buildings, machinery, equipment, furniture, fixtures, inventory, accounts receivable, cash or special cash collateral accounts, marketable securities and cash surrender value of life insurance. Collateral may also include assignments of leases or leasehold interest, revenues, patents, and copyrights. (3) All collateral must secure the entire loan. The lender will not take separate collateral to secure only that portion of the loan or loss not covered by the guarantee. The lender will not require compensating balances or certificates of deposit as a means of eliminating the lender's exposure on the unguaranteed portion of the loan. However, compensating balances as used in the ordinary course of business may be used. (4) Release of collateral of a going concern is based on a complete analysis of the proposal. (i) Release of collateral prior to payment-in-full of the Rural Development guaranteed debt must be requested by the lender and concurred with by the State Director as prescribed in § 1980.469 Administrative D.2 of this subpart subject to the following conditions: (A) Collateral taken initially or subsequently may not be released prior to the payoff, in full, of the loan balance without adequate consideration for the value of that collateral. Adequate consideration may include, but is not limited to: ( 1 ) Application of the net proceeds from the sale of the collateral to the note in inverse order of maturity. All or part of the total proceeds, if approved by the Administrator, may be applied to the … | ||||
| 7:7:14.1.1.1.9.2.12.26 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.444 Appraisal of property serving as collateral. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 40401, Oct. 17, 1988] | (a) Appraisal reports prepared by independent qualified fee appraisers will be required on all property that will serve as collateral. In the case of loans two million dollars or less, the State Director may modify this requirement by permitting the appraisal to be made by a qualified appraiser on the lender's staff with experience appraising the type of collateral involved. The appraisers will give their opinion regarding the current market value of the collateral and the purpose for which the appraisal will be used. The lender will be responsible for assuring that appropriate appraisals are made. (b) The lender will be responsible for determining that appraisers have the necessary qualifications and experience to make the appraisals. The lender will consult with Rural Development for its recommendations before having the appraisal made. (c) The lender will determine that the fees or charges of appraisers are reasonable. (d) Independent appraisals will be made in accordance with the accepted format of the industry and those prepared by the lender in accordance with its policy and procedures. All appraisals will become part of the application. (See § 1980.541(i)(6) of this subpart.) (e) If a subsequent loan request is made within 3 years from the date of the most recent borrower's appraisal report, and there is no significant change in collateral, then the Rural Development State Director in his/her discretion, and if the lender agrees, may use the existing appraisal report in lieu of having a new appraisal prepared. | |||
| 7:7:14.1.1.1.9.2.12.27 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.445 Periodic financial statements and audits. | RHS | All borrowers will be required to submit periodic financial statements to the lender. Lenders must forward copies of the financial statements and the lender's analysis of the statements to the Agency. (a) Audited financial statements. Except as provided in paragraphs (d) and (e) of this section, all borrowers with a total principal and interest loan balance for loans under this subpart, at the end of the borrower's fiscal year, of more than $1 million must submit annual audited financial statements. The audit must be performed in accordance with generally accepted accounting principles (GAAP) and any other requirements specified in this subpart. (b) Unaudited financial statements. For borrowers with a loan balance (principal plus interest at year-end) of $1 million or less, the Agency will require annual financial statements which may be statements compiled or reviewed by an accountant qualified in accordance with the publication “Standards for Audit of Governmental Organizations, Programs, Activities and Functions” instead of audited financial statements. (c) Internal financial statements. The Agency may require submission of financial statements prepared by the borrower at whatever frequency is determined necessary to adequately monitor the loan. Quarterly financial statements will be required on new business enterprises or those needing close monitoring. (d) Minimum requirements. This section sets out minimum requirements for audited and unaudited financial statements to be submitted to the Agency. If specific circumstances warrant, the Agency may require audited financial statements or independent unaudited financial statements in excess of the minimum requirements. For example, loans that depend heavily on inventory and accounts receivable for collateral will normally be audited, regardless of the size of the loan. Nothing in this section shall be considered an impediment to the lender requiring financial statements more frequently than required by the Agency or requiring audited financial statem… | ||||
| 7:7:14.1.1.1.9.2.12.28 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.446-1980.450 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.29 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.451 Filing and processing applications. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 40401, Oct. 17, 1988; 53 FR 45258, Nov. 9, 1988; 55 FR 26199, June 27, 1990; 56 FR 8271, Feb. 28, 1991; 61 FR 18495, Apr. 26, 1996; 76 FR 80731, Dec. 27, 2011; 79 FR 76012, Dec. 19, 2014; 80 FR 9906, Feb. 24, 2015; 81 FR 11047, Mar. 2, 2016; 81 FR 26667, May 4, 2016] | (a) Borrowers' and lenders' contact. Borrowers and lenders desiring Rural Developmentassistance as provided in this subpart may file preapplications or applications with the County Supervisor or District Director servicing the area in which the project is to be located. In either case, the requirements of § 1980.46 of subpart A of this part must be met. The County Supervisor or District Director receiving the request for assistance will promptly notify the State Director of the nature and facts of the request. The Rural Development State Director will promptly arrange an early meeting with the borrower and lender representatives to discuss assembly, preparation and processing of preapplications and applications. The State Director may call upon the County Supervisor and District Director to assist the State Office in any way necessary. (b) Applications from cooperatives. Borrowers eligible for loans from the Bank for Cooperatives will be encouraged to obtain guaranteed loans from that source since the Bank for Cooperatives is experienced in making and servicing such loans and can provide substantial counsel to the applicant. Applications must be submitted to the Bank for Cooperatives as a test for credit elsewhere when an insured loan is being considered. (See RD Instruction 2000-Q available in any Rural Development office for Memorandum of Understanding between Rural Development and Farm Credit Administration.) (c) Borrowers eligible for Small Business Administration (SBA) assistance. All borrowers for loan guarantees eligible for SBA assistance will be advised by Rural Development at the time of receipt of the preapplication of the availability of such assistance and will be encouraged to apply to that agency. (See RD Instruction 2000-P available in any Rural Development office for Memorandum of Understanding between SBA and Rural Development). (d) Loan Priorities. Applications and preapplications received by Rural Development will be considered in the order received; however, for the purpose of assi… | |||
| 7:7:14.1.1.1.9.2.12.3 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.403 Citizenship of borrowers. | RHS | Loans to individuals will be made or guaranteed only to those who are citizens of the United States or reside in the United States after being legally admitted for permanent residence. At least 51 percent of the outstanding interest in any corporation or organization-type applicant must be owned by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence. | ||||
| 7:7:14.1.1.1.9.2.12.30 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.452 Rural Development evaluation of application. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 45258, Nov. 9, 1988; 56 FR 8271, Feb. 28, 1991; 79 FR 55967, Sep. 18, 2014] | Rural Development will evaluate the application and make a determination whether the borrower is eligible, the proposed loan is for an eligible purpose and that there is reasonable assurance of repayment ability, sufficient collateral and sufficient equity and the proposed loan complies with all applicable statutes and regulations. If Rural Development determines it is unable to guarantee the loan, the lender will be informed in writing. Such notification will include the reasons for denial of the guarantee. If Rural Development is able to guarantee the loan, it will provide the lender and the borrower with Form RD 449-14, listing all requirements for such guarantees. Rural Development will include in the requirements of the Conditional Commitment for Guarantee a full description of the approved use of guaranteed loan funds as reflected in the Form RD 449-1. The Conditional Commitment for Guarantee may not be issued on any loan until the State Director has been notified by the National Officer that the Statements of Personal History(s) have been processed and cleared. Rural Development State Directors are the only persons authorized to execute Form RD 449-14. Administrative State Director evaluates the application and considers: A. Rural area determinations. (See § 1980.405 of this subpart.) B. Community impact of the proposal which includes: 1. Number of businesses and industries in the town or city. 2. Employment impact upon the community. 3. Availability of skilled and unskilled labor and permanency of employment opportunities. 4. Vocational and educational facilities to provide skilled labor, if applicable. 5. Policies of applicant regarding unemployment, lay-offs, wage scales, etc. C. If debt refinancing is requested, consider in accordance with § 1980.411(a)(11) of this subpart and: 1. A complete review will be made to determine whether it is essential to restructure the company's debts on a schedule that will allow the business to operate successfully rather than merely guara… | |||
| 7:7:14.1.1.1.9.2.12.31 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.453 Review of requirements. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 54 FR 28022, July 5, 1989; 57 FR 4359, Feb. 5, 1992] | (a) Immediately after reviewing the conditions and requirements in Form RD 449-14 the lender and applicant should complete and sign the “Acceptance of Conditions,” and return a copy to the Rural Development State Director. If certain conditions cannot be met, the lender and borrower may propose alternate conditions to Rural Development. (b) If the lender indicates in the “Acceptance of Conditions” that it desires to obtain a Loan Note Guarantee and subsequently decides at any time after receiving a conditional commitment that it no longer wants a Loan Note Guarantee, the lender will immediately advise the Rural Development State Director. Administrative A. The State Director will negotiate with the lender and proposed borrower any changes made to the initially issued or proposed Form RD 449-14. For loans requiring National Office concurrence, a copy of Form RD 449-14 and any amendments thereto will be included when the loan file is submitted to the National Office for review. When the National Office recommends modifications or additions to Form RD 449-14, the State Director will further negotiate these recommendations with the lender and proposed borrower. If, as a result of these further negotiations, the lender, proposed borrower or State Director presents alternate conditions which would result in a change in the scope of the proposed project and if the loan exceeds the State Director's loan approval authority, the State Director will submit these conditions by memorandum to the National Office for consideration with a copy of the revised Form RD 449-14 and any amendments thereto. If the loan is within the State Director's loan approval authority, the State Director may approve such changes. B. On loan applications within the State Director's loan approval authority, the State Director will submit to the National Office, Business and Industry Division, within 30 days after the Form Rural Development 449-14 has been accepted: 1. A copy of Form RD 449-29. 2. A copy of Form RD 449-14 is accepted by… | |||
| 7:7:14.1.1.1.9.2.12.32 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.454 Conditions precedent to issuance of the Loan Note Guarantee. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 26413, July 12, 1988; 57 FR 4359, Feb. 5, 1992; 61 FR 18495, Apr. 26, 1996] | In addition to compliance with the requirements of § 1980.60 of subpart A of this subpart, compliance with the following provisions are required prior to issuance of the Loan Note Guarantee. (a) Transfer of lenders. The Rural Development State Director may approve a substitution of a new eligible lender in place of a former lender who holds an outstanding Conditional Commitment for Guarantee (where the Loan Note Guarantee has not yet been issued and the loan is within the State Director's loan approval authority) provided there are no changes in the borrower's ownership or control, loan purposes, scope of project and loan conditions in the Form RD 449-14 and the loan agreement remains the same. To effect such a substitution, the former lender will provide Rural Development with a letter stating the reasons it no longer desires to be a lender for the project. For loans in excess of the State Director's loan approval authority, National Office concurrence is required. The State Director will submit a recommendation concerning the transfer of lenders along with the lender's letter stating the reasons it no longer desires to be a lender for the project. The substituted lender will execute a new Part “B” of Form RD 449-1. If approved by Rural Development, the State Director will issue a letter or amendment to the original Form RD 449-14 reflecting the new lender and the new lender will acknowledge acceptance of the letter or amendment in writing. (b) Substitution of borrowers. Rural Development will not issue a Loan Note Guarantee to the lender who is in receipt of a Form RD 449-14 with an obligation in a previous fiscal year if the originally approved borrower (including changes in legal entity) or owners are changed. The only exception to this provision prohibiting a change in the legal entity's form of ownership is when the originally approved borrower or owner is replaced with substantially the same individuals with substantially the same interests, as originally approved and identified in the Form RD 449-1,… | |||
| 7:7:14.1.1.1.9.2.12.33 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.455-1980.468 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.34 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.469 Loan servicing. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 40403, Oct. 17, 1988; 60 FR 26350, May 17, 1995; 61 FR 18495, Apr. 26, 1996] | The lender is responsible for loan servicing and for notifying the Rural Development (RD) of any violations in the Lender's Loan Agreement. (See Paragraph X of Form Rural DevelopmentRD 449-35). (a) All B&I guaranteed loans in the lender's portfolio will be classified by the lender as soon as it is notified by the State Office to do so and again whenever there is a change in the loan which would impact on the original classification. The State Director will notify the lender of this requirement for all existing loan guarantees, when new Loan Note Guarantees are issued to a lender and/or when the State Office becomes aware of a condition that would affect the classification and justification of the classification will be sent to the State Office. The loans will be classified according to the following criteria: (1) Substandard Classifications. Those loans which are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans in this category must have a well defined weakness or weaknesses that jeopardize the payment in full of the debt. If the deficiencies are not corrected, there is a distinct possibility that the lender and Rural Development will sustain some loss. (2) Doubtful Classification. Those loans which have all the weaknesses inherent in those classified Substandard with the added characteristics that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, highly questionable and improbable. (3) Loss Classifications. Those loans which are considered uncollectible and of such little value that their continuance as bankable loans is not warranted. Even though partial recovery may be effected in the future, it is not practical or desirable to defer writing off these basically worthless loans. (b) There is a close relationship between classifications; and no classifications category should be viewed as more important than the other. The uncollectibility aspect of Doubtful and L… | |||
| 7:7:14.1.1.1.9.2.12.35 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.470 Defaults by borrower. | RHS | [52 FR 6501, Mar. 4, 1987, as amended as 80 FR 9908, Feb. 24, 2015; 80 FR 9908, Feb. 24, 2015] | [See § 1980.63 of subpart A, of this part.] Administrative Refer to Appendix G of FmHA or its successor agency under Public Law 103-354 Instruction 1980-E (available in any FmHA or its successor agency under Public Law 103-354 Office) for advice on how to interact with the lender on liquidations and property management. A. In case of any monetary or significant non-monetary default under the loan agreement, the lender is responsible for arranging a meeting with the State Director, or its designee, and borrower to resolve the problem. A memorandum of the meeting, individuals who attend, a summary of the problem and proposed solution will be prepared by the Rural Development representative and retained in the loan file. When the State Director receives a notice of default on a loan, he/she will immediately notify the National Office in writing of the details and will subsequently report the problem loan to the National Office on the quarterly status report. The State Director will notify the lender and borrower of any decision reached by Rural Development. B. In considering servicing options, some of which are identified in paragraph X. A of Form RD 449-35, the prospects for providing a permanent cure without adversely affecting the risks of the Rural Development and the lender must become the paramount objective. Within the State Director's authority temporary curative actions such as payment deferments, moratoriums on payments or collateral subordination, if approved, must strengthen the loan and be in the best interests of the lender and Rural Development. Some of these actions may require concurrence of the holder(s). A deferral, rescheduling, reamortization or moratorium is limited by the period of time authorized by this subpart for the purpose for which the loan(s) is made or the remaining useful life of the collateral securing the loan. For example, if the promissory note on a working captial loan is scheduled to mature in 2 years the loan could be rescheduled for 7 years or the remaining life of … | |||
| 7:7:14.1.1.1.9.2.12.36 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.471 Liquidation. | RHS | (See § 1980.64 of subpart A of this part.) Refer to RD Instruction 1980-E, Appendix G, Liquidation and Property Management Guide (available in any Rural Development office) for advice on how to interact with the lender on liquidations and property management. (a) Collateral acquired by the lender can only be released after a complete review of the proposal. (1) There may be instances when the lender acquires the collateral of a business where the cost of liquidation exceeds the potential recovery value of the collection. Whenever this occurs the lender with the concurrence of Rural Development on the collateral in lieu of liquidation. (2) Sale of acquired collateral to the former borrower, former borrower's stockholder(s) or officer(s), the lender or lender's stockholder(s) or officer(s) must be based on an arm's length transaction with the concurrence of Rural Development. Administrative A. The State Director determines which Rural Development personnel will attend meetings with the lender. B. Introduction to Paragraph XI and Paragraph XI B of the Lender's Agreement. Rural Development will exercise the option to liquidate only when there is reason to believe the lender is not likely to initiate liquidation efforts that will result in maximum recovery. When there is reason to believe the lender will not initiate efforts that will maximize recovery through liquidation, the State Director will forward the lender's liquidation plan, if available with appropriate recommendations, along with the State Director's exceptions to the lender's plan, if any, to the Director, Business and Industry Division, for evaluation and approval or rejection of the State Director's recommendation regarding liquidation. Only when compromise cannot be reached between Rural Development and the lender on the best means of liquidation will Rural Development consider conducting the liquidation. The State Director has no authority to exercise the option to liquidate without National Office approval. When Rural Development liquidate… | ||||
| 7:7:14.1.1.1.9.2.12.37 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.472 Protective advances. | RHS | [See § 1980.65 subpart A of this part.] Administrative Refer to RD Instruction 1980-E, Appendix G, Liquidation and Property Management Guide (available in any Rural Development office) for advice on how to interact with the lender on liquidations and property management. A. Protective advances will not be made in lieu of additional loans, in particular, working capital loans. Protective advances are advances made by the lender for the purpose of preserving and protecting the collateral where the debtor has failed to and will not or cannot meet its obligations. Ordinarily, protective advances are made when liquidation is contemplated or in process. A precise rule of when a protective advance should be made is impossible to state. A common, but by no means the only, period when protective advances might be needed is during liquidation. At this point, the borrower and success of the project are no longer of paramount importance, but preserving collateral for maximum recovery is of vital importance. Elements which should always be considered include how close the project is to liquidation or default, how much control the borrower will have over the funds, what danger is there that collateral may be destroyed and whether there will be a good chance of saving the collateral later if a protective advance in contemplation of liquidation is made immediately. A protective advance must be an indebtedness of the borrower. B. The State Director must approve, in writing, all protective advances on loans within his/her loan approval authority which exceed a total commulative advance of $500 to the same borrower. Protective advances must be reasonable when associated with the value of collateral being preserved. C. When considering protective advances, sound judgment must be exercised in determining that the additional funds advanced will actually preserve collateral interests and recovery is actually enhanced by making the advance. Refer to RD Instruction 1980-E, Appendix G, Liquidation and Property Management G… | ||||
| 7:7:14.1.1.1.9.2.12.38 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.473 Additional loans or advances. | RHS | (Refer to paragraph XIII of Form RD 449-35.) Administrative Only the State Director shall approve within his/her loan approval authority additional nonguaranteed loans or advances prior to or subsequent to the issuance of the Loan Note Guarantee. The State Director shall determine that there will be no adverse changes in the borrower's financial situation and that such loan or advance is not likely to adversely affect the collateral or the guaranteed loan. Only the State Director shall approve within his/her loan approval authority additional nonguaranteed loans or advances prior to or subsequent to the issuance of the Loan Note Guarantee. The State Director shall determine that there will be no adverse changes in the borrower's financial situation and that such loan or advance is not likely to adversely affect the collateral or the guaranteed loan. | ||||
| 7:7:14.1.1.1.9.2.12.39 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.474 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.4 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.404 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.40 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.475 Bankruptcy. | RHS | (a) It is the lender's responsibility to protect the guaranteed loan debt and all the collateral securing it in bankruptcy proceedings. These responsibilities include but are not limited to the following: (1) The lender will file a proof of claim where necessary and all the necessary papers and pleadings concerning the case. (2) The lender will attend and where necessary participate in meetings of the creditors and all court proceedings. (3) The lender, whose collateral is subject to being used by the trustee in bankruptcy, will immediately seek adequate protection of the collateral. (4) Where appropriate, the lender should seek involuntary conversion of a pending Chapter 11 case to a liquidating proceeding under Chapter 7 or under Section 1123(b) (4) or seek dismissal of the proceedings. (5) When permitted by the Bankruptcy Code, the lender will request modification of any plan of reorganization whenever it appears that additional recoveries are likely. (6) Rural Development will be kept adequately and regularly informed in writing of all aspects of the proceedings. (b) In a Chapter 11 reorganization, if an independent appraisal of collateral is necessary in Rural Development's opinion, Rural Development and the lender will share such appraisal fee equally. (c) Expenses on Chapter 11 reorganization, liquidating Chapter 11 or Chapter 7 (unless the lender is directly handling the liquidation) cases are not to be deducted from the collateral proceeds. (d) Estimated loss payments. See paragraph XVI of Form RD 449-35. Administrative Refer to appendix G of this subpart (available in any Rural Development office) for advice on how to interact with the lender on liquidation and property management. A. It is the responsibility of the State Program Chief to see that Rural Development is being fully informed by the lender in all bankruptcy cases. B. All bankruptcy cases should be reported immediately to the National Office by utilizing and completing a problem/delinquent status report. The Regional Att… | ||||
| 7:7:14.1.1.1.9.2.12.41 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.476 Transfer and assumptions. | RHS | (a) All transfers and assumptions will be approved in writing by Rural Development. Such transfers and assumptions will be to an eligible applicant. (b) Transfers and assumptions will be considered without regard to § 1980.451 (d) of this subpart. (c) The borrower will submit to Rural Development Form RD 449-4 for the required character evaluation prior to the execution of the Assumption Agreement. (d) Available transfer and assumption options to eligible borrowers include the following: (1) The total indebtedness may be transferred to another borrower on the same terms. (2) The total indebtedness may be transferred to another borrower on different terms not to exceed those terms for which an initial loan can be made. (3) Less than the total indebtedness may be transferred to another borrower on the same terms. (4) Less than the total indebtedness may be transferred to another borrower on different terms. (e) In any transfer and assumption case, the transferor, including any guarantor(s), may be released from liability by the lender with Rural Development written concurrence only when the value of the collateral being transferred is at least equal to the amount of the loan or part of the loan being assumed. If the transfer is for less than the entire debt: (1) Rural Development must determine that the transferor and any guarantors have no reasonable debt-paying ability considering their assets and income at the time of transfer. (2) The Rural Development County Committee must certify that the transferor has cooperated in good faith, used due diligence to maintain the collateral against loss, and has otherwise fulfilled all of the regulations of this subpart to the best of borrower's ability. (f) Any proceeds received from the sale of secured property before a transfer and assumption will be credited on the transferor's guaranteed loan debt in inverse order of maturity before the transfer and assumption transaction is closed. (g) When the transferee makes any cash downpayment in connection with the tra… | ||||
| 7:7:14.1.1.1.9.2.12.42 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.477-1980.480 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.43 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.481 Insured loans. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 40403, Oct. 17, 1988] | Applications from private parties for whom Rural Development and such borrowers agree that a guarantee lender is not available and from public bodies shall be processed as insured loans in accordance with the applicable provisions of this subpart and subpart A of part 1942 of this chapter, including the credit elsewhere requirement, except as provided in § 1980.488 of this subpart which provides for the guarantee of taxable bond issues of public bodies. Loans to public bodies will be used only to finance: (a) Community facilities as defined in § 1980.402 of this subpart, and (b) Constructing and equipping industrial plants for lease to private businesses (not including loans for operating such businesses) when the requesting loan is not available under subpart A of part 1942 of this chapter. Administrative A. Without specific written delegated authority, all insured loans require National Office concurrence prior to approval. B. Applications from private parties for insured loans will not be encouraged. C. Loan closings on insured loans will be in accordance with this subpart, the Regional Attorney and applicable provisions of subpart A of part 1942 of this chapter. A. Without specific written delegated authority, all insured loans require National Office concurrence prior to approval. B. Applications from private parties for insured loans will not be encouraged. C. Loan closings on insured loans will be in accordance with this subpart, the Regional Attorney and applicable provisions of subpart A of part 1942 of this chapter. | |||
| 7:7:14.1.1.1.9.2.12.44 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.482-1980.487 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.45 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.488 Guaranteed industrial development bond issues. | RHS | (a) Loans to public bodies will be guaranteed only in connection with the issuance of any class or series of industrial development bonds (as defined in section 103(c)(2) of the Internal Revenue Code of 1954, as amended (IRC)), the interest on which is included in gross income under IRC. No part of the loan guaranteed by Rural Development may extend to any class or series of industrial development bonds the interest on which is excludable from gross income under section 103(a)(1) of such Code. Before the execution of any Loan Note Guarantee, the lender will furnish Rural Development evidence regarding interest on bonds being taxable for Federal income tax purposes. Such evidence may be in the form of an unqualified opinion of a recognized bond counsel or a ruling from the Internal Revenue Service. Guaranteed loans to public bodies can only be used for constructing and equipping industrial plants for lease to private businesses engaged in industrial manufacturing and does not provide funds for debt refinancing, working capital and other miscellaneous fees, charges or services. The lessee will have to provide necessary capital and sufficient financial strength to provide for a sound project. (b) If Rural Development and the applicant agree that a guaranteed lender is not available, the application may be considered for an insured loan under the provisions of § 1980.481 of this subpart. Administrative The lender is responsible for notifying the Rural Development of the taxability of the proposed bond issue. The lender is responsible for notifying the Rural Development of the taxability of the proposed bond issue. | ||||
| 7:7:14.1.1.1.9.2.12.46 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.489 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.47 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.490 Business and industry buydown loans. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 81 FR 11048, Mar. 2, 2016] | (a) Introduction. This section contains regulations for the Business and Industry Buydown (BIB) loan program. The purpose of this program is to provide loan guarantees with reduced interest rates to the borrowers, under the authority of Public Law 103-50 (107 Stat. 241). All provisions of Subparts A and E of this part apply to BIB loans except as provided in this section. All forms used in connection with a BIB loan will be those used with other B&I loans, except as provided in this section. (b) Location of applicants. Businesses eligible for BIB loans shall be located within the area covered by the Presidential disaster declaration related to Hurricanes Andrew or Iniki or Typhoon Omar. (c) Interest rate. (1) If the interest rate charged by the lender (note rate) on a BIB loan is a variable rate in accordance with § 1980.423 of this subpart, the base rate must be the prime rate as published in the Wall Street Journal and the note rate must not exceed the prime rate as published in the Wall Street Journal by more than 100 basis points. If the note rate is fixed, it must not exceed by more than 100 basis points the prime rate as published in the Wall Street Journal on the day the Loan Note Guarantee is issued. (2) The note rate for a BIB loan must be the same for the entire loan, including both the guaranteed and unguaranteed portion. (d) Interest rate buydown. (1) To be eligible for a BIB loan, the business must provide evidence and the lender and Rural Development must determine that, at least for the first year of the loan, the business will not have adequate cash flow to meet all of its financial obligations including the required payments on the proposed loan at the note rate, but that it can meet all obligations if the interest rate is reduced by 100 basis points. (2) During the first year after a Loan Note Guarantee is issued for a BIB loan, Rural Development will pay one percentage point of interest on the loan directly to the lender, thereby reducing the interest due from the borrower by this … | |||
| 7:7:14.1.1.1.9.2.12.48 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.491-1980.494 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.49 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.495 RD forms and guides. | RHS | [80 FR 9910, Feb. 24, 2015] | The following RD forms and guides, as applicable, are used in connection with processing B&I, D&D, and DARBE loan guarantees; they are incorporated in this subpart and made a part hereof: (a) Form RD 449-1. “Application for Loan and Guarantee” is referred to as “Appendix A,” or successor form, (b) The “Certificate of Incumbency and Signature” or successor form, (c) “Guidelines for Loan Guarantees for Alcohol Fuel Production Facilities” is referred to as “Appendix C. ” (d) “Alcohol Production Facilities Planning, Performing, Development and Project Control” is referred to as “Appendix D. ” (e) “Environmental Assessment Guidelines” is referred to as “Appendix E. ” (f) Form RD 449-14, “Conditional Commitment for Guarantee, ” or successor form. (g) “Liquidation and Property Management Guide” as found in RD Instruction 1980-E Appendix G. (h) “Suggested Format for the Opinion of the Lender's Legal Counsel” is referred to as “Appendix H. ” (i) “Instructions for Loan Guarantees for Drought and Disaster Relief” and Forms RD 1980-68, “Lender's Agreement—Drought and Disaster Guaranteed Loans, ” 1980-69, “Loan Note Guarantee—Drought and Disaster Guaranteed Loans, ” and 1980-70, “Assignment Guarantee Agreement—Drought and Disaster Guaranteed Loans, or their successor forms. (j) [Reserved] (k) “Regulations for Loan Guarantees for Disaster Assistance for Rural Business Enterprises” and Forms RD 1980-71, “Lender's Agreement—Disaster Assistance for Rural Business Enterprises Guaranteed Loans,” 1980-72 “Loan Note Guarantee—Disaster Assistance for Rural Business Enterprises Guaranteed Loans,” and 1980-73 “Assignment Guarantee Agreement—Disaster Assistance for Rural Business Enterprises Guaranteed Loans” or their successor forms. | |||
| 7:7:14.1.1.1.9.2.12.5 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.405 Rural areas. | RHS | [80 FR 9905, Feb. 24, 2015, as amended at 87 FR 38643, June 29, 2022] | The business financed with a B&I loan must be located in a rural area. Loans to borrowers with facilities located in both rural and non-rural areas will be limited to the amount necessary to finance the facility located in the eligible rural area. Cooperatives that are headquartered in a non-rural area may be eligible for a B&I loan if the loan is used for a project or venture that is located in a rural area. Rural areas are any areas other than a city or town that has a population of greater than 50,000 inhabitants, the urbanized area contiguous and adjacent to such a city or town, as defined by the U.S. Bureau of the Census, and which exclude certain populations pursuant to 7 U.S.C. 1991(a)(13)(H) and (I). For the purpose of this section: (a) The population figure is obtained from the most recent decennial Census of the United States (decennial Census). If the applicable population figure cannot be obtained from the most recent decennial Census, RD will determine the applicable population figure based on available population data; and (b) An urbanized area means a densely populated territory as defined in the most recent decennial Census or other Agency-accepted data source if not defined in the most recent decennial Census. | |||
| 7:7:14.1.1.1.9.2.12.50 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.496 Exception authority. | RHS | The Administrator may in individual cases grant an exception to any requirement or provision of this subpart which is not inconsistent with any applicable law or opinion of the Comptroller General, provided the Administrator determines that application of the requirement or provision would adversely affect the Government's interest. Requests for exceptions must be in writing by the State Director and submitted through the Assistant Administrator, Community and Business Programs. Requests must be supported with documentation to explain the adverse effect on the Government's interest, propose alternative courses of action, and show how the adverse effect will be eliminated or minimized if the exception is granted. | ||||
| 7:7:14.1.1.1.9.2.12.51 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.497 General administrative. | RHS | Refer to RD Instruction 1980-E, Appendix G, Liquidation and Property Management Guide (available in any Rural Development office) for advice on how to interact with the OGC on liquidations and property management. (a) Office of the General Counsel (OGC). In performing the Rural Development functions with respect to B&I, D & D, and DARBE loans, the advice and assistance of OGC may be sought and followed on any legal matter. However, it is the responsibility of the lender to ascertain that all requirements for making, securing, and servicing the loan are duly met. If Rural Development has any questions concerning the lender's resolution of these matters, OGC should be consulted. Assistance of OGC will be requested on all loans as specified herein and all liquidations and workouts. (b) Contact with OGC. Initial informal contact with OGC should be made as soon as possible. Rural Development State Directors should use the following format in formally requesting legal assistance on workouts. (1) Origination: All written requests should come from the State Director. (2) Method: Request should be made by referral memorandum to the Regional Attorney setting forth a brief statement of the facts, the reason assistance is requested, the extent of legal assistance sought, the date when Rural Development's response to the lender's liquidation plan (if any) is due and: (i) Projected losses on collateral: e.g., projected losses on collateral are expected to be significant. (ii) Unusual or complex nature of primary collateral: e.g., multi-state foreclosures or foreclosure of leases or general intangibles. (iii) Presence of other major creditors or of senior creditors: e.g., guaranteed loan collateral may be subject to a prior lien or other creditors may have rights in other assets of borrower, such as inventory and accounts receivable. (iv) Litigation is pending or threatened: e.g., bankruptcy, other foreclosure suits. (3) Materials to submit: Referral memorandums will be accompanied by a copy of lender… | ||||
| 7:7:14.1.1.1.9.2.12.52 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.498 Business and Industry Disaster Loans. | RHS | [57 FR 45969, Oct. 5, 1992, as amended at 58 FR 34342, June 24, 1993; 58 FR 38952, July 21, 1993; 58 FR 41172, Aug. 3, 1993; 58 FR 48300, Sept. 15, 1993; 81 FR 11048, Mar. 2, 2016] | (a) Introduction. This section contains regulations for the Business and Industry Disaster (BID) loan program. The purpose of the program is to provide loan guarantees under the authority of the Dire Emergency Supplemental Appropriations Act, 1992, Public Law 102-368. These guaranteed loans cover costs arising from the consequences of natural disasters such as Hurricanes Andrew and Iniki and Typhoon Omar that occur after August 23, 1992, and receive a Presidential declaration. Also included are the costs to any producer of crops and livestock that are a consequence of at least a 40 percent loss to a crop, 25 percent loss to livestock, or damage to building structures from a microburst wind occurrence in calendar year 1992. No BID loan guarantee will be approved after September 30, 1993. All provisions of subparts A and E of part 1980 of this chapter apply to BID loans, except as provided in this section. All forms used in connection with a BID loan will be those used with other Business and Industry (B&I) loans, except as provided in paragraph (m) of this section. (b) Location of Applicants. (1) Section 1980.405 of this subpart. “Rural area determinations,” will not apply to BID loans. BID loans may be made in rural and nonrural areas. (2) Eligible borrowers' businesses must be located within the area covered by the Presidential declaration except for those with qualifying losses from microburst wind in accordance with paragraph (a) of this section. (c) Loan Purposes. Loans may be guaranteed for the purposes listed in § 1980.411 of this subpart, “Loan Purposes,” except as follows: (1) Relationship to disaster. The purpose of any BID loan must be to cover costs that are a direct consequence of a natural disaster or microburst of wind in accordance with paragraph (a) of this section. The amount of the loan must not be greater than the amount needed as determined by the Rural Development Administration or its successor agency under Public Law 103-354 (RDA or its successor agency under Public Law 103-354)… | |||
| 7:7:14.1.1.1.9.2.12.53 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.499 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.54 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.500 OMB control number. | RHS | [55 FR 19245, May 8, 1990] | The reporting and recordkeeping requirements contained in this regulation have been approved by the Office of Management and Budget and have been assigned OMB control number 0575-0029. Public reporting burden for this collection of information is estimated to vary from 5 minutes to 58 hours per response, with an average of 4 hours per response including time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to the Department of Agriculture, Clearance Officer, OIRM, Room 404-W, Washington, DC 20250; and to the Office of Management and Budget, Paperwork Reduction Project (OMB# 0575-XXXX), Washington, DC 20503. | |||
| 7:7:14.1.1.1.9.2.12.6 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | §§ 1980.406-1980.410 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.2.12.7 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.411 Loan purposes. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 45258, Nov. 9, 1988; 54 FR 28022, July 5, 1989; 71 FR 33187, June 8, 2006] | Loans to borrowers with facilities located in both urban and rural areas will be limited to the amount necessary to finance the facility located in the eligible rural area. (a) Private entrepreneurs. Loans may be for improving, developing or financing business, industry and employment and improving the economic and environmental climate, including pollution and abatement control, of rural areas, and may include but not be limited to: (1) Business and industrial acquisitions, construction, conversion, enlargement, repair, modernization of development cost. (2) Purchasing and development of land, easements, rights-of-way, buildings, facilities, leases or materials. (3) Purchasing of equipment, lease-hold improvements machinery or supplies. (4) Pollution control and abatement including those in connection with farming and ranching operations. (5) Transportation services incidential to industrial development. (6) Startup costs and working capital. (7) The financing of housing development sites located in open country or cities, towns or villages with populations not in excess of those eligible for Rural Development rural housing loans, provided the community demonstrates a need for additional housing to prevent a loss of jobs in the area, or to house families moving to the area as a result of new employment opportunities. (8) Loans, other than for working capital or debt refinancing, for meat processing facilities and integrated meat and poultry operations. Loans may not be guaranteed for agricultural production as defined in § 1980.412(e); however, applicants who are in the business of processing, marketing or packaging of agricultural products, as well as agricultural production, may be eligible for loan assistance for that portion of the business other than agricultural production provided the agricultural production aspect is separate from the rest of the business; i.e., the production aspects are handled through separate legal business entities or through maintenance of the accounting system in such a… | |||
| 7:7:14.1.1.1.9.2.12.8 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.412 Ineligible loan purposes. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 45258, Nov. 9, 1988] | Loans may not be made or guaranteed if the funds are used: (a) To pay off a creditor in excess of the value of the collateral. (b) For distribution or payment to the owner, partners, shareholders or beneficiaries of the applicant or members of their families when such persons will retain any portion of their equity in the business. (c) For projects in which such assistance exceeds $1 million and when direct employment increases more than 50 employees which is calculated to or is likely to result in the transfer from one area to another of any employment or business activity provided by the operations of the applicant. This limitation will not prohibit assistance for the expansion of an existing business entity through the establishment of a new branch, affiliate or subsidiary of such entity if the expansion will not result in an increase in the unemployment in the area of original location or in any other area where such entity conducts business operations unless there is reason to believe that such explanation is being established with the intention of closing down the operations of the existing business entity in the area of its original location or in any other area where it conducts such operations. (d) For projects in which such assistance exceeds $1 million and when direct employment increased more than 50 employees which is calculated to or likely to result in an increase in the production of goods, materials or commodities, or the availability of services or facilities in the area when there is not sufficient demand for such goods, materials, commodities, services or facilities to employ the efficient capacity of existing competitive commercial or industrial enterprises, unless such financial or other assistance will not have an adverse effect upon existing competitive enterprises in the area. (e) For agricultural production which means the cultivation, production (growing), and harvesting, either directly or through integrated operations, of agricultural products (crops, animals, birds, and marine… | |||
| 7:7:14.1.1.1.9.2.12.9 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | E | Subpart E—Business and Industrial Loan Program | § 1980.413 Transactions which will not be guaranteed. | RHS | [52 FR 6501, Mar. 4, 1987, as amended at 53 FR 40401, Oct. 17, 1988] | (a) The following transactions will not be guaranteed by the Agency: (1) The guarantee of lease payments. (2) The guarantee of loans made by other Federal agencies. This does not preclude the guaranteeing of loans made by the Bank for Cooperatives, Federal Land Bank, or Production Credit Association. (3) The guarantee or making of any B&I loans(s), to any one borrower, when the total amount of the B&I loans(s) requested plus the outstanding balance of any existing B&I loan(s) is in excess of $10 million. (b) Guaranteeing of loans involved in tax-exempt obligations under § 1980.23 of subpart A of this part. Administrative The State Director will consider the overall State allocations of funding authority in recommending loans for processing. Loan requests which fall within Small Business Administration (SBA) authority should continue to be referred to SBA. If the State Director decides to process SBA size loans, the loan file must be fully documented as to the reasons for such actions. The State Director will consider the overall State allocations of funding authority in recommending loans for processing. Loan requests which fall within Small Business Administration (SBA) authority should continue to be referred to SBA. If the State Director decides to process SBA size loans, the loan file must be fully documented as to the reasons for such actions. | |||
| 7:7:14.1.1.1.9.4.12.1 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1001 Purpose. | RHS | [85 FR 59393, Sept. 22, 2020] | Projects that support the implementation of Strategic Community Investment Plans may receive priority funding from authorized programs found in § 1980.1002. The purpose of this subpart is to describe the process by which applications will be reviewed and selected to receive priority funding. | |||
| 7:7:14.1.1.1.9.4.12.10 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | §§ 1980.1016-1980.1019 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.4.12.11 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1020 Scoring. | RHS | [80 FR 28816, May 20, 2015, as amended at 85 FR 59394, Sept. 22, 2020] | The Agency will score each eligible application seeking funding under this subpart as described in this section. (a) Program scoring. The Agency will score each application using the criteria for the applicable covered program, identified in § 1980.1002. The maximum number of points an application can receive under this paragraph (a) is based on the scoring criteria for the applicable program identified in § 1980.1002, including any discretionary points that may be awarded. (b) SECD scoring. The Agency will score each application using the criteria identified in paragraphs (b)(1) and (2) of this section. The maximum number of points an application can receive under this paragraph (b) is 20 points. (1) Objectives of the plan. The Agency will score how the project supports achieving the objectives of a plan which are identified in paragraphs (b)(1)(i) through (iii). Applicants must supply sufficient documentation that demonstrates to the Agency the criteria identified in paragraphs (b)(1)(i) through (iii) of this section are met. The maximum score under this paragraph (b)(1) is 10 points. (i) If the project directly supports implementation of three or more of the plan's objectives, the application will receive 10 points. (ii) If the project directly supports implementation of two of the plan's objectives, the application will receive 5 points. (iii) If the project directly supports implementation of less than two of the plan's objectives, the application will receive no points. (2) Characteristics of a plan. The Agency will score the plan associated with a Project based upon the characteristics of the plan, which are identified in paragraphs (b)(2)(i) through (v) of this section. Applicants must supply sufficient documentation that demonstrates to the Agency the criteria identified in paragraphs (b)(2)(i) through (v) of this section are met. The maximum score under this paragraph (b)(2) is 10 points. (i) Variety of activities. If the plan contains a variety of activities which clearly show facilit… | |||
| 7:7:14.1.1.1.9.4.12.12 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | §§ 1980.1021-1980.1024 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.4.12.13 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1025 Award process. | RHS | [85 FR 59395, Sept. 22, 2020] | (a) Unless RD indicates otherwise in a notice, the award process for the applicable program identified in § 1980.1002 will be used to determine which Projects receive funding under this subpart. (b) Projects not receiving funding under this subpart are eligible to compete for funding under the applicable program identified in § 1980.1002. The scores for such Projects when competing for program funding will not include the score assigned to the application under § 1980.1020(b). | |||
| 7:7:14.1.1.1.9.4.12.14 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | §§ 1980.1026-1980.1100 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.4.12.2 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1002 Programs. | RHS | [85 FR 59393, Sept. 22, 2020] | The Agency may elect to reserve funds from one or more programs for projects that support Strategic Community Investment Plans. The programs chosen for a given fiscal year will be announced annually in a notice published in the Federal Register. The authorized programs are: (a) Community Facility Loans (7 CFR part 1942, subpart A). (b) Community Facilities Grant Program (7 CFR part 3570, subpart B). (c) Community Programs Guaranteed Loans (7 CFR part 3575, subpart A). (d) Water and Waste Disposal Programs Guaranteed Loans (7 CFR part 1779). (e) Water and Waste Loans and Grants (7 CFR part 1780, subparts A, B, C, and D). (f) Business and Industry Guaranteed Loans (7 CFR part 4279, subparts A and B; 7 CFR part 4287, subpart B). (g) Rural Business Development Grants (7 CFR part 4280, subpart E). (h) Community Connect Grant (7 CFR part 1739). (i) Rural Community Development Initiative Grant (2 CFR part 200). (j) Tribal College Initiative Grants (7 CFR part 3570, subpart B). (k) Intermediary Relending Program (7 CFR part 4274). (l) Mutual Self-Help Housing Technical Assistance Grants (7 CFR part 1944, subpart I). (m) Rural Housing Site Loans (7 CFR part 1822, subpart G). (n) Housing Preservation Grants (7 CFR part 1994, subpart N; 7 CFR part 1970, subparts A and O). (o) Farm Labor Housing Direct Loans and Grants (7 CFR part 3560, subparts L and M). (p) Multi-Family Housing Loan Guarantees (7 CFR part 3565). (q) Distance Learning and Telemedicine Loans and Grants (7 CFR part 1734). (r) Rural Energy for America Program (7 CFR part 4280, subpart B). (s) Rural Economic Development Loans and Grants (7 CFR part 4280). (t) Rural Energy Savings Program (7 U.S.C. 8107a). (u) Value-Added Producer Grants (7 U.S.C. 1632a). (v) Household Water Well System Grant Program (7 CFR part 1776). (w) Solid Waste Management Grant (7 CFR part 1775, subpart D). | |||
| 7:7:14.1.1.1.9.4.12.3 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1003 Applicability of Program Regulations. | RHS | Except as supplemented by this subpart, the provisions of the programs identified in § 1980.1002 are incorporated into this subpart. | ||||
| 7:7:14.1.1.1.9.4.12.4 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1004 Funding. | RHS | [80 FR 28816, May 20, 2015, as amended at 85 FR 59393, Sept. 22, 2020] | Unless the Agency publishes a notice that indicates otherwise, the Agency will reserve funds according to the procedures specified in paragraphs (a) through (c) of this section for each of the programs identified in § 1980.1002 each fiscal year. (a) Individual program basis. The Agency will reserve funds on an individual program basis. (b) Percentage of funds. The Agency will reserve up to 15 percent of the funds made available in a fiscal year to each program identified in § 1980.1002. The percentage of funds to be set aside will be published in a notice in the Federal Register on an annual basis. The Agency may reserve the same or different percentages for each program in a single fiscal year. (c) Unobligated funds. In accordance with 7 U.S.C. 2008v, all Strategic Economic and Community Development (SECD) reserved funds will be reserved for the 1-year period beginning on the date on which the funds were first made available. The Agency has determined that for both non-annual and annually appropriated programs, SECD reserved funding will be available for obligation until dates established by covered programs as specified in a SECD annual Federal Register publication. Reserved funds in annual programs not obligated by September 30 will be reconciled according to applicable law. | |||
| 7:7:14.1.1.1.9.4.12.5 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1005 Definitions. | RHS | [80 FR 28816, May 20, 2015, as amended at 85 FR 59394, Sept. 22, 2020] | In addition to the definitions found in the regulations for the programs identified in § 1980.1002, the following definitions apply to this subpart. If the same term is defined in any of the regulations for the programs identified in § 1980.1002, for purposes of this subpart, that term will have the meaning identified in this subpart. Adopted means appropriate entity has, or entities have, officially approved the plan for implementation. The appropriate entity or entities will vary among plans and may be, for example, a governing body or planning board. Agency means the Rural Business-Cooperative Service, the Rural Housing Service, or the Rural Utilities Service, or their successor agencies. Carried out in a rural area means either: (1) The entire project is physically located in a rural area; or (2) The beneficiaries of the service(s) provided through the project must either reside in a rural area (in the case of individuals) or be located in a rural area (in the case of entities). Investment means either monetary or non-monetary contributions to the implementation of the Plan's objectives. Jurisdiction means a unit of government or other entity with similar powers, such as a city, county, district, special purpose district, township, town, borough, parish, village, state, Indian tribe, etc. Multi-jurisdictional means more than one jurisdiction. Multi-sectoral means intentional collaboration between two or more sectors ( i.e., utility, health, housing, community services, etc.) to accomplish goals and achieve outcomes in communities and regions. Philanthropic organization means an entity whose mission is to provide monetary, technical assistance, or other items of value for religious, charitable, community development, scientific, literary, or educational purposes. Plan means a Strategic Community Investment Plan illustrating: (1) A variety of activities designed to facilitate the vision of a rural community for the future including considerations for improving and expanding broadband servi… | |||
| 7:7:14.1.1.1.9.4.12.6 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | §§ 1980.1006-1980.1009 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.4.12.7 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1010 Project eligibility. | RHS | [80 FR 28816, May 20, 2015, as amended at 85 FR 59394, Sept. 22, 2020] | In order to be eligible to receive funds under this subpart, the Project must meet the following: (a) The Project must meet the Project eligibility criteria of the applicable program identified in § 1980.1002; (b) The Project must be carried out in a rural area; and (c) The Project must support the implementation of a Strategic Community Investment Plans on a multi-jurisdictional and multi-sectoral basis. | |||
| 7:7:14.1.1.1.9.4.12.8 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | §§ 1980.1011-1980.1014 [Reserved] | RHS | |||||
| 7:7:14.1.1.1.9.4.12.9 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | K | Subpart K—Strategic Economic and Community Development | § 1980.1015 Applications. | RHS | [85 FR 59394, Sept. 22, 2020] | In addition to the application material specific to the applicable program identified in § 1980.1002, each applicant seeking funding under this subpart must provide the information specified in paragraphs (a) through (f) of this section. (a) A Strategic Economic and Community Development application form (Form RD 1980-88); (b) A description of the jurisdiction or jurisdictions in which the Plan is to be implemented; (c) Documentation that the Plan was developed through the collaboration of multiple stakeholders in the jurisdiction of the Plan, including the participation of combinations of stakeholders; (d) Documentation that the Plan demonstrates leveraging of the applicable region's assets to support the Plan; (e) Documentation indicating whether or not the Plan includes monetary or non-monetary contributions from strategic partners; and (f) Documentation that the Plan contains: (1) Clear, measurable performance objectives with action steps for implementation; and (2) The ability to track progress toward meeting the Plan's objectives. | |||
| 7:7:14.1.1.1.9.6.12.1 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1201 Purpose. | RHS | This subpart establishes policies and procedures for the review, approval and servicing of projects authorized to use funding for broadband and smart utility facilities (Special Broadband Authority) in select Rural Development programs. This special broadband authority will leverage the federal resources available for the deployment broadband services in rural areas. The Secretary has discretion to allow recipients of RD grants, loans, or loan guarantees to use a limited amount of funds for broadband purposes. | ||||
| 7:7:14.1.1.1.9.6.12.10 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1210 OMB Control Number. | RHS | The information collection requirements in this part are approved by the Office of Management and Budget and assigned OMB control number 0572-0156. | ||||
| 7:7:14.1.1.1.9.6.12.2 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1202 Special broadband and smart utility facility funding. | RHS | (a) The Secretary, acting directly or through authority delegated to the RD agency heads, may allow a recipient of an RD grant, loan, or loan guarantee to use up to 10 percent of project funds for any purpose outlined in § 1980.1205 and in compliance with this part. (b) Prior to exercising authority under this part, the Agency with a request for special broadband authority (the Awarding Agency) shall consult with the Administrator of the affected RD Agency to determine: (1) If the provision of broadband service by the recipient (or another party under a wholesale broadband service agreement) would cause competitive harm to a current Rural Development borrower, grantee, or guaranteed lender with respect to an active project for broadband deployment and provision of services With respect to a current RD awardee in the project service area that has significantly defaulted on, or not material complied with its award requirements, the affected RD agency may make a finding of no competitive harm unless it is necessary to protect the government's interest; (2) If the recipient intends to use the funds for the provision of retail broadband service and, if so, assist the agency in providing public notice and receiving responses from existing service providers, as provided in this rule, so that a determination can be made as to whether the minimum acceptable level of broadband service exists in the service area at the time of the request; and (3) If the recipient does not intend to provide broadband service, and the funded facilities will only be used for internal use, such as smart utility, there shall be no finding of competitive harm and the recipient shall be relieved of the public notice provision requirement of § 1980.1207 and reporting requirements of § 1980.1209. Note that recipients funding broadband facilities for internal use under an RD program's existing authority would not be subject to this part with respect to the 10 percent funding limitation; however, if such facilities are contemplated to provide ret… | ||||
| 7:7:14.1.1.1.9.6.12.3 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1203 Definitions. | RHS | Agency. One of the three Rural Development agencies, the Rural Housing Service, the Rural Business-Cooperative Service or the Rural Utilities Service. Agency head. The Administrator of the applicable RD agency. Awarding Agency. An agency which has received an application for special broadband authority or has approved an application for such authority. Broadband service. Any technology identified by the Secretary as having the capacity to provide transmission facilities that enable a subscriber to originate and receive voice, data, graphics, and video. Con Act. The Consolidated Farm and Rural Development Act of 1972, as codified and amended at 7 U.S.C. 1921 et seq. Minimum acceptable level of broadband service. The minimum transmission capacity with respect to terrestrial service that will qualify as broadband service, as published by the RUS in the Federal Register pursuant to 7 CFR part 1738. If a new minimum transmission capacity is published in the Federal Register while a request for smart utility authority is pending, broadband service for the purpose of reviewing the request will be defined by the minimum transmission capacity that was in effect at the time the request was received by the Agency. Rural Development (RD). A mission area of the United States Department of Agriculture (USDA) made up of the Rural Housing Service (RHS), Rural Business-Cooperative Service (RBCS) and the Rural Utilities Service (RUS). Retail broadband service. For the purposes of this subpart, retail broadband service means any broadband service that is provided to the public at a charge. Broadband Service which is used exclusively by the recipient for its own purposes and is not sold to the public is not retail broadband. Broadband service which is sold to other service providers through wholesale agreements shall also not be considered retail broadband service. RE Act. The Rural Electrification Act of 1936, as codified and amended at 7 U.S.C. 901 et seq. Secretary. The Secretary of Agriculture. Special … | ||||
| 7:7:14.1.1.1.9.6.12.4 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1204 Eligibility. | RHS | Programs eligible to be considered for smart utility and broadband service authority include RD programs under the Rural Electrification Act and the Consolidated Farm and Rural Development Act. Programs included, but not limited to, are as follows: (a) 7 CFR part 1710—General and Pre-Loan Policies and Procedures Common to Electric Loans and Guarantees; (b) 7 CFR part 1779—Water and Waste Disposal Programs Guaranteed Loans; (c) 7 CFR part 1780—Water and Waste Loans and Grants; (d) 7 CFR part 1783—Revolving Funds for Financing Water and Wastewater Projects (Revolving Fund Program); (e) 7 CFR part 1942, subpart A—Community Facility Loans; (f) 7 CFR part 3575, subpart A—Community Programs Guaranteed Loans; (g) 7 CFR part 3560—Direct Multi-Family Housing Loans and Grants; (h) 7 CFR part 3565—Guaranteed Rural Rental Housing Program; (i) 7 CFR part 3570, subpart B—Community Facilities Grant Program; (j) 7 CFR part 4274, subpart D—Intermediary Relending Program (IRP); (k) 7 CFR part 4279, subpart B—Business and Industry Loans; (l) 7 CFR part 4279, subpart C—Biorefinery, Renewable Chemical and Biobased Product Manufacturing Assistance Loans; (m) 7 CFR, part 4280, subpart A—Rural Economic Development Loan and Grant Programs; (n) 7 CFR part 4280, subpart B—Rural Energy for American Program; and (o) 7 CFR part 4280, subpart E—Rural Business Development Grants. | ||||
| 7:7:14.1.1.1.9.6.12.5 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1205 Eligible purposes. | RHS | Recipients may use funds for the costs of the construction, improvement, and acquisition of broadband facilities and equipment in rural areas, as set forth in this part. Rural area shall be defined by the applicable program regulations. | ||||
| 7:7:14.1.1.1.9.6.12.6 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1206 Application process and public notice requirement. | RHS | (a) Initial notification to agency for all programs. Applicants seeking to use program funds for eligible purposes under § 1980.1205 must inform the RD agency at the time of application, except for Smart Grid loans authorized under the RE Act and 7 CFR part 1710. This is to determine that sufficient funding is available in the applicable program to consider funding this special broadband authority in addition to the underlying RD project. (b) Notice for retail broadband. All applicants that use special broadband authority to provide retail broadband service must provide the following information, which will be posted publicly on RUS' fully searchable website, in addition to the identity of the applicant and the status of the application: (1) A description of the proposed retail broadband project; (2) A map of the proposed service area to be funded under smart utility authority of the applicant; (3) The amount and type of support requested by the applicant; (4) The estimated number and proportion of service points in the proposed service territory without fixed broadband service, whether terrestrial or wireless; and (5) Any other information required of the applicant in a funding notice. (c) Information available to the public for approved applications. For applications that are approved for the provision of retail broadband service under the special broadband authority, the following information will be made available to the public: (1) The information provided in paragraph (a) of this section; (2) Each annual report required under § 1980.1209, which will be redacted to protect any proprietary information; and (3) Such other information as the Administrator of the RUS deems sufficient to allow the public to understand the assistance provided. (d) Alternative methods of public notice. The Administrator of the RUS will provide instructions on the RUS website for alternative methods of public notice and responses by existing service providers related to projects seeking funding under the special b… | ||||
| 7:7:14.1.1.1.9.6.12.7 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1207 Approval to provide retail broadband service. | RHS | (a) Service area assessment. For applicants requesting to provide retail broadband service under the special broadband authority, applications must be posted publicly for 45 days. (1) During the public notice period, service providers may voluntarily submit information required by the RUS Administrator onto the agency's mapping tool, or alternate methods if determined by the RUS Administrator under § 1980.1206(d). Information submitted by service providers shall be exempt from disclosure pursuant to 5 U.S.C. 552(b)(2)(B).552. (2) If no broadband service provider submits information under paragraph (a)(1) of this section, the agency shall consider the number of providers in the proposed service area to be established by using any other data regarding the availability of broadband service that the RUS may collect or obtain through reasonable efforts. (b) Use of funds. After review of information submitted from service providers, if any, and all available data on broadband availability, if the RUS determines that the minimum acceptable level of broadband service is available in the proposed retail service area, the Awarding Agency shall not approve the use of funds for such purpose. The Awarding Agency, however, may approve the use of funds for retail broadband service if: (1) Areas with the minimum acceptable level of broadband service are eliminated from the proposed service area; and (2) The applicant covenants that it will not provide service in these areas with funds from the Awarding Agency. (c) Use of Funds for wholesale broadband service. For applicants requesting that funds be used for wholesale broadband service, the applicant must agree: (1) To publicly advertise in the service area that broadband service is available at wholesale to any service provider; and (2) That the same wholesale contract will be used for all service providers requesting wholesale service and offered at the same per unit price. | ||||
| 7:7:14.1.1.1.9.6.12.8 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1208 Award procedures and compliance. | RHS | (a) The Awarding Agency will inform applicants seeking consideration of funding under this part of the agency's disposition of the applicant's request; (b) Except as provided in § 1980.1206(e), awards made under this part shall be managed and serviced by the Awarding Agency; (c) Except as provided in § 1980.1206(e), the Agency shall be responsible for oversight and compliance of projects utilizing authority under this part; (d) Requirements for providing retail broadband service or wholesale broadband service under §§ 1980.1206, 1980.1207, and this section shall be made part of the applicable loan or grant agreement between the recipient and the Awarding Agency, or, with respect to guarantees and intermediaries, between the program participants and the recipients; (e) The applicable agreement must provide that non-compliance with this part or use of funds for retail broadband service or wholesale broadband service without having received agency authority to do so as required in this part, shall: (1) Be an automatic event of default under the applicable agreement; and (2) Require that the associated loan or grant funds used in violation of this part be disallowed or returned immediately to the awarding agency or to the program participant for eligible relending. | ||||
| 7:7:14.1.1.1.9.6.12.9 | 7 | Agriculture | XVIII | H | 1980 | PART 1980—GENERAL | M | Subpart M—Special Authority To Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs | § 1980.1209 Reporting. | RHS | For three years starting the first January 31st after completion of the broadband project, recipients of funds used for retail broadband service under this part must submit the following information each year utilizing RUS' online reporting system: (a) Existing network service improvements and facility upgrades, as well as new equipment and capacity enhancements that support high-speed broadband access for educational institutions, health care providers, and public safety service providers; (b) The estimated number of end users who are currently using or forecast to use the new or upgraded infrastructure; (c) The progress towards fulfilling the objectives for which the assistance was granted; (d) The number and geospatial location of residences and businesses that will receive new broadband service; (e) The speed and price of the Recipient's broadband service offerings; and (f) The average price of broadband service in the project's service area. |
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