cfr_sections
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145 rows where part_number = 4280 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 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 7:7:15.1.19.2.6.1.24.1 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.1 Purpose. | RBS | The Rural Economic Development Loan (REDL) and Grant (REDG) Programs provide financing to eligible Rural Utilities Service (RUS) electric or telecommunications borrowers (Intermediaries) to promote rural economic development and job creation projects. | |||||
| 7:7:15.1.19.2.6.1.24.10 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.18 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.11 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.19 REDG Grants. | RBS | [79 FR 76015, Dec. 19, 2014] | Intermediaries receiving Grants must partially finance a Revolving Loan Fund that the Intermediary will operate and administer, by providing supplemental funds of at least 20 percent of the Grant. Grants are subject to 2 CFR parts 200, 400, 415, 417, 418, 421 as applicable. | ||||
| 7:7:15.1.19.2.6.1.24.12 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.20 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.13 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.21 Eligible REDG Ultimate Recipients and Projects. | RBS | The Intermediary may only make loans from the Revolving Loan Fund to entities located in a Rural area of a State. Eligible entities are as follows: (a) Non-profit entities, public bodies, or Federally-recognized Indian tribes Ultimate Recipients for: (1) Community development or Community Facility Projects that: (i) will create or save employment; and (ii) are open to and serve all Rural residents, and are owned by the Ultimate Recipient; (2) Business Incubators; (3) Facilities and equipment to provide education and training to residents of Rural Areas that will facilitate economic development; (4) Facilities and equipment to provide medical care to residents of Rural Areas. Equipment and facilities may be funded to enable eligible entities to provide medical training and related professional health care skills to rural health care providers; (5) Projects that utilize Advanced Telecommunications or computer networks to facilitate medical or educational services or job training; or (6) Project feasibility studies and Technical Assistance. A qualified Independent Provider must perform feasibility studies or Technical Assistance. (b) For-profit Ultimate Recipients for Projects under paragraphs (a)(3), (4), (5), or (6) of this section. | |||||
| 7:7:15.1.19.2.6.1.24.14 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.22 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.15 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.23 Requirements for lending from Revolving Loan Fund. | RBS | [72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014] | (a) Supplemental contribution. The Intermediary must establish a Revolving Loan Fund and contribute an amount equal to at least 20 percent of the Grant. The supplemental contribution must come from Intermediary's funds which may not be from other Federal Grants, unless permitted by law. (b) Use of supplemental contribution. The Intermediary's contribution will only be used to make REDG loans and not other investment purposes. The Intermediary's contribution must remain a permanent part of the Revolving Loan Fund until the Fund is terminated. (c) REDG Zero-Interest Loan Requirements. The Fund is made up of Rural Development and Intermediary contributions and must be loaned in accordance with one of the following 2 options: (1) The contribution may be used to fund the same Project that Rural Development is funding. The interest rate on that portion of the financing using Rural Development funds will be at zero percent. The interest rate on that portion of the financing using the Intermediary's contribution may be greater than zero percent but must be less than, or equal to, the prevailing prime rate. Using this option, loan security and recovery of loan losses must provide for the pro rata recovery and distribution between the Intermediary and Rural Development based on the respective amounts of each contribution to the total loan amount for the Project. (2) The Intermediary's contribution may be used to fund Projects separate from the Project financed with Rural Development funds, provided that the Project is eligible in accordance with § 4280.21. (3) Whether the Intermediary chooses the option under paragraph (c)(1) or paragraph (c)(2) of this section, its contribution must be used to fund an eligible Project within 3 years from the date of the Grant agreement. If the Intermediary fails to use its contribution within this 3-year period, Rural Development will terminate the Grant. (d) Intermediary's supplemental funds. Once revolved, monies from the Fund may be loaned at an interest rate called for i… | ||||
| 7:7:15.1.19.2.6.1.24.16 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.24 Revolved funds. | RBS | Rural Development and the Intermediary's supplemental funds will be considered revolved after they have been loaned to Ultimate Recipients and subsequently repaid. Loans made from revolved funds will not require prior approval of Rural Development for creditworthiness or environmental clearance purposes. All other Federal compliance requirements, including those in this subpart, remain in effect. | |||||
| 7:7:15.1.19.2.6.1.24.17 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.25 Revolving Loan Fund Plan. | RBS | Each REDG Intermediary must adopt a Rural Development-approved plan that specifies that: (a) The initial loan made from the Fund will be at zero percent interest and have a maximum term of 10 years; (b) Loans made from loan repayments may carry an interest rate less than, or equal to, the prevailing prime rate. The Intermediary determines repayment terms and security arrangements on these loans. (c) Loans made from repayments of REDG loans must be for eligible Program purposes; (d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions; and (e) No changes will be made to a Rural Development-approved Revolving Loan Fund Plan without the prior written approval of Rural Development. | |||||
| 7:7:15.1.19.2.6.1.24.18 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.26 Administration and operation of the Revolving Loan Fund. | RBS | (a) The Intermediary will operate and administer the Revolving Loan Fund. The Intermediary may contract with a third party for administrative services regarding the Fund. However, the Intermediary must permanently retain all Project review, approval, and monitoring authority and responsibility. This authority and responsibility cannot be delegated to any other person or entity. (b) Up to 10 percent of Rural Development Grant funds may be applied toward operating expenses over the life of the Fund. Operating expenses include the costs of administering the Fund and Technical Assistance provided to Project owners by Independent Providers. (c) In cases where the Intermediary uses its supplemental contribution to the Revolving Loan Fund for a Project other than the Project that resulted in the Intermediary being awarded the Grant, the loan terms must not exceed 10 years and the interest rate must be less than, or equal to, the prevailing prime rate. | |||||
| 7:7:15.1.19.2.6.1.24.19 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.27 Ineligible purposes. | RBS | Zero-Interest Loans may not be used: (a) For activities that would adversely affect the environment, or activities that limit the choice of reasonable alternatives prior to satisfying Rural Development environmental requirements; (b) To pay off or refinance any existing indebtedness or costs of the Project that were incurred prior to Rural Development receipt of the Intermediary's completed application; (c) For any electric or telecommunications purpose or for the Intermediary's electric or telecommunications operations, for affiliated operations of the Intermediary, or for the benefit of other Intermediaries or their affiliated operations, except those purposes contained in § 4280.15(f); (d) To pay the salaries of any employee or owner of the Intermediary, its subsidiaries, or affiliates, except for salaries incurred in administering a Revolving Loan Fund established under the REDG Program; (e) For community antenna or cable television systems or facilities; (f) For residential purposes such as residential dwellings and land sites; facilities to provide entertainment television; to transfer property between owners without making improvements that will promote or sustain economic development in Rural Areas; or for personal, non-business related vehicles; (g) Where there is directly or indirectly a conflict of interest or the appearance of a conflict of interest in the Project; for Intermediaries this would include a situation in which the Intermediary, its officers, managers, Board of Directors, employees, their spouses, children, or close relatives, have a financial or ownership interest in the Project being funded, including its construction or development; (h) For any purpose when receipt of loan funds is conditioned upon the requirement that the Ultimate Recipient acquire electric or telecommunications service from the Intermediary or its affiliates; (i) For any gambling activity; (j) For a Project that would result in the transfer of existing employment or business activity more than 25 miles from … | |||||
| 7:7:15.1.19.2.6.1.24.2 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.2 Policy. | RBS | (a) REDL Program. REDL Zero-Interest Loans are made to Intermediaries, to relend, at a zero-interest rate, to Ultimate Recipients. Ultimate Recipients are responsible for repayment to the Intermediary. The Intermediary must transmit Ultimate Recipient loan repayments to Rural Development. (b) REDG Program. Grants are made to Intermediaries to establish Revolving Loan Funds. REDG Zero-Interest Loans are made by the Intermediary from the Revolving Loan Fund to Ultimate Recipients for the purpose of financing specific, approved Projects. Ultimate Recipients are responsible for repayment to the Intermediary. The Ultimate Recipient's loan repayments are to be retained in the Revolving Loan Fund, which is maintained by the Intermediary, to finance other rural economic development Projects. Only the initial loan made by the Intermediary from the Revolving Loan Fund has to be at zero interest. | |||||
| 7:7:15.1.19.2.6.1.24.20 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.28 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.21 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.29 Supplemental financing required for the Ultimate Recipient Project. | RBS | (a) For REDL loans, either the Ultimate Recipient or the Intermediary must provide supplemental funds for the Project equal to at least 20 percent of the loan to the Intermediary. For REDG grants, the Intermediary must provide supplemental funds, to capitalize the Revolving Loan Fund, equal to at least 20 percent of the Grant to the Intermediary. (b) Funds provided by the Ultimate Recipient must be: (1) Cash or its equivalent; (2) Provided after Rural Development receives the completed application; and (3) Disbursed for an eligible Project within a three year period that begins on the day the Intermediary signs the Grant agreement. (c) Satisfactory evidence of the Ultimate Recipient's funds must be provided to Rural Development before it will advance any funds to the Intermediary. | |||||
| 7:7:15.1.19.2.6.1.24.22 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.30 Restrictions on the use of REDL or REDG funds. | RBS | [72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014] | (a) Conflict of interest. The Intermediary must not own or manage any Ultimate Recipient Project, unless the Project is acquired as a result of servicing a loan made from the Revolving Loan Fund. Conflicts of interest and all appearances of a conflict of interest are not permitted. The intermediary must also disclose in writing any potential conflicts of interest to the USDA awarding agency and maintain written standards of conduct covering conflicts of interest, including organizational conflicts of interest in accordance with 2 CFR 400.2(b). (b) Fees. The Intermediary may charge reasonable loan servicing fees, which are limited to one percent per year of the principal amount outstanding on the loan; reasonable professional service fees that are customary for the service being provided and in accordance with any standard fee schedules that have been established for the service; and reasonable expenses the Intermediary has incurred from Independent Providers. (c) Interest earnings. Any interest earned by the Intermediary on advances of Rural Development REDG or REDL funds prior to the disbursement for the Project, must be returned to Rural Development. | ||||
| 7:7:15.1.19.2.6.1.24.23 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | §§ 4280.31-4280.35 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.24 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.36 Other laws that contain compliance requirements for these Programs. | RBS | [72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014; 81 FR 11052, Mar. 2, 2016] | (a) Equal employment opportunity. For all construction contracts and Grants in excess of $10,000, the contractor must comply with Executive Order 11246, as amended by Executive Order 11375, and as supplemented by applicable Department of Labor regulations (41 CFR part 60). The applicant is responsible for ensuring that the contractor complies with these requirements. (b) Equal opportunity and nondiscrimination. Rural Development will ensure that equal opportunity and nondiscriminatory requirements are met in accordance with the Equal Credit Opportunity Act and 7 CFR part 15d, conducted by USDA. Rural Development will not discriminate against applicants on the bases of race, color, religion, national origin, sex, marital status, or age (provided that the applicant has the capacity to contract); to the fact that all or part of the applicant's income derives from public assistance program; or to the fact that the applicant has in good faith exercised any right under the Consumer Credit Protection Act. (c) Civil rights compliance. Recipients of Grants must comply with the Americans with Disabilities Act of 1990, Title VI of the Civil Rights Act of 1964, and Section 504 of the Rehabilitation Act of 1973. This includes collection and maintenance of data on the race, sex, and national origin of the recipient's membership/ownership and employees. These data must be available to conduct compliance reviews in accordance with 7 CFR part 1901 subpart E, § 1901.204. Initial compliance reviews will be conducted with the Intermediary when Form RD 400-4, “Assurance Agreement,” is signed. For each loan or Grant an Intermediary receives, a new Form RD 400-4 must be completed. Each Ultimate Recipient must go through the same pre-award compliance review process and must also sign Form RD 400-4. For loans and Grants, a pre-award review is required before loan or Grant approval or any disbursement of funds. For Intermediaries, a post-award compliance review is required 90 days after closing the loan or Grant. This review is no… | ||||
| 7:7:15.1.19.2.6.1.24.25 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.37 Application forms and filing dates. | RBS | (a) The Intermediary may obtain forms that supplement the written narrative sections of its application from the Rural Development State Office for the State where the Intermediary is located. (b) An original copy only of the application is to be filed with the Rural Development State Office. No other copies are required. | |||||
| 7:7:15.1.19.2.6.1.24.26 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.38 Maximum amount of loans or Grants. | RBS | During any given fiscal year, Rural Development will publish an announcement of available loan and Grant funds and will indicate the maximum loan and Grant amounts for which an Intermediary or prospective Intermediary may apply. This announcement will also include contact information and application deadlines. All pending applications on file at RBS, including both loan and Grant applications, from the same Intermediary or prospective Intermediary for the same Project will be considered to be one application in determining that the maximum size of the application is in accordance with this section. | |||||
| 7:7:15.1.19.2.6.1.24.27 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.39 Contents of an application. | RBS | [72 FR 29843, May 30, 2007, as amended at 81 FR 11052, Mar. 2, 2016] | An application for a loan or a Grant must contain the following: (a) Required forms and certifications: (1) Standard Form 424, “Application for Federal Assistance,” signed by an authorized representative of the Intermediary. (2) A Resolution of the Board of Directors signed by the directors and certified by the Intermediary's board secretary. The board resolution must indicate whether the Intermediary is requesting a loan or Grant, agree to the provisions of this subpart and the loan or Grant agreement including the Intermediary's 20 percent Fund contribution, and state that the Intermediary has the legal authority to enter into a loan or Grant agreement under these Programs; (3) Form AD 1047, “Certification Regarding Debarment, Suspension, and other Responsibility Matters—Primary Covered Transactions,” and Form AD-1048, “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Transactions.” (4) Assurance statement for the Uniform Act signed by the Ultimate Recipient. This statement provides Rural Development with the required assurance statement that any relocations of persons or acquisitions of real property, as part of completing the Ultimate Recipient Project, will be handled in accordance with this statute. (5) RD Instruction 1940-Q, Exhibit A-1, applies if the loan is greater than $150,000 or the Grant is greater than $100,000; (6) SF LLL, “Disclosure of Lobbying Activities,” (if the Intermediary or the Ultimate Recipient engages in lobbying activities); (7) Form AD 1049, “Certification Regarding Drug-Free Workplace Requirements,” for Grants only; (8) Seismic certification if construction of a building is proposed. The Project owner certifies that any building constructed will comply with standards that reduce the damage caused by earthquakes; (9) Environmental documentation in accordance with 7 CFR part 1970. (10) RUS Form 7, “Financial and Statistical Report” and RUS Form 7a “Investments, Loan Guarantees, and Loans,” or similar information. (b) A written… | ||||
| 7:7:15.1.19.2.6.1.24.28 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.40 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.29 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.41 Environmental review of the application. | RBS | [81 FR 11052, Mar. 2, 2016] | The Agency will review the environmental documentation in accordance with 7 CFR part 1970. Intermediaries will be informed by the Agency if additional information is required from the intermediary to complete the environmental review process. The environmental review process must be completed before the application can be considered for approval by the Agency. | ||||
| 7:7:15.1.19.2.6.1.24.3 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.3 Definitions. | RBS | [72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014; 80 FR 9913, Feb. 24, 2015; 80 FR 15885, Mar. 26, 2015; 87 FR 38644, June 29, 2022] | The following definitions are applicable to this subpart: Advanced Telecommunications. Using communications equipment for purposes, such as the simultaneous transmission of images and voice or the electronic transmission of data between multiple sites that do not consist primarily of providing local exchange voice or other routine communications. Agricultural Production. The cultivation, production, growing, raising, feeding, housing, breeding, hatching, or managing of crops, plants, animals, fish, or birds, either for fiber, food for human consumption, or livestock feed. Business Incubator. A facility in which small businesses can share premises, support staff, computers, software or hardware, telecommunications terminal equipment, machinery, janitorial services, utilities, or other overhead expenses, and where such businesses can receive Technical Assistance, financial advice, business planning services or other support. Community Facilities Project. An eligible community facility under the Community Facility Direct or Guaranteed programs. Conflict of interest. A situation in which a person or entity has competing personal, professional, or financial interests that make it difficult for the person or business to act impartially. Regarding use of both grant and matching funds, Federal procurement standards prohibit transactions that involve a real or apparent conflict of interest for owners, employees, officers, agents, their immediate family members, partners, or an organization which is about to employ any of the parties indicated herein, having a financial or other interest in or tangible personal benefit from the outcome of the project; or that restrict open and free competition for unrestrained trade. Specifically, project funds may not be used for services or goods going to, or coming from, a person or entity with a real or apparent conflict of interest, including, but not limited to, owner(s) and their immediate family members. Cushion of Credit. The amount contributed by the Intermediary purs… | ||||
| 7:7:15.1.19.2.6.1.24.30 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.42 Application evaluation and selection. | RBS | [72 FR 29843, May 30, 2007, as amended at 80 FR 9913, Feb. 24, 2015] | (a) Rural Development will evaluate the application and score it based on the selection factors in this section. All applications will be ranked on a nationwide basis, based on the total points scored. (b) The application will be evaluated and scored using the information provided in accordance with § 4280.39(b)(2) of this subpart. (1) Nature of the Project. Rural Development will award up to 60 points based on whether the Project: (i) Is a for-profit business, Business Incubator, industrial building or park, or an infrastructure connection project (such as streets or utilities)—20 points; (ii) Provides Technical Assistance to rural businesses or rural residents, or educates or provides medical care to rural residents—20 points; (iii) Will enhance rural economic development by providing Advanced Telecommunications services and computer networks for medical, educational, and job training services. This review will be based on the application's telecommunications design—20 points. (2) Number of direct full-time equivalent jobs created or saved within a 3-year period. To calculate full-time equivalent Direct-Jobs, count two part-time jobs as one full-time job or three part-time or seasonal jobs as one full-time job. If the total numbers of part-time and seasonal jobs add up to a fraction, round up to the next whole number after combining same. Indirect-Jobs or non-Rural jobs cannot be used for this calculation. (3) Supplemental funds for the Project. Points will be based on a calculation of the amount of supplemental funds to be provided to the Project. All supplemental funds used in the following calculation must be disbursed to the Project between the date of Rural Development receipt of the application and 1 year after the first advance of funds by Rural Development: (4) Unemployment rate for the county(ies) where the Project is physically located. Rural Development will compare the current unemployment rate(s) in the county(ies) to the State and national unemployment rates, and, if applicable, aw… | ||||
| 7:7:15.1.19.2.6.1.24.31 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.43 Discretionary points. | RBS | The RBS Administrator has the discretion to designate up to 25 points (no more than 5 points for each of the following elements) based on whether the Project: (a) Is located in a Rural Empowerment Zone, Rural Economic Area Partnership Zone, Rural Enterprise Community, or Champion Community; (b) Is located in a county that has experienced the loss, removal, or closing of a major source or sources of employment in the last 3 years which causes an increase of 2 percentage points or more in the county's most recent unemployment rate compared with the same period immediately before the dislocation; (c) Is located in a county that has experienced chronic or long-term economic deterioration; (d) Is located in a county that was designated a disaster area by the President of the United States that significantly affected rural economic development and job creation. The county must have been designated within 3 years prior to filing of the completed application with Rural Development; or (e) Is consistent with the Rural Development State Office's approved strategic plan and mission area objectives and is identified as a priority area for assistance in the States' plan. | |||||
| 7:7:15.1.19.2.6.1.24.32 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.44 Limitation on number of loans or Grants to an Intermediary. | RBS | Depending on the amount of funds available, Rural Development may publish an announcement limiting an Intermediary to one selected Grant application and two selected loan applications in a fiscal year. | |||||
| 7:7:15.1.19.2.6.1.24.33 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | §§ 4280.45-4280.46 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.34 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.47 Non-selection of applications. | RBS | Provided the application requirements have not changed, an application not selected will be reconsidered in 3 subsequent funding competitions for a total of four funding competitions. If an application is withdrawn, it can be resubmitted and will be evaluated as a new application. | |||||
| 7:7:15.1.19.2.6.1.24.35 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.48 Post selection period. | RBS | Rural Development will notify the Intermediary in writing if the application is selected. The documents to be executed by the Intermediary will include: (a) For a loan: (1) A Letter of Conditions with Project-specific terms and conditions; (2) A loan agreement with general terms and conditions; (3) A note covering the repayment terms of the loan; and (4) A legal opinion concerning the authority of the Intermediary to engage in the Project. (b) For a Grant: (1) A Letter of Conditions with Project-specific terms and conditions; (2) A Grant agreement with general terms and conditions; and (3) A legal opinion concerning the authority of the Intermediary to participate in the Revolving Loan Fund and to engage in the Project. | |||||
| 7:7:15.1.19.2.6.1.24.36 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.49 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.37 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.50 Disbursement of Zero-Interest Loan funds. | RBS | [72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014] | (a) For a REDL loan, Rural Development will disburse Zero-Interest Loan funds to the Intermediary in accordance with the terms of the executed loan agreement. All loan funds will be disbursed either as an advance to the Intermediary, in multiple advances, or as a reimbursement for eligible project costs, once the Intermediary has complied with Rural Development requirements. (b) The Intermediary must provide to the Ultimate Recipient all loan funds that the Intermediary receives from Rural Development within one year of receiving them. If the Intermediary does not re-lend Rural Development funds within one year, the loan funds, and all interest earned on the loan funds, must be returned to the Agency. (c) For a REDG loan, Rural Development will disburse Grant funds to the Intermediary in accordance with 2 CFR 200 as adopted by USDA in 2 CFR part 400 as applicable. Specifically, Rural Development will disburse the Grant funds in advance if the following requirements are met: (1) The Intermediary has established written procedures that will minimize the time elapsing between the transfer of funds from Rural Development and their disbursement to the Ultimate Recipient; (2) The management system of the Intermediary meets the requirements of 2 CFR part 200 as adopted by USDA in 2 CFR part 400, as applicable; (3) All necessary supplemental funds for the Project have been obligated or committed to the Revolving Loan Fund; and (4) The requests for cash advances made by the Intermediary are limited to the minimum amounts needed and timed to be in accordance with the actual immediate cash needs of the Ultimate Recipient for carrying out the Project. | ||||
| 7:7:15.1.19.2.6.1.24.38 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | §§ 4280.51-4280.52 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.39 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.53 Loan payments. | RBS | The Intermediary must make all REDL payments to Rural Development by electronic funds transfer or other means as specified in the loan documents. | |||||
| 7:7:15.1.19.2.6.1.24.4 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | §§ 4280.4-4280.12 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.40 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.54 Construction procurement requirements. | RBS | Construction, including bidding and awarding of contracts, must be conducted in a manner that provides maximum open and free competition. | |||||
| 7:7:15.1.19.2.6.1.24.41 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.55 Monitoring responsibilities. | RBS | [72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014] | (a) The Intermediary must monitor the Project to ensure that: (1) Funds are used only for the approved purposes as specified in the legal documents; (2) Disbursements and expenditures of funds are properly supported with certifications, invoices, contracts, bills of sale, or other forms of evidence, which are maintained on the premises of the Intermediary; (3) Project time schedules are being met, projected work by time periods is being accomplished, and other performance objectives are being achieved; and (4) The Project is in compliance with all applicable regulations. (b) Rural Development may inspect and copy records and documents that pertain to the Project. The Intermediary must retain these records for the term of the Project loan plus 2 years. In addition, Rural Development may also perform Project site visits and reviews of the use of loan or Grant proceeds. (c) Rural Development will review and monitor Grants in accordance with 2 CFR part 200, as adopted by USDA in 2 CFR parts 400, 415, 417, 418, and 421 as applicable. | ||||
| 7:7:15.1.19.2.6.1.24.42 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.56 Submission of reports and audits. | RBS | [72 FR 29843, May 30, 2007, as amended at 79 FR 76015, Dec. 19, 2014] | (a) In addition to any reports and audits required by 2 CFR part 200 and subpart F as adopted by USDA in 2 CFR part 400, the Intermediary must submit the following monitoring reports to Rural Development: (1) Loan. The Intermediary must submit Form RD 4280-1 “Survey of Recipients of Rural Economic Development Loan and Grant Program” to Rural Development on an annual basis until it no longer owes money to USDA under the REDLG Program. (2) Grant (Revolving Loan Fund). The Intermediary must submit the Form RD 4280-1 to Rural Development on an annual basis until all projects financed with Rural Development Grant proceeds have been repaid or are otherwise retired, whichever occurs last. Thereafter, on a triennial basis until the fund is terminated, the Intermediary will submit to Rural Development the Form RD 4280-1, reporting on the activity of all loans made from the Revolving Loan Fund. (b) If the Intermediary does not have an existing loan with RUS, the Intermediary will submit a copy of its annual audit to Rural Development within 90 days of its completion. All REDL audits must be conducted in accordance with Generally Accepted Government Auditing Standards or Generally Accepted Accounting Principles and REDG audits in accordance with 2 CFR part 200 as adopted by USDA in 2 CFR part 400. (c) Rural Development may require Ultimate Recipients that receive loans financed with Grant funds provided under the REDG Program to submit annual audits to comply with Federal audit regulations. In accordance with 2 CFR part 200, as adopted by USDA in 2 CFR part 400, Ultimate Recipients that are nonprofit entities, or a State or local government, may be required to submit an audit subject to the threshold established in 2 CFR part 200, as adopted by in 2 CFR part 400. | ||||
| 7:7:15.1.19.2.6.1.24.43 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | §§ 4280.57-4280.61 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.44 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.62 Appeals. | RBS | An Intermediary may appeal any appealable adverse decision made by Rural Development that affects the Intermediary in accordance with 7 CFR part 11. | |||||
| 7:7:15.1.19.2.6.1.24.45 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.63 Exception authority. | RBS | Except as specified in paragraphs (a) through (c) of this section, the RBS Administrator may, on a case-by-case basis, make exceptions to any requirement or provision of this subpart, if such exception is necessary to implement the intent of the authorizing statute in a time of national emergency or in accordance with a Presidentially-declared disaster, or when such an exception is in the best interests of the Federal Government and is otherwise not in conflict with applicable law. (a) Applicant eligibility. No exception to applicant eligibility can be made. (b) Project eligibility. No exception to project eligibility can be made. (c) Rural area definition. No exception to the definition of rural area, as defined, can be made. | |||||
| 7:7:15.1.19.2.6.1.24.46 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | §§ 4280.64-4280.99 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.47 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.100 OMB control number. | RBS | The information collection requirements contained in this regulation have been approved by the Office of Management and Budget (OMB) and have been assigned OMB control number 0575-0035. A person is not required to respond to this collection of information unless it displays a currently valid OMB control number. | |||||
| 7:7:15.1.19.2.6.1.24.5 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.13 Applicant eligibility. | RBS | Applicants that are not delinquent on any Federal debt or otherwise disqualified from participation in these Programs are eligible to apply. An applicant must be eligible under 7 U.S.C. 940c. | |||||
| 7:7:15.1.19.2.6.1.24.6 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.14 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.1.24.7 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.15 Ultimate Recipient Projects eligible for Rural Economic Development Loan funding. | RBS | [72 FR 29843, May 30, 2007, as amended at 85 FR 57085, Sept. 15, 2020] | An Intermediary may receive REDL funds only when it has a pre-approved Ultimate Recipient and Project that have an immediate need for the Zero-Interest Loan. REDL funds may only be used by the Intermediary to make a Zero-Interest Loan to the Ultimate Recipient to finance financially viable economic development or job creation Projects in a Rural Area. Funds may only be used to provide the following assistance: (a) Start-Up Venture costs, including, but not limited to financing fixed assets such as real estate, buildings (new or existing), equipment, or working capital; (b) Business expansion; (c) Business Incubators; (d) Technical Assistance; (e) Project feasibility studies; (f) Advanced Telecommunications services and computer networks for medical, educational, and job training services; (g) Other Projects eligible under § 4280.21; or (h) Community Facilities Projects. (i) A borrower is permitted to use up to 10 percent of the amount provided under this subpart to construct, improve, or acquire broadband infrastructure related to the project financed, subject to the requirements of 7 CFR part 1980, subpart M. | ||||
| 7:7:15.1.19.2.6.1.24.8 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.16 REDL and REDG Loan terms. | RBS | REDL and REDG loans made by the Intermediary are governed by the following terms: (a) The maximum term of a loan is 10 years, including any principal deferment period. The Intermediary may choose a shorter term if desired. (b) Deferments on Zero-Interest Loans will automatically be granted by Rural Development upon request of the Intermediary as follows: (1) A deferral for up to 1 year for Projects involving an Established Operation; or (2) A deferral for up to 2 years for Projects involving a Start-Up venture or a Community Facilities Project whether or not such Project also receives funding under USDA Community Facilities funding programs. (c) The Intermediary must provide the Ultimate Recipient with the same loan terms as the Intermediary receives from Rural Development. (d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions. | |||||
| 7:7:15.1.19.2.6.1.24.9 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | A | Subpart A—Rural Economic Development Loan and Grant Programs | § 4280.17 Additional REDL terms. | RBS | (a) The Intermediary is responsible for fully repaying the Zero-Interest Loan to RBS even if the Ultimate Recipient does not repay the Intermediary. (b) The Intermediary is responsible for remitting any partial or full payment to RBS at the time the Ultimate Recipient pays the Intermediary. (c) Unless deferred pursuant to § 4280.16(b) of this subpart, loan payments to Rural Development under the REDL Program are due monthly. (d) If the Intermediary does not have an outstanding loan with RUS, the Intermediary must immediately provide, as security for any REDL loan it receives, a Rural Development-approved irrevocable letter of credit that remains in effect until the loan is repaid. | |||||
| 7:7:15.1.19.2.6.2.24.1 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.101 Purpose. | RBS | This subpart contains the procedures and requirements for providing the following financial assistance under the Rural Energy for America Program (REAP): (a) Grants, or a combination grant and guaranteed loan, for the purpose of purchasing and installing Renewable Energy Systems (RES) and Energy Efficiency Improvements (EEI); (b) Grants to assist agricultural producers and rural small businesses by conducting Energy Audits (EA) and providing recommendations and information on Renewable Energy Development Assistance (REDA); and (c) Grants or guaranteed loans, or a combination grant and guaranteed loan to an applicant or borrower pursuant to 7 CFR 1980, Subpart M Special Authority to Enable Funding of Broadband and Smart Utility Facilities Across Select Rural Development Programs. A Borrower or applicant receiving funding as referenced in paragraphs (a) or (b) of this section is permitted to use up to 10 percent of the amount provided under this subpart to construct, improve, or acquire broadband infrastructure related to the project financed, subject to the requirements of 7 CFR 1980, Subpart M. | |||||
| 7:7:15.1.19.2.6.2.24.10 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.110 General applicant, application, and funding provisions. | RBS | (a) Satisfactory progress. An applicant that has received one or more grants and/or guaranteed loans under this program must make satisfactory progress, as determined by the Agency, toward completion of any previously funded projects before the applicant will be considered for subsequent funding. This may include a review of the applicant compliance with Agency reporting requirements. Satisfactory progress for EA and REDA grants is defined as at least 50 percent of previous EA or REDA awards expended at the time the Agency makes its eligibility determination. (b) Application submittal. Applications must be submitted in accordance with the provisions of this subpart unless otherwise specified in a Federal Register notice. Grant applications and combined grant and guaranteed loan applications for financial assistance under this subpart may be submitted at any time. (1) Grant applications. Complete grant applications will be accepted on a continuous basis, with awards made based on the application's score and subject to available funding. (2) Combined grant and guaranteed loan applications. Applications requesting a RES or EEI grant and a guaranteed loan under this subpart will be accepted on a continuous basis, with awards made based on the grant application's score and subject to available funding. (c) Application limits. An applicant applying for a grant or a combined grant and guaranteed loan is limited to competing one RES application and one EEI application under this subpart in any one Federal fiscal year. An applicant that proposes to install the same EEI or RES (including hybrid) across multiple facilities can be considered one project and be submitted in one application. (d) Application modification. Once submitted and prior to Agency award, if an applicant modifies the scope of the project described in its application, the application will be treated as a new application. The submission date of record for such modified applications will be the date the Agency receives the modified infor… | |||||
| 7:7:15.1.19.2.6.2.24.11 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.111 Notifications. | RBS | (a) Eligibility. If an applicant and/or their application are determined by the Agency to be eligible for participation, the Agency will notify the applicant or lender in writing of the eligibility determination. (b) Ineligibility. If an applicant and/or their application are determined to be ineligible at any time, the Agency will inform the applicant or lender, as applicable, in writing of the decision, reasons therefore, and any appeal rights, if applicable. No further processing of the application will occur. (c) Funding determinations. Each applicant and/or lender, as applicable, will be notified of the Agency's decision on their application. If unfunded in a competition, the application will compete in the next available competition and will continue competing until either awarded or the application has competed in the maximum number of competitions in a fiscal year. The Agency will then issue an adverse funding determination for the unsuccessful application. If the Agency's decision is not to fund an application, the Agency will include in the notification any applicable appeal or review rights. | |||||
| 7:7:15.1.19.2.6.2.24.12 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.112 Applicant eligibility. | RBS | To receive a RES or EEI grant under this subpart, an applicant must meet the requirements specified in paragraphs (a) through (g) of this section. (a) Type of applicant. The applicant must be an agricultural producer or rural small business at the time of application. (b) Ownership and control. The applicant must at the time of application and, if an award is made, for the useful life of the project as described in the Financial Assistance Agreement: (1) Own the project; and (2) Own or control the site for the project. If the grantee does not maintain ownership of the project and ownership or control of the site, then grant funds may be recovered from the grantee by the Agency in accordance with Departmental Regulations. (c) End Users. If the controlling interest in the applicant entity is otherwise eligible and a legal transaction between two parties for the sale of energy in an open market is being proposed, the Agency will not consider the energy end-users as part of the analysis of the eligibility of the applicant. If the proposed end-user would be an ineligible applicant, such as an entity which is residential in nature or a non-profit entity, and the REAP applicant entity is a newly formed special-purpose entity with substantially the same ownership as the sole proposed end-user, then the REAP applicant entity is not eligible. (d) Revenues and expenses. The applicant must have available at the time of application satisfactory sources of revenue in an amount sufficient to provide for the operation, management, maintenance, and any debt service of the project for the useful life of the project. In addition, the applicant must control the revenues and expenses of the project, including its operation and maintenance. Notwithstanding the provisions of this paragraph, the applicant may employ a qualified consultant under contract to manage revenues and expenses of the project and its operation and/or maintenance. (e) Legal authority and responsibility. Each applicant must have the legal authority… | |||||
| 7:7:15.1.19.2.6.2.24.13 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.113 Project eligibility. | RBS | For a project to be eligible to receive a RES or EEI grant under this subpart, the proposed project must meet each of the requirements specified in paragraphs (a) through (e) of this section. Subsequent EEI projects must meet the requirements specified in paragraph (a)(5)(ii) of this section. The applicant is cautioned against taking any actions or incurring any obligations prior to the Agency completing the environmental review that would either limit the range of alternatives to be considered or that would have an adverse effect on the environment, such as the initiation of construction. If the applicant takes any such actions or incurs any such obligations, it could result in project ineligibility. (a) The project must be for: (1) The purchase of a new RES; (2) The purchase of a refurbished RES; (3) The retrofitting of an existing RES; (4) For the purposes of this subpart, only those hydroelectric sources with a rated power of 30 megawatts or less are eligible, or (5) Making an EEI that will allow less energy to be used on an annual basis than the original building and/or equipment being improved or replaced as provided in a vendor/installer certification or as demonstrated in an energy assessment or energy audit as applicable. (i) Types of improvements. Eligible EEI include, but are not limited to: (A) Efficiency improvements to existing RES; and (B) Construction of a new energy efficient building only when the building is used for the same purpose as the existing building, and, based on an energy assessment or energy audit, as applicable, it will be more cost effective to construct a new building and will use less energy on annual basis than improving the existing building. (ii) Subsequent EEI projects. A proposed EEI project that replaces an EEI project previously funded under this subpart may or may not be eligible for funding. (A) If the proposed EEI project would replace the same specific EEI equipment that had previously received funds under this subpart prior to the end of the useful lif… | |||||
| 7:7:15.1.19.2.6.2.24.14 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.114 Ineligible projects. | RBS | The Agency will not award funding under this part for any projects identified in this section, unless otherwise noted. (a) Research and development projects and projects that involve technology that is not commercially available; (b) Business operations that derive more than 10 percent of annual gross revenue from gambling activity. Gambling activities include any lease income from space or machines used for gambling activities. State or Tribal-authorized lottery proceeds, as approved by the Agency, conducted for the purpose of raising funds for the approved project are excluded; (c) Business operations deriving income from activities of a sexual nature or illegal activities; (d) Residential RES or EEI projects, including farm labor housing, apartment complexes, and owner-occupied bed and breakfasts, except for-profit nursing homes and assisted living facilities that provide full-time medical care for residents, and for-profit hotels that provide short-term housing; (e) Racetracks or facilities for conducting either professional or amateur races of animals, or by professional or amateur drivers or jockeys, or any other type of racing; (f) RES projects that co-fire with fossil fuels, natural gas or petroleum-based products or materials such as coal and other non-renewable fuels, oils, and chemicals, and tires or plastic; (g) Projects where 50 percent or more of the costs are ineligible or where project costs as defined in the application do not meet the definition of a renewable energy system or energy efficiency improvement, including projects submitted for labor costs only. Project costs associated with an EEI that are not clearly identified in the energy assessment or audit will be considered ineligible costs; and (h) Projects proposing two or more different types of RES technologies that are not incorporated into a unified system and projects proposing two or more different types of RES technologies at two or more locations. | |||||
| 7:7:15.1.19.2.6.2.24.15 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.115 RES and EEI grant funding. | RBS | (a) Grant amounts. The amount of grant funds that will be made available to an eligible RES or EEI project under this subpart will not exceed 25 percent of eligible project costs. Eligible project costs are specified in paragraph (c) of this section. (1) Minimum request. Unless otherwise specified in a Federal Register notice, the minimum request for a RES grant application is $2,500 and the minimum request for an EEI grant application is $1,500. (2) Maximum request. Unless otherwise specified in a Federal Register notice, the maximum request for a RES grant application is $500,000 and the maximum request for an EEI grant application is $250,000. (3) Maximum grant assistance. Unless otherwise specified in a Federal Register notice, the maximum amount of grant assistance to one person or entity under this subpart will not exceed $750,000 per Federal fiscal year. (b) Matching funds and other funds. The applicant is responsible for securing the remainder of the total project costs not covered by grant funds. (1) Without specific statutory authority, other Federal grant funds cannot be used to meet the matching funds requirement. A copy of the statutory authority must be provided to the Agency to verify if the other Federal grant funds can be used to meet the matching funds requirement under this subpart. (2) Passive third-party equity contributions are acceptable for RES projects, including equity raised from the sale of Federal tax credits. (c) Eligible Project Costs. Eligible project costs are only those costs incurred after a complete application has been received by the Agency and are associated with the items identified in paragraphs (c)(1) through (6) of this section. Each item identified in paragraphs (c)(1) through (6) of this section is only an eligible project cost if it is directly related to and its use and purpose is limited to the RES or EEI. (1) Purchase and installation of new or refurbished equipment. (2) Construction, retrofitting, replacement, and improvements. (3) EEI … | |||||
| 7:7:15.1.19.2.6.2.24.16 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.116 Grant applications—general. | RBS | (a) General. Separate applications must be submitted for RES and EEI projects. An original, hardcopy or electronic, of each application is required. (b) Application content. Applications for RES projects or EEI projects must contain the information specified in § 4280.118 unless the requirements of either § 4280.119(a) or § 4280.120(a) are met. If the requirements of § 4280.119(a) are met, the application may contain the information specified in § 4280.119(b). If the requirements of § 4280.120(a) are met, the application may contain the information specified in § 4280.120(b). For RES Projects only, the Agency may require a feasibility study based on the scope of the project to the applicant's overall operations, including new facilities with significant impacts on an existing operation, or when the application information or technical report does not provide sufficient documentation and analysis of the project's engineering, technical, financial, or market feasibility, or the economic viability of the project including any feedstock or off-take agreements, that are needed to evaluate whether a project will be successful. The elements of an acceptable feasibility study may vary by project scope and should be prepared by a qualified and independent third party. (c) Evaluation of applications. The Agency will evaluate each RES and EEI grant application and make a determination as to whether the application meets the criteria specified in paragraphs (c)(1) through (4). (1) The application is complete, as defined in § 4280.103; (2) The Applicant is eligible according to § 4280.112; (3) The project is eligible according to § 4280.113; and (4) The proposed project has technical merit as determined under § 4280.117. | |||||
| 7:7:15.1.19.2.6.2.24.17 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.117 Determination of technical merit. | RBS | The Agency will determine the technical merit of all proposed projects for which complete applications are submitted under §§ 4280.118, 4280.119, and 4280.120 under this subpart using the procedures specified in this section. Only projects that have been determined by the Agency to have technical merit are eligible for funding under this subpart. (a) General. The Agency will use the information provided in the applicant's application and/or technical report to determine whether or not the project has technical merit. In making this determination, the Agency may engage the services of other Government agencies or other recognized industry experts in the applicable technology field, at its discretion, to evaluate and rate the technical report. The technical report can also be provided in the technical feasibility section of the feasibility study, when required, instead of completing a separate technical report. (b) Technical report areas. The areas that the Agency will evaluate in the technical reports when making the technical merit determination are specified in paragraphs (b)(1) through (5) of this section. (1) EEI whose total project costs are $80,000 or less. The following areas will be evaluated in making the technical merit determination: (i) Project description; (ii) Qualifications of EEI provider(s); and (iii) Vender/Installer certification, energy assessment, or energy audit. (2) RES whose total project costs are $80,000 or less. The following areas will be evaluated in making the technical merit determination: (i) Project description; (ii) Resource assessment; (iii) Project economic assessment; and (iv) Qualifications of key service providers. (3) EEI whose total project costs are greater than $80,000. The following areas will be evaluated in making the technical merit determination: (i) Project information; (ii) Energy assessment or energy audit; and (iii) Qualifications of the contractor or installers. (4) RES whose total project costs are less than $200,000, but more than $8… | |||||
| 7:7:15.1.19.2.6.2.24.18 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.118 Grant applications for RES and EEI projects with total project costs of $200,000 and greater. | RBS | Grant applications for RES and EEI projects with total project costs of $200,000 and greater must provide the information specified in paragraphs (a) through (c) of this section, as applicable. Each applicant is encouraged, but is not required, to self-score the project using the evaluation criteria in § 4280.121. (a) Forms and certifications. Each application must contain the forms and certifications specified in paragraphs (a)(1) through (10), as applicable, of this section, except paragraph (a)(5) is optional. (1) Form RD 4280-3C, “Application for Renewable Energy Systems and Energy Efficiency Improvement Projects Total Project Costs of $200,000 or Greater”. (2) Form SF-424, “Application for Federal Assistance.” (3) Form SF-424C, “Budget Information—Construction Programs.” (4) Form SF-424D, “Assurances—Construction Programs.” (5) Identify the ethnicity, race, and gender of the applicant. Identify if the borrower is a veteran. This information is optional and is not required for a complete application but may be used by the Agency to award priority points. (6) Environmental documentation in accordance with 7 CFR part 1970. The applicant should contact the Agency to determine what documentation is required to be provided. (7) The applicant must identify whether or not the applicant has a known relationship or association with an Agency employee. If there is a known relationship, the applicant must identify each Agency employee with whom the applicant has a known relationship. (8) Certification that the applicant is a legal entity in good standing (as applicable) and operating in accordance with the laws of the State(s) or Tribe(s) where the applicant has a place of business. (9) Certification by the applicant that the equipment required for the project is available, can be procured and delivered within the proposed project development schedule, and will be installed in conformance with manufacturer's specifications and design requirements. This would not be applicable when equipment is not part of th… | |||||
| 7:7:15.1.19.2.6.2.24.19 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.119 Grant applications for RES and EEI projects with total project costs of less than $200,000, but more than $80,000. | RBS | Grant applications for RES and EEI projects with total project costs of less than $200,000, but more than $80,000, may provide the information specified in this section or, if the applicant elects to do so, the information specified in § 4280.118. In order to submit an application under this section, the criteria specified in paragraph (a) of this section must be met. The content for applications submitted under this section is specified in paragraph (b) of this section. Unless otherwise specified in this subpart, the construction planning and performing development procedures and the payment process that will be used for awards for applications submitted under this section are specified in paragraphs (c) and (d), respectively, of this section. (a) Criteria for submitting applications for projects with total project costs of less than $200,000, but more than $80,000. In order to submit an application under this section, each of the conditions specified in paragraphs (a)(1) through (7) of this section must be met. (1) The applicant must be eligible in accordance with § 4280.112. (2) The project must be eligible in accordance with § 4280.113. (3) Total project costs must be less than $200,000, but more than $80,000. (4) Construction planning and performing development must be performed in compliance with paragraph (c) of this section. The applicant or the applicant's prime contractor assumes all risks and responsibilities of project development. (5) The applicant or the applicant's prime contractor is responsible for all interim financing, including during construction. (6) The applicant agrees not to request reimbursement from funds obligated under this program until after project completion and is operating in accordance with the information provided in the application for the project. (7) The applicant must maintain insurance as required under § 4280.123(b), except business interruption insurance is not required. (b) Application content. Applications submitted under this section must contain the inf… | |||||
| 7:7:15.1.19.2.6.2.24.2 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.102 Organization of subpart. | RBS | (a) Sections 4280.103 through 4280.111 discuss definitions; exception authority; review or appeal rights; conflict of interest; USDA Departmental Regulations; other applicable laws; ineligible applicants, grantees, and owners; general applicant, application, and funding provisions; and notifications, which are applicable to all of the funding programs under this subpart. (b) Sections 4280.112 through 4280.125 discuss the requirements specific to RES and EEI grants. Sections 4280.112 and 4280.113 discuss, respectively, applicant and project eligibility. Section 4280.114 addresses ineligible projects. Section 4280.115 addresses funding provisions for these grants. Sections 4280.116 through 4280.120 address grant application content, technical merit determination, and required documentation. Sections 4280.121 through 4280.124 address the scoring, selection, awarding and administering, and servicing of these grant applications. Section 4280.125 addresses construction planning and development. (c) Section 4280.137 presents the process by which the Agency will make combined loan guarantee and grant funding available for RES and EEI projects. (d) Sections 4280.149 through 4280.159 present the process by which the Agency will make EA and REDA grant funding available. These sections cover applicant and project eligibility, grant funding, application content, evaluation, scoring, selection, awarding and administering, and servicing. (e) Appendices A through C cover technical report requirements. Appendix A applies to EEI projects; Appendix B applies to RES projects with Total Project Costs of Less Than $200,000, but more than $80,000; and Appendix C applies to RES projects with Total Project Costs $200,000 and Greater. Appendices A and B do not apply to RES and EEI projects with Total Project Costs of $80,000 or less, respectively. Instead, technical report requirements for these projects are found in § 4280.120. (f) Appendix D covers contents of feasibility study. | |||||
| 7:7:15.1.19.2.6.2.24.20 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.120 Grant applications for RES and EEI projects with total project costs of $80,000 or less. | RBS | Grant applications for RES and EEI projects with total project costs of $80,000 or less must provide the information specified in this section or, if the applicant elects to do so, the information specified in either §§ 4280.118 or 4280.119. In order to submit an application under this section, the criteria specified in paragraph (a) of this section must be met. The content for applications submitted under this section is specified in paragraph (b) of this section. Unless otherwise specified in this subpart, the construction planning and performing development procedures and the payment process that will be used for awards for applications submitted under this section are specified in paragraphs (c) and (d), respectively, of this section. (a) Criteria for submitting applications for RES and EEI projects with total project costs of $80,000 or less. In order to submit an application under this section, each of the conditions specified in paragraphs (a)(1) through (7) of this section must be met. (1) The applicant must be eligible in accordance with § 4280.112. (2) The project must be eligible in accordance with § 4280.113. (3) Total project costs must be $80,000 or less. (4) Construction planning and performing development must be performed in compliance with paragraph (c) of this section. The applicant or the applicant's prime contractor assumes all risks and responsibilities of project development. (5) The applicant or the applicant's prime contractor is responsible for all interim financing, including during construction. (6) The applicant agrees not to request reimbursement from funds obligated under this program until after the project has been completed and is operating in accordance with the information provided in the application for the project. (7) The applicant must maintain insurance as required under § 4280.123(b), except business interruption insurance is not required. (b) Application content. Applications submitted under this section must contain the information specified in paragraphs (… | |||||
| 7:7:15.1.19.2.6.2.24.21 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.121 Scoring RES and EEI grant applications. | RBS | [86 FR 22309, Apr. 27, 2021, as amended at 90 FR 30560, July 10, 2025] | Agency personnel will score each complete and eligible RES and EEI application based on the scoring criteria specified in this section, unless otherwise specified in a Federal Register notice, with a maximum score of 100 points possible. (a) Environmental benefits. A maximum of 5 points will be awarded for this criterion based on whether the applicant has indicated in the application that the proposed project will have a positive effect on resource conservation ( e.g., water, soil, forest), public health ( e.g., potable water, air quality), and the environment ( e.g., compliance with EPA's renewable fuel standard(s), greenhouse gases, emissions, particulate matter). If the project will have a positive impact on: (1) Any one of the three impact areas, 1 point will be awarded. (2) Any two of the three impact areas, 3 points will be awarded. (3) All three impact areas, 5 points will be awarded. (b) Energy generated, replaced, or saved. A maximum of 25 points will be awarded for this criterion. Applications for RES and EEI projects are eligible for points under both paragraphs (b)(1) and (2) of this section. (1) Quantity of energy generated or saved per REAP grant dollar requested. A maximum of 10 points will be awarded for this sub-criterion. For RES and EEI projects, points will be awarded for either the amount of renewable energy generation per grant dollar requested, which includes those projects that are replacing energy usage with a renewable source; or the actual annual average energy savings over the most recent 12, 24, 36, 48, or 60 consecutive months of operation per grant dollar requested. Points will not be awarded for more than one category. (i) RES. The quantity of energy generated or replaced per grant dollar requested will be determined by dividing the projected total annual energy generated or replaced by the RES or RES retrofit (minus energy for residential use), which will be converted to BTUs, by the grant dollars requested. Points will be awarded based on the annual amount of … | ||||
| 7:7:15.1.19.2.6.2.24.22 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.122 Selecting RES and EEI grant applications for award. | RBS | Unless otherwise provided for in a Federal Register notice, RES and EEI grant applications will be processed in accordance with this section. Complete applications will be evaluated, processed, and subsequently ranked, and will compete for funding, subject to the availability of grant funding. Each State will receive two grant allocations, an allocation of grant funds restricted to funding requests of $20,000 or less, and an allocation of grant funds which are unrestricted and can fund any size funding request. (a) RES and EEI grant applications. Complete RES and EEI grant applications, including combination grant and guaranteed loan requests, regardless of the amount of funding requested, are eligible to compete in two competitions within a Federal fiscal year—a State competition and a National competition. (1) To be competed in the State and National competitions, complete applications must be received by the applicable State Office by 4:30 p.m. local time no later than March 31. If March 31 falls on a non-business day or a federally-observed holiday, the next Federal business day will be considered the last day for receipt of a complete application. Complete applications received after this date and time will be processed in the subsequent fiscal year. (2) All eligible RES and EEI grant applications that remain unfunded after completion of the State competition will be competed in a National competition. (b) RES and EEI grant applications requesting $20,000 or less. Complete RES and EEI grant applications, including combination grant and guaranteed loan requests, requesting $20,000 or less are eligible to compete in up to five competitions—two State competitions and a National set-aside competition for grants of $20,000 or less, as well as the two competitions referenced in paragraph (a) of this section. (1) For complete RES and EEI grant applications for grants requesting $20,000 or less, there will be two State competitions each Federal fiscal year. Complete applications for $20,000 or less that a… | |||||
| 7:7:15.1.19.2.6.2.24.23 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.123 Awarding and administering RES and EEI grants. | RBS | The Agency will award and administer RES and EEI grants in accordance with Departmental Regulations and with paragraphs (a) through (h) of this section. (a) Letter of Conditions. A Letter of Conditions will be prepared by the Agency, establishing conditions that must be agreed to by the applicant before any obligation of funds can occur. Upon reviewing the conditions and requirements in the Letter of Conditions, the applicant must complete, sign, and return the Form RD 1942-46, “Letter of Intent to Meet Conditions,” and Form RD 1940-1, “Request for Obligation of Funds,” to the Agency if they accept the conditions of the grant; or if certain conditions cannot be met, the applicant may propose alternate conditions to the Agency. The Agency must concur with any changes proposed to the Letter of Conditions by the applicant before the application will be further processed. (b) Insurance requirements. Agency approved insurance coverage must be maintained for 3 years after the Agency has approved the final performance report unless this requirement is waived or modified by the Agency in writing. Insurance coverage shall include, but is not limited to: (1) Property insurance, such as fire and extended coverage, will normally be maintained on all structures and equipment. (2) Liability. (3) National flood insurance is required in accordance with 7 CFR part 1806, subpart B, if applicable. (4) Business interruption insurance for projects with total project costs of more than $200,000. (c) Forms and certifications. The forms specified in paragraphs (c)(1) through (5) of this section will be attached to the Letter of Conditions referenced in paragraph (a) of this section. The forms specified in paragraphs (c)(1) through (4) of this section and all of the certifications must be submitted prior to grant approval. The form specified in paragraph (c)(5) of this section, which is to be completed by contractors, does not need to be returned to the Agency, but must be kept on file by the grantee. (1) Form RD 1942-46, “… | |||||
| 7:7:15.1.19.2.6.2.24.24 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.124 Servicing RES and EEI grants. | RBS | The Agency will service RES and EEI grants in accordance with the requirements specified in Departmental Regulations; 7 CFR part 3; 7 CFR 1951 Subparts E and O; the Financial Assistance Agreement; and paragraphs (a) through (k) of this section. (a) Inspections. Grantees must permit periodic inspection of the project records and operations by a representative of the Agency. (b) Programmatic changes. Grantees may make changes to an approved project's costs, scope, contractor, or vendor subject to the provisions specified in paragraphs (b)(1) through (3) of this section. If the changes result in lowering the project's score to below what would have qualified the application for award, the Agency will not approve the changes. (1) Prior approval. The grantee must obtain prior Agency approval for any change to the scope, contractor, or vendor of the approved project. Changes in project cost will require Agency approval as outlined in paragraph (b)(1)(iii) of this section. (i) Grantees must submit requests for programmatic changes in writing to the Agency for Agency approval. (ii) Failure to obtain prior Agency approval of any such change could result in such remedies as suspension, termination, and recovery of grant funds. (iii) Prior Agency approval is required for all increases in project costs. Prior Agency approval is required for a decrease in project cost only if the decrease would have a negative effect on the long-term viability of the project. A decrease in project cost that does not have a negative impact on long-term viability requires Agency review and approval prior to disbursement of funds. (2) Changes in project cost or scope. If there is a significant change in project cost or any change in project scope, then the grantee's funding needs, eligibility, and scoring, as applicable, will be reassessed. Decreases in Agency funds will be based on revised project costs and other factors, including Agency regulations used at the time of grant approval. (3) Change of contractor or vendor. When … | |||||
| 7:7:15.1.19.2.6.2.24.25 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.125 Construction planning and performing development. | RBS | (a) General. The following requirements are applicable to all procurement methods specified in paragraph (f) of this section. (1) Maximum open and free competition. All procurement transactions, regardless of procurement method and dollar value, must be conducted in a manner that provides maximum open and free competition. Procurement procedures must not restrict or eliminate competition. Competitive restriction examples include, but are not limited to, the following: Placing unreasonable requirements on firms in order for them to qualify to do business; noncompetitive practices between firms; organizational conflicts of interest; and unnecessary experience or excessive bonding requirements. In specifying material(s), the grantee and its consultant will consider all materials normally suitable for the project commensurate with sound engineering practices and project requirements. The Agency will consider any recommendation made by the grantee's consultant concerning the technical design and choice of materials to be used for such a project. If the Agency determines that a design or material, other than those that were recommended, should be considered by including them in the procurement process as an acceptable design or material in the project, the Agency will provide such applicant or grantee with a comprehensive justification for such a determination. The justification will be documented in writing. (2) Equal employment opportunity. For all construction contracts and grants in excess of $10,000, the contractor must comply with Executive Order 11246, as amended by Executive Order 11375 and Executive Order 13672, and as supplemented by applicable Department of Labor regulations (41 CFR part 60). The applicant, or the lender and borrower, as applicable, is responsible for ensuring that the contractor complies with these requirements. (3) Surety. The Agency will require surety on any contract for procurement exceeding $100,000, except as provided for in paragraph (a)(3)(iv) of this section. For contrac… | |||||
| 7:7:15.1.19.2.6.2.24.26 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | §§ 4280.126-4280.136 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.2.24.3 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.103 Definitions. | RBS | [86 FR 22309, Apr. 27, 2021, as amended at 87 FR 38644, June 29, 2022] | The following definitions are applicable to the capitalized terms used in this part. Administrator. The Administrator of Rural Business-Cooperative Service within the Rural Development Mission Area of the U.S. Department of Agriculture (USDA). Agency. The Rural Business-Cooperative Service or successor agency assigned by the Secretary of Agriculture to administer the Rural Energy for America Program. References to the National Office, Finance Office, State Office, or other Agency offices or officials should be read as prefaced by “Agency” or “Rural Development” as applicable. Agricultural producer. A person, including non-profits, directly engaged in the production of agricultural products through labor management and operations, including the cultivating, growing, and harvesting of plants and crops (including farming); breeding, raising, feeding, or housing of livestock (including ranching); forestry products; hydroponics; nursery stock; or aquaculture, whereby 50 percent or greater of their gross income is derived from the operations. The percentage is calculated as the average of gross agricultural operations income of the concern divided by the gross total income of the concern for the five most recent years. If the concern has been in operation for less than 60 months, use average gross agricultural operations income and gross total income for as long as the concern has been in operation. Anaerobic digester. A Renewable Energy System that uses animal waste or other renewable biomass and may include other organic substrates to produce digestate and biogas that may be sold in a gaseous or compressed liquid state or used to produce thermal or electrical energy. Applicant. (1) Except for EA and REDA grants, the agricultural producer or rural small business that is seeking a grant, or a combination of a grant and guaranteed loan, under this subpart. (2) For EA and REDA grants, a unit of State, Tribal, or local government; a land-grant college or university or other institution of higher education; a ru… | ||||
| 7:7:15.1.19.2.6.2.24.4 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.104 Exception authority. | RBS | The Administrator may, on a case-by-case basis, grant an exception to any requirement or provision of this subpart provided that such an exception is in the best financial interests of the Federal Government. Exercise of this authority cannot be in conflict with applicable law. | |||||
| 7:7:15.1.19.2.6.2.24.5 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.105 Review or appeal rights. | RBS | Agency Applicants or grantees may have appeal or review rights for Agency decisions made under this part. Agency decisions that are adverse to the individual participant are appealable, while matters of general applicability are not subject to appeal; however, such decisions are reviewable for appealability by the National Appeals Division (NAD). All appeals will be conducted by NAD and will be handled in accordance with 7 CFR part 11. The applicant or grantee can appeal any Agency decision that directly and adversely affects them. | |||||
| 7:7:15.1.19.2.6.2.24.6 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.106 Conflict of interest. | RBS | (a) General. No conflict of interest or appearance of conflict of interest will be allowed. Conflict of interest means a situation in which a person has personal, professional, or financial interests that prevent, or appears to prevent the person from acting impartially. For purposes of this subpart, conflict of interest includes, but is not limited to, distribution or payment of grant, guaranteed loan funds, and matching funds to a beneficiary or immediate family member of the applicant. (b) Assistance to employees, relatives, and associates. The Agency will process any requests for assistance under this subpart in accordance with 7 CFR part 1900, subpart D. (c) Member/delegate clause. No member of or delegate to Congress shall receive any share or part of this grant or any benefit that may arise there from; but this provision shall not be construed to bar, as a contractor under the grant, a publicly held corporation whose ownership might include a member of Congress. | |||||
| 7:7:15.1.19.2.6.2.24.7 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.107 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.2.24.8 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.108 U.S. Department of Agriculture departmental regulations and laws that contain other compliance requirements. | RBS | (a) Departmental regulations. All projects funded under this subpart are subject to the provisions of the Departmental regulations, as applicable, which are incorporated by reference herein. (b) Equal opportunity and nondiscrimination. The Agency will ensure that equal opportunity and nondiscrimination requirements are met in accordance with the Equal Credit Opportunity Act, 15 U.S.C. 1691 et seq. and 7 CFR part 15d, Nondiscrimination in Programs and Activities Conducted by the United States Department of Agriculture. The Agency will not discriminate against applicants on the basis of race, color, religion, national origin, sex, marital status, disability, or age (provided that the applicant has the capacity to contract); because all or part of the applicant's income derives from any public assistance program; or because the applicant has in good faith exercised any right under the Consumer Credit Protection Act, 15 U.S.C. 1601 et seq. (c) Civil rights compliance. Recipients of grants must comply with the Americans with Disabilities Act of 1990, 42 U.S.C. 12101 et seq., Title VI of the Civil Rights Act of 1964, 42 U.S.C. 2000d et seq., and Section 504 of the Rehabilitation Act of 1973, 29 U.S.C. 794. This includes collection and maintenance of data on the race, sex, and national origin of the recipient's membership/ownership and employees. These data must be available to conduct compliance reviews in accordance with 7 CFR 1901.204. (1) Initial compliance reviews will be conducted by the Agency prior to funds being obligated for programs. (2) When compliance reviews are applicable to the grant, one subsequent compliance review following project completion is required. This will occur after the last disbursement of grant funds has been made. (d) Environmental analysis. Actions taken under this subpart must comply with 7 CFR part 1970. Prospective applicants are advised to contact the Agency to determine environmental requirements as soon as practicable after they decide to pursue any form of fin… | |||||
| 7:7:15.1.19.2.6.2.24.9 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.109 Ineligible applicants, grantees, and owners. | RBS | Applicants, grantees, and owners will be ineligible to receive funds under this subpart as discussed in paragraphs (a) and (b) of this section. (a) If an applicant, grantee, or owner has an outstanding judgment obtained by the U.S. in a Federal Court (other than in the United States Tax Court), is delinquent in the payment of Federal income taxes, or is delinquent on a Federal debt, the applicant, grantee, or owner is not eligible to receive a grant or combined grant and guaranteed loan until the judgment is paid in full or otherwise satisfied or the delinquency is resolved. (b) If an applicant, grantee, or owner is debarred from receiving Federal assistance, the applicant, grantee, or owner is not eligible to receive a grant or combined grant and guaranteed loan under this subpart. | |||||
| 7:7:15.1.19.2.6.2.25.27 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.137 Combined grant and guaranteed loan funding requirements. | RBS | The requirements for a RES or EEI project for which an applicant is seeking a combined grant and guaranteed loan are specified in this section. (a) Eligibility. All applicants must be eligible under the requirements specified in § 4280.112. If the applicant is seeking a loan, the applicant must also meet the borrower eligibility requirements specified in 7 CFR 5001.126. Lenders must meet eligibility requirements specified in 7 CFR 5001.130-132. Projects must meet the project eligibility requirements specified in §§ 4280.113, 7 CFR parts 5001.102 (b) and (c) and 5001.106-107, as applicable. For projects that include New Markets Tax Credits, the guaranteed loan portion of the combined funding request must meet provisions found in 5001.141. (b) Funding. Funding provided under this section is subject to the limits described in paragraphs (b)(1) through (2) of this section. (1) The amount of any combined grant and guaranteed loan shall not exceed 75 percent of eligible project costs and the grant portion shall not exceed 25 percent of eligible project costs. Loan amount provisions of 7 CFR part 5001.406(d) apply, except for (d)(2). For purposes of combined funding requests, eligible project costs are based on the total costs associated with those items specified in § 4280.115(c) and 7 CFR part 5001.121(d), except for (d)(2). The applicant must provide the remaining total funds needed to complete the project. (2) The minimum guaranteed loan request allowed is $5,000, with the grant portion of the funding request being at least $1,500 for EEI projects and at least $2,500 for RES projects. (c) Loan origination provisions. Provisions found in 7 CFR parts 5001.201 through 5001.208 apply to the guaranteed loan portion of a combined grant and guaranteed loan funding request. (d) Application provisions and documentation. When applying for combined funding, the applicant/borrower must provide all documentation outlined in this section and the lender must submit grant and guaranteed loan application information si… | |||||
| 7:7:15.1.19.2.6.2.25.28 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | §§ 4280.138-4280.148 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.2.26.29 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.149 Applicant eligibility. | RBS | To be eligible for an EA grant or a REDA grant under this subpart, the applicant must meet each of the criteria, as applicable, specified in paragraphs (a) through (d) of this section. The Agency will determine an applicant's eligibility. (a) The applicant must be one of the following: (1) A unit of State, Tribal, or local government; (2) A land-grant college or university, or other institution of higher education; (3) A rural electric cooperative; (4) A public power entity; (5) An instrumentality of a State, Tribal, or local government; or (6) A council, as defined under the Resource Conservation and Development Program, at 16 U.S. C. 3451. (b) The applicant must have sufficient capacity to perform the EA or REDA activities proposed in the application to ensure success. The Agency will make this assessment based on the information provided in the application. (c) The applicant must have the legal authority necessary to apply for and carry out the purpose of the grant. (d) The applicant must: (1) Be registered in the SAM prior to submitting an application; (2) Maintain an active SAM registration with current information at all times until final fund disbursement has been made. (3) Provide its UEI number in each application it submits to the Agency. Generally, the UEI number is included on SF-424. | |||||
| 7:7:15.1.19.2.6.2.26.30 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.150 Project eligibility. | RBS | To be eligible for an EA or a REDA grant, the grant funds for a project must be used by the grantee to assist agricultural producers or rural small businesses in one of the purposes specified in paragraphs (a) and (b) of this section, and must also comply with paragraphs (c) through (f) of this section. (a) Conducting and promoting energy audits as defined in 4280.103. (b) Conducting and promoting REDA by providing to agricultural producers and rural small businesses recommendations and information on how to improve the energy efficiency of the operations and to use renewable energy technologies and resources in their operations. (c) EA and REDA can be provided only to a project located in a rural area unless the grantee of such project is an agricultural producer. If the project is owned by an agricultural producer, the project for which such services are being provided may be located in either a rural or non-rural area and the EA or REDA can only be for an EEI or RES on components that support the production, processing, vertical integration, or marketing of agricultural products. If the agricultural producer's operation is in a non-rural area, then the Energy Audit or REDA can only be for RES or EEI components of the business operation that are directly related to and their use and purpose is limited to the agricultural production operation, such as vertically integrated operations, and are part of and co-located with the agricultural production operation. (d) The EA or REDA must be provided to a recipient in a State. (e) The applicant must have a place of business in a State. (f) The applicant is cautioned against taking any actions or incurring any obligations prior to the Agency completing the environmental review that would either limit the range of alternatives to be considered or that would have an adverse effect on the environment, such as the initiation of construction. If the applicant takes any such actions or incurs any such obligations, it could result in project ineligibility. | |||||
| 7:7:15.1.19.2.6.2.26.31 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.151 Ineligible projects. | RBS | Ineligible projects for EA and REDA grants include, but are not limited to: (a) Research related projects. (b) Feasibility studies of any nature. (c) Projects where funding is not targeted directly to assisting agricultural producers or rural small businesses. (d) Projects to develop computer software or programs. (e) Projects where 50 percent or more of the costs are in-eligible or where project costs as defined in the application do not meet the definition of providing energy audits or renewable energy development assistance. (f) Projects which propose to provide energy audits or renewable energy development assistant for residential purposes. | |||||
| 7:7:15.1.19.2.6.2.26.32 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.152 Grant funding for Energy Audit and Renewable Energy Development Assistance. | RBS | (a) Maximum grant amount. The maximum aggregate amount of EA and REDA grants awarded to any one recipient under this subpart cannot exceed $100,000 in a Federal fiscal year. Grant funds awarded for EA and REDA projects may be used only to pay eligible project costs, as described in paragraph (b) of this section. Ineligible project costs are listed in paragraph (c) of this section. Provisions for EA applications are listed in paragraph (d)of this section. (b) Eligible project costs. Eligible project costs for EA and REDA are those costs incurred after the date a complete application has been received by the Agency and that are directly related to conducting and promoting EA and REDA, which include but are not limited to: (1) Salaries; (2) Travel expenses; (3) Office supplies ( e.g., paper, pens, file folders); and (4) Expenses charged as a direct cost or as an indirect cost of up to a maximum of 5 percent for administering the grant. (c) Ineligible project costs. Ineligible project costs for EA and REDA grants include, but are not limited to: (1) Payment for any construction-related activities; (2) Purchase or lease of equipment; (3) Payment of any judgment or debt owed to the United States; (4) Any goods or services provided by a person or entity who has a conflict of interest as provided in § 4280.106; (5) Any costs of preparing the application package for funding under this subpart; and (6) Funding of political or lobbying activities. (7) Funding to train individuals to become qualified to perform EA or REDA assistance. (8) Payment or waiver of student tuition. (d) EA. A grantee that conducts energy audits must require that, as a condition of providing the EA assistance, the agricultural producer or rural small business pay at least 25 percent of the cost of the energy audit. Further, the amount paid by the agricultural producer or rural small business will be retained by the grantee as a contribution towards the cost of the energy audit and considered program income. The grantee may use… | |||||
| 7:7:15.1.19.2.6.2.26.33 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.153 EA and REDA grant applications—content. | RBS | (a) Unless otherwise specified in a Federal Register notice, applicants may only submit one EA grant application and one REDA grant application each Federal fiscal year. No combination (EA and REDA) applications will be accepted. (b) Applicants must submit complete applications consisting of the elements specified in paragraphs (b)(1) through (7) of this section, except that paragraph (b)(3), is optional. Applications will be evaluated based only on information submitted by the applicant in the application. (1) Form SF-424. (2) Form SF-424A, “Budget Information—Non Construction Programs.” (3) Identify the ethnicity, race, and gender of the applicant. This information is optional and is not required for a complete application. (4) Certification that the applicant is a legal entity in good standing (as applicable) and operating in accordance with the laws of the State(s) or Tribe where the applicant has a place of business. (5) The applicant must identify whether or not the applicant has a known relationship or association with an Agency employee. If there is a known relationship, the applicant must identify each Agency employee with whom the applicant has a known relationship. (6) A proposed scope of work to include the following items: (i) A brief summary including a project title describing the proposed project; (ii) Goals of the proposed project; (iii) Geographic scope or service area of the proposed project and the method and rationale used to select the service area; (iv) Identification of the specific needs for the service area and the target audience to be served. The number of agricultural producers and/or rural small businesses to be served must be identified including name and contact information, if available, as well as the method and rationale used to select the agricultural producers and/or rural small businesses; (v) Timeline describing the proposed tasks to be accomplished and the schedule for implementation of each task. Include whether organizational staff, consultants, or contracto… | |||||
| 7:7:15.1.19.2.6.2.26.34 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.154 Evaluation of EA and REDA grant applications. | RBS | The Agency will evaluate EA and REDA grant applications, based only upon information submitted in the application, to determine if: (a) The application is complete, as defined in § 4280.103 and as per § 4280.153; (b) The applicant is eligible according to § 4280.149; (c) The project is eligible according to § 4280.150 and 4280.151, including 50% or more of proposed project costs are eligible; and (d) Grant funding provisions according to § 4280.152 are met. | |||||
| 7:7:15.1.19.2.6.2.26.35 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.155 Scoring EA and REDA grant applications. | RBS | The Agency will score each EA and REDA application using the criteria specified in paragraphs (a) through (f) of this section, with a maximum score of 100 points possible. Unless otherwise altered via a Federal Register notification, the project must score a minimum of 40 points to be eligible to compete for funding. (a) Geographic scope of project in relation to identified need. A maximum of 20 points can be awarded. (1) If the applicant's proposed or existing service area is state-wide or includes all or parts of multiple states, and the scope of work has identified needs throughout that service area, 20 points will be awarded. (2) If the applicant's proposed or existing service area consists of multiple counties in a single state and the scope of work has identified needs throughout that service area, 15 points will be awarded. (3) If the applicant's service area consists of a single county or municipality and the scope of work has identified needs throughout that service area, 10 points will be awarded. (b) Number of agricultural producers/rural small businesses to be served. A maximum of 20 points will be awarded for this criterion based on the proposed number of ultimate recipients to be assisted and if the applicant has provided the names and contact information for the ultimate recipients to be assisted. (1) If the applicant plans to provide EA or REDA to: (i) Up to 10 ultimate recipients, 2 points will be awarded. (ii) Between 11 and up to and including 25 ultimate recipients, 5 points will be awarded. (iii) More than 25 ultimate recipients, 10 points will be awarded. (2) If the applicant provides a list with at least 50 percent of the total number of proposed ultimate recipients ready to be assisted, including their name and contact information, an additional 10 points may be awarded. (c) Marketing and outreach plan. A maximum of 5 points will be awarded for this criterion. If the scope of work included in the application provides a satisfactory discussion of each of the following cri… | |||||
| 7:7:15.1.19.2.6.2.26.36 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.156 Selecting EA and REDA grant applications for award. | RBS | Unless otherwise provided for in a Federal Register notice, EA and REDA grant applications will be processed in accordance with this section. EA and REDA grant funding is maintained at the National Office and applications compete for funds only once in a nationwide competition. (a) Application competition. Complete EA and REDA applications received by the Agency by 4:30 p.m. local time on January 31 will be competed against each other. If January 31 falls on a weekend or a Federally observed holiday, the next Federal business day will be considered the last day for receipt of a complete application. Complete applications received after 4:30 p.m. local time on January 31, regardless of the postmark on the application, will be processed in the subsequent fiscal year. Unless otherwise specified in a Federal Register notice, the two highest scoring applications from each State, based on the scoring criteria established under § 4280.155, will compete for initial funding. If undersubscribed on eligible applications, the third highest scoring application from each state shall be requested for National Office review and potential competition, ranking and funding, until funds are expended. (b) Ranking of applications. All applications submitted to the National Office under paragraph (a) of this section will be ranked in priority score order. All applications that are ranked and meet the minimum scoring threshold will be considered for selection for funding. (c) Selection of applications for funding. Using the ranking created under paragraph (a) of this section, the Agency will consider the score an application has received compared to the scores of other ranked applications, with higher scoring applications receiving first consideration for funding. If two or more applications score the same and if remaining funds are insufficient to fund each such application, the Agency will distribute the remaining funds to each such application on a pro-rata basis. At its discretion, the Agency may also elect to redirect … | |||||
| 7:7:15.1.19.2.6.2.26.37 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.157 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.2.26.38 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.158 Awarding and administering EA and REDA grants. | RBS | The Agency will award and administer EA and REDA grants in accordance with Departmental Regulations and with the procedures and requirements specified in § 4280.123, except as specified in paragraphs (a) through (b) of this section. (a) Instead of complying with § 4280.123(b), the grantee must provide satisfactory evidence to the Agency that all officers of grantee organization authorized to receive and/or disburse Federal funds are covered by such bonding and/or insurance requirements as are normally required by the grantee. (b) The power purchase agreement specified in § 4280.123 (h) is not required. | |||||
| 7:7:15.1.19.2.6.2.26.39 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.159 Servicing EA and REDA grants. | RBS | The Agency will service EA and REDA grants in accordance with the requirements specified in Departmental Regulations, the Financial Assistance Agreement, 7 CFR part 3, 7 CFR 1951 Subparts E and O, and the requirements in § 4280.124, except as specified in paragraphs (a) through (d) of this section. (a) Grant disbursement. The Agency will determine, based on the applicable Departmental Regulations, whether disbursement of a grant will be by advance or reimbursement. Form SF-270, Request for Advance or Reimbursement, must be completed by the grantee and submitted to the Agency no more often than monthly to request either advance or reimbursement of funds. (b) Semiannual performance reports. Project performance reports shall include, but not be limited to, the following: (1) A comparison of actual accomplishments to the objectives established for that period ( e.g., the number of EA performed, number of recipients assisted, and the type of assistance provided for REDA); (2) A list of recipients, each recipient's location, and each recipient's NAICS code; (3) Problems, delays, or adverse conditions, if any, that have in the past or will in the future affect attainment of overall project objectives, prevent meeting time schedules or objectives, or preclude the attainment of particular project work elements during established time periods. This disclosure shall be accompanied by a statement of the action taken or planned to resolve the situation; (4) Objectives and timetable established for the next reporting period. (c) Final performance report. A final performance report will be required with the final Federal financial report within 90 days after project completion. The final performance report must contain the information specified in paragraphs (c)(1)(i) or (ii) of this section, as applicable. (1) For EA projects, the final performance report must provide complete information regarding: (i) The number of audits conducted, (ii) A list of recipients (agricultural producers and rural small businesses… | |||||
| 7:7:15.1.19.2.6.2.26.40 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | §§ 4280.160-4280.165 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.2.26.41 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | B | Subpart B—Rural Energy for America Program General | § 4280.166 OMB control number. | RBS | The report and recordkeeping requirements contained in this part have been approved by the Office of Management and Budget and have been assigned OMB control number 0570-0067 | |||||
| 7:7:15.1.19.2.6.4.27.1 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.301 Purpose and scope. | RBS | (a) This subpart contains the policies and procedures by which the Agency will administer the Rural Microentrepreneur Assistance Program (RMAP). The purpose of the Program is to support the development and ongoing success of rural microentrepreneurs and microenterprises. To accomplish this purpose, the Program will make direct loans and provide grants to selected Microenterprise Development Organizations. Selected Microenterprise Development Organization will use the funds to: (1) Provide microloans to rural microentrepreneurs and microenterprises; (2) Provide business-based training and technical assistance to rural microborrowers and potential microborrowers as an essential part of the microlending process; (3) Perform other such activities as deemed appropriate by the Secretary to ensure the development and ongoing success of rural microenterprises. (b) The Agency will make direct loans to microlenders for the purpose of providing fixed interest rate microloans to rural microentrepreneurs for business startup and for growing microenterprises in compliance with §§ 4280.311 and 4280.312. Eligible microlenders will also be eligible to receive microlender technical assistance grants to provide technical assistance and training to microenterprises that have received or are seeking a microloan under this program in compliance with § 4280.313. (c) To allow for extended opportunities for technical assistance and training, the Agency will make technical assistance-only grants to Microenterprise Development Organizations that have sources of funding other than program funds for making or facilitating microloans. | |||||
| 7:7:15.1.19.2.6.4.27.10 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.312 Loan approval and closing. | RBS | (a) Loan approval and obligating funds. The loan will be considered approved on the date the signed copy of Form RD 1940-1, “Request for Obligation of Funds,” is executed by the Agency. Form RD 1940-1 authorizes funds to be obligated and may be executed by the Agency after the microlender has signed the document, provided that the microlender has the legal authority to contract for a loan and to enter into required agreements, including an Agency-approved loan agreement, and meets all program loan requirements. (b) Letter of conditions. Upon reviewing the conditions and requirements in the letter of conditions, the applicant must complete, sign, and return Form RD 1942-46, “Letter of Intent to Meet Conditions,” to the Agency; or if certain conditions cannot be met, the applicant may propose alternate conditions. The Agency will review any requests for changes to the letter of conditions and may approve only minor changes that do not materially affect the microlender and remain within the program requirements. Changes in legal entities prior to loan closing will not be approved. (c) Loan closing. (1) Prior to loan closing, microlenders must provide evidence that the RMRF and LLRF bank accounts have been set up and the LLRF has been or will be funded as described in § 4280.311(g)(4). Such evidence shall consist of: (i) A pre-authorized debit form allowing the Agency to withdraw payments from the RMRF account, and in the event of a repayment workout, from the LLRF account; (ii) An Agency-approved automatic deposit authorization form, from the depository institution providing the Agency with the RMRF account number, into which funds may be deposited at time of disbursement to the microlender; (iii) A statement from the depository institution as to the amount of cash in the LLRF account; (iv) An Agency-approved promissory note and a loan agreement for each loan to the MDO must be executed at loan closing. The loan agreement will be prepared by the Agency using Form RD 4274-4, “Intermediary Relending Progra… | |||||
| 7:7:15.1.19.2.6.4.27.11 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.313 Grant provisions. | RBS | Grants offered under this program will be made to eligible MDOs in such amounts and requirements for microlenders with a loan(s) from the Agency, and for MDOs that seek only a TA grant from the Agency. Competition for these funds will occur as a part of the application and qualification process of becoming a microlender or grant recipient. No entity will receive grant funding as both a microlender and a TA-only provider. RMAP microlenders are not eligible for TA-only grant funding and an MDO receiving TA-only grant funding is not eligible for microlender grant funding. Failure to meet scoring benchmarks will preclude an applicant from receiving loan and/or grant dollars. Once an MDO is participating as a microlender, TA grant funds will be made available annually based on the MDO's lending balances and the availability of funds. (a) Microlender grants. The Agency shall make microlender TA grants to microlenders to assist them in providing marketing, management, and other TA to rural microentrepreneurs and microenterprises that have received or are seeking one or more microloans from the microlender. The capacity of a microlender to provide an integrated program of microlending and TA will be evaluated during the scoring process with their loan application and then annually in determining the amount of annual grant funds. An eligible MDO selected to be a microlender will be eligible to receive a microlending TA grant if it receives funding to provide microloans under this program. Microlender applicants for loan funding to establish or replenish a revolving loan fund originally capitalized under this program, may simultaneously apply for TA grant funds in an amount not to exceed 25 percent of the requested loan amount. (1) Technical assistance grants to microlenders will be awarded annually on a non-competitive basis in an amount based on the MDO's outstanding loan balance as of June 30, subject to satisfactory program performance of the microlender and the availability of funds. Satisfactory performance inclu… | |||||
| 7:7:15.1.19.2.6.4.27.12 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.314 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.4.27.13 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.315 MDO application and submission information. | RBS | (a) Initial and subsequent applications. Applications shall be submitted in accordance with the provisions of this subpart unless adjusted by the Agency in an annual Federal Register document. The information required in §§ 4280.315 and 4280.316 is necessary for an application to be considered complete. Only those applicants that meet the basic eligibility requirements in § 4280.310 will have their applications fully scored and considered for participation in the program under this section. When preparing applications, applicants are strongly encouraged to review the application requirements and scoring criteria in § 4280.316 and provide documentation that will support a competitive score. (b) Content and form of submission. All applicants must provide the information specified in paragraph (c) of this section. Additional application information is required in paragraph (d) of this section depending on the type of application being submitted. (c) Application information for all applicants. All applicants must provide the following information and forms fully completed and with all attachments: (1) Standard Form-424, “Application for Federal Assistance” for grants. (2) Standard Form-424A, “Budget Information—Non-Construction Programs.” (3) For entities applying for program loan funds to become an RMAP microlender only, Form RD 1910-11, “Certification of No Federal Debt.” (4) Form RD 400-8, “Compliance Review” or sufficient demographic information for Agency completion of Form RD 400-8. (5) Demonstration that the applicant is eligible to apply to participate in the program by submission of documentation as follows: (i) If a nonprofit entity, evidence that the applicant organization meets the citizenship requirements and a copy of the applicant's bylaws and articles of incorporation, which include evidence that the applicant is legally considered a non-profit organization; (ii) If an Indian tribe, evidence that the applicant is a federally recognized Indian tribe, and that the Indian tribe neither o… | |||||
| 7:7:15.1.19.2.6.4.27.14 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.316 Application scoring. | RBS | Applications will be scored based on the criteria specified in this section using only the information submitted in the application. The total available points per application are 100 as shown in paragraphs (a) through (e) of this section. Awards will be based on the points ranking, with the highest scoring applications being funded first from the available funding. (a) Application requirements for all applicants. All applicants must submit the eligibility and application information described in § 4280.315. The maximum points available in this part of the application are 45. In addition to the eligibility information, all applicants will submit: (1) An organizational chart clearly showing the positions and naming the individuals in those positions. Of particular interest to the Agency are management positions and those positions essential to the operation of microlending and TA programming. Up to 5 points will be awarded based on the completeness of the organizational chart and management experience. (2) Resumes for each of the individuals shown on the organizational chart and indicated as key to the operation of the activities to be funded under the program. There should be a corresponding resume for each of the key individuals noted and named on the organizational chart. Points will be awarded based on the quality of the resumes and on the ability of the key personnel to administer the program. Up to 5 points will be awarded. (3) A succession plan to be followed in the event of the departure of personnel key to the operation of the applicant's RMAP activities. Up to 5 points will be awarded. (4) Information indicating an understanding of microenterprise development concepts. Provide those parts of your policy and procedures manual that deal with the provision of loans, management of loan funds, and provision of TA. Up to 5 points will be awarded. (5) The applicant's most recent, and two-year's previous, financial statements. Points will be awarded based on the demonstrated ability of the applicant to m… | |||||
| 7:7:15.1.19.2.6.4.27.15 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.317 Selection of applications for funding. | RBS | All eligible applications received will be scored using the scoring criteria specified in § 4280.316 and funded in descending order from the highest total score to applications receiving 60 points, subject to the authorization of appropriations for the Federal FY. If two or more applications have the same score and available funds cannot fund the individual projects, the Administrator may prioritize such applications to help the program achieve overall geographic diversity. (a) Timing and submission of applications. (1) All applications must be submitted as a complete application in one package of materials. Packages must be in the order of appearance in § 4280.315. Applications that are disorganized or otherwise not ready for evaluation will be returned to the applicant and not considered for funding. (2) Applications will be accepted on a continuing basis at any Rural Development State Office and will compete nationally for available funds on a quarterly basis using Federal fiscal quarters. (3) Applications received will be reviewed, scored, and ranked quarterly. Unless withdrawn by the applicant, the Agency will retain unsuccessful applications that score 60 points or more for consideration in subsequent reviews, through a total of four quarterly reviews. Applications unsuccessful after competing for funds in four quarters will be returned to the applicant. (b) Availability of funds. If an Application is received, scored, and ranked, but insufficient funds remain to fully fund the project, the Agency may elect to fund an Application requesting a smaller amount that has a lower score. Before this occurs, the Agency, as applicable, will provide the higher scoring applicant the opportunity to reduce the amount of its request to the amount of funds available. If the applicant agrees to lower its request, it must certify that the purposes of the project can be met, and the project is financially feasible at the lower amount. (c) Applicant notification. The Agency will notify applicants regarding their se… | |||||
| 7:7:15.1.19.2.6.4.27.16 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | §§ 4280.318-4280.319 [Reserved] | RBS | ||||||
| 7:7:15.1.19.2.6.4.27.17 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.320 Grant administration. | RBS | (a) Oversight. Any MDO receiving a grant under this program is subject to Agency oversight, with site visits and inspection of records occurring at the discretion of the Agency. In addition, MDOs receiving a grant under this subpart must submit reports, as specified in paragraphs (a)(1) through (3) of this section. (1) On a quarterly basis, within 30 days after the end of each Federal fiscal quarter, the microlender will provide to the Agency an Agency-approved quarterly report containing such information as the Agency may require to ensure that funds provided are being used for the purposes for which the grant was made, including: (i) Narrative reporting information as required by Office of Management and Budget (OMB) circulars and successor regulations. This narrative will include information on the MDO's TA, training, and/or enhancement activity, and grant expenses, milestones met, or unmet, explanation of difficulties, observations and other such information; (ii) If requesting grant funds at the time of reporting, an executed SF-270 form and a brief description of the proposed activity-based expenditures are required. (2) If a microlender has more than one grant from the Agency, a separate report must be made for each grant. (3) Other reports may be required by the Agency from time to time in the event of poor performance or other such occurrences that require more than the usual set of reporting information. (b) Payments. The Agency will make grant payments not more often than quarterly. The first grant payment may be made in advance and will equal no more than one fourth of the grant award. Other payment requests must be submitted on Standard Form 270 and will only be paid if the MDO's reports are up to date and approved. | |||||
| 7:7:15.1.19.2.6.4.27.18 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.321 Grant and loan servicing. | RBS | In addition to the ongoing oversight of the participating MDOs, all grants will be serviced in accordance with applicable regulations, including 7 CFR part 1951, subparts E and O, 7 CFR part 3, and the Office of Management and Budget (OMB) regulations including, but not limited to, 2 CFR parts 200, 215, 220, 230, and OMB Circulars A-110 and A-133. Loans to microlenders will be serviced in accordance with 7 CFR part 1951, subparts E, O, and R, and OMB Circular A-129. | |||||
| 7:7:15.1.19.2.6.4.27.19 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.322 Loans from the microlenders to microentrepreneurs. | RBS | The primary purpose of making a program loan to a microlender is to enable that microlender to make microloans to rural microenterprises and microentrepreneurs. It is the responsibility of each microlender to make microloans in such a fashion that the terms and conditions of the microloan will support microborrower success while enabling the microlender to repay its loan from the Agency. It is the responsibility of each microborrower to repay the microlender in accordance with the terms and conditions agreed to with the microlender. The microlender is responsible for full repayment to the Agency of its loan regardless of the performance of its microloan portfolio. (a) Maximum microloan amount. The maximum amount of a microloan made under this program will be $50,000. The total outstanding balance of microloans to any microborrower may not exceed $50,000. (b) Microloan terms and conditions. The terms and conditions for microloans made by microlenders will be negotiated between the prospective microborrower and the microlender, with the following limitations: (1) No microloan may have a term of more than 10 years; (2) The interest rate charged to the microborrower will be established at or before the microloan closing and at such a rate that the microloan is affordable to the microborrower and provides a reasonable margin of earnings to the microlender. (c) Microloan insurance requirements. The microlender has full discretion to require reasonable hazard, key person, and other insurance coverage from the microborrower as part of the loan transaction. (d) Credit elsewhere test. Microborrowers will be subject to a “credit elsewhere” test so that the microlender will make loans only to those borrowers that cannot obtain business funding of $50,000 or less at affordable rates and on acceptable repayment terms. Each microborrower file must contain evidence that the microborrower has sought credit elsewhere or that the rates and terms available within the community at the time were outside the range of the … | |||||
| 7:7:15.1.19.2.6.4.27.2 | 7 | Agriculture | XLII | 4280 | PART 4280—LOANS AND GRANTS | D | Subpart D—Rural Microentrepreneur Assistance Program | § 4280.302 Definitions and abbreviations. | RBS | [86 FR 26353, May 14, 2021, as amended at 87 FR 38644, June 29, 2022] | (a) General definitions. The following definitions apply to the terms used in this subpart. Administrative expenses. Those expenses incurred by a Microenterprise Development Organization for the operation of services under this program. Not more than 10 percent of technical assistance grant funds may be used for such expenses. Agency. USDA Rural Development, Rural Business-Cooperative Service or its successor organization. Agricultural production. The cultivation, growing, or harvesting of plants and crops (including farming), breeding, raising, feeding, or housing of livestock (including ranching). Applicant. The legal entity, also referred to as a Microenterprise Development Organization, submitting an application to participate in the program. Application. The required forms and documentation submitted by a Microenterprise Development Organization for acceptance into the program. Award. The written documentation, executed by the Agency after the application is approved, containing the terms and conditions for provision of financial assistance to the applicant. Financial assistance may constitute a loan or a grant, or both. Business incubator. An organization that provides temporary premises at below market rates, technical assistance in developing business or marketing plans, technical services, use of equipment, or other facilities or services to rural microentrepreneurs and microenterprises starting or growing a business. The business incubator may also provide access to capital through direct loans or referrals to loan programs. Close relative. Individuals who live in the same household or who are closely related by blood, marriage, or adoption, such as a spouse, domestic partner, parent, child, sibling, aunt, uncle, grandparent, grandchild, niece, nephew, or first cousin. Default. The condition that exists when a borrower is not in compliance with the promissory note, the loan and/or grant agreement, or other related documents evidencing the loan from the Agency or the Microenterprise D… |
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