USDA Launches New, Streamlined Process for Private Lenders to Invest in Rural AmericaFri, 02 Oct 2020 10:37:33 CDT
The Trump Administration announced that the United States Department of Agriculture (USDA) is now accepting applications for the department's four key loan guarantee programs under the OneRD Guarantee Loan Initiative.
"Rural America needs a mix of public and private partnerships and investments to build stronger, healthier communities," USDA Deputy Under Secretary for Rural Development Bette Brand said. "Under the leadership of President Trump and Agriculture Secretary Perdue, USDA is cutting red tape and streamlining private investment so we can be a better partner to America's rural leaders in building prosperity, because we know when rural America thrives, all of America thrives."
As part of a series of regulatory reforms effective today, USDA has officially eliminated duplicative processes and has launched a common loan guarantee application for the following programs:
• Water and Waste Disposal Loan Guarantee Program;
• Community Facilities Guaranteed Loan Program;
• Business and Industry Guaranteed Loan Program; and
• Rural Energy for America Guaranteed Loan Program.
Through this initiative, the department has standardized requirements for credit reviews, loan processing, loan servicing and loss claims. These measures will make the application process simpler and faster for lenders.
USDA also is providing automatic approval to participate in all four programs to lenders in good standing who are supervised or created by state or federal regulatory agencies. This expands the base of eligible lenders for the four guaranteed loan programs.
Non-regulated lenders may seek approval to participate through a single certification process that will be valid for five years. To request approval, non-regulated lenders must submit a cover letter to firstname.lastname@example.org. Lenders may review a template for the cover letter and instructions on how to file requests.
USDA is hosting a webinar for lenders on Thursday, Oct. 8 at 1:30 p.m. Eastern Time to answer questions about the new processes under the initiative.
For more information on the regulatory changes and how to apply to the programs under this initiative, visit www.rd.usda.gov/onerdguarantee.
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