Table of Contents: Equity Requirement History New Balance Sheet Equity Grid Existing Businesses with proper equity post closing Existing business with negative equity or less than 10% BSE. Option 1: Inject Capital Example #1: Enough [...]
Permalink: https://www.rd.usda.gov/sites/default/files/OneRD_FeesNotice_FY23.pdf PDF Document: Here Above is the FY2023 Fee structure which lines up directly with the FY fee structure at the end of this post. I will continue to be critical of funding issues that [...]
For those who don't know, the NRLA is the Natural Rural Lenders Association and is an advocate for rural lending. As an association, we meet each year and discuss USDA and Rural lending, upcoming regulations, and network with one another [...]
There is a new graphic on the OneRD website tracking total funding, utilization, and remaining funds. Over the last few weeks, this graph has shown over utilization of funding in the USDA’s Business and Industry (B&I) loan program. On the [...]
In talking to several USDA lenders around the country, I have found not many know that reduced guarantee fees exist if one of several scenarios are met in section, 5001.454(d)(1-5). These regulations are detailed below and includes [...]
CFR Release: 2021-00005 The CFR correction updated the USDA Guaranty Fee and the USDA Guarantee on Business and Industry loans to 1% and 90%, respectively. To obtain these rates, projects must be "in a high cost, isolated rural area of [...]
5001-1 - USDA Guaranteed Application RD5001-01 can be accessed here or on our document page. This document is required for loan submission. Based on the layout and formatting, I would imagine that a new application will be released to [...]
Location Eligibility: 5001.102(b) Project eligibility - general. Location. A project must be located in a State and meet the rural or rural area requirements of the applicable section in 5001.103 through 5001.108. Eligibility location is still based on the eligibility [...]
New Breakdown of Fees and Guarantee Percentage Below is a chart released by the USDA in August 30, 2020 Federal Register showing the new fee and guarantee breakdown for each program under in FY21 under the new 5001 OneRD regulations to be released October 1, 2020. The major changes from the current fee structure for each of the programs [...]