OneRD Guarantee Loan Initiative Lender Guide Introduction The United States Department of Agriculture (USDA) is removing unnecessary regulations to increase private investment in rural businesses and rural economic development projects and to improve customer service within four flagship loan guarantee programs. As part of a series of regulatory reforms, USDA is eliminating duplicative processes and launching a common loan note guarantee application for the following programs: o Community Facilities Guaranteed Loan Program; o Water and Waste Disposal Loan Guarantees; o Business and Industry Guaranteed Loan Program; and o Rural Energy for America Program. This guide provides information supported by the regulation to apply for programs under the OneRD Guarantee Loan Initiative. Supporting documents, templates and resources have been created to support you and can be found in topic-related chapters throughout this guide. USDA Rural Development State Office contacts are available to be your direct connection to information about the new processes and requirements for programs under the initiative. The information provided in this guide in no way takes the place of the regulation language; please refer to the regulation for the official guidance. USDA is an equal opportunity provider, employer, and lender. Table of Contents Introduction .............................................................................................................................. 1 Chapter 1. Getting Started ...................................................................................................... 3 Webpage ................................................................................................................................ 3 Instructions on How to File an Application .............................................................................. 3 Submit Requests Online: Non-Regulated Lenders Seeking Approved Status ......................... 3 Technical Corrections ............................................................................................................. 4 Lender Held Desk: .................................................................................................................. 4 Stay Connected ...................................................................................................................... 4 Chapter 2. Major Highlights .................................................................................................... 5 OneRD Guarantee Loan Initiative Outline of Regulatory Changes .......................................... 5 Supporting Resources: ..........................................................................................................10 Definitions ..........................................................................................................................10 Chapter 3. Eligibility ...............................................................................................................29 Lender Eligibility ....................................................................................................................29 Borrower Eligibility .................................................................................................................31 Project Eligibility ....................................................................................................................34 Eligibility Supporting Resources ............................................................................................49 E-Authentication.................................................................................................................49 LINC Instructions-Website Link ..........................................................................................49 Chapter 4. Origination ...........................................................................................................50 Credit Evaluation ...................................................................................................................50 Appraisals .............................................................................................................................52 Personal, Partnership and Corporate Guarantees .................................................................54 General Project Monitoring §Section 5001.205 (a) - (h) .....................................................55 Compliance ...........................................................................................................................59 Environmental Responsibilities ..............................................................................................59 Conflicts of Interest ................................................................................................................60 Chapter 5. Guarantee Application Provisions .......................................................................61 Preliminary Eligibility ..............................................................................................................61 Instructions on How to File an Application .............................................................................61 Preliminary Eligibility Review .................................................................................................61 Application Content ...............................................................................................................64 Program Specific Application Requirements ..........................................................................68 Application Evaluation ...........................................................................................................78 2 Last modified:11/4/2020 Priority Points ........................................................................................................................79 Chapter 6. Loan and Guarantee Provisions .........................................................................81 Loan Provisions .....................................................................................................................81 Guarantee Provisions ............................................................................................................83 Chapter 7. Servicing Requirements .....................................................................................90 Chapter 1. Getting Started Webpage USDA’s OneRD Guarantee Loan Initiative website is available to help you get started. Resources available on this webpage include: • A Form to Subscribe to OneRD Updates • OneRD Guarantee Loan Initiative Final Rule • OneRD Guarantee Loan Initiative Fact Sheet • Frequently Asked Questions (FAQS) • Instructions on How to Submit a Lender Approval Request USDA Rural Development is making resources available to help lenders get started on their applications to programs under the OneRD Guarantee Loan Initiative. Resources will be added to this website as they become available. Learn more about each resource below: Instructions on How to File an Application To file an application for programs under this initiative, lenders are encouraged to complete the following steps: 1. Download the 5001-1 – Application for Loan Guarantee document and 5001-2 – Lender’s Agreement document. Important Notice: Potential applicants can view these documents in the Internet Explorer (IE) and Edge browsers. In Chrome or Safari, you must first download the documents to view form content. For assistance, please contact [email protected]. 2. Review the final rule to ensure your application meets requirements under the initiative. General application requirements can be found in Subpart D of the regulation and starts at §5001.301. 3. Email a completed application to your local state USDA Rural Development office. Submit Requests Online: Non-Regulated Lenders Seeking Approved Status All non-regulated lenders must request approval status with the Agency to participate in programs under the OneRD Guarantee Loan Initiative. All previously granted lender approval authorities are no longer valid. Rural Development has created a portal to upload all of your documents to request approval status. To use this portal, complete the following steps: 3 Last modified:11/4/2020 1. Review the sample document as an example of the intro, cover letter to submit first. 2. Email your intro cover letter to [email protected]. Upon receipt of that document, RD will send you a link to the Non-Regulated Lender Portal with instructions to upload and submit all your supporting files listed in the sample document. For more information on eligibility and requirements for approval, please review the final rule. Lenders unable to submit their application package through this portal may contact [email protected] for assistance. Technical Corrections 1. Based on comments and feedback, corrections to the regulation have been made 2. It is important that you use the new version of the regulation. We have updated the OneRD Guarantee website with the new version and you may also find the new version through the Electronic Code of Federal Regulations website. 3. A discussion of the specific corrections can be found in the Final Rule technical correction document published on Friday, October 2, 2020. 4. Link to Final Rule Technical Correction Document: https://www.govinfo.gov/content/pkg/FR-2020-10-02/pdf/2020-21917.pdf Lender Help Desk: USDA has created an email inbox for lenders to submit questions to about the OneRD Guarantee