Application Notes:

Prior to submitting an application, applicants must contact the appropriate state community programs director. A list of Rural Development (RD) state offices can be found online at www.rd.usda.gov/about-rd/offices/state-offices.

Applications are accepted on a rolling basis.

Applications must be emailed to the appropriate RD state offices listed online at www.rd.usda.gov/about-rd/offices/state-offices.

Applications must include:

• Form RD 5001-1: application for loan guarantee
• Written credit evaluation and credit evaluation checklist
• Environmental information (as applicable)
• Financial statements
• Draft loan agreement (if applicable)
• Loan classification and credit risk rating classification scale
• Real estate appraisals
• Chattel appraisals
• Feasibility study
• Business plan (if applicable)
• Copies of organizational documents, organizational charts, and existing debt instruments (if applicable)
• Identification of any known relationship or association with an agency employee
• Form HUD-935.2A: affirmative fair housing marketing plan (AFHMP) (if applicable)
• Engineering documentation or architectural reports (if applicable)
• Certificate of need (if applicable)
• Intergovernmental consultation comments (if applicable)
• Form RD 5001-2: lenders agreement (If applicable)
• Form RD 5001-2a: multistate and non-traditional lender’s agreement (if applicable)
• Borrower-obtained certificate of support signed by an authorized official from each affected local government within the service area of the proposed facility
• Written documentation of conflict of interest (if applicable)
• Borrower’s written certification of their inability to secure commercial credit without a guarantee at reasonable rates and terms
• Lender-provided evidence that a nonprofit borrower has significant ties with the local rural community (if applicable)
• Form AD-3030: representations regarding felony conviction and tax delinquent status for corporate applicants

The following are required in order to submit an application:

• Unique Entity Identifier (UEI) number
• SAM (System for Award Management) registration
• SPOC (state Single Point of Contact) notification

Applicants may obtain a UEI number and verify or renew SAM registration status at www.ecivis.com/sam. Applicants in states participating in the SPOC program must contact the relevant SPOC listed in the SPOC file before applying.

Prior to submitting an application, applicants are encouraged to submit an optional request for a preliminary eligibility review to the appropriate RD state office listed online at online at www.rd.usda.gov/about-rd/offices/state-offices. Refer to pages 61-64 of the Guide file for additional information regarding requesting an optional preliminary eligibility review.

Applications will be evaluated according to the following priority criteria:

• Population priority (15 points)
• Project priority (10 points)
• Leveraging priority (15 points)
• Administrator priority (15 points)

Refer to pages 78-80 of the Guide file for additional information regarding the application evaluation process for this program.

Refer to the NOFA, Guide, and ProgramRule files, as well as the Application folder, for additional application information.

Match Notes:

There are no stated matching requirements for this program; however, applicants that provide at least 5 percent of total project costs via matching contributions will receive priority points during the application evaluation process.

All lenders will be responsible for obtaining and maintaining proper and adequate collateral for the guaranteed loan. All collateral must secure the guaranteed loan. Lenders must discount collateral consistent with sound loan-to-discounted value practices, which must be adequate to secure the guaranteed loan. Lenders will determine the market value of the collateral with an appraisal.

In addition, the following loan fees apply to this program:

• Initial guarantee fee, which is currently 1.25 percent of the guaranteed amount
• Guarantee retention fee, which is currently 0.5 percent of the outstanding principal balance, paid annually
• Fee for the issuance of loan note guarantee prior to construction of 0.5 percent
• Additional reasonable and customary fees for loan origination, which will be negotiated between borrower and lender

Refer to the Fees file for additional information regarding loans fees that apply to this program for FY 2025.

Funding Notes:

For FY 2025, as of January 2025, a total of $143,455,000 is available to support loan guarantees through this program. Current information regarding the total funding available through this program can be found online at www.rd.usda.gov/onerdguarantee.

For FY 2025, the loan guarantee percentage is 80 percent. The maximum loan amount is $100 million.

Each year, the funding agency will reserve funds for projects located in rural areas with a population of no more than 20,000 inhabitants based on the following reservation of funds schedule:

• 100 percent of the first $200 million will be made available
• 50 percent of the next $200 million will be made available
• 25 percent of all amounts exceeding $400 million will be made available

Interest rates are negotiated between the lender and borrower. Rates may be fixed or variable; however, variable interest rates may not be adjusted more often than quarterly.

Loan terms will be based on the use of guaranteed loan funds, the useful economic life of the assets being financed and those used as collateral, and the borrower's repayment ability. Loan terms will not exceed 40 years.

Tax-exempt financing cannot be guaranteed through this program.

Funds may not be used for:

• Lines of credit
• Owner-occupied and rental housing
• Golf courses or golf course infrastructure
• Racetracks or gambling facilities
• Facilities used for inherently religious activities
• Projects that create, directly or indirectly, a conflict of interest
• Inherently commercial enterprises
• Paying brokers for referrals or packages

Refer to pages 29-30 and 33-34 of the ProgramRule file for information regarding additional ineligible costs.