Download Federal Register Notice

http://edocket.access.gpo.gov/2009/pdf/E9-813.pdf

At the 11th hour, USDA Rural Development has decided to delay the implementation of its sweeping "interim final rule". This rule, which was to have taken effect today would have completely replaced the guaranteed loan regulations governing Business & Industry (B&I), Community Facilities (CF), Rural Energy (REAP), and Water & Waste Disposal (WWD) programs.

The delay was apparently necessary because of some unintentional but nevertheless fatal omissions in the CF and WWD section of the rule.

This means at least three things:

1. The B&I, CF, REAP, and WWD guaranteed loan programs will continue to operate as before. None of the proposed changes are in effect.

2. The intended changes are still "alive." but they are now slated to go into effect 30 days hence - on February 17.

3. The opportunity to provide written comments on the new rule - suggesting changes or voicing concerns - is still set to end on February 17 (coinciding with the new effective date). Earlier this week, lenders and RD staff gathered from across the country in Dallas TX to review the new rule, and many serious concerns were voiced. National RD staff acknowledged that changes would be necessary, but they emphasized that they can only act on WRITTEN comments.

So if you are so inclined, PLEASE SUBMIT WRITTEN COMMENTS BY FEBRUARY 17.

For those lenders interested in following the details of the new rule, RD-Oregon will shortly be adding a web page - http://www.rurdev.usda.gov/or/newglrule.htm - where you can find details about the new rule, its status, and how to comment.