Rural Electrification Loans and Loan Guarantees

To assure that people in eligible rural areas have access to electric services comparable in reliability and quality to the rest of the Nation and to assist borrowers in implementation of demand-side management, energy efficiency and conservation programs and on-grid and off-grid renewable energy systems.

Agency - Department of Agriculture

Established in 1862, the Department of Agriculture serves all Americans through anti-hunger efforts, stewardship of nearly 200 million acres of national forest and rangelands, and through product safety and conservation efforts. The USDA opens markets for American farmers and ranchers and provides food for needy people around the world.

Office - None.

RUS has General Field Representatives (GFRs) located in areas served by borrowers across the United States.

Contact headquarters to find the GFR serving a specific area.



Program Accomplishments

Not Applicable.

Uses and Use Restrictions

Long-term, direct loans and loan guarantees to qualified organizations for the purpose of supplying or improving electric services on a continuing basis in rural areas.

Long-term direct loans and loan guarantees to qualified organizations for the purpose of supplying or improving electric service on a continuing basis in rural areas.

RUS offers several types of loans under this program: Federal Financing Bank (FFB) loan guarantees, direct loans, and insured/municipal loans.

Eligibility Requirements

Applicant Eligibility

Rural electric cooperatives, public utility districts, municipalities, corporations, and other qualified power suppliers including those located in the U.S.

Territories, the Federated States of Micronesia, the Republic of the Marshall Islands, and the Republic of Palau.

Beneficiary Eligibility

Persons, businesses, public bodies, tribal entities, and other entities in rural areas (as defined in program regulations) or those currently served through RUS electric loans. . Rural areas are defined in the Rural Electrification Act and program regulations as any area of the United States, or eligible insular areas, other than a city, town, or unincorporated area that has a population of greater than 20,000 inhabitants, or any area within a service area of an entity with an outstanding Rural Electrification Act loan on June 18, 2008.

Credentials/Documentation

No Credentials or documentation are required. This program is excluded from coverage under 2 CFR 200, Subpart E - Cost Principles.

Aplication and Award Process

Preapplication Coordination

An environmental impact statement or an environmental assessment is required for this program.

An environmental impact statement is required for this program.

An environmental impact assessment is required for this program.

This program is excluded from coverage under E.O.

12372.

Application Procedures

This program is excluded from coverage under 2 CFR 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards. This program is excluded from coverage under 2 CFR Part 200. Applications for direct loan and loan guarantees are made by resolution of the board of directors of the borrowing organization. Application packages are prepared with the assistance of RUS. Information on submitting applications is contained in 7 CFR Part 1710 and 1714.

Award Procedures

Depending on the amount of the loan requested, the RUS Administrator, Assistant Administrator, or appropriate Regional Director makes the final decision on approval of the loan upon a finding that it is economically feasible and serves the purposes of the Rural Electrification Act. Borrowers and Members of Congress are notified of the approval of a loan or loan guarantee directly, and the public is notified through normal media communications.

Deadlines

Not Applicable.

Authorization

Rural Electrification Act of 1936, as amended, 7 U.S.C. 901-950.

Range of Approval/Disapproval Time

Distribution loans and loan guarantees are approved generally on an average of 3 to 6 months as funding becomes available. Loan guarantees for transmission and generation projects are approved generally on an average of 6 to 12 months. Larger projects may take longer.

Appeals

Not Applicable.

Renewals

Not Applicable.

Assistance Considerations

Formula and Matching Requirements

This program has no statutory formula. This program has no matching requirements. This program has no statutory formula. Matching Requirements: Under certain conditions, obtaining a municipal rate loan will require obtaining a concurrent loan (of 10, 20, or 30 percent of the total amount required) from a supplemental financing source. The factors used for determining the amount of concurrent financing required are set forth in 7 CFR 1710.110. MOE requirements are not applicable to this program. MOE requirements are not applicable to this program.

Length and Time Phasing of Assistance

Direct loans are generally made for a period up to 35 years, which approximates the expected useful life of the facilities financed. Provision is normally made for advances to be completed within 4 years, but this period is subject to extension if required. Advances of funds are made as required by the borrower. The terms and conditions of non-federal loan guarantees are negotiated between the borrower and the non-RUS lender, subject to RUS approval. See the following for information on how assistance is awarded/released: .

Post Assistance Requirements

Reports

No program reports are required.

Cash reports are not applicable.

Progress reports are not applicable.

Expenditure reports are not applicable.

Performance monitoring is not applicable.

Audits

In accordance with the provisions of 2 CFR 200, Subpart F - Audit Requirements, non-Federal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Non-Federal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in 2 CFR 200.503. In accordance with the provisions of 2 CFR 200, Uniform Administrative Requirements, Cost Principles and Audit Requirements, Subpart F, Audit Requirements (Revised, December 26, 2013)nonfederal entities that expend financial assistance of $750,000 or more in Federal awards will have a single or a program-specific audit conducted for that year. Nonfederal entities that expend less than $750,000 a year in Federal awards are exempt from Federal audit requirements for that year, except as noted in Subpart F. Annual audit or Management Report

Records

RUS borrowers keep the records prescribed for utility companies by the RUS regulations and the RUS Uniform System of Accounts, and by sound business practices.

Financial Information

Account Identification

12-4230-0-3-999; 12-1230-0-1-271.

Obigations

(Direct Loans) FY 16 $0; FY 17 est $0; and FY 18 est $0 - Hardship. (Guaranteed/Insured Loans) FY 16 $3,165,750,000; FY 17 est $4,343,519,000; and FY 18 est $5,500,000,000 - Guaranteed Federal Financing Bank Loans.

Range and Average of Financial Assistance

Average Guaranteed FFB: $32,668,948 Average.

Regulations, Guidelines, and Literature

7 CFR XVII. RUS publishes and issues upon request bulletins bearing on the financing, construction, operation, and maintenance of rural electric systems. Also available are annual statistical summaries; and the Rural Electrification Act of 1936, as amended.

Information Contacts

Regional or Local Office

None. RUS has General Field Representatives (GFRs) located in areas served by borrowers across the United States. Contact headquarters to find the GFR serving a specific area.

Headquarters Office

Assistant Administrator, Electric Programs Department of Agriculture, 1400 Independence Ave., SW, Stop 1560, Washington, District of Columbia 20250-1500 Phone: (202) 720-9540.

Criteria for Selecting Proposals

Not Applicable.



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