---
kind: "section"
citation: "7 C.F.R. § 1734.6"
title: "7"
number: "1734.6"
heading: "Disbursement of loans and grants."
url: "https://uscodex.org/cfr/7/1734.6"
---

# §1734.6. Disbursement of loans and grants.

- (a) For financial assistance of $100,000 or greater, prior to the disbursement of a grant and a loan, the recipient, if it is not a unit of government, will provide evidence of fidelity bond coverage as required by [2 CFR part 200](/cfr/2/part200.md), which is adopted by USDA through [2 CFR part 400](/cfr/2/part400.md).
- (b) Grants and loans will be disbursed to recipients on a reimbursement basis, or with unpaid invoices for the eligible purposes contained in this subpart, by the following process:
  - (1) An SF 270, “Request for Advance or Reimbursement,” will be completed by the recipient and submitted to RUS not more frequently than once a month;
  - (2) RUS will review the SF 270 for accuracy when received and will schedule payment if the form is satisfactory. Payment will ordinarily be made within 30 days; and
- (c) The recipient's share in the cost of the project must be disbursed in advance of the loan and grant, or if the recipient agrees, on a pro rata distribution basis with financial assistance during the disbursement period. Recipients will not be permitted to provide their contributions at the end of the project.
- (d) A combination loan and grant will be disbursed on a pro rata basis based on the respective amounts of financial assistance provided.

## Notes

### Authority

Authority: 7 U.S.C. 901 et seq. and 950aaa et seq.

### Source

Source: 82 FR 55925, Nov. 27, 2017, unless otherwise noted.