---
kind: "section"
citation: "7 C.F.R. § 1740.42"
title: "7"
number: "1740.42"
heading: "Interest rates."
url: "https://uscodex.org/cfr/7/1740.42"
---

# §1740.42. Interest rates.


Interest rates for the different funding options that will become available will be included in the Federal Register as part of the funding announcement opening a funding window.

- (a) Direct cost-of-money loans shall bear interest at a rate equal to the cost of borrowing to the Department of Treasury for obligations of comparable maturity.
- (b) The agency may offer 100 percent loans at a reduced interest rate, and in such cases, the applicable interest rate will be stated in the Federal Register or applicable funding opportunity notice.

## Notes

### Authority

Authority: 7 U.S.C. 1981(b)(4), 7 U.S.C. 901 et seq., 7 U.S.C. 950aaa et seq., and 7 U.S.C. 950cc.

### Source

Source: 86 FR 11609, Feb. 26, 2021, unless otherwise noted.