---
kind: "section"
citation: "7 C.F.R. § 1940.591"
title: "7"
number: "1940.591"
heading: "Community Program Guaranteed loans."
url: "https://uscodex.org/cfr/7/1940.591"
---

# §1940.591. Community Program Guaranteed loans.

- (a) **Amount available for allocations.** See [§ 1940.552(a)](/cfr/7/1940.552.md?p=a) of this subpart.
- (b) **Basic formula criteria, data source and weight.** See [§ 1940.552(b)](/cfr/7/1940.552.md?p=b) of this subpart.
  - (1) **The criteria used in the basic formula are—**
    - (i) **State's percentage of national rural population—** 50 percent.
    - (ii) **State's percentage of national rural population with incomes below the poverty level—** 25 percent.
    - (iii) **State's percentage of national nonmetropolitan unemployment—** 25 percent.
  - (2) **The data source for the first criterion is the most recent decennial Census data.** The data source for the second and third criteria is the 5-year data from the American Community Survey (ACS). Each criterion is assigned a specific weight according to its relevance in determining need. The percentage representing each criterion is multiplied by the weight factor and summed to arrive at a State factor (SF). The SF cannot exceed 0.05.
- (c) **Basic formula allocation.** See [§ 1940.552(c)](/cfr/7/1940.552.md?p=c) of this subpart. States receiving administrative allocations do not receive formula allocations.
- (d) **Transition formula.** The transition formula for Community Program Guaranteed loans is not used.
- (e) **Base allocation.** See [§ 1940.552(e)](/cfr/7/1940.552.md?p=e) of this subpart. States receiving administrative allocations do not receive base allocations.
- (f) **Administrative allocation.** See 1940.552(f) of this subpart. States participating in the formula base allocation procedures do not receive administrative allocations.
- (g) **Reserve.** See [§ 1940.522(g)](/cfr/7/1940.522.md?p=g) of this subpart. States may request funds by forwarding a request following the format found in guide 26 of [subpart A of part 1942](/cfr/7/part1942-subpartA.md) of this chapter to the National Office. Generally, a request for additional funds will not be honored unless the State has insufficient funds from the State's allocation to obligate the loan requested.
- (h) **Pooling of funds.** See [§ 1940.522(h)](/cfr/7/1940.522.md?p=h) of this subpart. Funds are generally pooled at mid-year and year-end. Pooled funds will be placed in the National Office reserve and will be made available administratively.
- (i) **Availability of the allocation.** See [§ 1940.552(i)](/cfr/7/1940.552.md?p=i) of this subpart. The allocation of funds is made available for States to obligate on an annual basis although the Office of Management and Budget apportions it to the Agency on a quarterly basis.
- (j) **Suballocation by State Director.** See [§ 1940.552(j)](/cfr/7/1940.552.md?p=j) of this subpart. State Director has the option to suballocate to District Offices.
- (k) **Other documentation.** Not applicable.

## Notes

### Amendments

[55 FR 11134, Mar. 27, 1990, as amended at 58 FR 54486, Oct. 22, 1993; 80 FR 9877, Feb. 24, 2015; 89 FR 34961, May 1, 2024]

### Source

Source: 50 FR 24180, June 10, 1985, unless otherwise noted.

### Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1989; and 42 U.S.C. 1480.

### Amendments

[55 FR 11134, Mar. 27, 1990, as amended at 58 FR 54486, Oct. 22, 1993; 80 FR 9877, Feb. 24, 2015; 89 FR 34961, May 1, 2024]