--- kind: "range" citation: "7 C.F.R. §§ 1940.961–1940.965" title: "7" from: "1940.961" to: "1940.965" count: 5 url: "https://uscodex.org/cfr/7/1940.961..1940.965" --- # §1940.961. Allocation of appropriated funds. - (a) **Initial allocations.** - (1) Each FY, from sums appropriated for direct loans, loan guarantees, or grants for any designated rural development program, funds will be allocated to designated States in accordance with RD Instruction [subpart L of part 1940](/cfr/7/part1940-subpartL.md), exhibit A, attachment 4, of this chapter (available in any RD State or District Office). - (2) Each FY, and normally within 30 days after the date Rural Development receives an appropriation of designated rural development program funds, the Governor of each designated State will be notified of the amounts allocated to the State under each designated program for such FY. The Governor will also be notified of the total amounts appropriated for the FY for each designated rural development program. - (3) The State Director will fund projects from a designated State's allocation of funds, according to appropriate program regulations giving great weight to the order in which the preapplications/applications for projects are ranked and listed by the panel in accordance with [§ 1940.956(b)(3)](/cfr/7/1940.956.md?p=b-3) of this subpart. - (b) **Reserve.** A percentage of the National Office reserve established in [subpart L of part 1940](/cfr/7/part1940-subpartL.md) of this chapter will be used to establish a reserve for designated States that is separate and apart from that of nondesignated States. The percent reserved will be based upon the same criteria used in [subpart L of part 1940](/cfr/7/part1940-subpartL.md) of this chapter to allocate program funds. - (c) **Pooling.** - (1) On July 15 of each FY, and from time to time thereafter during the FY, as determined appropriate, unobligated funds will be pooled from among the designated States. Pooled funds will be made a part of the reserve established for designated States and will revert to National Office control. - (2) Funds pooled from designated States can be requested by designated States, pursuant to [subsection (d)](#d) of this section. The designated States' pool; however, will not be available to nondesignated States until September 1 of each year. - (d) **Request for funds.** - (1) Designated States may request designated States' reserve funds, and funds for other designated rural development programs controlled by the National Office, as shown in RD Instruction [subpart L of part 1940](/cfr/7/part1940-subpartL.md), exhibit A, attachment 4, of this chapter, in accordance with applicable program regulations. - (2) Designated States may request funds from the nondesignated reserve account when: - (i) All allocated and reserve funds to designated states have been used, or - (ii) Sufficient funds do not remain in any designated State allocation and in the designated States' reserve account to fund a project. # §1940.962. Authority to transfer direct loan amounts. - (a) **Transfer of funds.** If the amounts allocated to a designated State for direct Water and Waste Disposal or Community Facility loans for a FY are not sufficient to provide the full amount requested for a project in accordance with this subpart, the State Director may transfer part or all of the funds allocated to the State, from one program to another, subject to paragraphs [(b)](#b) and [(c)](#c) of this section. - (b) **Limitation on amounts transferred.** - (1) **Amounts transferred within a designated State.** The amount of direct loan funds transferred from a program under this section shall not exceed the amount left unobligated after obligating the full amount of assistance requested for each project that ranked higher in priority on the panel's list. - (2) **Amounts transferred on a National basis.** The amount of direct loan funds transferred in a FY, among the designated States, from a program under this subpart (after accounting for any offsetting transfers into such program) shall not exceed $9 million, or an amount otherwise authorized by law. - (c) **National Office concurrence.** The State Director may transfer direct loan funds authorized in this section, after requesting and receiving concurrence from the National Office. If permitted by law, the National Office will concur in requests on a first-come-first-served basis. # §1940.963. Authority to transfer guaranteed loan amounts. - (a) **Transfer of funds.** If the amounts allocated to a designated State for guaranteed Water and Waste Disposal, Community Facility, or Business and Industry loans for a FY are not sufficient to provide the full amount requested for a project in accordance with this subpart, the State Director may transfer part or all of the funds allocated to the State, from one program to another, subject to paragraphs [(b)](#b) and [(c)](#c) of this section. - (b) **Limitation on amounts transferred.** The amount of guaranteed loan funds transferred from a program under this section shall not exceed the amount left unobligated after obligating the full amount of assistance requested for each project that ranked higher in priority on the panel's list. - (c) **National Office concurrence.** The State Director may transfer guaranteed loan funds authorized in this section, after requesting and receiving concurrence from the National Office. If permitted by law, the National Office will concur in requests on a first-come-first-served basis. # §1940.964. Reserved # §1940.965. Processing project preapplications/applications. Except for the project review and ranking process established in this subpart, all requests for funds from designated rural development programs will be processed, closed, and serviced according to applicable Rural Development regulations, available in any Rural Development office. - (a) **Preapplications/applications.** All preapplications/applications on hand that have not been selected for further processing will be submitted initially to the panel for review and ranking. Preapplications/applications on hand that had been selected for further processing prior to the time a State was selected to participate in this program may be funded by Rural Development without review by the panel. Preapplications/applications selected for further processing by Rural Development will not exceed the State's previous year's funding level. The State Director will provide the State coordinator a list of preapplications/applications that are in process and will be considered for funding without review by the panel. This list will be provided at the same time preapplications/applications are initially submitted to the State coordinator in accordance with [paragraph (d)](#d) of this section. - (b) **Rural Development review.** Preapplications/applications will be reviewed in sufficient detail to determine eligibility and, if applicable, determine if the applicant is able to obtain credit from other sources at reasonable rates and terms. Normally, within 45 days after receiving a complete preapplication/application, Rural Development will notify the applicant of the eligibility determination. A copy of all notifications will be sent to the State coordinator. - (c) **Applicant notification.** The notification to eligible applicants will contain the following statements: - (d) **Information to State coordinator.** Rural Development will forward a copy of the preapplication/application and other information received from the applicant to the State coordinator according to a schedule prepared in accordance with [§ 1940.956(a)](/cfr/7/1940.956.md?p=a) of this subpart. The State coordinator will be advised that no further action will be taken on preapplications/applications until they have been received and ranked by the panel, and a priority funding list has been received from the State. Applications forwarded to the State coordinator will be reviewed and ranked for funding in accordance with [§ 1940.956](/cfr/7/1940.956.md) of this subpart. - (e) **The Rural Development review of priority funding list.** Rural Developmentwill review the list of ranked applications received from the State coordinator and determine if projects meet the requirements of the designated rural development program under which the applicant seeks assistance. Any project that does not meet program regulations will be removed from the list. Applicants will be notified of the decision reached by the panel and whether or not the applicant should proceed with the project. Rural Development will provide a copy of all notifications to the State coordinator. The decisions of the panel are not appealable. - (f) **Obligation of funds.** Rural Development will provide funds for projects whose application remains on the list, subject to available funds. Consideration will be given to the order in which the applications were ranked and prioritized by the panel. If Rural Development proposes to provide assistance to any project without providing assistance to all projects ranked higher in priority by the panel than the project to be funded, 10 days prior to requesting an obligation of funds, the State Director will submit a report stating reasons for funding such lower ranked project to the following: - (1) **Panel.** - (2) **National Office.** The National Office will submit a copy of the notification to: - (i) **Committee on Agriculture of the House of Representatives, Washington, DC.** - (ii) **Committee on Agriculture, Nutrition, and Forestry of the Senate, Washington, DC.**