---
kind: "section"
citation: "7 C.F.R. § 4280.16"
title: "7"
number: "4280.16"
heading: "REDL and REDG Loan terms."
url: "https://uscodex.org/cfr/7/4280.16"
---

# §4280.16. REDL and REDG Loan terms.


REDL and REDG loans made by the Intermediary are governed by the following terms:

- (a) **The maximum term of a loan is 10 years, including any principal deferment period.** The Intermediary may choose a shorter term if desired.
- (b) Deferments on Zero-Interest Loans will automatically be granted by Rural Development upon request of the Intermediary as follows:
  - (1) A deferral for up to 1 year for Projects involving an Established Operation; or
  - (2) A deferral for up to 2 years for Projects involving a Start-Up venture or a Community Facilities Project whether or not such Project also receives funding under USDA Community Facilities funding programs.
- (c) The Intermediary must provide the Ultimate Recipient with the same loan terms as the Intermediary receives from Rural Development.
- (d) The Intermediary is solely responsible for the financial approval of Fund loans and all other Fund decisions and actions.

## Notes

### Source

Source: 72 FR 29843, May 30, 2007, unless otherwise noted.

### Authority

Authority: 7 U.S.C. 1989(a), 7 U.S.C. 2008s.

### Source

Source: 70 FR 41303, July 18, 2005, unless otherwise noted.