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Notes

7 C.F.R. §§ 5001.316–5001.319

4 sections in range

§5001.316. CF project priority point system and reservation of funds.

7 C.F.R. § 5001.316

This section applies to CF projects seeking a loan guarantee. Paragraphs (a) through (d) of this section outline the criteria and amount of priority points that may be awarded to an application. The highest possible priority score is 55. Paragraph (e) of this section outlines the reservation of funds for projects located in rural areas of 20,000 population or less.
(a)
Population priority. If the project will be located in a rural community having a population of less than 20,000—15 points.
(b)
Project priority. If the project will construct, enlarge, extend or otherwise improve a public safety, health clinic, early education, primary or secondary education facility—10 points.
(c)
Leveraging priority. If the applicant commits other funds to the project in the following percentages:
(d)
Administrator priority. When guaranteed loan funds are requested from a National Office reserve, the Administrator may assign up to 15 points to address:
(1)
Geographic distribution of funds;
(2)
Emergency conditions caused by economic problems or natural disasters; or
(3)
Initiatives that support the Agency's strategic plan.
(e)
Rural priority.
(1)
Of the funds available each Federal fiscal year, as published on the Agency's website, the following amounts shall be reserved for projects in rural areas with a population of not more than 20,000 inhabitants:
(i)
100 percent of the first $200,000,000 so made available;
(ii)
50 percent of the next $200,000,000 so made available; and
(iii)
25 percent of all amounts exceeding $400,000,000 so made available.
(2)
On July 1 of each year, the Agency will evaluate the dollar amount of complete applications on hand for projects in rural areas with a population of not more than 20,000 inhabitants. The dollar amount of the complete applications will be subtracted from the reserved allocation identified in this paragraph (e) and the remaining amount will be made available through the end of the Federal fiscal year for projects in rural areas with a population of not more than 50,000 inhabitants.
Notes, amendments, and revision history

Amendments

[85 FR 42518, July 14, 2020, as amended at 89 FR 79722, Sept. 30, 2024]

Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 7 U.S.C. 8107.

Source

Source: 85 FR 42518, July 14, 2020, unless otherwise noted.

Amendments

[85 FR 42518, July 14, 2020, as amended at 89 FR 79722, Sept. 30, 2024]

§5001.317. WWD project priority points system.

7 C.F.R. § 5001.317

This section applies to WWD projects seeking a loan guarantee. The highest possible priority point score is 150.
(a)
Population priority. If the project will primarily serve a rural area having a population under 10,000, 20 points will be awarded.
(b)
Health priorities. If the proposed project is:
(1)
Needed to alleviate an emergency situation, correct unanticipated diminution or deterioration of a water supply, or to meet Safe Drinking Water Act requirements which pertain to a water system, 25 points will be awarded;
(2)
Required to correct inadequacies of a wastewater disposal system, or to meet health standards which pertain to a wastewater disposal system, 25 points will be awarded; or
(3)
Required to meet administrative orders issued to correct local, State, or Federal solid waste violations, 15 points will be awarded.
(c)
Service area priorities. An application is eligible to receive points under each of the categories identified in paragraphs (c)(1) through (3) of this section if the service area includes:
(1)
An eligible area of long-term population decline according to the last three decennial censuses, 5 points will awarded.
(2)
A rural county that has had 20 percent or more of its population living in poverty, as defined by the United States Census Bureau, for the last 30 years, 5 points will be awarded.
(3)
For a city or county with a current unemployment rate, as determined by the Department of Labor, that is 125 percent of the State-wide rate or greater, 5 points will be awarded. For projects located in certain territories that may not have unemployment rates by localities, if the applicant's proposed service area has an unemployment rate exceeding 125 percent of the national unemployment rate, 5 points will be awarded.
(d)
Other priorities. Applications are eligible for points under each of the following priorities:
(1)
If the proposed project will merge ownership, management, and operation of smaller facilities providing for more efficient management and economical service, 10 points will be awarded.
(2)
If the proposed project will enlarge, extend, or otherwise modify existing facilities to provide service to additional rural areas, 10 points will be awarded.
(3)
If the applicant is a public body or Indian tribe, 5 points will be awarded;
(4)
If the amount funds committed to the project from sources other than Rural Development is:
(i)
50 percent or more, 15 points will be awarded;
(ii)
20 percent to 49 percent, 10 points will be awarded;
(iii)
5 percent to 19 percent, 5 points will be awarded;
(5)
If the project will serve Agency identified target areas, 5 points will be awarded;
(6)
If the project primarily recycles solid waste products thereby limiting the need for solid waste disposal, 5 points will be awarded; and
(7)
If the project will serve an area that has an unreliable quality or supply of drinking water, 10 points will be awarded.
(e)
In certain cases, the approval official may award up to 15 points to a project. The points may be awarded to projects in order to improve compatibility and coordination between WWD and other agencies' selection systems, to ensure effective RUS fund utilization, and to assist those projects that are the most cost effective. A written justification must be prepared and placed in the project file each time these points are assigned.
(f)
National office priorities. The Administrator may assign up to 15 additional points to account for items such as geographic distribution of funds, the highest priority projects within a state, and emergency conditions caused by economic problems or natural disasters. The Administrator may delegate the authority to assign the 15 points to appropriate National Office staff.
Notes, amendments, and revision history

Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 7 U.S.C. 8107.

Source

Source: 85 FR 42518, July 14, 2020, unless otherwise noted.

§5001.318. B&I project priority point system.

7 C.F.R. § 5001.318

This section applies to B&I projects seeking a loan guarantee. When applications on hand have the same priority score, the Agency will give preference to applications involving guaranteed loans from veterans. To receive veteran points, a veteran or veterans must own 20 percent or more interest in the borrower and the borrower must sign a certification in its application to indicate that the borrower has veteran status. A maximum of 100 points can be awarded.
(a)
Population priority. If the project is located in an unincorporated area or in a city with a population under 25,000, 5 points will be awarded.
(b)
Location priority. An application is eligible to receive points under each of the categories identified in paragraphs (b)(1) through (3) of this section if the project is located within:
(1)
A distressed community in accordance with the Economic Innovation Group distressed community index. The list can be found on the Agency's website at: https://www.rd.usda.gov/onerdguarantee, 5 points will be awarded.
(2)
A rural county that has had 20 percent or more of its population living in poverty, as defined by the United States Census Bureau, for the last 30 years, 5 points will be awarded.
(3)
For a city or county with a current unemployment rate, as determined by the Department of Labor, 125 percent of the State-wide rate or greater, 5 points will be awarded. For projects located in certain territories that may not have unemployment rates by localities, if the applicant's proposed service area has an unemployment rate exceeding 125 percent of the national unemployment rate, 5 points will be awarded.
(4)
The boundaries of a federally recognized Indian Tribe's reservation, within Tribal trust lands, or within land owned by an Alaska Native Regional or Village Corporation as defined by the Alaska Native Claims Settlement Act, 5 points will be awarded.
(c)
Guaranteed loan features. An application is eligible to receive points under each of the categories identified in paragraphs (c)(1) through (3) of this section as follows:
(1)
If the lender will price the guaranteed loan at an interest rate equal to or less than the equivalent of the Wall Street Journal published Prime Rate plus 1.5 percent, 5 points will be awarded.
(2)
If the guaranteed loan is less than 60 percent of the total project cost, 5 points will be awarded.
(3)
If the business is owned by a qualified veteran, 5 points will be awarded.
(d)
High impact business development investment priorities. An application is eligible to receive points under each of the categories identified in paragraphs (d)(1) through (7) of this section below:
(1)
If the industry is not already present in the local community, 5 points will be awarded.
(2)
If the business has 20 percent or more of its sales in international markets, 5 points will be awarded.
(3)
If the business is locally owned and managed, 5 points will be awarded.
(4)
If the business will produce a natural resource value-added product, 5 points will be awarded.
(5)
If the business processes, distributes, aggregates, stores, and/or markets locally or regionally produced agricultural food products to underserved communities in accordance with § 5001.105(b)(15)(ii), 5 points will be awarded.
(6)
If the business creates or saves a minimum of five jobs with an average wage exceeding 150 percent of the Federal minimum wage, 5 points will be awarded.
(7)
If the business offers a healthcare benefits package to all employees and pays at least 50 percent of the healthcare premium, 5 points will be awarded.
(e)
Administrative points. An application is eligible to receive points under paragraphs (e)(1) through (3) of this section.
(1)
For projects awarded under State allocations the State Director may assign up to 10 additional points to an application to account for state-wide distribution of funds for natural disasters, local economic emergency conditions, community economic development strategies, State strategic plans, fundamental structural changes in a community's economic base, or projects that will fulfill an Agency special initiative.
(2)
For projects requesting funds from the national reserve account, the State Director may request up to 10 administrative points from the Administrator.
(3)
If an application is for a loan in excess of 10 million dollars, the Administrator may assign up to an additional 10 points to account for the nationwide geographic distribution of funds, or projects that will fulfill an Agency special initiative.
Notes, amendments, and revision history

Amendments

[85 FR 42518, July 14, 2020, as amended at 86 FR 70357, Dec. 10, 2021; 89 FR 79722, Sept. 30, 2024]

Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 7 U.S.C. 8107.

Source

Source: 85 FR 42518, July 14, 2020, unless otherwise noted.

Amendments

[85 FR 42518, July 14, 2020, as amended at 86 FR 70357, Dec. 10, 2021; 89 FR 79722, Sept. 30, 2024]

§5001.319. REAP project priority point system.

7 C.F.R. § 5001.319

This section applies to REAP projects seeking a loan guarantee. On a periodic basis, and subject to the availability of funds, the Agency will compete each complete and eligible RES, EEI, and EEE application that is ready to be funded and whose priority score, as determined in this section, meets, or exceeds the minimum priority score. Applications that do not meet the applicable minimum score will be considered as provided in § 5001.315(c)(2). A maximum score of 90 points is possible.
(a)
Environmental benefits. The Agency will award up to 5 points under this criterion based on documentation or the applicant's indication in the application that the project will have a positive effect on resource conservation, public health, and the environment. If the project will have a positive impact on:
(1)
All three impact areas, 5 points will be awarded;
(2)
Any two of the three impact areas, 3 points will be awarded; or
(3)
Any one of the three impact areas, 1 point will be awarded.
(b)
Energy generated, replaced, saved, or percent efficiency. The Agency will award up to 25 points under this criterion. Each application is eligible for points under both paragraphs (b)(1) and (2) of this section.
(1)
Quantity of energy generated or saved per RES/EEI loan amount requested, or percent efficiency of EEE project. The Agency will award up to 10 points under this sub-criterion. Points will be awarded for either the amount of renewable energy generation per dollar of loan amount requested, which includes those projects that are replacing energy usage with a renewable source; or the actual annual average energy savings over the most recent 12, 24, 36, 48, or 60 consecutive months of operation per dollar of guaranteed loan amount requested; or the percent efficiency of the EEE project. The Agency will not award points for more than one category.
(i)
Renewable energy systems. The quantity of energy generated or replaced per guaranteed loan dollar requested will be determined by dividing the projected total annual energy generated or replaced by the RES or RES retrofit (minus energy for residential use), which will be converted to BTUs, by the guaranteed loan dollars requested. Applications for retrofitting of a RES that are not projecting to increase the amount of renewable energy that the RES is generating, while still eligible for REAP, will not be awarded points under this criteria. Off-the-grid projects and direct-use projects which are not replacements, will be awarded points based on proposed energy generation. Points will be awarded under this sub-criterion based on the annual amount of energy generated or replaced (minus energy for residential use) per dollar of guaranteed loan amount requested for the RES project. The Agency will award up to 10 points as determined under paragraph (b)(1)(i)(A) and (B) of this section below. If the annual amount of energy generated per dollar of guaranteed loan amount requested calculated under paragraph (b)(1)(ii) of this section is:
(A)
50,000 BTUs or higher average annual energy generated or replaced per dollar of guaranteed loan amount requested or higher, 10 points will be awarded; or
(B)
Less than 50,000 BTUs annual energy generated or replaced per dollar of guaranteed loan amount requested, points will be awarded according to the result of taking the energy generated or replaced per guaranteed loan dollar requested ÷ 50,000 × 10 points. The points awarded are rounded to the nearest hundredth of a point.
(ii)
Energy efficiency improvements. The Agency will award up to 10 points under this sub-criterion based on the average annual energy saved per dollar of guaranteed loan amount requested for the EEI project. The Agency will award up to 10 points as determined under paragraph (b)(1)(ii)(A) and (B) of this section.
(A)
50,000 BTUs or higher average annual energy saved per dollar of guaranteed loan amount requested, 10 points will be awarded; or
(B)
Less than 50,000 BTUs average annual energy saved per dollar of guaranteed loan amount requested, points will be awarded according to the result of taking the energy generated per loan dollar requested ÷ 50,000 × 10 points. The points awarded are rounded to the nearest hundredth of a point.
(iii)
Energy efficient equipment and systems. If the increased energy efficiency of the proposed equipment and systems is—
(A)
75 percent or greater, award 10 points;
(B)
Less than 75 percent but equal to or greater than 50 percent, award 5 points;
(C)
Less than 50 percent but equal to or greater than 25 percent, award 2.5 points; or
(D)
Less than 25 percent, award 0 points.
(2)
Quantity of energy replaced, generated, or saved, or percentage of energy efficiency. The Agency will award up to 15 points under this sub-criterion. Points will be awarded based on whether the project is for energy replacement, energy generation, or energy savings, or percentage of energy efficiency; points will not be awarded for more than one category.
(i)
Energy replacement. The Agency will award points under this sub-criterion for an RES project based on the amount of energy replaced by the project compared to the amount of energy used by the applicable process(es) over a 12-month period. If the estimated energy produced is more than 150 percent of the energy used by the applicable process(es), the project will be scored as an energy generation project under paragraph (b)(2)(ii) of this section. When calculating the percentage of energy being replaced and whether it is categorized as a replacement or generation, the entire amount of energy produced by the new system will be used in the calculation, regardless of whether the project is being prorated because it shares a meter with a residence or if it has ineligible project costs.
(A)
Documentation for energy replacement. For a RES project to qualify as energy replacement, the borrower must provide documentation in its application on prior energy use incurred by the borrower. Documentation must be shown that the borrower entity incurred the cost of the historical energy to be replaced, in order for the project to qualify as energy replacement. Replacement of existing direct use renewable energy can be considered in the replacement calculation as long as the borrower entity owns the existing RES system. For a project involving a recent acquisition, historical energy costs of the previous owner can be used to document prior energy use. Applicant entities cannot utilize historical energy costs of affiliate businesses to document prior energy use. Proposed energy use, such as that attributed to an expansion, is not considered in the replacement calculation. For a RES project involving new construction and being installed to serve the new facility, the project can be classified as energy replacement only if the borrower can document prior energy use from a facility that is within plus or minus 10 percent of the size of the facility it is replacing. The estimated quantities of energy must be converted to either BTUs, watts, or similar energy equivalents to facilitate scoring.
(B)
Calculation. Energy replacement is determined by dividing the quantity of renewable energy that the RES project is estimated would have been generated if it were in place over the most recent 12-month period by the quantity of energy actually consumed over the same period by the applicable energy process(es) that is(are) consuming energy.
(C)
Awarding of points. Using the results from paragraph (b)(2)(ii)(B) of this section, if the percentage of energy replacement is—

(1) Greater than 50 percent, 15 points will be awarded;

(2) Greater than 25 percent, but equal to or less than 50 percent, 10 points will be awarded; or

(3) Equal to or less than 25 percent, 5 points will be awarded.

(ii)
Energy generation. If the RES project is intended for production of energy or is a proposed retrofitting of an existing RES which increases the amount of energy generated, the Agency will award 10 points. Applications for retrofitting of an RES that are not projecting to increase the amount of renewable energy that the RES is generating, while still eligible for REAP, will not be awarded points under this criteria. If the borrower cannot document prior energy use, the project will be scored as an energy generation project, regardless of whether or not there is an agreement in place to sell the power.
(iii)
Energy saved. The Agency will award up to 15 points under this sub-criterion for an EEI project based on the percentage of estimated energy saved by the installation of the project as determined by the projections in the applicable vendor certification, energy assessment or energy audit. If the estimated energy expected to be saved over the same period used in the energy assessment or energy audit, as applicable, will be—
(A)
50 percent or greater, 15 points will be awarded;
(B)
35 percent up to, but not including 50 percent, 10 points will be awarded;
(C)
20 percent up to, but not including 35 percent, 5 points will be awarded; or
(D)
Less than 20 percent, no points will be awarded.
(iv)
Energy efficiency. If the percentage of energy efficiency is—
(A)
Greater than 50 percent, 15 points will be awarded;
(B)
Greater than 25 percent, but equal to or less than 50 percent, 10 points will be awarded; or
(C)
Equal to or less than 25 percent, 5 points will be awarded.
(c)
Commitment of funds. The Agency will award up to 15 points under this criterion based on the percentage of acceptable written commitment a borrower has from its other funding sources that are documented with a complete application.
(1)
Calculation. The percentage of written commitment is calculated as follows: Percentage of written commitment = total amount of funds for which written commitments have been submitted with the application ÷ Total amount of matching funds and other funds required.
(2)
Awarding of points. Using the result from paragraph (c)(1) of this section, the Agency will award points as shown in paragraphs (c)(2)(i) through (iii) of this section.
(i)
If the percentage of written commitments is 100 percent of the matching funds, 15 points will be awarded.
(ii)
If the percentage of written commitments is less than 100 percent, but more than 50 percent, points will be awarded as follows: ((Percentage of written commitments − 50 percent) ÷ (50 percent)) × 15 points, where points awarded are rounded to the nearest hundredth of a point.
(iii)
If the percentage of written commitments is 50 percent or less, no points will be awarded.
(d)
Previous grantees or borrowers. The Agency will award up to 15 points under this criterion based on whether the borrower has received and accepted a REAP grant award under 7 CFR part 4280 or a guaranteed loan commitment under either this part or 7 CFR part 4280. Received and accepted means REAP grant funds were disbursed and/or a REAP loan note guarantee was issued by the Agency. The determination is based on the fiscal year in which the obligation was made.
(1)
If the borrower has never received and accepted a grant award under 7 CFR part 4280 or a guaranteed loan commitment under either this part or 7 CFR part 4280, 15 points will be awarded.
(2)
If the borrower has not received and accepted a grant award under 7 CFR part 4280 or a guaranteed loan commitment under either this part or 7 CFR part 4280 within the previous two Federal fiscal years, 10 points will be awarded.
(3)
If the borrower has received and accepted a grant award under 7 CFR part 4280 or a guaranteed loan commitment under either this part or 7 CFR part 4280 within the previous two Federal fiscal years, no points will be awarded.
(e)
Existing businesses. A maximum of 5 points will be awarded for an existing agricultural producer business or rural small business that meets the definition of existing business in § 5001.3. The business must be in operation for at least one full year, not simply a year since legal business formation.
(f)
Simple payback. A maximum of 15 points will be awarded for this criterion based on the simple payback of the project as defined in § 5001.3. Points will be awarded for either RES, EEI, or EEE; points will not be awarded for more than one category. See definition of simple payback for calculations. Simple payback calculations will be calculated based only on the documented information provided with the application.
(1)
Renewable energy systems. RESs includes replacement, generation, and direct-use RES projects. If the simple payback of the project is:
(i)
Less than 10 years, 15 points will be awarded;
(ii)
10 years up to but not including 15 years, 10 points will be awarded;
(iii)
15 years up to and including 25 years, 5 points will be awarded; or
(iv)
Longer than 25 years, no points will be awarded.
(2)
Energy efficiency improvements. If the simple payback of the project is:
(i)
Less than 4 years, 15 points will be awarded;
(ii)
4 years up to but not including 8 years, 10 points will be awarded;
(iii)
8 years up to and including 12 years, 5 points will be awarded; or
(iv)
Longer than 12 years, no points will be awarded.
(3)
Energy efficient equipment and systems. If the simple payback of the project is—
(i)
Less than 4 years, 15 points will be awarded;
(ii)
4 years up to but not including 8 years, 10 points will be awarded;
(iii)
8 years up to and including 12 years, 5 points will be awarded; or
(iv)
Longer than 12 years, no points will be awarded.
(g)
Administrator priority points. Under this criterion, the Administrator may award up to 10 points to an application based on the conditions specified in paragraphs (g)(1) through (5) of this section. Under no circumstances will an application receive more than 10 points under this criterion.
(1)
The application is for an under-represented technology.
(2)
Selecting the application helps achieve geographic diversity.
(3)
The borrower is a veteran or veterans own 20 percent or more in interest in the borrower. In order to receive points, the borrower must sign a certification in its application to indicate that the borrower has veteran status.
(4)
Selecting the application helps further a Presidential initiative or a Secretary of Agriculture priority.
(5)
The proposed project is located in a federally declared disaster area. Declarations must be within the last 3 calendar years.
(6)
The project is located in an area where 20 percent or more of its population is living in poverty, as defined by the United States Census Bureau, for the last 30 years; an underserved community; or an area which has experienced long-term population decline, or loss of employment.
(h)
Unused funding. After each periodic competition, the Agency will roll any remaining guaranteed loan funding authority into the next competition. At the end of each Federal fiscal year, the Agency may elect at its discretion to allow any remaining multi-year funds to be carried over to the next Federal fiscal year rather than selecting a lower scoring application.
Notes, amendments, and revision history

Amendments

[85 FR 42518, July 14, 2020, as amended at 89 FR 79722, Sept. 30, 2024; 90 FR 30561, July 10, 2025]

Authority

Authority: 5 U.S.C. 301; 7 U.S.C. 1926(a); 7 U.S.C. 1932(a); and 7 U.S.C. 8107.

Source

Source: 85 FR 42518, July 14, 2020, unless otherwise noted.

Amendments

[85 FR 42518, July 14, 2020, as amended at 89 FR 79722, Sept. 30, 2024; 90 FR 30561, July 10, 2025]