81 FR 81724 - Applications for Licensing as a Non-Leveraged Rural Business Investment Company Under the Rural Business Investment Program

DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service

Federal Register Volume 81, Issue 223 (November 18, 2016)

This Notice announces the acceptance of applications from newly-formed Rural Business Investment Companies (RBICs) or new funds from existing RBICs who are interested in obtaining a licensed fund as non-leveraged RBICs under the Agency's Rural Business Investment Program (RBIP).

[Federal Register Volume 81, Number 223 (Friday, November 18, 2016)]
[Notices]
[Pages 81724-81726]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-27731]


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DEPARTMENT OF AGRICULTURE

Rural Business-Cooperative Service


Applications for Licensing as a Non-Leveraged Rural Business 
Investment Company Under the Rural Business Investment Program

AGENCY: Rural Business-Cooperative Service, USDA.

ACTION: Notice.

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SUMMARY: This Notice announces the acceptance of applications from 
newly-formed Rural Business Investment Companies (RBICs) or new funds 
from existing RBICs who are interested in obtaining a licensed fund as 
non-leveraged RBICs under the Agency's Rural Business Investment 
Program (RBIP).

DATES: The Agency began accepting applications for non-leveraged status 
on August 6, 2012, and will continue to accept applications for non-
leveraged status on a continuous basis until such time the Agency 
determines otherwise.

ADDRESSES: 
    Address for Application Submission: Completed applications must be 
sent to Specialty Programs Division, U.S. Department of Agriculture, 
Room Number 4204-S, 1400 Independence Avenue SW., Washington, DC 20250-
3226.
    Address for Requesting Information: Application materials and other 
information may be requested by writing to Kristi Kubista-Hovis, Acting 
Director, Specialty Programs Division, U.S. Department of Agriculture, 
Room 4204-S, 1400 Independence Avenue SW., Washington, DC 20250-3226.

FOR FURTHER INFORMATION CONTACT: Detailed information on the RBIP, 
including application materials and instructions, can be found on the 
Agency's Web site at http://www.rd.usda.gov/programs-services/rural-business-investment-program. You also may request information from the 
Agency by contacting David Chesnick, Program Manager, Rural Business 
Investment Program, Specialty Programs Division, U.S. Department of 
Agriculture, Room 4221-S, 1400

[[Page 81725]]

Independence Avenue SW., Washington, DC 20250-3226, at (202) 690-0433.

SUPPLEMENTARY INFORMATION: 

Paperwork Reduction Act

    The Paperwork Reduction Act of 1995 defines ``collection of 
information'' as a requirement for ``answers to * * * identical 
reporting or recordkeeping requirements imposed on ten or more 
persons'' (44 U.S.C. 3502(3)(A)). The collection requirement associated 
with this Notice is expected to receive less than 10 respondents and 
therefore the Act does not apply.

Overview Information

    Federal Agency Name. Rural Business-Cooperative Service.
    Opportunity Title. RBIP for Non-leveraged RBICs.
    Announcement Type. Subsequent announcement.
    Catalog of Federal Domestic Assistance (CFDA) Number. The CFDA 
number for the program impacted by this action is 10.860, Rural 
Business Investment Program.
    Dates. The Agency began accepting applications for non-leveraged 
status on August 6, 2012, and will continue to accept applications for 
non-leveraged status until such time the Agency determines otherwise. 
Availability of Notice. This Notice is available on the USDA Rural 
Development Web site at: http://www.rd.usda.gov/programs-services/rural-business-investment-program.

I. Opportunity Description

    A. Background. The purpose of Subtitle H of the Consolidated Farm 
and Rural Development Act, as amended (7 U.S.C. 2009cc et seq.) is to 
promote economic development and the creation of wealth and job 
opportunities in rural areas and among individuals living in those 
areas through venture capital investments by for-profit RBICs.
    Prior to August 6, 2012, the Agency issued licenses to qualified 
RBICs as leveraged RBICs only. A notice published in the Federal 
Register on July 5, 2012, (77 FR 39675), informed the public that the 
Agency would begin accepting non-leveraged RBIC license applications on 
August 6, 2012.
    The purpose of this current Notice is to notify interested RBICs 
that the Agency is still accepting applications from qualified RBICs 
for licensing as non-leveraged RBICs under the RBIP. The Agency will 
continue to accept such applications until such other time the Agency 
determines otherwise.
    B. Program Authority. Subtitle H of the Consolidated Farm and Rural 
Development Act, as amended (7 U.S.C. 2009cc et seq.) establishes the 
RBIP.
    C. Definition of Terms. The terms defined in 7 CFR part 4290 are 
applicable to this Notice.

II. Licensing Information

    A. Number of Licenses. The Agency intends to issue approximately 
two non-leveraged RBIC licenses a year, subject to sufficient 
resources. However, additional applications for licenses may be 
considered if sufficient resources are made available.
    B. Type of License. Non-leveraged.

III. Eligibility Information

    Applicants and their applications are subject to the provisions of 
this Notice and to the provisions of 7 CFR part 4290. In order to be 
eligible for non-leveraged status under this Notice, the applicant must 
demonstrate that one or more Farm Credit System (FCS) institution(s) 
will invest in the RBIC and, individually or collectively, hold 10 
percent or more the applicant's total capital.

IV. Application and Submission Information

    A. Where to Obtain Applications. Applicants may obtain applications 
and other applicable application material from the Agency's Specialty 
Programs Division, as provided in the ADDRESSES section of this Notice. 
Because applications will be selected on a first-come, first-served 
basis, the Agency recommends that potential applicants who plan to 
request application materials via mail request such materials as soon 
as possible.
    Application materials may also be obtained via http://www.rd.usda.gov/programs-services/rural-business-investment-program or 
by contacting the Agency at the address and phone number provided in 
the ADDRESSES section of this Notice.
    B. Prior to Preparing Application. The Agency recommends that those 
interested in applying for non-leveraged licensing contact the Agency 
at the address and phone number provided in the ADDRESSES section of 
this Notice to determine the status of the non-leveraged program in 
order to avoid unnecessary expenditure of resources by the applicant. 
As noted earlier in this Notice, the Agency intends to issue 
approximately two non-leveraged licenses a year, due to limited 
resources, the Agency may not be able to review more than the two 
applications in any 1 fiscal year.
    C. Content and Form of Submission. Applications must be submitted 
in accordance with the application instructions contained in this 
Notice and in 7 CFR 4290. Applicants must submit complete initial 
applications in order to be considered. Applications must be submitted 
in hard copy form and on a USB flash drive; applications sent by 
facsimile will not be accepted.
    Contents of the initial application include RD Form 4290-1, ``Rural 
Business Investment Program (RBIP) Application,'' Part I, Management 
Assessment Questionnaire (MAQ), and RD Form 4290-2, ``Rural Business 
Investment Program (RBIP) Application,'' Part II, Exhibits (exhibits A, 
B, C, D, E, F, G, H, K, L, P, V, and Z).
    Submit two complete, original hard copy sets of the RD Form 4290-1 
and RD Form 4290-2 (excluding Exhibit P, which is required in 
electronic form only). Place each of the two original sets in a large 
3-ring binder. Label the binders with the RBIC's name. Submit one 
complete and unbound one-sided hard copy of the MAQ and Exhibits 
suitable for photocopying (i.e., no hole punches, staples, paper clips, 
tabs, or binders).
    Applicants must enclose in their submission a nonrefundable 
licensing fee of $500 in the form of a check payable to USDA.
    D. When to Submit. The Agency is accepting applications for non-
leveraged status until such time the Agency determines otherwise.
    E. Where to Submit. The applicant must submit the application 
material to the Agency's Specialty Programs Division as specified in 
the ADDRESSES section of this Notice.
    F. How to Submit. Applicants are encouraged to submit their 
applications via package/parcel service.

V. Program Provisions

    This section of the Notice identifies the procedures the Agency 
will use to process and select applicants for licensing as a non-
leveraged RBIC. More information about the RBIP is available in the 
regulation at 7 CFR part 4290.
    The Agency will review each application it receives in response to 
this Notice with regard to eligibility and completeness. If the 
application is incomplete, the Agency will notify the applicant of the 
information that is missing. The applicant must then provide the 
missing information in order for the Agency to further review the 
application.
    The Agency will select applicants for licensing as a non-leveraged 
RBIC on a first-come, first-served basis. The Agency will determine the 
order of applications based on the date the Agency receives a complete 
application.

[[Page 81726]]

For example, if an application is received on July 1, but is 
incomplete, and the applicant supplies the Agency with the missing 
information on August 1, then that application will be considered for 
selection on the basis of the August 1 date--the date on which the 
application was complete. Therefore, the Agency encourages applicants 
to ensure their applications are complete prior to submitting them.
    Only those applications that are eligible will be processed further 
for determining whether the applicant will be licensed as a non-
leveraged RBIC. However, not all applications received in response to 
this Notice will receive this further processing. For each application 
that receives further processing, the Agency or its designee will focus 
its assessment of the application on the consistency of the newly 
formed RBIC's business plan with the goals of the RBIP program and on 
the applicant's management team's qualifications. Following this 
assessment, if the initial recommendation is favorable, the Agency or 
its designee will interview the applicant's management team.
    Based on the assessment and interview, a preliminary determination 
will be made as to whether or not to select the applicant for non-
leveraged status. If the preliminary determination is favorable, the 
Agency will send to the applicant a Letter of Conditions (also known as 
a ``Green Light'' letter) and the applicant will be invited to submit 
an updated RD Form 4290-1, Part I, Management Assessment Questionnaire, 
and RD Form 4290-2, Part II, Exhibits. Upon receipt of the Letter of 
Conditions, the applicant has 24 months to raise their private equity 
capital. Once a selected applicant has achieved full compliance with 
the regulations governing licensing as an RBIC, the Agency will issue 
the non-leveraged license to the RBIC.

VI. Administrative Information Applicable to This Notice

A. Notifications

    1. Eligibility. The Agency will notify the applicant in writing 
whether or not the application is determined to be eligible for 
participation in the RBIP. If an applicant is determined by the Agency 
to be ineligible, the Agency will provide the reason(s) the applicant 
was rejected. Such applicant will have review and appeal rights as 
specified in this Notice.
    2. License. Each applicant receiving a ``Green Light'' letter will 
be notified whether or not the RBIC will be licensed after the Agency's 
review of the updated RD Form 4290-1, Part I, Management Assessment 
Questionnaire, and RD Form 4290-2, Part II, Exhibits.

B. Administrative and National Policy Requirements

    1. Review or Appeal Rights. A person may seek a review of an 
adverse Agency decision under this Notice or appeal to the National 
Appeals Division in accordance with 7 CFR part 11.
    2. Notification of Unfavorable Decisions. If at any time prior to 
license approval it is decided that favorable action will not be taken, 
the Agency will notify the applicant in writing of the decision and of 
the reasons why issuing a non-leveraged license was not favorably 
considered. The notification will inform the applicant of its rights to 
an informal review, mediation, and appeal of the decision in accordance 
with 7 CFR part 11.

VII. Agency Contacts

    For further information about this Notice or for assistance with 
the program requirements, please contact the Specialty Programs 
Division, U.S. Department of Agriculture, Room 4204-S, 1400 
Independence Avenue SW., Washington, DC 20250-3226. Telephone: (202) 
720-1400.

VIII. Nondiscrimination

    In accordance with Federal civil rights law and U.S. Department of 
Agriculture (USDA) civil rights regulations and policies, the USDA, its 
Agencies, offices, and employees, and institutions participating in or 
administering USDA programs are prohibited from discriminating based on 
race, color, national origin, religion, sex, gender identity (including 
gender expression), sexual orientation, disability, age, marital 
status, family/parental status, income derived from a public assistance 
program, political beliefs, or reprisal or retaliation for prior civil 
rights activity, in any program or activity conducted or funded by USDA 
(not all bases apply to all programs). Remedies and complaint filing 
deadlines vary by program or incident.
    Persons with disabilities who require alternative means of 
communication for program information (e.g., Braille, large print, 
audiotape, American Sign Language, etc.) should contact the responsible 
Agency or USDA's TARGET Center at (202) 720-2600 (voice and TTY) or 
contact USDA through the Federal Relay Service at (800) 877-8339. 
Additionally, program information may be made available in languages 
other than English.
    To file a program discrimination complaint, complete the USDA 
Program Discrimination Complaint Form, AD-3027, found online at http://www.ascr.usda.gov/complaint_filing_cust.html and at any USDA office or 
write a letter addressed to USDA and provide in the letter all of the 
information requested in the form. To request a copy of the complaint 
form, call (866) 632-9992. Submit your completed form or letter to USDA 
by:
    (1) Mail: U.S. Department of Agriculture Office of the Assistant 
Secretary for Civil Rights: 1400 Independence Avenue SW., Washington, 
DC 20250-9410;
    (2) Fax: (202) 690-7442; or
    (3) Email: [email protected].
    USDA is an equal opportunity provider, employer, and lender.

    Dated: November 9, 2016.
Samuel H. Rikkers,
Administrator, Rural Business-Cooperative Service.
[FR Doc. 2016-27731 Filed 11-17-16; 8:45 am]
 BILLING CODE 3410-XY-P