82 FR 26335 - Guaranteed Loanmaking and Servicing Regulations; Correction
DEPARTMENT OF AGRICULTURE
Rural Business-Cooperative Service
Rural Utilities Service Federal Register Volume 82, Issue 108 (June 7, 2017)
Rural Business-Cooperative Service
Rural Utilities Service
Federal Register Volume 82, Issue 108 (June 7, 2017)
| Page Range | 26335-26336 | |
| FR Document | 2017-11736 |
[Federal Register Volume 82, Number 108 (Wednesday, June 7, 2017)] [Rules and Regulations] [Pages 26335-26336] From the Federal Register Online [www.thefederalregister.org] [FR Doc No: 2017-11736] ======================================================================== Rules and Regulations Federal Register ________________________________________________________________________ This section of the FEDERAL REGISTER contains regulatory documents having general applicability and legal effect, most of which are keyed to and codified in the Code of Federal Regulations, which is published under 50 titles pursuant to 44 U.S.C. 1510. The Code of Federal Regulations is sold by the Superintendent of Documents. ======================================================================== Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Rules and Regulations [[Page 26335]] DEPARTMENT OF AGRICULTURE Rural Business-Cooperative Service Rural Utilities Service 7 CFR Part 4279 RIN 0570-AA85 Guaranteed Loanmaking and Servicing Regulations; Correction AGENCY: Rural Business-Cooperative Service and Rural Utilities Service, USDA. ACTION: Correcting amendment. ----------------------------------------------------------------------- SUMMARY: This document contains a correction to the final rule published in the Federal Register on June 3, 2016, entitled ``Guaranteed Loanmaking and Servicing Regulations.'' The Rural Business-Cooperative Service (Agency) is an agency within the Rural Development mission area of the United States Department of Agriculture (USDA) responsible for administering the Business and Industry (B&I) Guaranteed Loan Program. The B&I Guaranteed Loan Program is authorized by the Consolidated Farm and Rural Development Act and provides loan guarantees to banks and other approved lenders to finance private businesses located in rural areas. DATES: Effective June 7, 2017. FOR FURTHER INFORMATION CONTACT: David Chestnut, Rural Development, Business Programs, U.S. Department of Agriculture, 1400 Independence Avenue SW., Stop 3224, Washington, DC 20250-3224; email: [email protected]; telephone number: (202) 401-0158. SUPPLEMENTARY INFORMATION: Need for Correction On June 3, 2016, the Agency published a final rule for the Business and Industry (B&I) Guaranteed Loan Program (81 FR 35984). Since then, the Agency has discovered the need for a correction to the regulation regarding provisions relating to the New Markets Tax Credit (NMTC) program. The preamble of the final rule publication noted that the rule has been expanded to include a lender's leveraged loan to accommodate the mechanics of the NMTC program. The Agency has received comments from many practitioners of the NMTC program that the Agency has incorrectly stated in Sec. 4279.116(b) that a ``sub-CDE'' is the borrower in a leveraged equity transaction for the NMTC program. A NMTC sub-CDE is not a borrowing entity; it is a lending entity established for a single specific NMTC investment. The correct borrower in the mechanics of a leveraged equity NMTC transaction is an investor fund entity owned by a NMTC investor and a leveraged lender, which has been established for a single specific NMTC project. The investor fund entity makes a qualified equity investment to the sub-CDE that in turn provides loans to an eligible business. To correct this error and accommodate the mechanics of a leveraged equity transaction within the NMTC program, the Agency is replacing the word ``sub-CDE,'' with the words ``investor fund entity'' as it relates to an eligible borrowing entity. List of Subjects in 7 CFR Part 4279 Loan programs--Business and Industry, Direct loan programs, Economic development, Energy, Energy efficiency improvements, Grant programs, Guaranteed loan programs, Renewable energy systems, Rural areas, and Rural development assistance. Accordingly, 7 CFR part 4279 is amended by making the following correcting amendments: PART 4279--GUARANTEED LOANMAKING 0 1. The authority citation for part 4279 continues to read as follows: Authority: 5 U.S.C. 301; and 7 U.S.C. 1989. Subpart B--Business and Industry Loans 0 2. In Sec. 4279.116, revise paragraphs (b) introductory text, (b)(1)(i) through (iii), (b)(2) through (4), and (b)(6),(8),(11),(12), and(13) to read as follows: Sec. 4279.116 New Markets Tax Credit program. * * * * * (b) Loan guarantees for the leveraged lender. The provisions of Sec. 4279.117(s) notwithstanding, an investor fund entity, such as an investor partnership or investor LLC, may be an eligible borrower as specified in paragraph (b)(1) of this section. Paragraphs (b)(2) through (13) of this section identify modifications to subpart B of this part that apply when the eligible borrower is an investor fund entity. (1) * * * (i) The investor fund entity must be established for a single specific NMTC investment; (ii) The lender is not an affiliate of the investor fund entity; (iii) One hundred percent of the guaranteed loan funds are or will be invested in one or more sub-CDEs that will then be loaned directly to a Qualified Active Low Income Community Business (QALICB), as defined by applicable regulations of the Internal Revenue Service and are or will be used by the QALICB in accordance with Sec. Sec. 4279.113 and 4279.117. All of the B&I guaranteed loan funds must be ``passed through'' the sub-CDE to the QALICB through a direct tracing method. The QALICB's project must be the ultimate use of the B&I guaranteed loan funds; and * * * * * (2) The provisions of Sec. 4279.119 apply except that the loan guarantee limits apply to the QALICB and not to the investor fund entity, who would otherwise be understood to be the ``borrower.'' (3) Section 4279.126 applies to both the borrower (investor fund entity) and the QALICB. The terms and payment schedule of the lender's loan to the investor fund entity must be at least equal to the terms and payment schedule of the sub-CDE's loan to the QALICB. An Agency approved unequal or escalating schedule of principal and interest payments may be used for a NMTC loan. The lender may require additional principal repayment by a co-borrower, such as an owner or principal of the QALICB. The lender or sub-CDE may require a debt repayment reserve fund or sinking fund; however, such fund is not in lieu of a principal [[Page 26336]] repayment schedule in accordance with Sec. 4279.126 as amended by this paragraph. (4) Except for Sec. 4279.131(b), Sec. 4279.131 applies to both the lender's loan to the investor fund entity and the sub-CDE's loan to the QALICB. Section 4279.131(b) applies only to the sub-CDE's loan to the QALICB. Section 4279.116(a)(4) also applies when calculating tangible balance sheet equity. * * * * * (6) Section 4279.137 applies to both the borrower (investor fund entity) and the QALICB. * * * * * (8) Section 4279.161 applies to both the borrower (investor fund entity) and the QALICB. As part of the application completed by the lender in accordance with Sec. 4279.161, the application documentation must include comparable information for the loan (using the B&I guaranteed loan funds) between the sub-CDE and QALICB. The requirements of Sec. 4279.161 apply to the loan application, application analysis and underwriting, and loan documents between the sub-CDE and QALICB. The lender must include these materials in its guaranteed loan application to the Agency. * * * * * (11) When complying with the planning and performing development provisions in Sec. 4279.167, the lender is responsible for ensuring that both the sub-CDE's loan to the QALICB and the QALICB's project comply with the provisions in Sec. 4279.167. (12) Section 4279.180 applies to both the borrower (investor fund entity) and the QALICB. (13) Section 4279.181 applies to both the borrower (investor fund entity) and the QALICB. * * * * * Dated: May 18, 2017. Chad Parker, Acting Administrator, Rural Business-Cooperative Service. Dated: May 25, 2017. Chris McLean, Acting Administrator, Rural Utilities Service. [FR Doc. 2017-11736 Filed 6-6-17; 8:45 am] BILLING CODE 3410-XY-P
![26336 Federal Register / Vol. 82, No. 108 / Wednesday, June 7, 2017 / Rules and Regulations
repayment schedule in accordance with DEPARTMENT OF TRANSPORTATION The Withdrawal
§ 4279.126 as amended by this In consideration of the foregoing, the
paragraph. Federal Aviation Administration final rule, technical amendment for
(4) Except for § 4279.131(b), Docket No. FAA 2017–0217; Airspace
14 CFR Part 71 Docket No. 17–ANM–8, as published in
§ 4279.131 applies to both the lender’s
loan to the investor fund entity and the [Docket No. FAA–2017–0217; Airspace the Federal Register of April 25, 2017,
sub-CDE’s loan to the QALICB. Section Docket No. 17–ANM–8] (82 FR 18983) FR Doc. 2017–08241, is
4279.131(b) applies only to the sub- hereby withdrawn.
CDE’s loan to the QALICB. Section Amendment of Class E Airspace; Authority: 49 U.S.C. 106(f), 106(g), 40103,
Moses Lake, WA; Olympia, WA 40113, 40120; E.O. 10854; 24 FR 9565, 3 CFR,
4279.116(a)(4) also applies when
calculating tangible balance sheet AGENCY: Federal Aviation 1959–1963 Comp., p. 389.
equity. Administration (FAA), DOT. Issued in Seattle, Washington, on May 25,
* * * * * ACTION: Final rule, technical 2017.
amendment, withdrawal. Sam S.L. Shrimpton,
(6) Section 4279.137 applies to both
Acting Group Manager, Operations Support
the borrower (investor fund entity) and SUMMARY: This action withdraws the Group, Western Service Center.
the QALICB. final rule, technical amendment [FR Doc. 2017–11582 Filed 6–6–17; 8:45 am]
* * * * * published in the Federal Register on BILLING CODE 4910–13–P
(8) Section 4279.161 applies to both April 25, 2017. In that action, the FAA
the borrower (investor fund entity) and amended Class E Airspace at Grant
the QALICB. As part of the application County International Airport, Moses DEPARTMENT OF TRANSPORTATION
completed by the lender in accordance Lake, WA, and Olympia Regional
Airport, Olympia, WA. The FAA has Federal Aviation Administration
with § 4279.161, the application
determined that withdrawal of the final
documentation must include 14 CFR Part 71
rule, technical amendment is warranted
comparable information for the loan
since a change in the geographic [Docket No. FAA–2016–9178; Airspace
(using the B&I guaranteed loan funds) coordinates of the airports will affect the Docket No. 16–ASO–12]
between the sub-CDE and QALICB. The charted boundaries of the airspace, and
requirements of § 4279.161 apply to the therefore should be considered under Amendment of VOR Federal Airways;
loan application, application analysis the full rulemaking process. Eastern United States
and underwriting, and loan documents
DATES: Effective Date: 0901 UTC, June 7, AGENCY: Federal Aviation
between the sub-CDE and QALICB. The 2017.
lender must include these materials in Administration (FAA), DOT.
FOR FURTHER INFORMATION CONTACT: Tom ACTION: Final rule.
its guaranteed loan application to the
Clark, Federal Aviation Administration,
Agency. SUMMARY: This action modifies VOR
Operations Support Group, Western
* * * * * Service Center, 1601 Lind Avenue SW., Federal airways V–16, V–94 and V–124,
(11) When complying with the Renton, WA, 98057; telephone (425) in the eastern United States due to the
planning and performing development 203–4511. planned decommissioning of the Jacks
provisions in § 4279.167, the lender is SUPPLEMENTARY INFORMATION: Creek, TN, VOR/DME navigation aid.
responsible for ensuring that both the The FAA published a final rule in the DATES: Effective date 0901, August 17,
sub-CDE’s loan to the QALICB and the Federal Register (82 FR 18983, April 25, 2017. The Director of the Federal
QALICB’s project comply with the 2017) amending Title 14 Code of Register approves this incorporation by
provisions in § 4279.167. Federal Regulations (14 CFR) part 71 reference action under Title 1, Code of
amending Class E Airspace designated Federal Regulations, part 51, subject to
(12) Section 4279.180 applies to both the annual revision of FAA Order
as an extension to a Class D or Class E
the borrower (investor fund entity) and 7400.11 and publication of conforming
surface area at Grant County
the QALICB. International Airport, Moses Lake, WA, amendments.
(13) Section 4279.181 applies to both and Olympia Regional Airport, ADDRESSES: FAA Order 7400.11A,
the borrower (investor fund entity) and Olympia, WA, by eliminating the Notice Airspace Designations and Reporting
the QALICB. to Airmen (NOTAM) part-time status. Points, and subsequent amendments can
* * * * * Additionally, the action updated the be viewed online at http://www.faa.gov/
geographic coordinates of Grant County air_traffic/publications/. For further
Dated: May 18, 2017. International Airport, and Fairchild information, you can contact the
Chad Parker, AFB, as listed in the Grant County Airspace Policy Group, Federal Aviation
Acting Administrator, Rural Business- International Airport Class D and Class Administration, 800 Independence
Cooperative Service. E legal descriptions. The FAA found Avenue SW., Washington, DC, 20591;
Dated: May 25, 2017. that by updating the geographic telephone: 202–267–8783. The Order is
Chris McLean, coordinates of the airports, the charted also available for inspection at the
boundaries of the airspace were affected National Archives and Records
Acting Administrator, Rural Utilities Service.
sufficiently to warrant full consideration Administration (NARA). For
pmangrum on DSK3GDR082PROD with RULES
[FR Doc. 2017–11736 Filed 6–6–17; 8:45 am]
under the rulemaking process. As a information on the availability of FAA
BILLING CODE 3410–XY–P result, the final rule, technical Order 7400.11A at NARA, call 202–741–
amendment is being withdrawn. 6030, or go to http://www.archives.gov/
federal_register/code_of_
List of Subjects in 14 CFR Part 71
federalregulations/ibr_locations.html.
Airspace, Incorporation by reference, FAA Order 7400.11, Airspace
Navigation (air). Designations and Reporting Points, is
VerDate Sep<11>2014 15:10 Jun 06, 2017 Jkt 241001 PO 00000 Frm 00002 Fmt 4700 Sfmt 4700 E:\FR\FM\07JNR1.SGM 07JNR1](https://thefederalregister.org/doc/82_FR_26443/page/2.svg)
Document Created: 2017-06-07 02:00:53
Document Modified: 2017-06-07 02:00:53
| Category | Regulatory Information | |
| Collection | Federal Register | |
| sudoc Class | AE 2.7: GS 4.107: AE 2.106: | |
| Publisher | Office of the Federal Register, National Archives and Records Administration | |
| Section | Rules and Regulations | |
| Action | Correcting amendment. | |
| Dates | Effective June 7, 2017. | |
| Contact | David Chestnut, Rural Development, Business Programs, U.S. Department of Agriculture, 1400 Independence Avenue SW., Stop 3224, Washington, DC 20250-3224; email: [email protected]; telephone number: (202) 401-0158. | |
| FR Citation | 82 FR 26335 | |
| RIN Number | 0570-AA85 | |
| CFR Associated | Loan Programs-Business and Industry; Direct Loan Programs; Economic Development; Energy; Energy Efficiency Improvements; Grant Programs; Guaranteed Loan Programs; Renewable Energy Systems; Rural Areas and Rural Development Assistance |
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