One RD Guarantee

What is the OneRD Guarantee Loan Initiative?

USDA has removed unnecessary regulations to increase private investment in rural businesses and rural economic development projects and to improve customer service within four flagship loan guarantee programs. The Agency implemented a standard set of requirements, processes and forms for four Rural Development programs including the:

Contact OneRDGuarantee@usda.gov for more information.

Getting Started

The Agency is making resources available to help lenders get started on their applications to programs under the OneRD Guarantee Loan Initiative. Resources will be added to this website as they become available. Learn more about each resource below:

Instructions on How to File an Application

To file an application for programs under this initiative, lenders are encouraged to complete the following steps:

  1. Download the 5001-1 – Application for Loan Guarantee Form, 5001-2 – Lender’s Agreement Form and the 5001-3 – Conditional Commitment Form. (coming soon)
  2. Review the final rule to ensure your application meets requirements under the initiative. General application requirements can be found in Subpart D of the regulation and starts at §5001.301. (coming soon)
  3. Email a completed application to your local state office. (coming soon)

Lenders are encouraged to register to attend a webinar on Thursday, Oct. 8 at 1:30 p.m. Eastern Time to ask questions about the new processes under the initiative. 

Submit Requests Online: Non-Regulated Lenders Seeking Approved Status

All non-regulated lenders must request approval status with the Agency to participate in programs under the OneRD Guarantee Loan Initiative. All previously granted lender approval authority are no longer valid. Rural Development has created a portal to upload all of your documents to request approval status. To use this portal, complete the following steps: 

  1. Review the sample document as an example of the intro, cover letter to submit first.  
  2. Email your intro cover letter to OneRDlenderapproval@usda.gov.  Upon receipt of that document, RD will send you a link to the Non-Regulated Lender Portal with instructions to upload and submit all your supporting files listed in the sample document.

For more information on eligibility and requirements for approval, please review the final rule.  Lenders unable to submit their application package through this portal may contact OneRDlenderapproval@usda.gov for assistance.

FY 2021 Annual Notice for Guarantee Fees and Rates

Ahead of Fiscal Year 2021, USDA released fees and guarantee percentages that will apply to the four loan guarantee programs critical to supporting investments in rural businesses, infrastructure and community development. The fees in this notice are effective October 1, 2020.

Fees and percentages for each program are listed below:

  • Regular Fees and Percentages

    • Guarantee Fee: 3%
    • Periodic Guarantee Retention Fee: 0.5%
    • Loan Guarantee Percentage: 80%
    • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%

    Reduced Fees and Percentages

    • Guarantee Fee: 1%
    • Periodic Guarantee Retention Fee: 0.5%
    • Loan Guarantee Percentage: 80%
    • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%
  • Regular Fees and Percentages

    • Guarantee Fee: 1%
    • Periodic Guarantee Retention Fee: N/A
    • Loan Guarantee Percentage: 80%
    • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%

     
  • Regular Fees and Percentages

    • Guarantee Fee: 1.5%
    • Periodic Guarantee Retention Fee: 0.5%
    • Loan Guarantee Percentage: 80%
    • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%
  • Regular Fees and Percentages

    • Guarantee Fee: 1%
    • Periodic Guarantee Retention Fee: .25%
    • Loan Guarantee Percentage: 80%
    • Fee for Issuance of Loan Note Guarantee Prior to Construction: 0.5%

Initiative Benefits

Under the OneRD Guarantee Loan Initiative, USDA removed regulatory barriers to make it easier for private lenders to use USDA programs to invest in rural businesses and grassroots rural economic development efforts.

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OneRD, One Process

USDA standardized requirements for credit reviews, loan processing, loan servicing and loss claims across the four lending programs to help improve the customer experience for rural lenders.

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Common Application and Consistent Forms

A common loan note guarantee application and consistent forms for the four loan guarantee programs are now available. 

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Speed and Transparency

USDA intends to issue lenders loan note guarantees within 48 hours after they provide documentation to prove the requirements of the conditional commitment have been met. To improve transparency, USDA will provide guarantee percentage and fee requirements to lenders through a single annual notice at the beginning of each fiscal year.

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Single-Point Lender Approval

Through one application, USDA will provide automatic approval to lenders in good standing who are supervised or created by state or federal regulatory agencies to participate in all four programs. This expands the base of eligible lenders for the four loan guarantee programs. Non-regulated lenders may seek approval to participate through a single certification process that will be valid for five years.

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Additional Options for Lenders

USDA will allow lenders to obtain approval for a loan guarantee prior to the beginning of construction projects. A one-time fee and other requirements may apply.

Lender Help Desk

As USDA’s four flagship guarantee loan programs are streamlined under the OneRD Guarantee Loan Initiative, a core team of program experts are available to help you prepare for the new policies and procedures included in the final rule.

Questions may be submitted to OneRDGuarantee@usda.gov.

 

Frequently Asked Questions

Below are frequently asked questions that we have addressed. This list will grow as new questions are asked and answers are given

  • Q: Which programs are included under the OneRD Guarantee Loan Initiative?

    • Water and Waste Disposal Loan Guarantees Program;
    • Community Facilities Guaranteed Loan Program;
    • Business and Industry Guaranteed Loan Program; and
    • Rural Energy for America Program Loan Guarantees.

    Q:What are the major changes in this final rule?

    • Visit the OneRD Guarantee Loan Initiative Fact Sheet for an overview of changes included in the final rule.

    Q: When will changes in the regulation take effect?

    • Changes will take effect on Oct. 1, 2020.

    Q: Whom do I contact for more information?

    • You may submit questions to OneRDGuarantee@usda.gov. A core team of program experts will be available to respond Monday through Friday from 7 a.m. to 7 p.m. Eastern Time. Contact the Lender Help Desk for additional information
  • Q: How do I submit comments on this final rule?

    • You may submit written comments, identified by docket number RUS-19-Agency-0030 and Regulatory Information Number (RIN) number 0572-AC43, through https://www.regulations.gov. All submissions received must include the Agency name and docket number or RIN for this rulemaking. All comments received will be posted without change, including any personal information provided. For access to the docket to read background documents or comments received, go to https://www.regulations.gov.

    Q: Whom may I contact to ask questions about this regulation?

    • You may submit clarifying questions about this regulation to OneRDGuarantee@usda.gov. A core team of program experts will be available to respond Monday through Friday from 7 a.m. to 7 p.m. Eastern Time. Written feedback about the regulation must be submitted to https://www.regulations.gov.

    Q: If I provide a comment during a virtual listening session, will it be considered a formal comment?

    • No. Feedback provided at listening sessions will be captured and reviewed. However, to submit a formal comment, you must submit written comments to https://www.regulations.gov.

    Q: If I provide a comment about the regulation to OneRDGuarantee@usda.gov, will it be considered a formal comment?

    Q: Will the Agency release another regulation about the OneRD Guarantee Loan Initiative after the comment period?

    • The Agency will review all comments and determine whether a follow-up regulation is necessary.
  • Q: Will this regulation affect my Fiscal Year 2020 guarantee loan application?

    • No. Changes in this regulation do not take effect until Oct. 1. 2020 and do not affect applications filed prior to Oct. 1, 2020.

    Q: When will the application windows open for the four programs under OneRD Guaranteed Loan Initiative?

    • The application window for each program under the OneRD Guarantee Loan Initiative opens Oct. 1, 2020, when the regulation takes effect.

    Q: When will forms and other materials to help me apply for loan guarantee programs under this initiative become available?

    Q: Will USDA provide training to lenders to help prepare for the new policies and procedures under the OneRD Guarantee Loan Initiative?

    • Yes. USDA will host training sessions for lenders after the regulation’s comment period. Training sessions will be announced at a later date and posted to www.rd.usda.gov/onerdguarantee.

Tools and Resources

Below are resources including presentations, factsheets and other information documents.