Guarantee Fee Rates for Guaranteed Loans for Fiscal Year 2014; Maximum Portion of Guarantee Authority Available for Fiscal Year 2014; Annual Renewal Fee for Fiscal Year 2014

Samenvatting

As set forth in 7 CFR 4279.107, the Agency has the authority to charge an initial guarantee fee and an annual renewal fee for loans made under the Business and Industry (B&I) Guaranteed Loan Program. Pursuant to that authority, the Agency is establishing the renewal fee rate at one-half of 1 percent for the B&I Guaranteed Loan Program. This rate will apply to all loans obligated in Fiscal Year (FY) 2014 that are made under the B&I program. As established in 7 CFR 4279.107(b)(1), the amount of the fee on each guaranteed loan will be determined by multiplying the fee rate by the outstanding principal loan balance as of December 31, multiplied by the percent of guarantee. The Consolidated and Further Continuing Appropriations Act of 2013 set funding levels according to those established by the 2012 Appropriations Bill. This authorized the Agency to charge a maximum of 3 percent for its guarantee fee for FY 2013. It is the Agency's expectation that the 2014 Appropriations Bill will contain the same authorization to charge a maximum of 3 percent for its guarantee fee for FY 2014. As such, the guarantee fee for FY 2014 will be 3 percent. In the event the 2014 Appropriations Bill reduces