USDA launches new, streamlined process for private lenders
The United States Department of Agriculture (USDA) is now accepting applications for the its four key loan guarantee programs under the OneRD Guarantee Loan Initiative, the agency announced.
As part of a series of regulatory reforms, USDA has officially eliminated duplicative processes and has launched a common loan guarantee application for the following programs: Water and Waste Disposal Loan Guarantee Program; Community Facilities Guaranteed Loan Program; Business and Industry Guaranteed Loan Program; and Rural Energy for America Guaranteed Loan Program.
In Puerto Rico, the programs have benefitted several initiatives, including the financing granted to the Puerto Rico Aqueduct and Sewer Authority for its used water treatment projects; a $10 million loan granted to the municipality of Mayagüez for its Community Facilities Program to rebuild rural roads; and loans granted to paint factories, livestock farmers, coffee growers, hydroponics etc., local agency officials confirmed.
Through this initiative, the department has standardized requirements for credit reviews, loan processing, loan servicing and loss claims. These measures will make the application process simpler and faster for lenders.
USDA also is providing automatic approval to participate in all four programs to lenders in good standing who are supervised or created by state or federal regulatory agencies. This expands the base of eligible lenders for the four guaranteed loan programs.