Rd instruction 1940-l table of Contents




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(Revision 1)


(7-12-85) SPECIAL PN

RD Instruction 1940-L

§§ 1940.594 - 1940.600 [Reserved]
Attachments: Exhibits A, B, C, and D.

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44

(Revision 1)


RD Instruction 1940-L

Exhibit A




ALLOCATION OF PROGRAM FUNDS


This exhibit provides the allocation for program funds and instructions for the use of those funds. Planning and the commitment of resources should be based on these allocations.


The methodology and formulas for the allocation of funds to the States is as stated in the Instruction. Only those areas where it was necessary to provide additional information have been addressed in this exhibit. Refer to the main body of this Instruction for all basic information on the allocation and use of program funds. Attachments 1 and 2 of this exhibit provide information on the various programs as follows:


Attachment 1 -

Rural Business-Cooperative Service



Attachment 2 -

Rural Housing Service
Part I – Rural Community Facilities Program
Part II – Multi-Family Housing (MFH)
Part III – Single Family Housing (SFH)

The fund control function is performed by the National Office. Fund control balances can be obtained on the State Office terminal through APROPTN, the acronym for the Appropriation Accounting System, on the Online Subsystem Selection Menu screen. Should you have any questions regarding your State’s distribution balances, call the respective program division. You can monitor your distribution amount via the Detail File Appropriation Screen.



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RD Instruction 1940-L

Exhibit A, Attachment 1

Page 1

Rural Business-Cooperative Service
I. General. This attachment details the funding for programs administered by Rural Business-Cooperative Service (RBS). (Throughout this attachment the reference to “Agency” refers to Rural Development Rural Business-Cooperative Service.)
A. Funding Computations. This attachment provides fiscal year (FY) 2015 funding levels, State Office allocations, and program application and funding cycles. Allocation computations have been performed in accordance with sections 1940.588 and 1940.589 of this Instruction. Every effort will be made to re-emphasize Rural Development’s mission as a provider of affordable credit to those areas of greatest need.
B. Rural Area Eligibility. Business & Industry (B&I) Guaranteed Loans may be made to cooperative organizations in non-rural areas provided the primary purpose of the loan guarantee is for a facility that provides value-added processing for agricultural producers that are located within 80 miles of the facility and the applicant demonstrates that the primary benefit of the loan guarantee will provide employment for residents of a rural area. In addition, B&I loans for projects that are eligible under the locally or regionally produced agricultural food products initiative are eligible in urban areas as well as rural areas. The Rural Energy for America Program can assist agricultural producers in urban areas under certain conditions.
C. RBPA Budget Authority. The Agency does not have the authority to transfer FY 2015 Appropriated funds between Rural Business Development Grants (RBDG) and B&I programs in FY 2015.
D. Submitting Funding Requests. All requests must be electronically submitted to the National Office using the appropriate SharePoint site as provided below. All requests must include the most current version of the program specific priority score sheet, additional program specific certifications or information addressed in the program areas, below, and program-specific Legislative and Public Affairs (LAPAS) project announcement template.
Requests for funding should not be submitted unless the project is ready to be obligated, and the environmental review is completed. The Guaranteed Loan System (GLS) must be completed and ready for obligation including the RBS performance measures such as number of jobs created and saved, businesses assisted, energy generated or saved; special initiative sections and codes completed properly; and the status code updated to “216”.
In order to compete in the National Office funding competition, if program funds are allocated to the States, all such funds must be obligated in accordance with the funding cycle table on page 18. Highest priority
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RD Instruction 1940-L

Exhibit A, Attachment 1

Page 2

projects must be funded with State allocations to the extent possible. After using its allocation each State may submit its highest priority applications for competition in the National Office funding cycle. This includes any multi-State requests. However, this is not applicable to any separate Congressionally mandated funding cycles, such as Rural Economic Area Partnership.
Funds from any project funded by Congressionally Mandated funds, from the National Office Reserve, or other national-competed funds that are subsequently deobligated and all funds from deobligations after year-end pooling cannot be used for funding other projects within the State. The funds must be returned to the National Office Reserve.
Random reviews of selected projects submitted for funding will be conducted by the National Office prior to States being notified of the awards.
E. Obligation Dates. Throughout this Instruction are references where funds must be obligated by certain dates. There has been confusion in the past as to whether reserving the funds on the deadline date fulfills obligation requirements; it does. The deadline date is the last possible date that your project can be obligated. The obligation must be processed in the GLS or the Commercial Loan Servicing System (CLSS), as appropriate, prior to the pooling date published on page 18.

F. Emphasis on High Poverty Areas. In 2010, USDA launched the StrikeForce for Rural Growth and Opportunity – an effort to leverage partnerships in poverty-stricken rural areas to ensure that every community has equal access to USDA programs. The StrikeForce initiative includes areas in the States of Arkansas, Georgia, Mississippi, Colorado, New Mexico, Nevada, Alabama, Alaska, Arizona, North Carolina, North Dakota, South Carolina, South Dakota, Texas, Utah, Virginia, Kentucky, Louisiana, Tennessee, Oklahoma, Puerto Rico, and West Virginia. To the maximum extent possible, high attention should be made on directing loan, grant, and guaranteed funds to StrikeForce areas.
G. Special Initiative Projects. When consistent with program regulations, State Directors are encouraged to use any discretionary points allowed by program regulations to place higher priority on applications meeting one of the Agency’s special initiatives including but not limited to projects involving locally produced agricultural food products, Know Your Farmer—Know Your Food, manufacturing, and bio-based products; projects located in or serving rural poverty target areas or persistent poverty counties or census tracts, Colonia, Native American Tribes and Indian groups, and underrepresented groups; projects producing or generating renewable energy, and involving Regional Strategic Planning.
RD Instruction 1940-L

Exhibit A, Attachment 1

Page 3

The following requirements apply to all programs where assistance is provided for renewable energy purposes; this is not limited to the energy programs:

States should utilize GLS to ensure that applicants have not previously received or applied for funding for renewable energy projects from different Agency programs for the same purpose. In addition, the following Web site should be checked for award duplication: http://www.USAspending.gov. USAspending.gov may not contain information on awards to individuals or awards of less than $25,000. A check of GLS and USAspending.gov should occur during the eligibility review prior to loan or grant approval, with evidence of the reviews placed in the case file. In addition, the loan or grant application should identify all other sources of funding for the proposed project.
H. Reserve Funds and Set Aside and Congressionally Mandated Funds. See page 18 of this attachment for funding amounts and funding cycle information regarding pooling of funds, National Office Reserve funds, and set aside funds. Native American funds will be used for projects where more than 75 percent of the benefits of the project will be received by members of a federally-recognized Native American Tribe. Rural Economic Area Partnership funds will be used for projects identified in the Rural Economic Area Partnership Strategic Plan and Benchmark Management System documents, provided more than 75 percent of the benefits of the project will be received by residents within the Rural Economic Area Partnership census tract boundaries. If an application meets more than one Congressional mandate, you must inform the National Office of the congressionally mandated funding under which you want the application to be considered.
II. Program Funding.


  1. B&I Guaranteed Loan Program


State Allocations. Each State has received a B&I allocation for FY 2015 appropriated funds. (See page 18 for program level.) The latest census data available is used for rural population, rural population with incomes below the poverty level, and non-metropolitan unemployment. State allocations are shown on page 17 of this attachment. The transition formula described in
§ 1940.552 was not utilized. The amount of base allocation is $5 million. The Administrative Allocation is not used.
Unrestricted Reserve. Funds will be allocated on a weekly competitive basis to States from the National Office Reserve for projects that best meet Agency priorities from funds available at the time of the request. The cutoff for requests for reserve funds is close of business on Thursdays. National Office Reserve funds may be requested only when the State Office allocation is insufficient to fund projects ready to be obligated. Request for funding should not be submitted unless the project is ready to be obligated.
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RD Instruction 1940-L

Exhibit A, Attachment

Page 4


All States will be notified of project selections. For projects not selected, States should contact the lender to advise them and determine if the lender would like the project to be reconsidered in the next funding cycle. States are responsible for notifying the National Office of projects that lenders do not want considered in the next funding cycle; these projects will be removed from further consideration.
Pooling of Funds. Pooling of FY 2015 Appropriated funds will take place on August 14, 2015. States are to immediately notify Andrea Patterson in the National Office of any de-obligations of funds that came from the National Office Reserve. In the event of an emergency, we reserve the right to pool the funds earlier than the August 14, 2015, deadline.
Funding for B&I Guaranteed Loans where the percentage of guarantee is in excess of 80 percent or for reduced percent guarantee fees. A limited amount of annual appropriated funds for the B&I Guaranteed Loan Program with a percentage of guarantees that exceeds 80 percent and a reduced guarantee fee will be available. (See page 18 for program level.) The amount of funding available will be apportioned on a quarterly basis. Requests will be funded on a weekly basis with a deadline of close of business each Thursday subject to the availability of funds. Funding requests not received by the deadline will be funded with the following week’s requests.
Requests for guarantees exceeding 80 percent must include written documentation from the lender that the loan will not be made and the project will not be completed without the increased percentage of guarantee. Not more than 15 percent of the total national appropriation will be available for guarantees in excess of 80 percent. Where the request is for a reduced guarantee fee of 2 percent, all requests for authority to approve loans must be submitted to the National Office in advance of reserving or obligating funds. Requests on hand will be processed on a weekly basis and States notified.
The State Director must certify that the borrower’s business is consistent with RD Instruction 4279-B, § 4279.107(a). The business must support value-added agriculture and result in farmers benefiting financially, or be a high impact business development investment in accordance with § 4279.155(b)(5), which is located in a rural community that is experiencing long-term population decline and job deterioration, or has remained persistently poor over the last 60 years, or is experiencing trauma as a result of natural disaster, or is experiencing fundamental structural changes in its economic base.
Not more than 12 percent of the total national appropriation of B&I funding authority will be available for loans with a reduced guarantee fee.

RD Instruction 1940-L

Exhibit A, Attachment 1

Page 5


Locally Produced Agricultural Food Products. Through FY 2015, the Agency will utilize funds available under the B&I program for entities that establish and facilitate the processing, distributing, aggregating, storing, and marketing of locally or regionally produced agricultural food products. In addition, State-allocated funds and National Office Reserve funds may be used for qualifying projects. When requesting funds from National Office reserve funds please make sure that your request clearly indicates that the project is for locally or regionally produced agricultural food products. Additionally, priority must be given to projects that have components benefiting (providing product to) underserved communities. Applicants must include in an appropriate agreement with retail and institutional facilities to which the applicant sells locally or regionally produced agricultural food products a requirement to inform consumers of the retail or institutional facilities that the consumers are purchasing or consuming locally or regionally produced agricultural food products. For the purposes of this initiative, an underserved community is defined as a community (including a rural community and an Indian tribal community) that has limited access to affordable, healthy foods, including fresh fruits and vegetables, in grocery retail stores or farmer to consumer direct markets and has a high rate of hunger or food insecurity or a high poverty rate. Please update GLS for the Local Foods initiative. The Food Access Research Atlas may be consulted at: www.ers.usda.gov/data/fooddesert.


  1. Rural Business Development Grant Program (RBDG)


State Allocations. States will receive an RBDG allocation. (See page 18 for program level and page 17 for State allocations.) The basic formula consists of data from the latest census data available, and is used for rural population, rural population with incomes below the poverty level, and non-metropolitan unemployment. The transition formula described in § 1940.552 is utilized. The amount of base allocation is $50,000 for enterprise grants, $14,000 for opportunity grants.
Multi-State projects will be considered for funding by agreement between the State Offices. The National Office will allocate funds to the State processing the application.
Reserve. Funds from the National Office reserve will be allocated on a case-by-case basis to the States for projects that best meet Agency priorities according to funds available at the time of the request. No request for funding will be considered unless the project is ready to be obligated and the environmental review is completed.
There will be one national funding cycle for regular non-congressionally mandated FY 2015 funds. In order to compete in the National Office Reserve funding cycle, all funds allocated to the State must be obligated in accordance with the funding cycle chart on page 18. Highest priority

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RD Instruction 1940-L

Exhibit A, Attachment 1

Page 6

projects must be funded with State allocations to the extent possible. National Office Reserve funds may only be requested when the State Office allocation is not sufficient to fund projects ready to be obligated.


After scoring for the National Office competition at the State level, each State may submit its highest scoring application for competition in the National Office Reserve funding cycle. This includes any multi-state request. However, this is not applicable to any separate congressionally mandated funding cycles, such as Native American or Rural Economic Area Partnership.
Pooling of Funds. All State-allocated funds must be obligated no later than August 14, 2015, or they will revert to the National Office for redistribution. De-obligations of funds that came from the National Office Reserve fund, set aside funds, or congressionally mandated funds and all funds de-obligated after the pooling date must revert to National Office Reserve or appropriate set aside funds. In the event of an emergency, we reserve the right to pool the funds earlier than the August 14, 2015, deadline.
Reserve Funds, Native American Set Aside and Congressionally Mandated Funds. See page 18 of this attachment for funding amounts and funding cycle information regarding pooling of funds, National Office Reserve funds and Native American set aside.
Rural Economic Area Partnership (REAP) Set Aside Mandated Funds.
All projects should be reviewed, prioritized and funded in the same manner as regular State allocated funds. Projects should be ranked according to highest to lowest score. Highest scoring projects should be funded before any lower scoring projects.
States will have until July 15 to obligate projects. Unobligated REAP funds will be pooled on July 16 and revert to the National Office (NO) to create the “enterprise type” REAP NO competition.
Projects that qualify for “enterprise type” REAP funding not funded from the REAP State allocation must be submitted to the NO sharepoint for funding consideration by COB on July 15.
The NO will review and award projects based on funding availability. Projects awarded from the NO “enterprise type” REAP competition need to be obligated by August 14. Any unobligated REAP funds will be pooled on August 17 and revert to the NO for NO RBDG reserve funding consideration.
All applications on the National Office funding competition list for FY 2014 were removed on October 1, 2014. Should the State Office determine that those projects are still viable; they may place them in competition for their
RD Instruction 1940-L

Exhibit A, Attachment 1

Page 7

State Office allocation and resubmit them for National Office competition if appropriate. Each State jurisdiction is limited to submitting one request for RBDG National Reserve funds because of the limited amount of funds retained in the RBDG National Reserve.


RBDG Transportation Grant Funds are held in the National Office. The amount of funds available and application deadlines are published in the Notice in the Federal Register.
Multi-State projects will be considered for funding from the National Office funding competition after competing for State-allocated funds and will be reviewed, prioritized, and ranked in the same manner as a single-State project.


  1. Intermediary Relending Program

Intermediary Relending Program (IRP) funds from the National Office will be allocated on a quarterly national competitive basis to the highest scoring projects submitted for competition prior to the most recent request deadline, subject to the availability of funds, in accordance to procedures outlined in the RBDG program above. The maximum amount for any one application is $1,000,000. See page 18 of this attachment for funding cycle information and deadlines.


It is a Department-wide priority to place special emphasis on areas of persistent poverty.  As such, the Administrator is exercising authority to award the full 35 points (total administrator points for the application) to those applications that are serving areas of high/persistent poverty.



  1. Rural Economic Development Loan and Grant Program

Rural Economic Development Loan and Grant Program (REDLG) funds from the National Office will be allocated on a monthly national competitive basis to the highest scoring projects submitted for competition prior to the most recent request deadline, subject to the availability of funding in accordance to procedures outlined in the RBDG program above. The maximum amount to the same intermediary for the same project is $1,000,000 for Loans and $300,000 for Grant. This is reflected in the Notice published in the Federal Register on March 11, 2015. See page 18 of this attachment for funding cycle information.




  1. Rural Microentrepreneur Assistance Program

Funds will be allocated on a quarterly national competitive basis to the highest scoring projects submitted for competition prior to the most recent request deadline, in accordance to procedures outlined in the 2015 NOFA. See


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RD Instruction 1940-L

Exhibit A, Attachment 1

Page 8

page 18 of this attachment for funding cycle information and deadlines. Funding and procedures for FY 2015 micro development organization annual technical assistance grants will be announced subject to availability of funds.





  1. Delta Regional Authority Congressionally Mandated Funds

Rural Community Advancement Program (RCAP) congressionally mandated funds of $3,000,000 will be available to the Delta Regional Authority (DRA) to provide assistance for any eligible purpose under RCAP to businesses and residents residing in the Lower Mississippi Delta designated counties. Congressionally mandated funds will be allocated to the Mississippi State Office and awarded to the DRA.


G. BioRefinery, Renewable Chemical, and Biobased Product Manufacturing Assistance Program (Section 9003)
The Agency will publish a Notice in the Federal Register announcing the availability of funding when the subsequent Interim Final Rule for the Program publishes. Questions regarding this program should be submitted to the Energy Division.



  1. Repowering Assistance Program (Section 9004)

There is currently no funding available for this program and no funding notice is planned for the program.




  1. Advanced Biofuel Payment Program (Section 9005)

A Federal Register Notice of Solicitation of Applications (NOSA) for the Advanced Biofuel Payment Program published September 29, 2014, announcing the acceptance of applications for participation in the program. The funding level and the application window for participation in the program are identified on page 18. The application and payment process will be in accordance with 7 CFR 4288, subpart B and the published notice. The request for payment must be received from the producer no later than 30 days from the end of the quarter. States must review and input data into GLS within 45 days from the end of the quarter. Supporting documentation for the pay request must be uploaded to SharePoint within the 60 days from the end of the quarter.


J. Rural Energy for America Program (Section 9007)
A Federal Register Notice of Solicitation of Applications (NOSA) for the Rural Energy for America Program published December 29, 2014, announcing the acceptance of applications for participation in the program. The funding
RD Instruction 1940-L

Exhibit A, Attachment 1

Page 9

level and the application windows for participation in the program are identified on page 18.


If one or more grant, guaranteed loan, or combination guaranteed loan and grant applications have the same score and remaining funds in the State or National Office allocation are insufficient to fully award all, the remaining funds must be divided proportionally between the applications. The applicant

must be notified they may accept the proportional amount of funds. If the applicant agrees to lower its request, the applicant must certify that the

purposes of the project will be met and provide the remaining total funds needed to complete the project.
Prior to obligating grants, the Letter of Conditions and RD Form 1940-1, Request for Obligation of Funds should be executed.
Please ensure GLS is populated in accordance with the guidance provided in the Performance and Accountability Report Performance Measures Unnumbered Letter dated November 13, 2014, before grants (and guaranteed loans) are obligated.
Submitting Reserve Funding Requests to National Office. A State Office requesting funds for an application from the National Office reserve should have the application’s status code in GLS at 216, which indicates it is ready for National Office funding consideration. For all National Office funding requests: LAPAS Announcement, Project Summary, and Score-sheet documents should be uploaded to the State’s SharePoint folder. In addition the appropriate Regional Energy Coordinator should be notified via email of the National Office funding request.
Electronic files for funding requests from the National Office Reserve under the Rural Energy for America Program must be labeled as follows:

• Use the State abbreviation as the first characters of the electronic file;

• The applicants name next, using last name if individual or the company name;

• C for RES/EEI combination, G for RES/EEI grant, L for RES/EEI guaranteed loan, or EA for Energy Audit/Renewable Energy Development Assistance.


The following are examples of how files should be named:

DC Doe John C Score.xls


DC Doe John F Proj Summ.doc
DC Doe John L LAPAS.doc
Energy Audit and Renewable Energy Development Assistance Grants. Energy Audit and Renewable Energy Development Assistance Grant funds will not be
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RD Instruction 1940-L

Exhibit A, Attachment 1

Page 10


allocated to the States. Funds will be maintained in a National Office reserve. Applications for energy audits and renewable energy development assistance will be processed in the State Office. To ensure the equitable geographic distribution of funds, the two highest scoring applications from each State will be submitted to the National Office to compete for funding by February 27, 2015. Funds must be obligated by March 31, 2015.
The Type of Assistance (TOA) code for an energy audit application is 506 and for a renewable energy development assistance application is 507.
Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loans. Renewable Energy Systems and Energy Efficiency Improvement Guaranteed Loan funds will not be allocated to States. Funds will be maintained in a National Office reserve. Applications will be processed in the State Office. Complete applications that are ready to be obligated may compete in monthly competitions which occur on the first business day of each month, however, the first monthly competition will not take place until eight guaranteed loan applications are received and ready to be competed. Guaranteed loan applications being considered for funding must have a minimum score of 50 points.
For guaranteed loans that exceed the State’s delegated approval authority, the State Office will submit the completed application with a recommendation from their State Director to the National Office through their Regional Energy Coordinator for concurrence. State Offices will be notified of the results of the National Office Loan Committee review. If the review is not favorable, the National Office will indicate the weaknesses and identify ways to mitigate same and the State Office will notify the lender.
State Allocations. States will be allocated grant funds for the Renewable Energy Systems and Energy Efficiency Improvements part of the Rural Energy for America Program. See page 18 for program level and page 17 for State allocations. The basic formula includes data from the latest census for rural population, rural population with incomes below the poverty level, and State’s energy cost index. The amount of base allocation is: $600,000 for unrestricted grants and $100,000 for grants of $20,000 or less.
Renewable Energy Systems and Energy Efficiency Improvement Grants of $20,000 or Less. States will hold a set-aside competition for grants of $20,000 or less after April 30, 2015, and prior to the pooling date of June 5, 2015. Any eligible and complete (includes finalized environmental review) renewable energy systems and energy efficiency improvements grant application, requesting $20,000 or less in grant funds, will compete in the set-aside. Projects awarded in the set-aside competition should be assigned in GLS, a

RD Instruction 1940-L

Exhibit A, Attachment 1

Page 11


600 series TOA code and a 300 status code. Any unused funds for grants of $20,000 or less will be pooled into the National Office on Friday morning June 5, 2015, to be utilized in a National Office competition.
After the National Office pools funds for grants of $20,000 or less and determines the amount of funds available, they will also pull a GLS report for applications with a 600 series TOA codes and have a status code of 216 to determine which applications will be reviewed for funding consideration. Based on scores recorded in GLS, National Office will advise States which applications should be uploaded into SharePoint for review for the National Office set aside competition. Series 600 TOA codes should be used for all obligations from the National Office set aside competition. The national competition must be completed and funds obligated by June 30, 2015.
Renewable Energy Systems and Energy Efficiency Improvement Unrestricted Grants. Applications for grants of $20,000 or less have the benefit of competing in both the set-aside for grants of $20,000 or less and in the unrestricted grant competition. Therefore States that have more applications for grants of $20,000 or less than can be funded with their State allocation, will hold its first unrestricted competition after all grants of $20,000 or less set-aside funds have been awarded via the State and National Office competitions. (This would not be applicable to States that do not have more applications for grants of $20,000 or less than their State allocation.) Any unfunded grant application requesting $20,000 or less may compete in the unrestricted competition, along with all eligible and complete (includes finalized environmental review) grant application over $20,000 and combination guaranteed loan and grant applications received by April 30, 2015.
Applications competing for these funds should use 500 series TOA codes. Please ensure that you modify the TOA code for any application for grants of $20,000 or less that will compete for the unrestricted grant funds. Projects awarded in the unrestricted competition should be assigned a 300 status code in GLS when selected for award.
The second State unrestricted renewable energy systems and energy efficiency improvements grants competition will be held after the June 30, 2015, application window and prior to the pooling date of September 1, 2015. Any

eligible and complete (includes finalized environmental review) grant and combination guaranteed loan and grant applications may compete in this competition. Applications competing for these funds should use 500 series TOA codes. Projects awarded in the second State competition should be assigned a 300 status code in GLS when selected for award. Obligation of all

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Exhibit A, Attachment 1

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State awarded unrestricted grant funds must occur by August 31, 2015, because unused grant funds will be pooled into the National Office on Tuesday morning September 1, 2015.
After the National Office pools funds and determines the amount of funds available, they will pull a GLS report for applications with a 500 series TOA codes and have a status code of 216 to determine which applications will be reviewed for funding consideration. Based on scores recorded in GLS, National Office will advise States which applications should be uploaded into SharePoint for review for the National Office unrestricted grant fund competition. The national competition must be completed and funds obligated by September 30, 2015.
Renewable Energy Systems and Energy Efficiency Improvement Combination Guaranteed Loans and Grants. The loan portion of a combination guaranteed loan and grant will need to be requested from the National Office. The grant portion of combination guaranteed loan and grant requests will be competed based on grant score with unrestricted grants.



  1. Value-Added Producer Grant Program (VAPG)

The Agency published a Notice in the Federal Register inviting applications for FY 2015 funding on May 8, 2015. Applications will be due 60 days from the date of publication in the Federal Register. Applications must be in accordance with the requirements published in 7 CFR 4248, subpart J and the Federal Register notice.


All funds are retained in the National Office and will be allocated on a nationally-competitive basis. The State Offices are responsible for receiving all applications, determining eligibility, and ensuring completeness of all submissions as required in the Federal Register notice. The State Offices and independent reviewers are responsible for scoring eligible proposals. The National Office provides random quality checks of State’s findings and independent reviewer scores and is responsible for monitoring the review process, ranking all eligible applications, and recommending and approving final awards. Once awards are approved, available funds will be allocated to the State Offices. The State Offices will be responsible for processing obligations, and monitoring and servicing these awards.
Note that reserved funding is available for Beginning Farmers or Ranchers (BFR), Socially Disadvantaged Farmers or Ranchers (SDFR), and projects proposing support for Mid-Tier Value Chain (MTVC). Priority points may be

RD Instruction 1940-L

Exhibit A, Attachment 1

Page 13


awarded to projects that contribute to opportunities for BFR, Veteran BFR, SDFR, MTVC proposals, a Farmer or Rancher Cooperative, and to Operators of Small or Medium-sized Farms that are structured as Family Farms. Additional priority is available for Agricultural Producer Groups, Farmer or Rancher Cooperatives, and Majority-Controlled Producer-Based Business Ventures who can demonstrate, based on their current and projected composition of owners/membership, how their project “best contributes” to creating or increasing marketing opportunities for BFR, Veteran BFR, SDFR, and operators of Small- and Medium-sized Family Farms and Ranches. All reserved funds shall be obligated by no later than June 30. For obligations not completed by this deadline, consult National Office for guidance on funding status and new Type of Assistance codes for processing awards.
Legislative and Public Affairs Staff (LAPAS) Project Information Sheet will be generated by the National Office using data available in GLS. Questions regarding this program should be submitted to Cooperative Programs.


  1. The Agricultural Marketing Resource Center (AgMRC)

Up to 5 percent of VAPG appropriated funding will be reserved and administered by the National Office for the Agricultural Marketing Resource

Center. AgMRC is an electronically-based information center that coordinates, creates, processes, analyzes, presents, and shares information related to research, market, business, legal, financial, or logistical assistance for value-added agriculture. Currently the center provides producers, processors, and other interested parties with critical information necessary to build successful value-added businesses. No funds are allocated to the State Offices; however, the authority is delegated to the Iowa State Office to approve work plans and budgets, obligate funds and monitor the awards. Unspent funds shall be deobligated and returned to the National Office. Questions regarding this program should be submitted to Cooperative Programs.


  1. Rural Cooperative Development Grant Program (RCDG)

The Agency will publish a Notice in the Federal Register inviting applications for FY 2015 funding. Applications are due 60 days from publication in the Federal Register. Applicants must submit an application in accordance with the requirements published in 7 CFR Part 4284, subparts A and F and the Federal Register notice.


All funds are retained in the National Office and will be allocated on a nationally-competitive basis. State Offices are responsible for completing eligibility determinations and project scoring and ranking of the
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RD Instruction 1940-L

Exhibit A, Attachment 1

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applications will be completed by using a panel methodology (see page 18 for program level). Once approved by the National Office, the State Offices are responsible for obligating approved awards and monitoring and servicing grantees.
LAPAS Project Information Sheet will be generated by the National Office using data available in GLS. Questions regarding this program should be submitted to Cooperative Programs.



  1. Socially Disadvantaged Group Grant (SDGG) Program

The Agency published a Notice in the Federal Register inviting applications for FY 2015 funding on May 20, 2015. Applications are due 60 days from the date of publication in the Federal Register. Applicants must submit an application in accordance with the requirements published in the Federal Register notice in order to be considered for FY 2015 funds. All funds are retained in the National Office and will be allocated on a nationally-competitive basis. State Offices are responsible for completing eligibility determinations and project scoring and ranking of the applications will be completed by using a panel methodology (see page 18 for program level). Once approved by the National Office, the State Offices are responsible for obligating approved awards and monitoring and servicing grantees.

LAPAS Project Information Sheet will be generated by the National Office using data available in GLS. Questions regarding this program should be submitted to Cooperative Programs.


  1. The Appropriate Technology Transfer for Rural Areas

The Appropriate Technology Transfer for Rural Areas (ATTRA) provides information to farmers, extension agents, and other rural residents on a variety of sustainable agricultural practices that include both cropping and livestock operations. The program encourages agricultural producers to adopt sustainable agricultural practices, which allow them to maintain or improve profits, produce high quality food, and reduce adverse impacts to the environment. This program is administered exclusively by the National Office. Questions regarding this program should be submitted to Cooperative Programs.




  1. Cooperative Agreements

Cooperative Agreements are contractual agreements between the Federal Government and another party to accomplish a specific public purpose in which both the Agency and the recipient must be substantially involved. While State Offices may participate in the activities; funds are not allocated to the State Offices.

RD Instruction 1940-L

Exhibit A, Attachment 1

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  1. Delta Health Care Services Grant Program (DHCS)

The Agency will publish a Notice in the Federal Register inviting applications for FY 2015 funding. Applications are due 60 days from the date of publication in the Federal Register. Applications must be in accordance with the requirements published in the Federal Register notice in order to be considered for FY 2015 funding.


All funds are retained in the National Office and will be allocated on a nationally-competitive basis. The State Offices within the Delta Region are responsible for receiving applications, determining eligibility, and ensuring completeness of all submissions as required in the Federal Register notice. Project scoring and ranking of the applications will be completed by using a panel methodology (see page 18 for program level). Once approved by the National Office, the State Offices are responsible for obligating approved awards and monitoring and servicing grantees.
LAPAS Project Information Sheet will be generated by the National Office using data available in GLS. Questions regarding this program should be submitted to Cooperative Programs.

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Exhibit A, Attachment 1

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Program SharePoint Folders - Request for Funds:




B&I

https://ems-team.usda.gov/sites/RD_BP/BP/BI/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2Fsites%2FRD%5FBP%2FBP%2FBI%2FShared%20Documents%2FBI%5FFY%5F2015%5FFunding%5FRequests&FolderCTID=0x01200054CD77FD278EF846A77C19EEE3C3E2B1&View=%7BC92D1850%2D472D%2D4648%2D80A7%2D7E6B2FCA3FBF%7D

RBDG

https://ems-team.usda.gov/sites/RD_BP/BP/SPD/RBDG/Forms/AllItems.aspx?InitialTabId=Ribbon%2EDocument&VisibilityContext=WSSTabPersistence

REDLG

https://ems-team.usda.gov/sites/RD_BP/BP/SPD/REDLG/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2Fsites%2FRD%5FBP%2FBP%2FSPD%2FREDLG%2FShared%20Documents%2FFY%202015%20FUNDING%20REQ&FolderCTID=0x012000498FDB3145332D41A8DB465654BB1E51&View=%7B372DB9F7%2D7D51%2D476F%2D9B73%2DEB42EE82C4B4%7D

IRP

https://ems-team.usda.gov/sites/RD_BP/BP/SPD/IRP/Shared%20Documents/Forms/AllItems.aspx

RMAP

https://ems-team.usda.gov/sites/RD_BP/BP/SPD/RMAP

Energy

Section 9007



https://ems-team.usda.gov/sites/RD_BP/energy/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2Fsites%2FRD%5FBP%2Fenergy%2FShared%20Documents%2F9007&FolderCTID=0x012000E05CDE60B87D9E479A54470162DAE33B&View=%7B3720C99B%2DC567%2D45F5%2D9DEF%2D1ED76BE179FA%7D#InplviewHash3720c99b-c567-45f5-9def-1ed76be179fa=FolderCTID%3D0x012000E05CDE60B87D9E479A54470162DAE33B-RootFolder%3D%252Fsites%252FRD%255FBP%252Fenergy%252FShared%2520Documents%252F9007-SortField%3DModified-SortDir%3DAsc

Section 9005

https://ems-team.usda.gov/sites/RD_BP/energy/Shared%20Documents/Forms/AllItems.aspx?RootFolder=%2Fsites%2FRD%5FBP%2Fenergy%2FShared%20Documents%2F9005&FolderCTID=0x012000E05CDE60B87D9E479A54470162DAE33B&View=%7B3720C99B%2DC567%2D45F5%2D9DEF%2D1ED76BE179FA%7D

Delta Health Care

https://ems-team.usda.gov/sites/RD_BP/CP/gap/DHC/SitePages/Home.aspx

VAPG

https://ems-team.usda.gov/sites/RD_BP/CP/gap/VAPG/SitePages/Home.aspx

RCDG


https://ems-team.usda.gov/sites/RD_BP/CP/gap/RCDG/SitePages/Home.aspx https://rd.sc.egov.usda.gov/teamrd/BP/CP/gap/RCDG/default.aspx

SDGG


https://ems-team.usda.gov/sites/RD_BP/CP/gap/SDGG/SitePages/Home.aspx

The LAPAS SharePoint site is: https://ems-team.usda.gov/sites/RD_LAPAS/cc/Project%20Announcement%20Templates1/Forms/AllItems.aspx?RootFolder=%2Fsites%2FRD%5FLAPAS%2Fcc%2FProject%20Announcement%20Templates1%2FBusiness%20Programs&FolderCTID=0x0120002293D4658208804D9D80FB7124636D92&View=%7B0DB30697%2D7822%2D472D%2DBAD6%2D03D90D17FBD0%7D. Also, please refer to http://www.house.gov/representatives/

and http://www.senate.gov/general/contact_information/senators_cfm.cfm for Representative and Senatorial information.


Pages 17 and 18 in PDF ONLY.
RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 1


RURAL DEVELOPMENT (RD)

RURAL HOUSING SERVICE

RURAL COMMUNITY FACILITIES PROGRAMS (RCFP)




  1. General. This Attachment details funding for programs administered by Rural Development, Housing and Community Facilities Programs (HCFP). Throughout this Attachment, the reference to “Agency” refers to Rural Development, Rural Housing Service or Housing and Community Facilities Programs.

A. Funding Computations. This Attachment provides funding allocations available for Fiscal Year (FY) 2012. All Community Facilities (CF) funds are included in the RCFP Account. Computations for allocations available to individual States have been performed in accordance with §§ 1940.585, 1940.591, and 1940.592 of this instruction. For FY 2012, the direct loan program has a neutral subsidy rate and the subsidy rate for the guaranteed loan program is positive.

B. Budget Authority. For FY 2012, the President provided funding the Consolidated and Further Continuing Appropriations Act, (P.L. 112-55 dated 11/18/2011). These funds flow into the Rural Community Facilities Program (RCFP) Account.
The Administrator allocated budget authorities into program funds as provided in this attachment. Each dollar of budget authority may support a different program level depending upon the nature of the program (loan or grant).
Loan and grant funds are subject to the Equal Credit Opportunity Act, Title VI of the Civil Rights Act of 1964, Title VIII of the Civil Rights Act of 1968 (also known as the Fair Housing Act of 1988, as amended), Section 504 of the Rehabilitation Act of 1973, Title IX Education Amendments of 1972, and Executive Orders 11246 and 12898.

C. Public notification. State Directors are to ensure that programs

comply with Executive Order 12898, and RD Instruction 1901-E, Agency Civil Rights Compliance Requirements, by directing outreach activities to low income and minority populations, underserved communities, and colonias.
Agency Civil Rights Compliance Requirements include the Equal Credit Opportunity Act (ECOA), Title VI of the Civil Rights Act of 1964, Section 504 of the Rehabilitation Act of 1973, the Age Discrimination Act of 1975, and Title IX of the Education Amendments of 1972.

(09-24-12) PN 458

RD Instruction 1940-L

Exhibit A

Attachment 2, Part 1

Page 2

D. USDA Nondiscrimination Statement.
“The U.S. Department of Agriculture (USDA) prohibits discrimination in all of its programs and activities on the basis of race, color,national orgin, age, disability, and where applicable, sex (including gender identity and expression), marital status, familial status, parental status, religion, sexual orientation, political beliefs, genetic information, reprisal, or because all or part of an individual’s income is derived from any public assistance program. (Not all prohibited bases apply to all programs.) Persons with disabilities who require alternative means for communication of program information (Braille, large print, audiotape, etc.) should contact USDA’s TARGET Center at (202) 720-2600 (voice and TDD).”
To file a complaint of discrimination, write to:

USDA


Assistant Secretary for Civil Rights,

Office of the Assistant Secretary for Civil Rights,

1400 Independence Avenue, S.W., Stop 9410,

Washington, DC 20250-9410

E. Rural Community Development Initiative.

The President appropriated $3.621 million for the Rural Community Development Initiative (RCDI). The funds will be used to develop the capacity and ability of private, nonprofit, community-based housing and community development organizations, low-income rural communities, and Indian tribes to undertake projects to improve housing, community facilities, and community and economic development projects in rural areas. A Notice of Funds availability regarding this program will be published in the Federal Register. For FY 2012, each State Office or its designated Area offices will accept and perform the initial screening of RCDI applications before forwarding them to the National Office for scoring and ranking. The initial screening is designed to determine completeness of the application and eligibility of the applicants, recipients, and beneficiaries. Further guidance as to processing and deadlines will be forthcoming.

RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 3


F. Set-Aside for Childcare.

The Consolidated Farm and Rural Development Act, Section 306a(19)(C)(i) requires that not less than 10 percent of the available funds be reserved for child care facilities in rural areas until June 1 of each fiscal year. Accordingly, a set-aside of $1,136,300 in CF grant funds is provided for child care facilities. State Offices must E-mail a general description of the project, Form RD 3570-1, and Letter 3570-B-1 to the National Office by close of business on June 1, 2012. The grants must be obligated by June 30, 2012. The maximum grant amount is $50,000.


G. Rural Economic Area Partnership (REAP) Zone Set-Aside/Reserve. The Appropriations Act provides for a set-aside for REAP zones based on prior year set asides. This equates to $100,000 for Community Facilities.
1.Grant Processing. Grants should be processed as directed in this Instruction, as follows:
Community Facilities Program: Part I, pages 3-9.

H. Hierarchy of Funding.

We continue to require that each project individually receive the minimum amount of subsidy required for project feasibility. Each project should be reviewed for the potential use of guaranteed funds prior to consideration of direct loan funding. Each project should also be reviewed for the potential use of direct loan funds prior to the consideration of grant funding.
I. Exception authority. The Administrator, or designee, may, in individual cases, make an exception to any of the requirements of this Attachment which are not inconsistent with the authorizing statute or regulations if the Administrator finds that application of such requirement would adversely affect the interest of the Government.
The Administrator, or designee, may exercise this authority upon request by a State Director. These requests must be supported by information that demonstrates the adverse impact or effect on the program.
In addition, the Administrator, or designee, reserves the right to change pooling dates, establish or change minimum or maximum fund usage from set asides and reserves, or restrict participation in set asides and reserves.
II. State Allocations. All allocations have been calculated in accordance with the methodology and formulas contained in §§ 1940.585, 1940.591, and 1940.592 of this Instruction.

(09-24-12) PN 458

RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 4

A. All Community Facilities Programs.
1. Basic formula criteria, data source, and weight. The census information used in the formula is derived from the latest census data available on population, income, and unemployment.
2. Basic formula allocation. State allocations are shown on pages

10, 11, 12, and 13 of this part.
3. Transition formula. The transition formula is not used.
4. Base allocations. The amounts of the base allocations to each State are $5,884,125 for the direct loan program, $1 million for the guaranteed loan program, and $50,000 for the grant program. Economic Impact Initiative funds also will be allocated to each State, with a base allocation of $50,000.
5. Administrative allocation. An administrative allocation was used to establish an allocation for the U.S. Virgin Islands and the Western Pacific Islands. Section 1940.552 (f) of this Instruction establishes the conditions for establishing administrative allocations. Section 1940.552 (e) provides guidance on setting the base allocation amount given to each State that receives an allocation including a basic formula allocation amount.
The program area reviews the allocations provided to States that have an allocation factor and sets the administrative allocation amount at either the base amount or slightly below the amount that is allocated to the State with the lowest allocation presently Rhode Island).
Historically, the U.S. Virgin Islands and the Western Pacific Islands do not fully utilize most of the administrative allocation amounts they receive. The Western Pacific occasionally uses its grant funds. Be advised that Program Reserve funds are made available to the administrative allocation States and all other States when projects exceed their allocation.
6. Reserve. Funds will be allocated to the States for those projects which best meet the Agency’s priorities, depending on the amount available at the time of the request. Program Managers may request reserve funds by E-mailing a general description of the project with Guide 26 of RD Instruction 1942-A, Exhibit C of RD Instruction 3575-A, or RD Form Letter 3570-B-1, Form RD 3570-1, and the Legislative and Public Affairs Staff Project Announcement Sheet, as appropriate, to the National Office after the docket has been developed to the point where the loan or grant can be approved upon notification that funds are available.
RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 5

Requests for direct and guaranteed loan and grant reserves may be made at any time. The procedure for requesting grant reserves is contained in Section D, paragraph 3, “Grant Processing,” below.
Reserve funds will only be made available after the State’s allocation has been allocated or obligated for particular projects. The Administrator will consider a State Director’s utilization of all his or her CF allocations in determining whether to honor requests for funds from the direct or guaranteed loan or grant reserves.
7. Pooling. There will be no mid-year pooling for regular grant and EII funds. Mid-year pooling for regular direct and guaranteed funds will take place on Monday, April 30, 2012. End-of-year pooling for regular and EII grants and direct and guaranteed loan funds will take place on Monday, August 6, 2012.
8. 15x15x45. To the maximum extent possible, loan, grant, and guaranteed funds should be directed to the smallest communities with the lowest incomes emphasizing areas where school district data show that at least 45% of children are living in poverty. This emphasis will support Rural Development’s goal of providing 15% of its funding by the year

2015 to these areas of need.

B. Community Facilities Direct Loans.

Amount available for allocation:

Amount Available $1,300,000,000

Less National Office Reserve $ 65,000,375

Base, Administrative, and

Basic Formula Amount Distributed $1,234,999,625


C. Community Facilities Guaranteed Loans.

Amount available for allocation:


Amount Available $105,708,245

Less National Office Reserve $10,572,245

Base, Administrative, and

Basic Formula Amount Distributed $95,136,000


(09-24-12) PN 458

RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 6

D. Community Facilities Grants.

1. Amount available for allocation:


Amount Available $11,363,000

Less National Office Reserve $ 1,136,300

Less Child Care Reserve $ 1,136,300

Less REAP Set-Aside $100,000


Base, Administrative, and

Basic Formula Amount Distributed $8,990,400
2. Maximum grant amount. For FY 2012, the maximum grant reserve request amount is $50,000. The maximum grant amount for a child care reserve request is also $50,000.
3. Grant processing. The deadline to request Community Facilities grant funds from the National Office Reserve is August 3, 2012. Program Managers must E-mail a general description of the project, Form RD 3570-1, RD Form Letter 3570-B-1, and a separate electronic file copy of the Legislative and Public Affairs Staff Project announcement Sheet for each request to the National Office by close of business on August 3, 2012. Indicate clearly, the type or types of grant for which the request is being submitted for on the “Type of Request” line on RD Form Letter 3570-B-1. Any request received after this time period will be held in the National Office to compete for any additional funds that remain available after all other eligible requests have been funded. The National Office will transfer the funds and provide notification to the State Office that the funds are available. The National Office does not maintain unfunded requests beyond the end of the fiscal year.
4. For each grant application approved, the State Director must document that the minimum grant amount needed to achieve financial feasibility for the project has been determined. A copy of this analysis must be kept in the project file.
E. Economic Impact Initiative (EII) Grants.
1. Amount available for allocation.
Amount Available $5,938,000
Less National Office Reserve $890,700

Base, Administrative, and Basic

Formula amount distributed $5,047,300
2. Grant processing. This grant program is authorized under Section 306(a)(20) of the Consolidated Farm and Rural Development

RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 7

Act. For FY 2012, the President appropriated $5.938 million for a Community Facilities grant program for rural communities with extreme unemployment and severe economic depression, hereinafter referred to as the Economic Impact Initiative. These funds are in addition to the regular allocation of funding for the Community Facilities grant program. EII funds will be administered under the same regulations governing the Community Facilities grant program. Program administration, eligibility, processing, and servicing requirements for this program may be found in 7 CFR Part 3570, Subpart B. The deadline to request EII grant funds from the National Office Reserve is August 3, 2012. The maximum EII grant reserve request is $50,000.

3. Project Requirements: In addition to the requirements contained in 7 CFR Part 3570, the essential community facility must be located in a rural community where the “not employed rate” is greater than 19.5 percent. As stated in 7 USC 1926(a)(20)(B), the “not employed rate” is the percentage of individuals over the age of 18 who reside within the community and are ready, willing, and able to be employed but are unable to find employment, as determined by the Department of Labor of the State in which the community is located. This Department must typically analyze “not employed rates” or similar data.
4. Internet and Broadband. The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Act, 2002, expanded eligibility for the EII to provide local dial-up Internet access or broadband service where it does not currently exist. Under this provision, the Agency may make grants to State agencies for use by regulatory commissions in States with rural communities which do not have such services.

The State agencies are expected to establish a competitive, technologically-neutral grant program for telecommunications carriers or cable operators that establish common carrier facilities and services that, in the Commission’s determination, will result in the long-term availability of affordable broadband services used for high speed Internet access in these communities.


5. For each grant application approved, the State Director must document that the minimum grant funding needed to achieve financial feasibility for the project has been determined. A copy of this analysis must be kept in the project file.
6. Not Employed Rate: Documentation that the EII grant project is located in an area where the “not employed rate” is greater than 19.5 percent, as defined by paragraph 3 above, must be maintained in each EII grant file.

(09-24-12) PN 458

RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 8

F. Tribal College Grants

1. Program Administration. This program is authorized under Section 306(a)(19) and 306(a)(25) of the Consolidated Farm and Rural Development Act. For FY 2012, Congress appropriated $3,369,000 for a Community Facilities grant program for the 35 tribal colleges that are 1994 land-grant institutions meeting the criteria of the Equity in Education Land-Grant Status Act of 1994.


Rural Development will administer these funds using the same regulations that govern its Community Facilities grant program. Program administration, eligibility, processing, and servicing requirements for that program may be found in 7 CFR Part 3570, Subpart B.
2. Funds Management. All Tribal College Initiative funds will remain in the National Office Reserve for FY 2012 funding consideration. Project selections will be made on a Nation-wide competitive basis. When a State Office determines that an applicant is eligible, the preapplication will be evaluated competitively and points awarded as specified in the project selection priorities contained in the above-cited regulations. For FY 2012, the maximum Tribal College grant amount is $250,000. Applications are due into the State office on June 1, 2012.
3. Funding Requests. The State Director or designee will E-mail the request to the National Office to compete for funding consideration. The request must consist of a general description of the project, Form RD 3570-1, RD Form Letter 3570-B-1, and a separate electronic file copy of the Legislative and Public Affairs Staff Project Announcement Sheet for each project. These items must be forwarded to the National Office by the close of business on July 16, 2012. Any requests received after this date will be held in the National Office to compete for any additional funds that remain available after all other eligible requests have been funded.

4. Funding Notification. All preapplications selected for funding Consideration will be notified by the State of field office by issuance of Form AD-622, “Notice of Preapplication Review Action.” At that time, the proposed recipient will be invited to submit a complete application, along with instructions related to the agreed-upon award amount. An application conference will be scheduled with the proposed recipient to discuss items needed for the formal application and to further clarify issues related to the project.


RD Instruction 1940-L

Exhibit A

Attachment 2, Part I

Page 9

5. Grant Approval. Final grant approval is subject to the availability of funds; the submission of a formal, complete application and related materials meeting the program requirements and responsibilities of the grantee (set forth in 7 CFR Part 3570, Subpart B); the letter of conditions; and the grant agreement.


6. Unfunded Requests. The National Office does not maintain unfunded requests beyond the end of the fiscal year. Those preapplications not having sufficient priority to receive funding consideration during FY 2012 will be notified, in writing, by the State or designated field office.

(09-24-12) PN 458




(09-24-12) PN 458
RD Instruction 1940-L

Exhibit A

Attachment 2, Part III

Page 1


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