USDA Rural Development Publishes Final Rule on Unified Guaranteed Loan Program; Addresses NMTC-Related Issues

Tuesday, July 14, 2020 - 9:15AM

The U.S. Department of Agriculture (USDA) Rural Development published a final rule and request for comments in today’s Federal Register, proposing a unified guaranteed loan platform for four of its existing guaranteed loan programs. Under the final rule, the Community Facilities, Water and Waste Disposal, Business and Industry, and Rural Energy for America programs will receive new provisions to improve, expand, simplify and enhance the programs. The final rule includes provisions relating to the new markets tax credit (NMTC), including the elimination of the requirement to provide an exit strategy for the NMTC investor that was in the previous draft rule. The final rule also includes a provision to address forbearance limitations for sub-community development entities (sub-CDEs). Comments on the rule are due Sept. 14 and the final rule is effective Oct. 1.

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