[Federal Register: March 15, 2006 (Volume 71, Number 50)]
[Notices]               
[Page 13348-13352]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15mr06-47]                         

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DEPARTMENT OF AGRICULTURE

Rural Utilities Service

 
Announcement of Grant and Loan Application Deadlines and Funding 
Levels

AGENCY: Rural Utilities Service, USDA.

ACTION: Notice of funding availability and solicitation of 
applications.

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SUMMARY: USDA Rural Development administers rural utilities programs 
through the Rural Utilities Service. USDA Rural Development announces 
the Fiscal Year (FY) 2006 funding levels available for its Revolving 
Fund Program (RFP) grant. In addition, USDA Rural Development anounces 
the maximum amounts for RFP grants applicable for the fiscal year 2006 
and the solicitation of applications.

DATES: You may submit completed applications for the Revolving Fund 
Program's grant from March 1, 2006 until May 2, 2006.
    Reminder of competitive grant application deadline: Applications 
must be mailed, shipped or submitted electronically through Grants.gov 
no later than May 2, 2006, to be eligible for FY 2006 grant funding.

ADDRESSES: You may obtain application guides and materials for the RFP 
program via the Internet at the USDA Rural Development Water and 
Environmental Programs (WEP) Web site: http://www.usda.gov/rus/water/index.htm.
 You may also request application guides and materials from 

USDA Rural Development by contacting the WEP at (202) 690-3789.
    Submit completed paper applications for RFP grant to the Rural 
Development Utilities Programs, U.S. Department of Agriculture, 1400 
Independence Ave., SW., Room 2233, STOP 1570, Washington, DC 20250-
1570. Applications should be marked ``Attention: Assistant 
Administrator, Water and Environmental Programs.''
    Submit electronic grant applications at http://www.grants.gov 

(Grants.gov) and follow the instructions you find on that Web site.

FOR FURTHER INFORMATION CONTACT: Anita O'Brien, Loan Specialist, Water 
Program Division, USDA Rural Development Utilities Programs; Telephone: 
(202) 690-3789, fax: (202) 690-0649.

SUPPLEMENTARY INFORMATION:

Overview

    Federal Agency: Rural Utilities Service (RUS).
    Funding Opportunity Title: Grant Program to Establish a Fund for 
Financing Water and Wastewater Projects (Revolving Fund Program (RFP)).
    Announcement Type: Funding Level Announcement, and Solicitation of 
Applications.
    Catalog of Federal Domestic Assistance (CFDA) Number: 10.864.
    Dates: You may submit completed application for a RFP grant from 
March 1, 2006 and May 2, 2006.
    Reminder of competitive grant application deadline: Applications 
must be mailed, shipped or submitted electronically through Grants.gov 
no later than May 2, 2006, to be eligible for FY 2006 grant funding.

Items in Supplementary Information

I. Funding Opportunity: Brief introduction to the RFP.
II. Award Information: Available funds, maximum amounts.
III. Eligibility Information: Who is eligible, what kinds of 
projects are eligible, what criteria determine basic eligibility.
IV. Application and Submission Information: Where to get application 
materials, what constitutes a completed application, how

[[Page 13349]]

and where to submit applications, deadlines, items that are 
eligible.
V. Application Review Information: Considerations and preferences, 
scoring criteria, review standards, selection information.
VI. Award Administration Information: Award notice information, 
award recipient reporting requirements.
VII. Agency Contacts: Web, phone, fax, e-mail, contact name.

I. Funding Opportunity

    Drinking water systems are basic and vital to both health and 
economic development. With dependable water facilities, rural 
communities can attract families and businesses that will invest in the 
community and improve the quality of life for all residents. Without 
dependable water facilities, the communities cannot sustain economic 
development.
    The USDA Rural Development Utilities Programs supports the sound 
development of rural communities and the growth of our economy without 
endangering the environment. Rural Utilities Service (RUS) programs are 
administered by USDA Rural Development. USDA Rural Development provides 
financial and technical assistance to help communities bring safe 
drinking water and sanitary, environmentally sound waste disposal 
facilities to rural Americans in greatest need.
    The Revolving Fund (RFP) Grant Program has been established to 
assist communities with water or wastewater systems. Qualified private 
non-profit organizations will receive RFP grant funds to establish a 
lending program for eligible entities. Eligible entities for the 
revolving loan fund will be the same entities eligible to obtain a 
loan, loan guarantee, or grant from the Water and Waste Disposal and 
Wastewater loan and grant programs administered by USDA Rural 
Development. As grant recipients, the non-profit organizations will set 
up a revolving loan fund to provide loans to finance predevelopment 
costs of water or wastewater projects, or short-term small capital 
projects not part of the regular operation and maintenance of current 
water and wastewater systems. The amount of financing to an eligible 
entity shall not exceed $100,000.00 and shall be repaid in a term not 
to exceed 10 years. The rate shall be determined in the approved grant 
work plan.

II. Award Information

    Available funds: $495,000 is available for grants in FY 2006.

III. Eligibility Information

A. What Are the Basic Eligibility Requirements for Applying?

    Is a private, non-profit organization that has tax-exempt status 
from the United States Internal Revenue Service (IRS);
    Is legally established and located within one of the following:
    1. A state within the United States;
    2. The District of Columbia;
    3. The Commonwealth of Puerto Rico;
    4. A United States territory;
    5. Has the legal capacity and authority to carry out the grant 
purpose;
    6. Has a proven record of successfully operating a revolving loan 
fund to rural areas;
    7. Has capitalization acceptable to the Agency, and is composed of 
at least 51 percent of the outstanding interest or membership being 
citizens of the United States or individuals who reside in the United 
States after being legally admitted for permanent residence;
    8. Has no delinquent debt to the Federal Government or no 
outstanding judgments to repay a Federal debt;
    9. Demonstrates that it possesses the financial, technical, and 
managerial capability to comply with Federal and State laws and 
requirements.

B. What Are the Basic Eligibility Requirements for a Project?

    1. The following activities are authorized under the RFP statute:
    (a) Grant funds must be used to capitalize a revolving fund program 
for the purpose of providing direct loan financing to Ultimate 
Recipients for pre-development costs associated with proposed or with 
existing water and wastewater systems, or,
    (b) Short-term costs incurred for equipment replacement, small-
scale extension of services, or other small capital projects that are 
not part of the regular operations and maintenance activities of 
existing water and wastewater systems.
    2. Grant funds may not be used to pay any of the following:
    (a) Payment of the Intermediary's administrative costs or expenses, 
and,
    (b) Delinquent debt owed to the Federal Government.

IV. Application and Submission Information

A. The Grant Application Guide, Copies of Necessary Forms and Samples, 
and the RFP Regulation Are Available From These Sources

    1. The Internet: http://www.usda.gov/rus/water/index.htm or http://www
.grants.gov.
    2. For paper copies of these materials telephone (202) 690-3789.

B. You May File an Application in Either Paper or Electronic Format

    1. Applications submitted by paper:
    (a) Send or deliver paper applications by the U.S. Postal Service 
(USPS) or courier delivery services to: Assistant Administrator--Water 
and Environmental Programs, USDA Rural Development Utilities Programs, 
1400 Independence Avenue, SW., STOP 1548, Room S-5145, Washington, DC, 
20250-1548.
    (b) For paper applications mail or ensure delivery of an original 
paper application (no stamped, photocopied, or initialed signatures) 
and two copies by the deadline date. The application and any materials 
sent with it become Federal records by law and cannot be returned to 
you.
    2. Electronically submitted applications:
    (a) For electronic applications you must file through Grants.gov, 
the official Federal Government Web site at http://www.grants.gov. You 

must be registered with Grants.gov before you can submit a grant 
application. If you have not used Grants.gov before, you will need to 
register with the Central Contractor Registry (CCR) and the Credential 
Provider. You will need a DUNS number to access or register at any of 
the services. The registration processes may take several business days 
to complete. Follow the instructions at Grants.gov for registering and 
submitting an electronic application. USDA Rural Development may 
request original signatures on electronically submitted documents 
later.
    (b) The CCR registers your organization, housing your 
organizational information and allowing Grants.gov to use it to verify 
your identity. You may register for the CCR by calling the CCR 
Assistance Center at 1-888-227-2423 or, you may register online at 
http://www.ccr.gov.

    (c) The Credential Provider gives you or your representative a 
username and password, as part of the Federal Government's e-
Authentication to ensure a secure transaction. You will need the 
username and password when you register with Grants.gov or use 
Grants.gov to submit your application. You must register with the 
Central Provider through Grants.gov at the following Web address: 
https://apply.grants.gov/OrcRegister.

    (d) DUNS Number: Whether you file a paper or an electronic 
application, you will need a Dun and Bradstreet (D&B) Data Universal 
Numbering System (DUNS) number. You must provide your

[[Page 13350]]

DUNS number on the SF-424, ``Application for Federal Assistance.'' To 
verify that your organization has a DUNS number or to receive one at no 
cost, call the dedicated toll-free request line at 1-866-705-5711 or 
access the Web site at http://www.dunandbradstreet.com. The following 

information is needed when requesting a DUNS number:
    (1) Legal Name.
    (2) Headquarters name and address of the organization.
    (3) Doing business as (dba) or other name by which the organization 
is commonly recognized.
    (4) Physical address.
    (5) Mailing address (if separate from headquarters and/or physical 
address).
    (6) Telephone number.
    (7) Contact name and title.
    (8) Number of employees at the physical location.
    e. USDA Rural Development will not accept applications by fax or e-
mail.

C. What Constitutes a Completed Application?

    1. To be considered for support, you must be an eligible entity and 
must submit a complete application by the deadline date. You should 
consult the cost principles and general administrative requirements for 
grants pertaining to their organizational type in order to prepare the 
budget and complete other parts of the application. You also must 
demonstrate compliance (or intent to comply), through certification or 
other means, with a number of public policy requirements.
    2. Applicants must complete and submit the following forms to apply 
for a RFP grant:
    (a) Standard Form 424, ``Application for Federal Assistance''
    (b) Standard Form 424A, ``Budget Information-Non-Construction 
Programs''
    (c) Standard Form 424B, ``Assurances--Non struction Programs''
    (d) Standard Form LLL, ``Disclosure of Lobbying Activity''
    (e) Form RD 400-1, ``Equal Opportunity Agreement''
    (f) Form RD 400-4, ``Assurance Agreement (Under Title VI, Civil 
Rights Act of 1964)
    3. The project proposal should outline the project in sufficient 
detail to provide a reader with a complete understanding of how the 
loan program will work. Explain what you will accomplish by lending 
funds to eligible entities. Demonstrate the feasibility of the proposed 
loan program in meeting the objectives of this grant program. The 
proposal should cover the following elements:
    (a) Present a brief project overview. Explain the purpose of the 
project, how it relates to USDA Rural Development's purposes, how you 
will carry out the project, what the project will produce, and who will 
direct it.
    (b) Describe why the project is necessary. Demonstrate that 
eligible entities need loan funds. Quantify the number of prospective 
borrowers or provide statistical or narrative evidence that a 
sufficient number of borrowers will exist to justify the grant award. 
Describe the service area. Address community needs.
    (c) Clearly state your project goals. Your objectives should 
clearly describe the goals and be concrete and specific enough to be 
quantitative or observable. They should also be feasible and relate to 
the purpose of the loan program.
    (d) The narrative should cover in more detail the items briefly 
described in the Project Summary. It should establish the basis for any 
claims that you have substantial expertise in promoting the safe and 
productive use of Revolving Funds. In describing what the project will 
achieve, you should tell the reader if it also will have broader 
influence. The narrative should address the following points:
    (1) Document your ability to administer and service a revolving 
fund in accordance with the provisions of 7 CFR part 1783.
    (2) Document that, to establish the revolving fund, you can commit 
financial resources your organization controls. This documentation 
should describe the sources of funds other than the RFP grant that will 
be used to pay your operational costs and provide financial assistance 
for projects.
    (3) Demonstrate that you have secured commitments of significant 
financial support from other funding sources, if appropriate.
    (4) List the fees and charges that borrowers will be assessed.
    (e) The work plan must describe the tasks and activities that will 
be accomplished with available resources during the grant period. It 
must show the work you plan to do to achieve the anticipated outcomes, 
goals, and objectives set out for the RFP Program. The plan must:
    (1) Describe the work to be performed by each person.
    (2) Give a schedule or timetable of work to be done.
    (3) Show evidence of previous experience with the techniques to be 
used or their successful use by others.
    (4) Outline the loan program to include the following: specific 
loan purposes, a loan application process; priorities, borrower 
eligibility criteria, limitations, fees, interest rates, terms, and 
collateral requirements.
    (5) Provide a marketing plan.
    (6) Explain the mechanics of how you will transfer loan funds to 
the borrowers.
    (7) Describe follow-up or continuing activities that should occur 
after project completion such as monitoring and reporting borrowers' 
accomplishments.
    (8) Project Evaluation. It should describe how the results will be 
evaluated, in line with the project objectives.
    (9) Personnel. The applicant should list all personnel responsible 
for administering this program along with a statement of their 
qualifications and experience.
    (f) The written justification for projected costs should explain 
how budget figures were determined for each category. It should 
indicate which costs are to be covered by grant funds and which costs 
will be met by your organization or other organizations. The 
justification should account for all expenditures discussed in the 
narrative. It should reflect appropriate cost-sharing contributions. 
The budget justification should explain the budget and accounting 
system proposed or in place. The administrative costs for operating the 
budget should be expressed as a percentage of the overall budget. The 
budget justification should provide specific budget figures, rounding 
off figures to the nearest dollar. Applicants should consult OMB 
Circular A-122: ``Cost Principles for Non-Profit Organizations'' for 
information about appropriate costs for each budget category.
    (g) In addition to completing the standard application forms, you 
must submit supplementary materials:
    (h) Demonstrate that your organization is legally recognized under 
state and Federal law. Satisfactory documentation includes, but is not 
limited to, certificates from the Secretary of State, or copies of 
state statutes or laws establishing your organization. Letters from the 
IRS awarding tax-exempt status are not considered adequate evidence.
    (i) Submit a certified list of directors and officers with their 
respective terms.
    (j) Submit evidence of tax exempt status from the Internal Revenue 
Service.
    (k) You must disclose debarment and suspension information required 
in accordance with 7 CFR, Part 3017, subpart 3017.335, if it applies. 
The section heading is ``What information must I provide before 
entering into a covered transaction with the Department of 
Agriculture?'' It is part of

[[Page 13351]]

the Department of Agriculture's rules on Government-wide Debarment and 
Suspension.
    (l) You must identify all of your organization's known workplaces 
by including the actual address of buildings (or parts of buildings) or 
other sites where work under the award takes place. Workplace 
identification is required under the drug-free workplace requirements 
in accordance with 7 CFR part 3021, subpart 3021.230. The section 
heading is ``How and when must I identify workplaces?'' It is part of 
the Department of Agriculture's rules on Government-wide Requirements 
for Drug-Free Workplace (Financial Assistance).
    (m) Submit the most recent audit of your organization.
    (n) Submit the following financial statements:
    i. A pro forma balance sheet at start-up and for at least three 
additional years; Balance sheets, income statements, and cash flow 
statements for the last three years.
    ii. If your organization has been formed less than three years, the 
financial statements should be submitted for the periods from inception 
to the present. Projected income and cash flow statements for at least 
three years supported by a list of assumptions showing the basis for 
the projections. The projected income statement and balance sheet must 
include one set of projections that shows the revolving loan fund only 
and a separate set of projections that shows your organization's total 
operations.
    (o) You may present additional information to support and describe 
your plan for achieving the grant objectives. The information may be 
regarded as essential for understanding and evaluating the project such 
as letters of support, resolutions, policies, etc. The supplements may 
be presented in appendices to the proposal.

V. Application Review Information

    A. Receipt Acknowledgment by letter sent within 30 days of 
receiving y