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Process Checklist
USDA provides a
process checklist of all documentation and analysis that should be
maintained by the Lender of Record. Loans are primarily processed on
the Lender’s own forms. When a pre-application is submitted, a borrower
provides historical financial statements, financial projections,
organizational documents, information on existing debt, budgets, site
information, information on potential environmental issues that may
affect project viability, and evidence of community support.
When the full (final)
application is submitted, the Lender completes two
specific USDA forms
and provides environmental information and its credit analysis,
including proposed security. The lender is responsible for determining
the credit quality and economic feasibility of the proposed loan and
must address all elements of the credit quality in a written analysis
which includes adequacy of equity, cash flow, security, history, and
management capabilities.
The borrower provides
cost estimates, copies of permits, certifications, and recommendations
of appropriate regulatory agencies, feasibility study reports, and
preliminary engineering and architectural reports. [Final Application
Checklist]
Typical Application Process
The application
process consists of the following steps:
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Lender of Record and borrower submit
joint pre-application to determine eligibility.
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RD field staff meets with all parties
at project site (typically within 15 days) to make a preliminary
eligibility determination and address any environmental issues.
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The Lender of Record and Borrower submit
a complete application.
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Simultaneously, RD conducts a financial
credit evaluation and an environmental assessment.
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Typically, issuance of the Conditional
Commitment for Guarantee takes approximately 30-60 days from the
date of a complete application, depending upon the nature, scope,
and complexity of the project.
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If approved, RD obligates funds and
issues a Conditional Commitment for Guarantee.
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The Lender of Record then provides the
interim construction financing for development of the project.
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After construction is completed and the
facility is operational, the Lender of Record requests RD to review
the completed project and, if acceptable provide the Loan Note
Guarantee.
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RD verifies that conditions are met and
issues the Loan Note Guarantee.
USDA Required Forms
Application Forms
(Completed by Lender of Record and Borrower)
SF 424.2 Application for Federal Assistance (for
pre-application only)
RD 1940-20 Request for Environmental Information
RD 3575-1 Application for Loan and Guarantee
Approval Forms
(Completed by RD)
RD 449-14 Conditional Commitment for Guarantee
RD 1940-3 Request for Obligation of Funds - Guaranteed
Loans
Closing Forms
(Completed by RD)
RD 449-34 Loan Note Guarantee
RD 449-35 Lender's Agreement
RD 1980-19 Guaranteed Loan Closing Report
Servicing Forms
(Completed by Lender of Record)
RD 1980-41 Guaranteed Loan Status Report
RD 449-36 Assignment Guarantee Agreement
RD 1980-7 Notification of Transfer and Assumption of a
Guaranteed Loan
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