Business and industry buydown loans.

CFR · 2024-01-01 · US · Title 7

(a) (b) (c) (2) The note rate for a BIB loan must be the same for the entire loan, including both the guaranteed and unguaranteed portion. (d) (2) During the first year after a Loan Note Guarantee is issued for a BIB loan, Rural Development will pay one percentage point of interest on the loan directly to the lender, thereby reducing the interest due from the borrower by this amount. This interest payment shall be applied to both the guaranteed and unguaranteed portion of the loan pro ratably according to Rural Development regulations. (3) Interest payments by Rural Development may continue in subsequent years if the borrower's cash flow is insufficient to pay all obligations including the required payments on the proposed loan at the note rate. On or about each yearly anniversary of the (4) This section does not authorize interest payments by Rural Development on B&I loans other than those approved under this section. To be eligible for interest payments by Rural Development, the loan must be designated as a BIB loan when approved and funded from funds authorized by Public Law 103-50. (e) (f) (2) Rural Development will identify a loan as a BIB loan by notation in the top margin of Form RD 449-29 and by the “type of assistance” code listed on Form RD 1940-3, in accordance with the Forms Manual Insert. (3) Rural Development will set out the interest buydown provisions in accordance with this section in the Conditional Commitment for Guarantee. When the Loan Note Guarantee is i

official document · source cfr-2024 · id 7:§ 1980.490