Rural Business Enterprise Grants and Television Demonstration Grants

Federal RegisterAug 9, 1994

Ask Donna

What actually matters in this document.

Text

DEPARTMENT OF AGRICULTURE

Farmers Home Administration

7 CFR Part 1942

Rural Development Administration

7 CFR Part 4284

RIN: 0570-AA08

Rural Business Enterprise Grants and Television Demonstration

Grants

AGENCIES: Rural Development Administration and Farmers Home

Administration, USDA.

ACTION: Proposed rule.

-----------------------------------------------------------------------

SUMMARY: The Rural Development Administration (RDA) proposes to amend a

Farmers Home Administration (FmHA) regulation previously utilized by

RDA in administering the Rural Business Enterprise Grants and

Television Demonstration Grants program, which is presently contained

within 7 CFR Part 1942, Subpart G. This action is necessary to amend

the regulation in order to implement Title V, Section 516 (d) of Public

Law 102-552, Section 6 of Public Law 102-554, and RDA Instruction 4284-

B. The intended effects of this action are to allow grants to be made

for the purposes set forth within the two Public Laws and to expand the

number of businesses qualifying for assistance. This proposed action

will affect other regulations by changing references from FmHA

Instruction 1942-G to RDA Instruction 4284-B. All such revisions will

be appropriately indicated within the final rule publication.

DATES: Written comments must be received on or before September 8,

1994.

ADDRESSES: Submit written comments in duplicate to the Office of the

Chief, Regulations Analysis and Control Branch, Farmers Home

Administration, USDA, Room 6348, South Agriculture Building,

Washington, DC 20250. All written comments will be available for public

inspection during regular working hours at the above address.

FOR FURTHER INFORMATION CONTACT: Howard Franklin, Loan Specialist,

Community Facilities Division, Rural Development Administration, Room

6320, South Agriculture Building, Washington, DC 20250, telephone (202)

720-1503.

SUPPLEMENTARY INFORMATION:

Classification

This rule has been determined to be significant/economically

significant and was reviewed by the Office of Management and Budget

under Executive Order 12866.

Environmental Impact Statement

This document has been reviewed in accordance with 7 CFR Part 1940,

Subpart G, ``Environmental Program.'' RDA has determined that the

proposed action does not constitute a major Federal action

significantly affecting the quality of the human environment and, in

accordance with the National Environmental Policy Act of 1969 (Pub. L.

91-190), an Environmental Impact Statement is not required.

Executive Order 12778

The proposed regulation has been reviewed in light of Executive

Order 12778 and meets the applicable standards provided in sections 2

(a) and 2 (b)(2) of that Order. Provisions within this part which are

inconsistent with State law are controlling. All administrative

remedies pursuant to 7 CFR Part 1900, Subpart B, must be exhausted

prior to filing suit.

Regulatory Flexibility Act

In compliance with the Regulatory Flexibility Act, the

Administrator has determined that this action would not have a

significant economic impact on a substantial number of small entities

because the action will not affect a significant number of small

entities as defined by the Regulatory Flexibility Act (5 U.S.C. 601).

Intergovernmental Review

This action affects the following RDA program as listed in the

Catalog of Federal Domestic Assistance under 10.769 Rural Business

Enterprise and Television Demonstration Grants and is subject to the

provisions of E.O. 12372, which requires intergovernmental consultation

with State and local officials. (7 CFR Part 3015, Subpart V; 48 FR

29112, June 24, 1983, 49 FR 2267, May 31, 1984, 50 FR 14088, April 10,

1985.)

Paperwork Reduction Act: The information collection or

recordkeeping requirements contained in this regulation have been

submitted to the Office of Management and Budget under section 3504 (h)

of the Paperwork Reduction Act of 1980. Public reporting burden for

this collection of information is estimated to vary from 30 minutes to

40 hours per response with an average of 1.86 hours per response,

including time for reviewing instructions, searching existing data

sources, gathering and maintaining the data needed, and completing and

reviewing the collection of information. Please send written comments

to the Office of Information Regulatory Affairs, OMB, Attention: Desk

Officer for USDA, Washington, DC 20503. Please send a copy of your

comments to Jack Holston, Agency Clearance Officer, USDA, RDA, AG Box

0743, Washington, DC 20250.

Discussion

RDA proposes this action to implement Title V, Section 516 (d) of

Public Law 102-552, Farm Credit Banks and Associations Safety and

Soundness Act of 1992, which provides for grants to create, expand, and

operate rural distance learning networks and rural learning programs

that provide educational or job training instruction related to

potential employment or job advancement for adult students. RDA

recognizes that education and job training instruction are necessary to

provide qualified employees for the development of small and emerging

private businesses in rural areas. Therefore, RDA is proposing to

require evidence of need from these existing or startup businesses for

the educational or job training instruction for funding under this

program. This proposed action will also implement Section 6 of Public

Law 102-554, Agricultural Credit Improvement Act of 1992, which

authorizes grants to qualified nonprofit organizations for the

provision of technical assistance and training to rural communities for

the purpose of improving passenger transportation services or

facilities. Assistance provided under this amendment may include on-

site technical assistance to local/regional governments, public transit

agencies, and related nonprofit and for-profit organizations in rural

areas, including the development of training assistance for local

officials and agencies in rural areas. Similar grants have been awarded

under the Rural Business Enterprise Grant (RBEG) program to qualified

nonprofit organizations for assisting small and emerging private

business enterprises. This action further proposes to change the

definition of small and emerging private business enterprise in order

that it will be consistent with specific program size standards

established by the Small Business Administration. RDA recognizes that

technical assistance and/or revolving fund projects have the potential

to assist more small and emerging private business enterprises and

proposes to amend its project selection criteria to give these projects

additional priority points. The discretionary points portion of the

project selection process is proposed to be changed to clarify that

discretionary points may be provided when the applicant has not

received a previous grant in accordance with this subpart, and the

grant applied for is not more than $500,000. Additionally, the RDA

Administrator would have authority to assign up to 100 discretionary

points to projects requiring National Office reserve funds. Assignment

of discretionary points by the RDA Administrator would be based on an

appropriate geographic distribution of funds, criteria which would

result in substantial employment improvement, mitigation of economic

distress of a community via the creation of jobs, and/or the resolution

of emergency situations. Relative to grants for operating revolving

loan funds, the proposed action would clarify that the requirements for

a Scope of Work would include the applicant's loan processing and

servicing procedures when providing detail on its experience in

operating a revolving loan fund. Other minor revisions and

clarifications are appropriate to effect improved program understanding

and administration. Finally, this action is necessary in order to

implement RDA Instruction 4284-B.

List of Subjects

7 CFR Part 1942

Business and industry, Grant programs--Housing and community

development, Industrial parks, Rural areas.

7 CFR Part 4284

Business and industry, Grant programs--Housing and community

development, Industrial parks, Rural areas.

Therefore, Chapters XVIII and XLII, Title 7, Code of Federal

Regulations are amended as follows:

PART 1942--ASSOCIATIONS

1. Subpart G of Part 1942 is removed and reserved.

PART 4284--GRANTS

2. The authority citation for part 4284 continues to read as

follows:

Authority: 7 U.S.C. 1989; 16 U.S.C. 1005, 5 U.S.C. 301; 7 CFR

2.23 and 2.70.

3. Subpart B of Part 4284 is added to read as follows:

PART 4284--GRANTS

Subpart B--Rural Business Enterprise Grants and Television

Demonstration Grants

Sec.

4284.101 Purpose.

4284.102 Policy.

4284.103 [Reserved]

4284.104 Definitions.

4284.105 Eligibility and priority.

4284.106 Purposes of grants.

4284.107 Limitations on use of grant funds.

4284.108 Regional Commission Grants.

4284.109 [Reserved]

4284.110 Other considerations.

4284.111 Application processing.

4284.112 [Reserved]

4284.113 Plan to provide financial assistance to third parties.

4284.114 Grants to provide financial assistance to third parties,

television demonstration projects, rural learning programs and

technical assistance projects.

4284.115 Docket preparation and Letter of Conditions.

4284.116 Grant approval, fund obligation, grant closing, and third-

party financial assistance.

4284.117 Fund disbursement.

4284.118 Reporting.

4284.119 Audit requirements.

4284.120 Programmatic changes.

4284.121 Grant cancellation.

4284.122 Grant servicing.

4284.123 Subsequent grants.

4284.124 4284.197 [Reserved]

4284.198 Exception authority.

4284.199 Public availability of forms, regulations, and

instructions.

4284.200 OMB control number.

Guides to Subpart G

Guide 1--Project Management Agreement Between the

________________ Regional Commission and the Rural Development

Administration, Department of Agriculture, pertaining to

________________ County ________________.

Guide 2--Resolution

Subpart B--Rural Business Enterprise Grants and Television

Demonstration Grants

Sec. 4284.101 Purpose.

This subpart outlines Rural Development Administration (RDA)

policies and authorizations and sets forth procedures for making grants

to finance and facilitate development of private business enterprises.

Any processing or servicing activity conducted pursuant to this subpart

involving authorized assistance to RDA employees, members of their

families, known close relatives, or business or close personal

associates, is subject to the provisions of Subpart D of Part 1900 of

this title. Applicants for this assistance are required to identify any

known relationship or association with an RDA employee.

Sec. 4284.102 Policy.

(a) The grant program will be used to support the development of

small and emerging private business enterprises in rural areas.

(b) RDA officials will maintain liaison with officials of other

Federal, State, regional, and local development agencies to coordinate

related programs to achieve rural development objectives.

in making grants that support State strategies for rural area

development.

(d) Funds allocated for use in accordance with this subpart are

also to be considered for use of Native Americans within the State

regardless of whether State development strategies include Native

American reservations within the State's boundaries. Native Americans

residing on such reservations must have equal opportunity along with

other rural residents to participate in the benefits of these programs.

This includes equal application of outreach activities of all RDA

offices.

Sec. 4284.103 [Reserved]

Sec. 4284.104 Definitions.

Passenger transportation. A means or system of air, land, or water

conveyance primarily benefiting rural residents.

Project. For Rural Business Enterprise Grants (RBEG), the result of

the use of program funds, i.e., payment of startup operating costs,

working capital, and fees for professional services; acquisition of

land, easements, and rights-of-way; development of site, facilities,

and infrastructure (including pollution control and abatement

facilities); purchase, repair, or modernization of buildings, plants,

machinery, and equipment; conditional refinancing; provision of

technical assistance, job training/educational instruction; or

providing financial assistance to third parties through a loan. For

Television Demonstration Grants (TDG), television programming developed

on issues of importance to farmers and rural residents.

Regional Commission Grants (RCG). Grants administered by RDA from

funds made available by the Appalachian Regional Commission (ARC) or

other Federal Regional Commissions designated under Title V of the

Public Works and Economic Development Act of 1965.

Rural and rural area. Includes all territory of a State, the

Commonwealth of Puerto Rico, the Virgin Islands of the United States,

Guam, American Samoa, or the Commonwealth of the Mariana Islands that

is not within the outer boundary of any city having a population of

50,000 or more and its immediately adjacent urbanized and urbanizing

areas with a population density of more than 100 persons per square

mile, as determined by the Secretary of Agriculture, according to the

latest decennial census of the United States.

Rural Business Enterprise Grants. Grants made to finance and

facilitate development of small and emerging private business

enterprises in rural areas. Grants are made from RDA funds under

authority of the Consolidated Farm and Rural Development Act, as

amended, Sec. 310B(c) (7 U.S.C. 1932).

Rural distance learning network. A telecommunications link between

an eligible applicant in accordance with this subpart and the student/

employee receiving educational or job training instruction which meets

the definition of a rural learning program. The network connects

teachers and/or adult students located in rural areas with teachers

and/or adult students that are located in a different rural area or

connects teachers in nonrural areas to adult students in rural areas.

Rural learning program. A system or means of providing educational

or job training instruction to adult students located in rural areas

which will result in qualified employees for small businesses as

defined in this section. The training will result in employment with

small businesses or job advancement of employees presently employed by

small businesses. This may include establishment, expansion, and

operation of rural distance learning networks necessary to provide the

training.

Small and emerging private business enterprise. A new business, or

one that is expanding, which operates on a profit or nonprofit basis

and relies primarily on revenues of the business for operation. The

business/proposed business must not exceed the maximum number of

employees or annual receipts allowed for a concern (including its

affiliates) to be considered small according to the size standards

established for Small Business Administration (SBA) assistance and set

forth in 13 CFR, Part 121.

Technical assistance. A function performed for the benefit of a

private business enterprise and which is a problem solving activity,

such as market research, product and/or service improvements,

feasibility studies, and job training/educational instruction, etc.

Additionally, technical assistance could include functions performed on

behalf of rural communities to improve passenger transportation

services or facilities and which qualify as problem solving activities,

i.e., transportation needs assessment, route planning, and/or training,

etc.

Television Demonstration program. Television programming developed

to demonstrate the effectiveness of providing information on

agriculture and other issues of importance to farmers and other rural

residents. Grants are made from RDA funds under authority of the

Consolidated Farm and Rural Development Act, as amended, Sec. 310B(j)

(7 U.S.C. 1932).

Urbanized area. An area immediately adjacent to a city having a

population of 50,000 or more, which, for general social and economic

purposes, constitutes a single community and has a boundary contiguous

with that of the city. Such community may be incorporated or

unincorporated and extend from the contiguous boundary(ies) to

recognizable open country, less densely settled areas, or natural

boundaries such as forests or water. Minor open spaces such as

airports, industrial sites, recreational facilities, or public parks

shall be disregarded. Outer boundaries of an incorporated community

extend at least to its legal boundaries. Cities which may have a

contiguous border with another city, but are located across a river

from such city, are recognized as a separate community and are not

otherwise considered a part of an urbanized or urbanizing area, as

defined in this section are not in a nonrural area.

Urbanizing area. A community which is not now, or within the

foreseeable future not likely to be, clearly separate from, and

independent of, a city of 50,000 or more population and its immediately

adjacent urbanized areas. A community is considered ``separate from''

when it is separated from the city and its immediately adjacent

urbanized area by open country, less densely settled areas, or natural

barriers such as forests or water. Minor open spaces such as airports,

industrial sites, recreational facilities, or public parks shall be

disregarded. A community is considered ``independent of'' when its

social and economic structure (e.g., government, education, health, and

recreational facilities; and business, industry, tax base, and

employment opportunities) is not primarily dependent on the city and

its immediately adjacent urbanized area.

Sec. 4284.105 Eligibility and priority.

(a) Eligibility. (1) RBEGs may be made to public bodies and private

nonprofit corporations serving rural areas. Public bodies include

States, counties, cities, townships, and incorporated towns and

villages, boroughs, authorities, districts, and Native Americans on

Federal and State reservations and other federally recognized Native

American groups in rural areas.

(2) RCG applicants must meet eligibility requirements of the

Regional Commission, and also those of RDA, in accordance with

paragraph (a)(1) of this section for RDA to administer the RCG in

accordance with this subpart.

(3) TDGs may be made to statewide, private (not public-body driven)

nonprofit public television systems whose coverage is predominantly

rural. An eligible applicant must be organized as a private (not

public-body driven) nonprofit public television system, licensed by the

Federal Communications Commission under its non-commerical

classification, and operated statewide and within a coverage area that

is predominantly rural.

(4) An outstanding judgment obtained against an applicant by the

United States in a Federal Court (other than in the United States Tax

Court), which has been recorded, shall cause the applicant to be

ineligible to receive any grant until the judgment is paid in full or

otherwise satisfied. RDA grant funds may not be used to satisfy the

judgment. Questions about whether or not a judgment is still

outstanding should be directed to the Office of the General Counsel

(OGC).

(b) Project selection process. The following paragraphs indicate

items and conditions which must be considered in selecting

preapplications for further development. Due to the small number of

applicants eligible for TDGs, such applicants will not compete for

priority points against RBEG applicants but must compete with other

applicants for TDGs.

(1) Preapplications. The preapplication and supporting information

submitted with it will be considered in determining the proposed

project's priority for available funds.

(i) All preapplications shall be accompanied by sufficient

information to permit the numerical ranking established by paragraph

(b)(3) of this section. Such information should include:

(A) A description of proposed service(s) to be provided/projects to

be funded.

(B) Income data on area to be served.

(D) Median household income of area to be served.

(E) Grantee's experience in providing the proposed service.

(ii) If a preapplication involves the establishment of a revolving

fund, the following additional information should be provided:

(A) Grantee's financial ability to administer a revolving loan fund

(at a minimum, the information should include a balance sheet and an

income statement).

(B) The need for a revolving fund.

accordance with this program.

(2) RDA review. All preapplications will be reviewed and scored and

Form AD-622, ``Notice of Preapplication Review Action,'' issued within

the time limits in Sec. 1942.2 (a)(2)(iv) of Subpart A of Part 1942 of

this title. When considering authorizing the development of an

application for funding, the RDA should consider the remaining funds in

the State allocation, and the anticipated allocation of funds for the

next fiscal year as well as the amount of time necessary to complete

that application. Applicants whose preapplications are found to be

ineligible will be so advised. These applicants will be given adverse

notice through Form AD-622 and advised of their appeal rights under

Subpart B of Part 1900 of this title. Those applicants with eligible

lower scoring preapplications which obviously cannot be funded within

an eighteen month period of time, and are not within 150 percent of the

State's allocation, should be notified that funds are not available;

and requested to advise whether they wish to have their preapplication

maintained in an active file for future consideration. The RDA may

request an additional allocation of funds from the National Office for

such preapplications. Such requests will be considered along with all

others on hand.

(3) Selection priorities. The priorities described in this

paragraph will be used by RDA to rate preapplications. Points will be

distributed as indicated in paragraphs (b)(3)(i) through (v) of this

section.

(i) Population. Proposed project(s) will primarily be located in a

community of:

(A) between 15,000 and 25,000 population--5 points;

(B) between 5,000 and 15,000 population--10 points;

(ii) Economic conditions. (A) Proposed project(s) will primarily be

located in areas where the unemployment rate exceeds the State rate by

25 percent or more--20 points; exceeds the State rate by less than 25

percent--10 points; is equal to, or less than, State rate--0 points.

(B) Proposed project(s) will primarily be located in areas where

median household income (MHI), as prescribed by Section 673 (2) of the

Community Services Block Grant Act (42 U.S.C 9902 (2)), for a family of

four for the State is:

(1) less than poverty line--25 points;

(2) more than poverty line, but less than 85 percent of State MHI--

15 points;

(3) between 85 and 100 percent of State MHI--10 points;

(4) equal or greater than, State MHI--0 points.

(iii) Experience. Applicant has evidence of at least 5 years of

successful experience in the type of activity proposed in the

preapplication for funds under this subpart. Evidence of successful

experience may be a description of experience supplied and certified by

the applicant, or a letter of support from appropriate local elected

officials explaining the applicant's experience. Experience--15 points.

(iv) Other. (A) Preapplication is for revolving fund and/or

technical assistance project--50 points.

(B) Applicant has evidence of substantial commitment of funds from

non-Federal sources for proposed project. An authorized representative

of the source organization of the non-Federal funds must provide

evidence that the funds are available and will be used for the proposed

project. More than 50 percent of the project costs from non-Federal

sources--15 points; more than 25 percent, but less than 50 percent of

project costs from non-Federal sources--10 points; between 5 and 25

percent of project costs from non-Federal sources--5 points.

business enterprises as a result of the proposed project will create

jobs associated with the affected businesses. The number of jobs must

be evidenced by a written commitment from the business to be assisted.

One job per each $10,000 or less in grant funds expended--10 points.

One job per each $25,000 to $10,000 in grant funds expended--5 points.

(D) Grant projects utilizing funds available in accordance with

this subpart of less than $100,000--25 points; $100,000 to $200,000--15

points; more than $200,000, but not more than $500,000--10 points.

(v) Discretionary. (A) In certain cases when the applicant has not

received a previous grant in accordance with this subpart and the grant

applied for is not more than $500,000, the RDA may assign discretionary

points in addition to those that may be assigned in paragraphs

(b)(3)(i) through (iv) of this section. For grants of less than

$100,000--50 points; $100,000 to $200,000--30 points; more than

$200,000, but not more than $500,000--20 points.

(B) The RDA Administrator may additionally assign up to 100

discretionary points to projects requiring National Office reserve

funds. Assignment of discretionary points by the RDA Administrator will

be based on geographic distribution of funds, criteria which will

result in substantial employment improvement, mitigation of economic

distress of a community via the creation of jobs and/or the resolution

of emergency situations.

Sec. 4284.106 Purposes of grants.

(a) Grant funds may be used to finance and/or develop small and

emerging private business enterprises in rural areas including, but not

limited to, the following:

(1) Acquisition and development of land, easements, and rights-of-

way.

(2) Construction, conversion, enlargement, repairs or modernization

of buildings, plants, machinery, equipment, access streets and roads,

parking areas, utilities, and pollution control and abatement

facilities.

(3) Startup operating cost and working capital.

(4) Technical assistance for private business enterprises.

(5) Technical assistance for public passenger transportation

projects.

(6) Reasonable fees and charges for professional services necessary

for the planning and development of the project, including packaging.

Services must be provided by individuals licensed in accordance with

appropriate State accreditation associations.

(7) Refinancing of debts exclusive of interest incurred by, or on

behalf of, an association before an application for a grant when all of

the following conditions exist:

(i) The debts were incurred for the facility, or part thereof, or

service to be installed or improved with the grant, and

(ii) Arrangements cannot be made with the creditors to extend or

modify the terms of the existing debt.

(8) Providing financial assistance to third parties through a loan.

(9) Training, when necessary, in connection with technical

assistance and/or job training instruction related to potential

employment or job advancement for adult students.

(10) Production of television programs to provide information on

issues of importance to farmers and rural residents.

(11) The creation, expansion, and operation of rural distance

learning networks and other rural learning programs providing

educational and/or job training instruction to adult students which

will result in qualified employees necessary for the development of

small and emerging businesses as defined in this subpart.

(b) Grants, except grants for Television Demonstration programs and

technical assistance for public passenger transportation projects, may

be made only when there is a reasonable prospect that they will result

in development of small and emerging private business enterprises.

grantee or from other sources, including RDA loan funds. Pursuant to

Pub. L. 95-334, other departments, agencies, and executive

establishments of the Federal Government may participate and provide

financial and technical assistance jointly with RDA. The amount of

participation by the other department, agency, or executive

establishment shall only be limited by its authorities other than

authorities which impose restrictions on joint financing.

Sec. 4284.107 Limitations on use of grant funds.

(a) Funds will not be used:

(1) To produce agriculture products through growing, cultivation,

and harvesting either directly or through horizontally integrated

livestock operations except for commercial nurseries, timber

operations, or limited agricultural production related to technical

assistance projects.

(2) To finance comprehensive areawide-type planning. This does not

preclude the use of grant funds for planning for a given project.

(3) For loans by grantees when the rates, terms, and charges for

those loans are not reasonable or would be for purposes not eligible in

accordance with Sec. 4284.106 of this subpart.

(4) For programs operated by cable television systems.

(5) To fund a part of a project which is dependent on other funding

unless there is a firm commitment of the other funding to ensure

completion of the project.

(6) To pay for technical assistance as defined in this subpart

which duplicates assistance provided to implement an action plan funded

by the Forest Service (FS) under the National Forest-Dependent Rural

Communities Economic Diversification Act for 5 continuous years from

the date of grant approval by the FS. To avoid duplicate assistance,

the grantee shall coordinate with FS and RDA to ascertain if a grant

has been made in a substantially similar geographical or defined local

area in a State for technical assistance under the above program. The

grantee will provide documentation to FS and RDA regarding the contact

with each agency. Under its program, the FS assists rural communities

dependent upon national forest resources by establishing rural forestry

and economic diversification action teams which prepare action plans.

Action plans are intended to provide opportunities to promote economic

diversification and enhance local economies dependent upon national

forest resources.

(b) At least 51 percent of the outstanding interest in the project

has membership, or is owned by, those who are either citizens of the

United States or reside in the United States after being legally

admitted for permanent residence.

Sec. 4284.108 Regional Commission Grants.

(a) Grants are sometimes made by Regional Commissions for projects

eligible for RDA assistance. RDA has agreed to administer such funds in

accordance with RDA regulations and the requirements of the Regional

Commission.

(b) The transfer of funds from a Regional Commission to RDA will be

based on specific applications determined to be eligible for an

authorized purpose in accordance with the requirements of RDA and the

Regional Commission.

Development Act of 1965, as amended, to serve the Appalachian region.

ARC grants are handled in accordance with the FmHA-ARC Agreement

(Exhibit A, Subpart H of Part 1942 of this title), which applies to all

ARC grants administered by RDA. Therefore, a separate Project

Management Agreement between RDA and ARC is not needed for each ARC

grant.

(d) Other Regional Commissions are those authorized under Title V

of the Public Works and Economic Development Act of 1965. Grants by

these Regional Commissions are handled in accordance with a separate

Project Management Agreement between the respective Regional Commission

and RDA for each grant administered by RDA (Guide 1 of this subpart).

Sec. 4284.109 [Reserved]

Sec. 4284.110 Other considerations.

(a) Civil Rights compliance requirements. All grants made in

accordance with this subpart are subject to the requirements of Title

VI of the Civil Rights Act of 1964, which prohibits discrimination on

the basis of race, color, and national origin as outlined in Subpart E

of Part 1901 of this title. In addition, the grants made in accordance

with this subpart are subject to the requirements of section 504 of the

Rehabilitation Act of 1973, which prohibits discrimination on the basis

of handicap; the requirements of the Age Discrimination Act of 1975,

which prohibits discrimination on the basis of age; and Title III of

the Americans with Disabilities Act, Pub. L. 101-336, which prohibits

discrimination on the basis of disability by private entities in places

of public accommodations. When RDA is administering an RCG and no RDA

RBEG/TDG funds are involved, the Regional Commission may make its own

determination of compliance with the above Acts, unless RDA is

designated compliance review responsibilities. RDA shall, in all cases,

be made aware of any findings of discrimination or noncompliance with

the requirements of the above Acts.

(b) Environmental requirements.--(1) General applicability. Unless

specifically modified by this section, the requirements of Subpart G of

Part 1940 of this title apply to this subpart. RDA will give particular

emphasis to ensuring compliance with the environmental policies

contained in Secs. 1940.303 and 1940.304 of Subpart G of Part 1940 of

this title. Although the purpose of the grant program established by

this subpart is to improve business, industry, and employment in rural

areas, this purpose is to be achieved, to the extent practicable,

without adversely affecting important environmental resources of rural

areas such as important farmland and forest lands, prime rangelands,

wetlands, and floodplains. Prospective recipients of grants, therefore,

must consider the potential environmental impacts of their applications

at the earliest planning stages and develop plans, grants, and projects

that minimize the potential to adversely impact the environment.

(2) Technical assistance and rural learning programs. The

application for a technical assistance project is generally excluded

from RDA's environmental review process by Sec. 1940.310(e)(1) of

Subpart G of Part 1940 of this title. However, as further specified in

Sec. 1940.333 of Subpart G of Part 1940 of this title, the grantee for

a technical assistance grant, in the process of providing technical

assistance, must consider the potential environmental impacts of the

recommendations provided to the recipient of the technical assistance.

Rural learning programs which do not include construction are treated

the same as technical assistance projects relative to environmental

requirements and purposes.

(3) Applications for direct construction project. The application

by a potential grantee who intends to directly use grant funds for a

nontechnical assistance project, such as a construction project, shall

be reviewed and processed in accordance with the applicable

requirements of Subpart G of Part 1940 of this title.

(4) Applications for grants to provide financial assistance to

third party recipients. As part of the preapplication, the applicant

must provide a complete Form FmHA 1940-20, ``Request for Environmental

Information,'' for each project specifically identified in its plan to

provide financial assistance to third parties who will undertake

eligible projects with such assistance. RDA will review the

preapplication, supporting materials, and the required Form FmHA 1940-

20 and initiate a Class II assessment for the preapplication. This

assessment will focus on the potential cumulative impacts of the

projects as well as any environmental concerns or problems that are

associated with individual projects and that can be identified at this

time from the information submitted. Because RDA's approval of this

type of grant application does not constitute RDA's commitment to the

use of grant funds for any identified third party projects (see

Sec. 4284.116 of this subpart), no public notification requirements for

a Class II assessment will apply to the preapplication. After the grant

is approved, each third party project to be assisted under the grant

will undergo the applicable environmental review and public

notification requirements in Subpart G of Part 1940 of this title prior

to RDA providing its consent to the grantee to assist the third party

project. If the preapplication reflects only one specific project which

is specifically identified as the third party recipient for financial

assistance, RDA may perform the appropriate environmental assessment in

accordance with the requirements of Subpart G of Part 1940 of this

title and forego initiating a Class II assessment with no public

notification. However, the applicant must be advised that if the

recipient or project changes after the grant is approved, the project

to be assisted under the grant will undergo the applicable

environmental review and public notification requirements in Subpart G

of Part 1940 of this title.

(5) Combined applications. Whenever an applicant files a

preapplication that includes a direct construction project and a plan

to provide financial assistance to third parties who will undertake

eligible projects, the following environmental requirements will apply:

(i) The proposed direct construction project(s) will be reviewed in

accordance with the requirements of paragraph (b)(3) of this section

prior to authorization of the application.

(ii) The plan to provide financial assistance to third parties will

be reviewed and processed in accordance with the requirements of

paragraph (b)(4) of this section. Additionally, the Class II assessment

required for the plan shall address and analyze the cumulative impacts

of all proposed projects, direct or third party, identified within the

preapplication.

grant is for more than $1 million and will increase direct employment

by more than 50 employees, the applicant will be requested to provide a

written indication to RDA which will enable RDA to determine that the

proposal will not result in a project which is calculated to, or likely

to, result in:

(i) The transfer of any employment or business activity from one

area to another (this limitation shall not prohibit assistance for the

expansion of an existing business entity through the establishment of a

new branch, affiliate, or subsidiary of such entity if the expansion

will not result in an increase in the unemployment in the area of

original location, or in any other area where such entity conducts

business operations unless there is reason to believe that such

expansion is being established with the intention of closing down the

operations of the existing business entity in the area of its original

location, or in any other area where it conducts such operations), or

(ii) An increase in the production of goods, materials, or

commodities or the availability of services or facilities in the area

when there is not sufficient demand for such goods, materials,

commodities, services, or facilities to employ the efficient capacity

of existing competitive commercial or industrial enterprises, unless

such financial or other assistance will not have an adverse effect upon

existing competitive enterprises in the area. The applicant's written

indication will consist of a resolution from the applicant and Form

FmHA 449-22, ``Certification of Non-Relocation and Market and Capacity

Information Report,'' from each existing and future occupant of the

site. The applicant may use Guide 2 of this subpart, available in any

RDA office, as an example in preparing the resolution. Future occupants

of the site must be certified by the Department of Labor (DOL) as

outlined in paragraph (c)(3) of this section for a period of 3 years

after the initial certification by DOL.

(2) The RDA will check each document for completeness and accuracy

and submit nine copies of each to the National Office for forwarding to

DOL.

(3) Grants shall not be made if the Secretary of Labor certifies

within 30 days after the matter has been submitted by the Secretary of

Agriculture that the provisions of paragraph (c)(1) of this section

have not been complied with. Information for obtaining this

certification will be submitted, in writing, by the applicant to RDA.

The information will be submitted to DOL by the RDA National Office.

Grant approval may be given and funds may be obligated, subject to the

DOL certification being received, provided RDA has made its own

separate determinations of paragraphs (c)(1) (i) and (ii) of this

section when the project is in excess of $1 million and affects over 50

employees.

(4) When a grant is being administered for a Regional Commission

and no RDA grant funds are being used, the requirements for DOL

determinations may be waived upon written request from the Regional

Commission. If the Regional Commission so desires, the request will be

included in the letter from the Regional Commission to RDA that gives

notice of transfer of funds and conditions under which the funds are to

be made available to the grantee. In such cases, the Letter of

Conditions from RDA to the grantee will not include the requirement for

DOL determinations.

(d) Management assistance. Grant recipients will be supervised, as

necessary, to ensure that projects are completed in accordance with

approved plans and specifications and that funds are expended for

approved purposes. Grants made in accordance with this subpart will be

administered under, and are subject to, 7 CFR Parts 3015, 3016, and

3017, as appropriate, and established RDA guidelines.

(e) National Historic Preservation Act of 1966. All projects will

be in compliance with the National Historic Preservation Act of 1966 in

accordance with Subpart F of Part 1901 of this title.

(f) Uniform Relocation and Real Property Acquisition Policies Act.

All projects must comply with the requirements set forth in Title 7,

Subtitle A, Part 21 of the Code of Federal Regulations.

(g) Floodplains and wetlands. All projects must comply with

Executive Order 11988, ``Floodplain Management,'' and Executive Order

11990, ``Protection of Wetlands.''

(h) Flood or mudslide hazard area precautions. If the grantee

financed project is in a flood or mudslide area, flood or mudslide

insurance must be provided.

(i) Termination of Federal requirements. Once the grantee has

provided assistance to projects from a revolving fund, in an amount

equal to the grant provided by RDA, the requirements imposed on the

grantee shall not be applicable to any new projects thereafter financed

from the revolving fund. Such new projects shall not be considered as

being derived from Federal funds.

(j) Intergovernmental review. RBEG/TDG projects are subject to the

provisions of Executive Order 12372, which requires intergovernmental

consultation with State and local officials. A revolving fund

established in whole, or in part, with grant funds will also be

considered a project for the purpose of intergovernmental review as

well as the specific projects funded with grant funds from the

revolving loan project. For each project to be assisted with a grant in

accordance with this subpart and for which the State has elected to

review the project under their intergovernmental review process, the

State Point of Contact must be notified. Notification, in the form of a

project description, can be initiated by the grantee. Any comments from

the State must be included with the grantee's request to use RDA grant

funds for the specific project. Prior to RDA's decision on the request,

compliance with requirements of intergovernmental consultation must be

demonstrated for each project. These requirements should be carried out

in accordance with 7 CFR 3015, Subpart V, ``Intergovernmental Review of

Department of Agriculture Programs and Activities,'' (see FmHA

Instruction 1940-J, available in any RDA office).

Sec. 4284.111 Application processing.

(a) Preapplications and applications. (1) The preapplication/

application review and approval procedures outlined in Sec. 1942.2 of

Subpart A of Part 1942 of this title will be followed, as appropriate.

The applicant shall use Standard Form (SF)-424.1, ``Application for

Federal Assistance (For Non-Construction),'' or SF-424.2, ``Application

for Federal Assistance (For Construction),'' as applicable, when

requesting financial assistance under this program. The applicant shall

be advised of the conditions/requirements (outlined in this subpart)

for receipt of grant funds at the time of the preapplication

conference. Upon notification on Form AD-622, ``Notice of

Preapplication Review Action,'' that the applicant is eligible for

funding, the following items will be submitted to RDA:

(i) SF-424.1 or SF-424.2 will be used for making application under

this program, as applicable.

(ii) For grants to establish a revolving loan fund, a proposed

Scope of Work detailing:

(A) Information as prescribed in Sec. 4284.114 of this subpart.

(B) Proposed project budget.

determination.

(iii) For grants to establish revolving loan funds, rural learning

programs, and/or to provide technical assistance, the following forms

and documents will be part of the grant docket:

(A) Form FmHA 400-1, ``Equal Opportunity Agreement,'' for the

applicant and recipients of the technical assistance, loans under a

revolving loan fund, and rural learning projects if the recipients are

other than individuals.

(B) Form FmHA 400-4, ``Assurance Agreement,'' for the applicant and

recipients of the technical assistance, loans under a revolving loan

fund, and rural learning projects if the recipients are other than

individuals.

project budget.

(D) Form FmHA 1940-1, ``Request for Obligation of Funds,'' with

Section A of Attachment 1 of this subpart (available in any RDA office)

attached.

(iv) Dockets for nonrevolving fund grants will contain those items

specified in paragraphs (a)(1)(iii) (A), (B), and (D) of this subpart,

as well as other appropriate items specified in Subpart A of Part 1942

of this title.

(v) All dockets will contain executed Forms AD-1047,

``Certification Regarding Debarment, Suspension, and Other

Responsibility Matters--Primary Covered Transactions,'' and AD-1049,

``Certification Regarding Drug-Free Workplace Requirements (Grants)

Alternative I--For Grantees Other Than Individuals,'' required in FmHA

Instruction 1940-M, available in any RDA office.

(2) OGC review. RDA will request an opinion from the Regional

Attorney, OGC, that the applicant is an eligible applicant with

authority to carry out the purposes of the proposed grant. The

applicant will provide the necessary information to RDA for submission

to the Regional Attorney.

(b) Review of decision. When a determination is made that favorable

action will not be taken on a preapplication or application, the

applicant will be notified in writing of the reasons why the request

was not favorably considered. The notification to the applicant will

state that a review of this decision by RDA may be requested by the

applicant in accordance with Subpart B of Part 1900 of this title.

Sec. 4284.106 (a) of this subpart, the RDA, to establish ``fair market

value,'' may require the applicant to provide an appraisal report

prepared by an independent qualified appraiser.

(d) Planning and performing development. The applicable provisions

of Sec. 1942.18 of Subpart A of Part 1942 of this title related to

planning and performing development are to be adhered to for

construction of grant projects. This includes requirements for actions

pertaining to:

(1) Professional services, design policies, preliminary engineering

and architectural reports and construction bids, contract awards, and

construction inspections.

(2) Concurrence in agreements between grantees and third parties.

(3) Preconstruction conferences.

Sec. 4284.112 [Reserved]

Sec. 4284.113 Plan to provide financial assistance to third parties.

(a) For applications involving establishment of a revolving fund to

provide financial assistance to third parties, the applicant shall

develop a plan which outlines the purpose and administration of the

fund. The plan will include:

(1) Planned projects to be financed.

(2) Sources of all non-RBEG funds.

(3) Amount of technical assistance (if any).

(4) Purpose of the loans.

(5) Number of jobs to be created with each project.

(6) Project priority and length of time involved in completion of

each project.

(7) Other information required by RDA.

(b) Each third party project receiving funds will be reviewed for

eligibility. When the applicant does not have a list of projects to be

completed, the applicant should advise RDA at the time a preapplication

is submitted.

Sec. 4284.114 Grants to provide financial assistance to third

parties, Television Demonstration programs, rural learning programs,

and technical assistance projects.

For applications involving a purpose other than a construction

project to be owned by the applicant, the applicant shall develop a

Scope of Work. The Scope of Work will be used to measure the

performance of the grantee. As a minimum, the Scope of Work should

contain the following:

(a) The specific purposes for which grant funds will be utilized,

i.e., technical assistance, revolving fund, etc.

(b) Timeframes or dates by which action surrounding the use of

funds will be accomplished.

made (key personnel should be identified).

(d) How the grant purposes will be accomplished.

(e) Documentation regarding the availability and amount of other

funds to be used in conjunction with the funds from the RBEG/Television

Demonstration program.

(f) For grants involving a revolving fund, the Scope of Work should

include those items listed in paragraphs (a) through (e) of this

section, as well as the following:

(1) Information which will establish/identify the need for the

revolving loan fund.

(2) Financial statements which will demonstrate the financial

ability of the applicant to administer the revolving loan fund. As a

minimum, the financial statements will include:

(i) Balance sheet.

(ii) Income statement.

(3) Detail on the applicant's experience in operating a revolving

loan fund, which includes the applicant's loan processing and servicing

procedures.

(g) For technical assistance, rural learning, and Television

Demonstration programs, the Scope of Work should include a budget based

on the budget contained in the application, modified or revised as

appropriate, which includes salaries, fringe benefits, consultant

costs, indirect costs, and other appropriate direct costs for the

project.

(h) For rural learning projects, the Scope of Work should include

those items listed in paragraphs (a) through (e) and (g) of this

section, as well as the following:

(1) Information which will establish/identify the need for the

project by small and emerging private businesses in rural areas.

(2) Detail on the applicant's experience in operating a rural

learning program.

(3) Detail on the applicant's experience in operating a rural

distance learning network, if applicable.

Sec. 4284.115 Docket preparation and Letter of Conditions.

(a) The applicable provisions of Sec. 1942.5 of Subpart A of Part

1942 of this title relating to preparation of loan dockets will be

followed in preparing grant dockets.

(b) The RDA will prepare a Letter of Conditions outlining the

conditions under which the grant will be made. It will include those

matters necessary to ensure that the proposed development is completed

in accordance with approved plans and specifications, that grant funds

are expended for authorized purposes, and that the terms of the Scope

of Work and requirements as prescribed in 7 CFR Parts 3015 and 3016 are

complied with.

Sec. 4284.116 Grant approval, fund obligation, grant closing, and

third party financial assistance.

(a) Grant approval. The RDA is authorized to approve grants made in

accordance with this subpart. Section A of Attachment 1 of this

subpart, available in any RDA office, shall become a permanent part of

Form FmHA 1940-1 when RBEG funds are involved, and the following

paragraphs will appear in the comment section of that form as

appropriate:

``The grantee understands the requirements for receipt of funds in

accordance with the Rural Business Enterprise Grant and Television

Demonstration Grant program. The grantee assures and certifies that it

is in compliance with all applicable laws, regulations, Executive

Orders, and other generally applicable requirements, including those

set out in Attachment 1 of Subpart B of Part 4284 of this chapter,

available in any RDA office, 7 CFR Parts 3015, 3016, 3017, and 3018,

including revisions through ________________ (date of grant approval)

and the Letter of Conditions.''

For grants involving the establishment of a revolving loan program,

the following statement shall also be added to the comment section of

Form FmHA 1940-1: ``The grantee furthermore agrees to use grant funds

for the purposes outlined in the Scope of Work approved by RDA.''

(1) Grants will be approved and closed in accordance with the

applicable parts of Subpart A of Part 1942 of this title, including

Secs. 1942.7 and 1942.17 (o) of this subpart and any instructions from

the Regional Attorney, OGC.

(2) An executed copy of the Scope of Work will be sent to the

applicant on the obligation date, along with a copy of Form FmHA 1940-1

and the required attachment.

(3) When Form FmHA 1940-1 has been executed by all parties, the

grant is closed.

(4) If the grant is not approved, the applicant will be notified in

writing of the reason(s) for rejection. The notification to the

applicant will state that a review of this decision by RDA may be

requested by the applicant in accordance with Subpart B of Part 1900 of

this title.

(b) Fund obligation and approval announcement. Funds will be

obligated and approval announcement made in accordance with the

provisions of Sec. 1942.5 (d) of Subpart A of Part 1942 of this title.

applicant who will use grant funds to provide financial assistance to a

third party does not constitute approval of the projects financed by

the grantee. The review, approval, and disbursement of funds for

specific projects financed by grantees will be completed in accordance

with applicable parts of this subpart.

Sec. 4284.117 Fund disbursement.

Except for grants for revolving loans, grant funds will be

disbursed by RDA on a reimbursement basis. Requests should not exceed

one advance every 30 days. The financial management system of the

recipient organization shall provide for effective control and

accountability of all funds, property, and other assets.

(a) As needed, but not more frequently than once every 30 days, an

original and one copy of SF-270, ``Request for Advance or

Reimbursement,'' may be submitted to RDA. Recipient's request for

advance shall not be made in excess of reasonable outlays for the month

covered.

(b) The grantee shall provide satisfactory evidence to RDA that all

officers of grantee organization authorized to receive and/or disburse

Federal funds are covered by such bonding and/or insurance requirements

as are normally required by the grantee.

(1) The grantee will provide RDA with a project description and

intergovernmental review data as defined in Sec. 4284.110 (j) of this

subpart.

(2) The servicing official will review the project for eligibility.

Once determined eligible and satisfactory intergovernmental review

clearances have been received, the grantee may request funds as

outlined in paragraph (a) of this section.

(d) For grants to provide assistance to third parties through a

revolving fund, funds will be disbursed in accordance with USDA's

Uniform Federal Assistance Regulations, the items listed in paragraph

(c)(1) of this section, and the following:

(1) The grantee is responsible for providing RDA with environmental

review data. Each project will undergo the applicable environmental

review in accordance with Sec. 4284.110 (b) of this subpart.

(2) The grantee is responsible for providing RDA with

intergovernmental review clearances in accordance with Sec. 4284.110

(j) of this subpart. Each project will undergo the intergovernmental

review process.

(3) Once RDA has received clearances for intergovernmental review

and the environmental assessment is completed, the grantee may request

grant funds for that purpose by use of SF-270 as outlined in paragraph

(a) of this section.

Sec. 4284.118 Reporting.

Form SF-269, ``Financial Status Report,'' and a project performance

activity report will be required of all grantees on a quarterly basis

(due 15 working days after end of each quarter). A final project

performance activity report will be required with the last SF-269. The

final report may serve as the last quarterly report. Grantees shall

constantly monitor performance to ensure that time schedules are being

met, projected work by time periods is being accomplished, and other

performance objectives are being achieved. The project performance

activity reports shall include, but not be limited to, the following:

(a) A comparison of actual accomplishments to the objectives

established for that period;

(b) Reasons why established objectives were not met;

attainment of overall project objectives, prevent meeting time

schedules or objectives, or preclude the attainment of particular

project work elements during established time periods. This disclosure

shall be accompanied by a statement of the action taken or planned to

resolve the situation; and

(d) Objectives and timetables established for the next reporting

period.

Sec. 4284.119 Audit requirements.

The grantee will provide an audit report in accordance with Subpart

A of Part 1942 of this title. The audit requirements only apply to the

year(s) in which grant funds are received. Audits must be prepared in

accordance with Generally Accepted Government Auditing Standards using

the publication, ``Standards for Audit of Governmental Organizations,

Programs, Activities, and Functions.''

Sec. 4284.120 Programmatic changes.

The recipient shall obtain prior approval for any change to the

scope or objectives of the approved project. (For construction

projects, any material change in approved space utilization or

functional layout shall be considered a change in scope). Failure to

obtain prior approval of changes to the scope can result in suspension/

termination of grant funds.

Sec. 4284.121 Grant cancellation.

Grants may be cancelled by RDA by use of Form FmHA 1940-10,

``Cancellation of U.S. Treasury Check and/or Obligation.'' The RDA will

notify the applicant, by letter, that the grant has been cancelled. A

copy of the letter will be sent to the applicant's attorney and

engineer, as appropriate, and to the Regional Attorney, OGC, if the

Regional Attorney has been involved. The applicant will be provided

appeal rights, as appropriate, in accordance with Subpart B of Part

1900 of this title.

Sec. 4284.122 Grant servicing.

Grants will be serviced in accordance with Subpart E of Part 1951

of this title.

Sec. 4284.123 Subsequent grants.

Subsequent grants will be processed in accordance with the

requirements set forth in this subpart.

Secs. 4284.124-4284.197 [Reserved]

Sec. 4284.198 Exception authority.

The Administrator may, in individual cases, make an exception to

any requirement or provision of this subpart which is not inconsistent

with the authorizing statute, an applicable law, or decision of the

Comptroller General, if the Administrator determines that application

of the requirement or provision would adversely affect the Government's

interest and show how the adverse impact will be eliminated or

minimized if the exception is made.

Sec. 4284.199 Public availability of forms, regulations, and

instructions.

Copies of all forms, regulations, and instructions referenced in

this subpart are available in any RDA office.

Sec. 4284.200 OMB control number.

Guides to Subpart G

Guide 1--Project Management Agreement Between the

________________ Regional Commission and the Rural Development

Adminstration, Department of Agriculture Pertaining to (Grantee)

________________ County, ________________.

I. Introduction

A. The ________________ Regional Commission is providing a

(basic or supplemental) grant for (purpose) to (grantee), and the

U.S. Department of Agriculture, Rural Development Administration

(RDA) has approved and will administer that grant. The RDA has

determined that funds (can or cannot) be made available under its

funding program for this fiscal year for the project. The project

does meet all the requisites for assistance under Section 310B of

the Consolidated Farm and Rural Development Act, as amended (7

U.S.C. 1926). In order to accomplish these purposes, the

________________ Regional Commission's Federal Cochairman and the

RDA approval official hereby enter into this Agreement, which is in

accordance with 31 U.S.C. 686.

B. This Agreement is intended to cover the application phase,

construction phase, and final audit.

II. General

A. Project Cost. The project costs for the purposes of this

Agreement shall include the costs of construction, technical

services, legal services, land acquisition, permits and rights-of-

way, interest during construction and contingencies.

B. Grant. The ________________ Regional Commission shall make a

(basic or supplemental) grant of $____________ up to, but not

exceeding, ____________ percent of the total cost of project. These

funds will be transferred to the Treasury Account of RDA by Standard

Form 1151, ``Nonexpenditure Transfer Authorization.''

C. The undersigned RDA approval official on behalf of RDA, in

concurring to this Project Management Agreement, hereby assures the

Federal Cochairman that:

1. The estimated cost of the project is reasonable and the

(basic or supplemental) grant, with the funds to be supplied by the

applicant, are, in its judgement, sufficient to complete the

project.

2. The funds to be supplied by the applicant are available or

RDA is reasonably satisfied that the applicant has the capability of

supplying such funds.

3. RDA is reasonably satisfied that the facility will be

properly and efficiently administered, operated, and maintained and

that the applicant will provide sufficient funds to ensure the

successful and continuing operation of the facility.

D. The (grantee) is subject to Executive Order 11246 and will be

required to evidence compliance by execution of Forms FmHA 400-1,

``Equal Opportunity Agreement'' and FmHA 400-4, ``Assurance

Agreement.''

E. The (grantee) shall execute assurances of nonrelocation, if

applicable.

III. Construction Management

A. The forms and format for the documents shall conform to the

requirements in Subpart A of Part 1942 of this title. Generally, the

following items shall be included:

1. contract documents.

2. specifications.

3. plans.

B. RDA will approve the plans and specifications.

C. RDA will obtain a certification of adequacy from the Federal

Environmental Protection Agency (include only when applicable).

D. RDA will obtain a nonpollution certificate from the (State)

(agency) (include only when applicable).

E. RDA will make monthly inspections.

F. Contract change orders will not become effective until

approved by RDA.

G. Final inspection will be conducted by RDA.

IV. Financial Management

A. Financial management of the project shall be according to

Subpart A of Part 1942 of this title.

B. RDA will provide the ________________ Regional Commission

with a copy of the audit report.

C. If actual costs fall below the costs on which the grant was

calculated, the Federal and non-Federal shares will be reduced

proportionately.

D. RDA will conform to the financial reporting requirements for

transferred funds as required by OMB Circular No. A-34.

V. Compensation

Services rendered by RDA for the processing and administration

of Regional Commission grants in cases where neither RDA loan nor

grant funds are involved shall be on a reimbursable basis.

Reimbursement will be based on 5 percent of the amount of the grant

up to $50,000 and an additional 1 percent of any amount over the

first $50,000 of the Regional Commission grant. The full amount of

the reimbursement will be transferred to RDA at the time the grant

funds are transferred to RDA.

VI. No provision in this Agreement shall abrogate the legal

requirements of administrative responsibilities as set forth in the

Consolidated Farm and Rural Development Act or Section 509 of the

Public Works and Economic Development Act of 1965, as amended.

For the Regional Commission

----------------------------------------------------------------------

(Name)

----------------------------------------------------------------------

Federal Cochairman

____________________, 199______

For the Rural Development Administration, USDA

----------------------------------------------------------------------

(Name)

----------------------------------------------------------------------

RDA Approval Official

____________________, 199______

Guide 2--Resolution

Whereas the ________________________ (hereinafter called

grantee) desires to obtain financial assistance from the Rural

Development Administration (RDA), United States Department of

Agriculture, pursuant to Section 310B of the Consolidated Farm and

Rural Development Act, for the purpose of providing

----------------------------------------------------------------------

(Describe briefly the nature of the project)

----------------------------------------------------------------------

(Herein referred to as the facility) and as a condition to and

in consideration of receiving financial assistance from the RDA,

this resolution is being adopted.

Therefore, in consideration of the premises, the grantee agrees

as follows:

1. No private business enterprises shall be allowed to use or

occupy the facility if such use or occupancy would be calculated to,

or is likely to, result in the transfer from one area to another of

any employment or business activity provided by operations of the

private business enterprises. This limitation shall not be construed

to prohibit use and enjoyment of the facility by such private

business entity through the establishment of a new branch,

affiliate, or subsidiary if the establishment of such branch,

affiliate, or subsidiary will not result in the increase in

unemployment in the area of original location (or in any other area

where such entity conducts business operations), unless there is

reason to believe that such branch, affiliate, or subsidiary is

being established with the intention of closing down the operations

of the existing business entity in the area of its original location

(or in any other area where it conducts such operation).

2. No private business enterprises shall be allowed to use or

occupy the facilities if such use or occupancy would be calculated

to, or is likely to, result in an increase in the production of

goods, materials, or commodities, or the availability of services or

facilities in the area, where there is not sufficient demand for

such goods, materials, commodities, services or facilities to employ

the sufficient capacity of existing competitive commercial or

industrial enterprises, unless such financial or other assistance

will not have an adverse affect upon existing competitive

enterprises in the area.

3. Prior to allowing the use or occupancy of the facilities by

any private business enterprise, the grantee shall clear such use or

occupancy with the Manpower Administration, Department of Labor

(DOL), Washington, DC, by submitting information required by the DOL

for certification under the Act. This information shall be submitted

to RDA for transmittal to the DOL. The grantee agrees to make no

final commitment with any private business enterprise regarding such

use or occupancy if the DOL issues a negative certification under

the Act. The grantee shall obtain prior clearance in this matter for

a period of three years after the date of an affirmative

certification by the DOL on the application for financial assistance

now pending before the RDA.

This resolution shall be in force and effect immediately.

The voting was yeas ____________, nays ____________, absent

____________.

----------------------------------------------------------------------

(Name of grantee)

By---------------------------------------------------------------------

(Name and Title)

Certification

I, the undersigned, as (Secretary) or (Town Clerk as

appropriate), of the ________________, do hereby certify that the

foregoing resolution was duly adopted at a meeting of

________________ duly called and held on the ________ day of

____________ 19______ , and that such resolution has not been

rescinded or amended in any way. Dated this ____________ day of

____________, 19______.

(Seal)

(Town Clerk) or (Secretary as appropriate) of--------------------------

Dated: April 5, 1994.

Bob Nash,

Under Secretary, Small Community and Rural Development.

[FR Doc. 94-19408 Filed 8-8-94; 8:45 am]

BILLING CODE 3410-32-U

This is a copy of a public record, reproduced as it was published. It is not legal advice, and it may not be the version a court would rely on. Check the official source before you cite it.