GUARANTEED BUSINESS AND INDUSTRY LOANS BY STATE-FISCAL YEAR 1994 AND FISCAL YEAR 1995 AS OF

Mr. SKEEN. How many loan requests, by state and dollar amount, of B&I loans

were pending at the end of fiscal year 1994?

[The information follows:]

GUARANTEED BUSINESS AND INDUSTRY LOAN PROGRAM PREAPPLICATIONS AND APPLICATIONS ON HAND AS OF SEPTEMBER 30, 1994

Mr. SKEEN. Under the relending program, at what point do participants begin repaying the loans?

RESPONSE. The Intermediary Relending Program regulations require repayments from the intermediary to be scheduled at least annually, except that the initial principal repayment may be deferred for not more than 3 years.

Mr. SKEEN. What is the current default rate for IRP? What recourse is available to USDA if the borrower defaults?

RESPONSE. As of December 31, 1994, there is one delinquent IRP loan representing a 0.7 percent delinquency rate. The recourse to the Agency to cure any default includes but is not limited to entering into a workout agreement, reamortization, and liquidation.

Mr. SKEEN. What are the general terms of the loans to the intermediary? What is the maximum size of the loans?

RESPONSE. The general repayment terms for the intermediary is 30 years at 1 percent interest with a three year deferral on principal. The principal is amortized over the remaining term of the loan. At this time, the maximum outstanding balance of an intermediary loan may not exceed $4 million.

Mr. SKEEN. Do payments on loans go to the General Treasury or to a revolving fund back to the lender?

RESPONSE. Payments from ultimate recipients to intermediary borrowers, in excess of funds necessary to meet loan obligations and other expenses of the intermediaries, may be used by the intermediary organizations for establishment or growth of a revolving fund. Payments from the intermediary borrowers to RBCDS are used to repay borrowings from Treasury which finance the loans to the intermediary borrowers.

Mr. SKEEN. Were all the funds available in fiscal year 1994 obligated? What is the current rate of obligation compared to this same time last year?

RESPONSE. All available funds were obligated for the Rural Development Loan Fund in fiscal year 1994. Through February, 1994, approximately eleven percent of available loan funds had been obligated. This compares to approximately fifteen percent through February, 1995.

Mr. SKEEN. Please list each of the loans made during fiscal year 1994 for the rural development loan fund.

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