Community Development Banking List
04-26-2010, 07:08 AM
Original message from: jeff.deiss@or.usda.gov
USDA Rural Development's Business Programs Administrator Judy Canales announced last week that B&I guaranteed lending has already reached a record level in FY2010, with barely half of the fiscal year elapsed. As of mid April, total B&I commitments exceeded $1.5 billion, surpassing all previous years of B&I program activity.
Particularly notable is the use of B&I-ARRA (Recovery Act) funds. These funds, which provide lower fees and frequently 90% guarantees, are designed to stimulate rural business lending in today's difficult economic climate.
RD had set a nationwide goal to deliver 70% of its authorized B&I-ARRA funding by April 16. In fact, 90% of the B&I-ARRA funding was obligated by that date, delivering its stimulating impetus ahead of schedule. This 90% level exceeded all expectation and is a reflection of the growing popularity of the B&I program and the appetite that community lenders have for its enhanced ability to help lenders meet the credit needs of their rural business customers.
Less than $200 million in B&I-ARRA funds remain, and given the pace of B&I-ARRA use, these special funds may be exhausted by early summer, perhaps by late May or early June.
In light of this, lenders are strongly encouraged to submit their proposals seeking B&I-ARRA assistance to RD as soon as possible. Once the B&I-ARRA assistance is delivered, no further ARRA authority is expected. Regardless, all B&I-ARRA authority will expire on September 30, 2010.
PLEASE NOTE! Ample B&I authority remains available under the program's regular authorities. The regular B&I program provides guarantees of 80% on rural business loans up to $5 million, and 70% on loans over $5 million up to $10 million - still significant assistance in rural business finance.
We know that funding levels are an important concern for lenders depending on the B&I program, and we will continue to provide updated information about funding as it becomes available.
We do not believe this information is in anyway discouraging. On the contrary, it represents a significant achievement for rural business finance and the B&I program, and it will undoubtedly serve to spur B&I lending in the immediate future.
Again, RD continues to have ample B&I funding authority to handle the requests for rural business loans guarantees under its regular B&I program.
Thank you and kudos to our Oregon's lenders for being a part of this nationwide success in addressing the "credit crunch on Main Street." We look forward to our continuing partnership with Oregon's commercial lenders in meeting the credit needs of rural businesses.
jeff
Jeff Deiss, Business & Cooperative Program Director
USDA Rural Development, Oregon State Office
1201 NE Lloyd Blvd., Ste. 801, Portland, OR 97232-1274
jeff.deiss@or.usda.gov
503-414-3367 phone; 503-414-3397 fax
Visit our web site, http://www.ruralOregon.biz ('http://www.ruralOregon.biz')
For energy programs, http://energy.ruralOregon.biz ('http://energy.ruralOregon.biz')
USDA Rural Development's Business Programs Administrator Judy Canales announced last week that B&I guaranteed lending has already reached a record level in FY2010, with barely half of the fiscal year elapsed. As of mid April, total B&I commitments exceeded $1.5 billion, surpassing all previous years of B&I program activity.
Particularly notable is the use of B&I-ARRA (Recovery Act) funds. These funds, which provide lower fees and frequently 90% guarantees, are designed to stimulate rural business lending in today's difficult economic climate.
RD had set a nationwide goal to deliver 70% of its authorized B&I-ARRA funding by April 16. In fact, 90% of the B&I-ARRA funding was obligated by that date, delivering its stimulating impetus ahead of schedule. This 90% level exceeded all expectation and is a reflection of the growing popularity of the B&I program and the appetite that community lenders have for its enhanced ability to help lenders meet the credit needs of their rural business customers.
Less than $200 million in B&I-ARRA funds remain, and given the pace of B&I-ARRA use, these special funds may be exhausted by early summer, perhaps by late May or early June.
In light of this, lenders are strongly encouraged to submit their proposals seeking B&I-ARRA assistance to RD as soon as possible. Once the B&I-ARRA assistance is delivered, no further ARRA authority is expected. Regardless, all B&I-ARRA authority will expire on September 30, 2010.
PLEASE NOTE! Ample B&I authority remains available under the program's regular authorities. The regular B&I program provides guarantees of 80% on rural business loans up to $5 million, and 70% on loans over $5 million up to $10 million - still significant assistance in rural business finance.
We know that funding levels are an important concern for lenders depending on the B&I program, and we will continue to provide updated information about funding as it becomes available.
We do not believe this information is in anyway discouraging. On the contrary, it represents a significant achievement for rural business finance and the B&I program, and it will undoubtedly serve to spur B&I lending in the immediate future.
Again, RD continues to have ample B&I funding authority to handle the requests for rural business loans guarantees under its regular B&I program.
Thank you and kudos to our Oregon's lenders for being a part of this nationwide success in addressing the "credit crunch on Main Street." We look forward to our continuing partnership with Oregon's commercial lenders in meeting the credit needs of rural businesses.
jeff
Jeff Deiss, Business & Cooperative Program Director
USDA Rural Development, Oregon State Office
1201 NE Lloyd Blvd., Ste. 801, Portland, OR 97232-1274
jeff.deiss@or.usda.gov
503-414-3367 phone; 503-414-3397 fax
Visit our web site, http://www.ruralOregon.biz ('http://www.ruralOregon.biz')
For energy programs, http://energy.ruralOregon.biz ('http://energy.ruralOregon.biz')