Section 5001.305 - [Effective 11/29/2024] Specific application requirements for WWD projectsIn addition to the requirements specified in § 5001.303 , a lender seeking a loan guarantee for a WWD project must submit the documents specified in paragraphs (a) through (c) of this section.
(a)Engineering documentation.(1) Engineering documentation must meet the level of detail the lender would typically require for a standard commercial loan, and include, at a minimum, a description of the proposed project, a cost estimate, the number of residential and non-residential connections, and the population served. The lender may request assistance to clarify the Agency's requirements and regulations; however, the Agency does not provide technical oversight or recommendations as to the technical feasibility of the project.(2) The lender must ensure that the project is designed utilizing accepted architectural and engineering practices and conforms to applicable Federal requirements (e.g., the seismic requirements of Executive Order 12699 (55 FR 835, 3 CFR, 1990 Comp., p. 269), the debarment requirements of 2 CFR part 180 as supplemented by 2 CFR part 417, American Iron and Steel (Section 746 of Title VII of the Consolidated Appropriations Act of 2017), and the Copeland Anti-Kickback Act (18 U.S.C. 874 )); State, local and Tribal codes and requirements; and facility plans or plans and specifications reviewed and approved by the applicable State, local and/or Tribal regulatory agency. The lender must also ensure that the planned project will be completed within the available funds and once completed, will be suitable for the borrower's needs. Upon completion of the project, the lender must certify that all applicable Federal requirements were met.(b)Feasibility considerations. All projects financed under this part must be based on projected taxes, assessments, revenues, fees, or other sources of revenues in an amount sufficient to provide for project operation and maintenance, any reserves required by the lender, and debt payment. The lender's financial credit analysis must take into consideration any interest rate adjustment that may be instituted under the terms of the loan note guarantee.(c)Credit analysis requirements. In addition to the requirements of § 5001.202 , if the majority user of the system is a business and the financial success of the system is dependent on that business, then the economic viability of that business must be assessed.(d)Domestic procurement preference.(1)American Iron and Steel (AIS). Guaranteed loans must comply with AIS requirements. Lenders and borrowers are responsible for meeting the AIS requirements of Section 746 of Title VII of the Consolidated Appropriations Act of 2017 and the continuing resolutions adopted thereafter.(2)Build America, Buy America Act (BABAA). BABAA was enacted as part of the Infrastructure and Jobs Act (Pub. L. 117-58) on November 15, 2021 and became effective on May 14, 2022. Under Section 70914(a) of BABAA, "none of the funds made available for a Federal financial assistance program for infrastructure may be obligated for a project unless all of the iron, steel, manufactured products, and construction materials used in the project are produced in the United States." Additional information may be found on the Agency's Build America, Buy America website at https://www.rd.usda.gov/build-america-buy-america.(3)Compliance. Owners are ultimately responsible for compliance with the domestic procurement preference requirements and should consult with the Agency early in project development. Compliance must be certified to prior to the issuance of the loan note guarantee. The lender must include any domestic preference language, provided by the Agency, in the loan agreement and other appropriate loan documents.85 FR 42518, 10/1/2020; 89 FR 79720, 11/29/2024