Section 5001.318 - B&I project priority point systemThis section applies to B&I projects seeking a loan guarantee. When applications on hand have the same priority score, the Agency will give preference to applications involving guaranteed loans from veterans. To receive veteran points, a veteran or veterans must own 20 percent or more interest in the borrower and the borrower must sign a certification in its application to indicate that the borrower has veteran status. A maximum of 100 points can be awarded.
(a)Population priority. If the project is located in an unincorporated area or in a city with a population under 25,000, 5 points will be awarded.(b)Location priority. An application is eligible to receive points under each of the categories identified in paragraphs (b)(1) through (3) of this section if the project is located within:(1) A distressed community in accordance with the Economic Innovation Group distressed community index. The list can be found on the Agency's website at: https://www.rd.usda.gov/onerdguarantee, 5 points will be awarded.(2) A rural county that has had 20 percent or more of its population living in poverty, as defined by the United States Census Bureau, for the last 30 years, 5 points will be awarded.(3) For a city or county with a current unemployment rate, as determined by the Department of Labor, 125 percent of the State-wide rate or greater, 5 points will be awarded. For projects located in certain territories that may not have unemployment rates by localities, if the applicant's proposed service area has an unemployment rate exceeding 125 percent of the national unemployment rate, 5 points will be awarded.(4) The boundaries of a federally recognized Indian Tribe's reservation, within Tribal trust lands, or within land owned by an Alaska Native Regional or Village Corporation as defined by the Alaska Native Claims Settlement Act, 5 points will be awarded.(c)Guaranteed loan features. An application is eligible to receive points under each of the categories identified in paragraphs (c)(1) through (3) of this section as follows:(1) If the lender will price the guaranteed loan at an interest rate equal to or less than the equivalent of the Wall Street Journal published Prime Rate plus 1.5 percent, 5 points will be awarded.(2) If the guaranteed loan is less than 60 percent of the total project cost, 5 points will be awarded.(3) If the business is owned by a qualified veteran, 5 points will be awarded.(d)High impact business development investment priorities. An application is eligible to receive points under each of the categories identified in paragraphs (d)(1) through (7) of this section below:(1) If the industry is not already present in the local community, 5 points will be awarded.(2) If the business has 20 percent or more of its sales in international markets, 5 points will be awarded.(3) If the business is locally owned and managed, 5 points will be awarded.(4) If the business will produce a natural resource value-added product, 5 points will be awarded.(5) If the business processes, distributes, aggregates, stores, and/or markets locally or regionally produced agricultural food products to underserved communities in accordance with § 5001.105(b)(15)(ii) , 5 points will be awarded.(6) If the business creates or saves a minimum of five jobs with an average wage exceeding 150 percent of the Federal minimum wage, 5 points will be awarded.(7) If the business offers a healthcare benefits package to all employees and pays at least 50 percent of the healthcare premium, 5 points will be awarded.(e)Administrative points. An application is eligible to receive points under paragraphs (e)(1) through (3) of this section.(1) For projects awarded under State allocations the State Director may assign up to 10 additional points to an application to account for state-wide distribution of funds for natural disasters, local economic emergency conditions, community economic development strategies, State strategic plans, fundamental structural changes in a community's economic base, or projects that will fulfill an Agency special initiative.(2) For projects requesting funds from the national reserve account, the State Director may request up to 10 administrative points from the Administrator.(3) If an application is for a loan in excess of 10 million dollars, the Administrator may assign up to an additional 10 points to account for the nationwide geographic distribution of funds, or projects that will fulfill an Agency special initiative. 85 FR 42518 , July 14, 2020, as amended at 86 FR 70357 , Dec. 10, 2021 85 FR 42518 , 10/1/2020; as amended at 86 FR 70357 , 12/10/2021; 89 FR 79722 , 11/29/2024