Meat and Poultry Intermediary Lending Program (MPILP)

The responses and hours associated with each response on the following non-forms and forms reported under other OMB information collections comprise the burden for this package.

APPLICATION CONTENT

SAM Registration

To do business with the Federal government, the applicant is required to obtain a Unique Identification Number and register in the System for Award Management (SAM). Registration in SAM allows the applicant to complete the Online Representations and Certifications which replaces several paper forms. Registration in SAM is also required to submit applications into www.grants.gov. Registration must be renewed annually.

Scope of Work

Applicants are required to provide a narrative to describe their overall project and associated tasks to achieve their goal. The narrative should include information which allows the Agency to determine the eligibility of the applicant and project, and to evaluate the merit of the project. A work plan and budget will identify how funds are proposed to be used. The workplan is a very important part of an application, which helps the Agency evaluate the need and support for the applicant’s program in the proposed service area and the applicant’s ability to operate successfully. The work plan also documents how the applicant will operate the revolving loan fund after the Agency grant is approved and provides a basis for servicing the RD loan.

MPILP Revolving Loan Fund Plan.

A stand-alone document from the application and may be revised in the future. The MPILP revolving loan fund plan governs the use of the RLF and must be developed by the intermediary and approved by the Agency. The plan must include a detailed explanation of the intermediary’s fund administration policies and procedures in addition to planned fund use after the original Agency MPILP grant funds in the RLF have revolved.

Environmental Review.

Applicants are required to provide documentation as outlined in 7 CFR 1970, “Environmental Policies and Procedures”. This information is necessary for the Agency to comply with the National Environmental Policy Act of 1969 (NEPA).

Request for appeal

This requirement provides a mechanism for applicants and borrowers to obtain and review additional consideration for RD decisions of an adverse nature.

Awardee Processing and Reporting

SAM Registration Maintenance. Each applicant (unless an exception, as outlined in 2 CFR 25.110(a) through (d), is approved by the Agency) is required to maintain an active SAM registration with current information at all times during which it has an active Federal award. The Agency uses the SAM site to ensure continued eligibility to receive Federal financial assistance.

Insurance Requirements. Applicants must ensure assets funded in part with federal funds are insured and ensure that ultimate recipients comply with insurance requirements. This is required by 2 CFR part 200 and will also be included in the conditions to the award.

Certification to make loans to ultimate recipients. These certifications by the borrower are made in connection with a request for RD’s concurrence in approval of a loan to an ultimate recipient. The Agency accepts the intermediary’s certifications that certain requirements have been met, in lieu of requiring complete information regarding the proposed ultimate recipient be submitted to and analyzed by the Agency.

Operating plans for revolving lines of credit

Intermediaries are authorized to use MPILP grants, under certain conditions, to provide revolving lines of credit to ultimate recipients. The conditions are needed to help ensure that this authority is used in a responsible way and only by intermediaries that have sufficient expertise in this specialized and risky credit field. One of the conditions is if an intermediary wants to use the authority to provide revolving lines of credit, the intermediary must provide a detailed description of how the revolving lines of credit will be operated and managed. We estimate that about 35 percent of MPILP applications will include proposals to use the authority and the required material to justify it.

Evidence of fidelity bond coverage

This is needed to provide a means for the Agency to monitor compliance with the coverage requirements. Fidelity bond coverage is required to protect the borrower and Agency from potential losses due to illegal activities on the part of borrower staff.

Annual Project Performance Report.

Intermediaries must submit a performance report annual with first report submitted no later than six months after receiving a grant. The stage 1 annual report will be submitted annually for five years after receiving a grant under this section. The stage 2 annual report will be completed and submitted annually for years six through fifteen or payoff of the last loan made with original grant funds, whichever comes first. Annual reports include information on loans obligation to date, evaluation of progress, revenue generated, and impact in terms of resiliency of value chains, workers hired, and capacity expanded, among other thigs.

Loan Loss Reserve.

Intermediaries may use $125,000 or five percent of the grant amount, whichever is less, for expenses related to establishment or maintenance of a loan loss reserve. This use of funds must be documented as part of a complete application. If the funds are not used for the approved purpose, within the first 3 years of the performance period they must be returned to the Agency or used for loan capital. The intermediary must submit a written request to the Agency detailing how the fund usage will be changed. This requirement ensures that funds are used for approved purposes.

Environmental Policies, Exhibit C (Environmental Documentation Checklist) (RD Instruction 1970-A). This form is required of intermediaries and ultimate recipients in order to assess the potential cumulative impacts of the projects as well as any environmental concerns or problems that are associated with individual projects than can be identified at the earliest planning stages.

Intergovernmental review comments

Applicants are required to provide intergovernmental consultation comments in accordance with RD Instruction 1970-I and 2 CFR part 415, subpart C, or successor regulation, unless exemptions have been granted by the State single point of contact.  This requirement ensures that states that elect to participate in this review process have had the opportunity to do so. It also provides the lender and Agency with additional information to complete required environmental and project analysis.

REPORTING REQUIREMENTS - FORMS APPROVED UNDER OTHER OMB NUMBERS - HOURS INCLUDED IN THIS COLLECTION

The responses and hours associated with each response on the following RD forms has been included in the spreadsheet that details the burden number for this collection. The forms are not currently common forms and therefore, will be updated to include this package’s control number and will be submitted with this information collection.

RD 1940-1, “Request for Obligation of Funds.” Completed once, by the applicant, when the grant funds are obligated. (OMB No.: 0570-0061 and 0570-0062)

RD 1942-46, “Letter of Intent to Meet Conditions.” Completed once, by the applicant, when they are notified of the award. (OMB No. 0575-0015, 0570-0021, 0570-0061, 0570-0062, and 0572-0137)

RD 4280-2, “RBCS Financial Assistance Agreement.” Completed once, by the applicant, when they have agreed to the terms and conditions of the award. (OMB No. 0570-0067)

RD Instruction 1970-A “Multi-tier Action Environmental Compliance Agreement.” Completed once, by the applicant, at the time of application.

RD 1951-4 “Report of IRP/RDLF Lending Activity”. Completed quarterly until at least 90% of grant funds have been loaned to ultimate recipients and semiannually thereafter, by the applicant, until the project is complete. (OMB No. 0570-0015)

RD 400-1, "Equal Opportunity Agreement". Completed by the ultimate recipient of assistance if the cash cost of construction by either the ultimate recipient or contract exceeds $10,000. Signature acknowledges that they are bound by equal opportunity requirements as outlined in the form. (OMB No. 0575-0018)