USDA Rural Development Guarantee Fee Rates for FY 2026

Content

ACTION:

Notice.

SUMMARY:

The Rural Business-Cooperative Service (RBCS), Rural Housing Service (RHS), and the Rural Utilities Service (RUS), agencies
of the Rural Development mission area within the U.S. Department of Agriculture (USDA), hereinafter collectively referred
to as the Agency, offer loan guarantees through four programs: Community Facilities (CF) administered by the RHS; Water and
Waste Disposal (WWD) administered by the RUS; and Business and Industry (B&I) and Rural Energy for America Program (REAP)
administered by the RBCS. This notice provides applicants with the Guarantee Fee rates, Loan Guarantee percentage, the Periodic
Retention Fee, and Fee for Issuance of the Loan Note Guarantee Prior to Construction Completion for Fiscal Year (FY) 2026,
to be used when applying for guaranteed loans under the guaranteed loan types listed above. Should the fees need to be adjusted,
the agency will publish a subsequent notice in the
Federal Register
.

DATES:

The fees in this notice are effective October 1, 2025.

FOR FURTHER INFORMATION CONTACT:

For information specific to this notice contact Crystal Pemberton, Management Analyst, Regulations Management, Rural Development
Innovation Center—Regulations Management, USDA, 1400 Independence Avenue SW, Washington, DC 20250-1522. Telephone: 202-260-8621
(This is not a toll-free number). Email: Crystal.Pemberton@usda.gov. For information regarding implementation, contact your respective Rural Development State Office listed at rd.usda.gov/browse-state.

SUPPLEMENTARY INFORMATION:

As set forth in 7 CFR part 5001, the Agency is authorized to charge a guarantee fee, a periodic guarantee retention fee, a
fee for the issuance of the loan note guarantee prior to construction completion and establish a loan guarantee percentage
for guaranteed loans made under this rule. Pursuant to this and other applicable authority, and subject to the current appropriated
authority, the Agency is establishing the following for FY 2026:

| Loan type | Guarantee fee (%) | Periodic
guaranteeretention fee (%) | Loan
guarantee percentage (%) | Fee for
issuance of loan note guarantee prior toconstructioncompletion (%) |
| --- | --- | --- | --- | --- |
| B&I less than $5M | 3.0 | .55 | 85 | 0.50 |
| B&I $5M to $25M | 3.0 | .55 | 80 | 0.50 |
| B&I Reduced Fee | 1.0 | .50 | 80 | 0.50 |
| B&I project in a high cost, isolated rural area of the State of Alaska that is not connected to a road system | 1.0 | 0.50 | 90 | 0.50 |
| CF | 1.25 | 0.50 | 80 | 0.50 |
| REAP | 1.0 | 0.25 | 80 | 0.50 |
| WWD | 1.0 | N/A | 90 | 0.50 |
The initial guarantee fee is paid at the time the loan note guarantee is issued. The periodic guarantee retention fee is paid
by the lender to the Agency once a year. Payment of the periodic guarantee retention fee is required in order to maintain
the enforceability of the guarantee. The fee for issuance of the loan note guarantee prior to construction completion DOES
NOT apply to all construction loans. This additional fee only applies to loans requesting to receive a loan note guarantee
prior to project completion. For loans where the loan note guarantee is issued between October 1 and December 31, the first
periodic retention fee payment is due January 31 of the second year following the date the loan note guarantee was issued.

Unless precluded by a subsequent FY 2026 appropriation, these rates will apply to all guaranteed loans obligated in FY 2026.
The amount of the periodic retention fee on each guaranteed loan will be determined by multiplying the periodic retention
fee rate by the outstanding principal loan balance as of December 31, multiplied by the percentage of guarantee.

Non-Discrimination Statement

In accordance with Federal civil rights law and U.S. Department of Agriculture (USDA) civil rights regulations and policies,
the USDA, its Agencies, offices, and employees, and institutions participating in or administering USDA programs are prohibited
from discriminating based on race, color, national origin, religion, sex, disability, age, marital status, family/parental
status, income derived from a public assistance program, political beliefs, or reprisal or retaliation for prior civil rights
activity, in any program or activity conducted or funded by USDA (not all bases apply to all programs). Remedies and complaint
filing deadlines vary by program or incident.

Persons with disabilities who require alternative means of communication for program information (e.g., Braille, large print, audiotape, American Sign Language, etc.) should contact the State or local Agency that administers the
program or contact USDA through the Telecommunications Relay Service at 711 (voice and TTY). Additionally, program information
may be made available in languages other than English.

To file a program discrimination complaint, complete the USDA Program Discrimination Complaint Form, AD-3027, found online
at How to File a Program Discrimination Complaint and at any USDA office or write a letter addressed to USDA and provide in the letter all of the information requested in the
form. To request a copy of the complaint form, call (866) 632-9992. Submit your completed form or letter to USDA by: (1) mail:
U.S. Department of Agriculture, Office of the Assistant Secretary for Civil Rights, 1400 Independence Avenue SW, Mail Stop
9410, Washington, DC 20250-9410; (2) fax: (202) 690-7442; or (3) email: program.intake@usda.gov.

USDA is an equal opportunity provider, employer, and lender.

Joseph Gilson, Chief of Staff, Rural Development. [FR Doc. 2026-04581 Filed 3-6-26; 8:45 am] BILLING CODE 3410-15-P

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