Bette Brand releases correction to the Guarantee Fee and Loan Guarantee Percentage for certain loans in Alaska on January 7th, 2021.

January 21, 2021

#USDA News | #FY2021 | #OneRDChanges

The CFR correction updated the USDA Guaranty Fee and the USDA Guarantee on Business and Industry loans to 1% and 90%, respectively. To obtain these rates, projects must be "in a high cost, isolated rural area of the State of Alaska that is not connected to a road system."

In an attempt to understand what type of projects would be eligible I reached out to Michele Brooks (Director, Regulations Management) and asked her to expand on that definition and provide some clarification of the types of projects that could be eligible.

Below is the current eligibility map of Alaska (1-21-2021) showing only the area around Anchorage is the only ineligible area in the state. I would imagine that any project in the state outside of a certain radius of Anchorage would be eligible for this type of funding due to the rural nature of the state and the cost of moving materials to some areas.

I will update this blog once clarification has been received from the USDA regarding the types of projects and better defined road system terminology.