1940.588—Business and Industry Guaranteed and Direct Loans.

(a) Amount available for allocations. See § 1940.552(a) of this subpart.
(b) Basic formula criteria, data source and weight. See § 1940.552(b) of this subpart.
(1) The criteria used in the basic formula are:
(i) State's percentage of national rural population—50 percent.
(ii) State's percentage of national rural population with incomes below the poverty level—25 percent.
(iii) State's percentage of national nonmetropolitan unemployment—25 percent.
(2) Data source for each of these criterion is based on the latest census data available. Each criterion is assigned a specific weight according to its relevance in determining need. The percentage representing each criterion is multiplied by the weight factor and summed to arrive at a State factor (SF). The SF cannot exceed .05.
SF = (criterion (b)(1)(i) × 50 percent) (criterion (b)(1)(ii) × 25 percent) (criterion (b)(1)(iii) × 25 percent)
(c) Basic formula allocation. See § 1940.552(c) of this subpart.
(d) Transition formula. The transition formula is not used for B&I Guaranteed and Direct Loans.
(e) Base allocations. See § 1940.552(e) of this subpart. Jurisdictions receiving administrative allocations do not receive base allocations.
(f) Administrative allocations. See § 1940.552(f) of this subpart. Jurisdictions receiving formula allocations do not receive initial administrative allocations.
(g) Reserve. See § 1940.552(g). States may request reserve funds from the B&I reserve when all of the state allocation has been obligated or will be obligated to the project for which the request is made.
(h) Pooling of funds. See § 1940.552(h). Funds are pooled near fiscal year-end. Pooled funds will be placed in a reserve and made available on a priority basis to all States.
(i) Availability of the allocation. See § 1940.552(i) of this subpart. There is a 6-day waiting period from the time project funds are reserved to the time they are obligated.
(j) Suballocation by the State Director. Suballocation by the State Director is authorized for this program.

Code of Federal Regulations

[50 FR 24180, June 10, 1985, as amended at 58 FR 54486, Oct. 22, 1993; 68 FR 14528, Mar. 26, 2003]