IMPACT OF PROGRAM SHUT-DOWNS
Rural Development’s mission is to serve as a catalyst for economic and community
development activities in rural areas through loans and grants to individuals, businesses,
and communities. The shut-down of RD loan and grant making activities for a prolonged
period of more than two weeks would have an immense adverse impact on the rural
economy. Should RD not be allowed to continue loan and grant making operations for an
extended period, the impact would be substantially more serious.
• No additional loans/grants would be available during the period except for emergency
purposes and to protect the Government’s interest. System generated disbursements
for previously obligated Rental Assistance (RA) funds will continue.
• No new RD rural housing loans or guarantees would be issued, which would result in
a setback in construction start-up, as well as a potentially costly inconvenience to
buyers and sellers depending on a Single Family Housing loan or guaranteed loan 09 18 2013 RD.doc
closing. A more permanent interruption in the program would cause a substantial
reduction in housing available in rural areas relative to population.
• New and expanding businesses would be unable to access loan guarantees to create
new jobs and save existing jobs and with them, the potential taxpayers who would
hold those jobs.
• No loans or assistance for essential community facilities would be made, delaying the
financing of health care, emergency response, and other essential services to rural
communities. Projects already financed that are under construction would be delayed
in having any bridge financing replaced with permanent financing from USDA. A
long-term shut-down would place RD seriously behind in our mission of improving
quality of life and economic opportunity in rural areas with limited income. The
current community facility loan program is one of the very few sources of financing
for essential community facilities in rural areas.
• Travel and training for RD operations would be suspended during the period of shutdown.
• After shut-down operations, RD state and area office employees located in
communities throughout the United States would be furloughed.
• No loans or advances would be made or issued for modernizing rural America’s
electric and telecommunications infrastructure. Borrowers would not be able to
improve service, meet Federal Communication Commission deadlines, or pay off
short-term bridge loans. No advances would be issued to pay invoices on
construction contracts, which could result in defaults on contracts and increase
construction costs. Ultimately, this could lead to RD loan security problems
- Changes for USDA rural development housing loans – kentucky rhs loan (kentuckyusdaloan.com)
- 2010 Census Data Implementation – Eligible Rural Area Change for Kentucky USDA and Rural Housing Mortgage Loans RHS KY (kentuckyusdaloan.com)
- Government shutdown affects on USDA, FHA, VA, Rural Housing, KHC and Fannie Mae Mortgage loans in Kentucky (mylouisvillekentuckymortgage.com)
- How the Goverment Shutdown Affects Mortgages (azrealtorchick.wordpress.com)
- Kentucky Rural Development and Rural Housing USDA Loan Program (kentuckyusdaloan.com)
- Kentucky USDA and Rural Housing Eligible Rural Area Change October 1, 2013 (trulia.com)
- Kentucky USDA and Rural Housing Eligible Rural Area Change October 1, 2013 for Etown, KY and Hardin County KY (trulia.com)
- New Census counts could make these areas ineligible for USDA lending starting in October. (trulia.com)
- Kentucky USDA and Rural Housing Eligible Rural Area Change October 1, 2013 to include Shepherdsville, KY and Bullitt County (trulia.com)
- October 1, 2013, which will modify the eligible rural areas for the Kentucky USDA and Rural Development RHS housing programs. (trulia.com)