(a) The interest rate for the guaranteed loan will be negotiated between the lender and the applicant and may be either fixed or variable as long as it is a legal rate. The variable rate must be based on published indices, such as money market indices. In no case, however, shall the rate be more than the rate customarily charged borrowers in similar circumstances in the ordinary course of business. The interest rate charged is subject to Agency review and approval.
CFR 7-4280.125-2014 history
2011CFR 7-4280.125-2014 Agriculture. Part4280:Loans and grants. SubpartB:Rural Energy for America Program General. Section4280.125:Interest rates.