Tuesday, October 1, 2013

Update on Kentucky USDA and Rural Development Home loan Operations on government shutdown

October 1, 2013







Due to a lapse in appropriations for the Kentucky  Rural Development as of October 1, Rural Development has initiated the process of orderly shutdown of nonessential operations.  You can view Kentucky USDA’s plans for a lapse in appropriations at http://www.whitehouse.gov/omb/contingency-plans .


In Rural Development, this means that many services will be delayed or interrupted.  For example, Rural Development will not be able to make any new loans or grants; the only exceptions will be for emergency purposes and to protect the Government’s interest.

We are committed to keeping you as up to date as possible, within the limits of current circumstances.


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


• 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.

-- 
Joel Lobb (NMLS#57916)
Senior  Loan Officer
502-905-3708 cell
502-813-2795 fax
kentuckyloan@gmail.com

Key Financial Mortgage Co. (NMLS #1800)*
107 South Hurstbourne Parkway*

Louisville, KY 40222*