FMI for 1940-1

FORMS MANUAL INSERT
USDA
Form RD 1940-1
(Rev. 6-10)

FORM RD 1940-1
FORM APPROVED
OMB No. 0570-0062

REQUEST FOR OBLIGATION OF FUNDS

INSTRUCTIONS-TYPE IN CAPITALIZED ELITE TYPE IN SPACES MARKED (
Complete Items 1 through 29 and applicable Items 30 through 34. See FMI.
1. CASE NUMBER
ST
CO
BORROWER ID

LOAN NUMBER

2. BORROWER NAME

3. NUMBER NAME FIELDS

)

FISCAL YEAR

(1, 2, or 3 from Item 2)

4. STATE NAME
5. COUNTY NAME
GENERAL BORROWER/LOAN INFORMATION
8. COLLATERAL CODE
7. TYPE OF APPLICANT

6. RACE/ETHNIC
CLASSIFICATION
4 - HISPANIC
5 - A/PI

1 - WHITE
2 - BLACK
3 - AI/AN

10. SEX CODE
1 - MALE
2 - FEMALE

1 - INDIVIDUAL
2 - PARTNERSHIP
3 - CORPORATION
4-PUBLIC BODY
5 - ASSOC. OF
FARMERS

3 - FAMILY UNIT
4 - ORGAN. MALE OWNED
5 - ORGAN. FEMALE OWNED
6 - PUBLIC BODY

14. DIRECT PAYMENT

6-ORG. OF FARMERS
7-NONPROFIT-SECULAR
8-NONPROFIT-FAITH BASED
9-INDIAN TRIBE
10-PUBLIC COLLEGE/UNIVERSITY
11-OTHER

11. MARITAL STATUS

1 - MARRIED 3 - UNMARRIED (INCLUDES
2 - SEPARATED WIDOWED/DIVORCED)

15. TYPE OF PAYMENT

(See FMI)

1 - REAL ESTATE
SECURED
2 - REAL ESTATE
AND CHATTEL
3 - NOTE ONLY OR
CHATTEL ONLY

12. VETERAN CODE

1 - EMPLOYEE
2 - MEMBER OF FAMILY
3 - CLOSE RELATIVE
4 - ASSOC.

13. CREDIT REPORT

1 - YES
2 - NO

1 - YES
2 - NO

1 -YES
2 - NO

18. USE OF FUNDS CODE

1 - 10,000 OR LESS (FOR SFH AND
2 - OVER 10,000
HPG ONLY)

(See FMI)

COMPLETE FOR OBLIGATION OF FUNDS
20. PURPOSE CODE
21. SOURCE OF FUNDS

19. TYPE OF
ASSISTANCE

9. EMPLOYEE
RELATIONSHIP CODE

16. FEE INSPECTION

1 -MONTHLY
3 - SEMI-ANNUALLY
2 - ANNUALLY 4 - QUARTERLY

17. COMMUNITY SIZE

4 - MACHINERY ONLY
5 - LIVESTOCK ONLY
6 - CROPS ONLY
7 - SECURED BY
BONDS
8 -RLF ACCT

22. TYPE OF ACTION
1 - OBLIGATION ONLY
2 - OBLIGATION/CHECK REQUEST
3 - CORRECTION OF OBLIGATION

2

(See FMI)

23. TYPE OF SUBMISSION

24. AMOUNT OF LOAN

25. AMOUNT OF GRANT

1 - INITAL
2 - SUBSEQUENT

26. AMOUNT OF IMMEDIATE
ADVANCE

27. DATE OF
APPROVAL
DA
YR

28. INTEREST RATE

29. REPAYMENT TERMS

MO

COMPLETE FOR COMMUNITY PROGRAM AND CERTAIN MULTIPLE-FAMILY HOUSING LOANS
30. PROFIT TYPE
1 - FULL PROFIT

2 - LIMITED PROFIT
3 - NONPROFIT

COMPLETE FOR EM LOANS ONLY
31. DISASTER DESIGNATION NUMBER

COMPLETE FOR CREDIT SALE-ASSUMPTION
32. TYPE OF SALE

(See FMI)

1 - CREDIT SALE ONLY

33. OBLIGATION DATE
MO
DA
YR

4 - ASSUMPTION WITH
2. ASSUMPTION ONLY
3 - CREDIT SALE WITH SUBSEQUENT LOAN SUBSEQUENT LOAN

COMPLETE FOR FP LOANS ONLY

FINANCE OFFICE USE ONLY

34. BEGINNING FARMER/RANCHER
(See FMI)

If the decision contained above in this form results in denial, reduction or cancellation of USDA assistance, you may appeal this decision and have a hearing or you may request a
review in lieu of a hearing. Please use the form we have included for this purpose.

Position 2
ORIGINAL - Borrower’s Case Folder

COPY 1 - Finance Office

COPY 2 - Applicant/Lender

COPY 3 - State Office

According to the Paperwork Reduction Act of 1995, an agency may not conduct or sponsor, and a person is not required to respond to a collection of information unless it displays a valid OMB control number. The valid OMB control number
for this information collection is 0570-0062. The time required to complete this information collection is estimated to average 15 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering
and maintaining the data needed, and completing and reviewing the collection of information.

(06-28-10) SPECIAL PN

-2- (Forms Manual Insert - Form RD 1940-1)

REVERSE OF FORM RD 1940-1

CERTIFICATION APPROVAL
For All Farmers Programs

EM, OL, FO, and SW Loans

This loan is approved subject to the availability of funds. If this loan does not close for any reason within 90 days from the date
of approval on this document, the approval official will request updated eligibility information. The undersigned loan applicant agrees that the approval official will have 14 working days to review any updated information prior to submitting this
document for obligation of funds. If there have been significant changes that may affect eligibility, a decision as to eligibility
and feasibility will be made within 30 days from the time the applicant provides the necessary information.
If this is a loan approval for which a lien and/or title search is necessary, the undersigned applicant agrees that the 15-workingday loan closing requirement may be exceeded for the purposes of the applicant’s legal representative completing title work
and completing loan closing.
35.

COMMENTS AND REQUIREMENTS OF CERTIFYING OFFICIAL

36.

I HEREBY CERTIFY that I am unable to obtain sufficient credit elsewhere to finance my actual needs at reasonable rates and
terms, taking into consideration prevailing private and cooperative rates and terms in or near my community for loans for
similar purposes and periods of time. I agree to use the sum specified herein, subject to and in accordance with regulations
applicable to the type of assistance indicated above, and request payment of such sum. I agree to report to USDA any material
adverse changes, financial or otherwise, that occur prior to loan closing. I certify that no part of the sum specified herein has
been received. I have reviewed the loan approval requirements and comments associated with this loan request and agree to
comply with these provisions.
(For FP loans at eligible terms only) If this loan is approved, I elect the interest rate to be charged on my loan to be the
lower of the interest rate in effect at the time of loan approval or loan closing. If I check “NO”, the interest rate charged on my
loan will be the rate specified in Item 28 of this form. __________ YES ______ NO
WARNING:

Whoever, in any matter within the jurisdiction of any department or agency of the United States
knowingly and willfully falsifies, conceals or covers up by any trick, scheme, or device a material
fact, or makes any false, fictitious or fraudulent statements or representations, or makes or
uses any false writing or document knowing the same to contain any false, fictitious or fraudulent
statement or entry, shall be fined under this title or imprisoned not more than five years, or
both.

Date

, 20

Date

, 20

(Signature of Applicant)

(Signature of Co-Applicant)
37.

I HEREBY CERTIFY that all of the committee and administrative determinations and certifications required by regulations
prerequisite to providing assistance of the type indicated above have been made and that evidence thereof is in the docket, and
that all requirements of pertinent regulations have been complied with. I hereby approve the above-described assistance in the
amount set forth above, and by this document, subject to the availability of funds, the Government agrees to advance such
amount to the applicant for the purpose of and subject to the availability prescribed by regulations applicable to this type of
assistance.

(Signature of Approving Official)
Date Approved:
38.

Title:

TO THE APPLICANT: As of this date _____________________ , this is notice that your application for financial assistance
from the USDA has been approved, as indicated above, subject to the availability of funds and other conditions required by the
USDA. If you have any questions contact the appropriate USDA Servicing Office.

(Forms Manual Insert - Form RD 1940-1) -3-

PROCEDURE FOR
PREPARATION

:

RD Instructions 1902-A, 1942-A, 1942-G, 1944-B, 1944-K, 1944-N, 1948-B, 1951-A,
1951-E, 1955-C, 1962-A, 2015-C, 2033-A, 4274-D, 4280-D, 4284-F, and 4284-G; RUS
Instructions 1780 and 1781; and FSA Transferred Instructions 1910-A, 1941-A. 1943-A,
1943-B, 1946-A and 1965-A.

PREPARED BY

:

Initiated by approving official and applicable RD Servicing Office.
Entries will be made by approving official.
(For B&I loans and TSA and TA grants initiated by State Office)
(For CP loans/grants and Emergency Community Water Assistance Grants,
initiated by applicable approval official)
(For NNC loans/grants, initiated by National Office)
(For IRP loans initiated by National Office)

NUMBER OF COPIES

:

Original and two copies for B&I, WWD, RC&D, WS, CF, IDG, NNC, IRP, and RMAP.
Original and three copies for all other insured loan/grant programs.
Original and two copies for credit sale or assumption without a loan. Additional copies will
be made as needed by the servicing office.

SIGNATURES REQUIRED

:

Original and copy signed by approving official and borrower. Copy by applicant except
when the transaction being approved is an assumption or credit sale on ineligible terms.
Other copies conformed.

DISTRIBUTION OF COPIES

:

Original retained in borrower’s case folder.

:

Signed copy to applicant/lender. For all programs EXCEPT Community and Business
Programs, this notification must be mailed to the applicant/lender on the date of approval.
For Community and Business Programs, and MFH to nonprofit organizations and public
bodies, and Agricultural Loan Mediation Program grants to state governments, this
notification must be mailed to the applicant/lender on the obligation date.

:

Copy to State Office (National Office for NNC loans/grants, IRP, and RMAP loans.)

:

For a credit sale or assumption without a loan, original retained in the borrower’s case
folder, copy to State Office for informational purposes, signed copy to the transferee when
required by program instructions. Do not send a copy to the Finance Office.

:

1A and 1B, Insured Loan and/or Grant-Obligation only or Obligation with Check Request.

ADPS RELATED
TRANSACTION CODE

GENERAL INSTRUCTIONS
A.

This form is used to make corrections and to request:
1.
Funds to be obligated or reserved for insured loans.
2.
Funds to be obligated for grants.
3.
Funds to be dispersed (check request) for all or part of the funds to be obligated.
4.
Certain statistical information about the loan/grant and application.

B.

A form will be completed for each note or commitment requiring an obligation of funds except for Business and Industrial
Loan Program where only one Form RD 1940-1 is required regardless of how many multiple notes or communications are
associated with the loan.
(Obligations, requested by telephone) When authorized by program instructions, the Finance Office Check Request Station
may be used to obligate or reserve funds. (Reserved funds represent a firm commitment to obligate funds on a specific
future date). The loan types that can be obligated by telephone are identified in Item 18 Instructions for Preparation, by a
footnote.

C.

This form is used to obtain certification and approval of credit sale or assumption, when required by program instruction.
For a credit sale or assumption without a loan, complete Items 1 through 27 and applicable Items 30 through 34, Item 24
strike through “Amount of Loan” and insert applicable wording “Amount of Credit Sale” or "Amount of Assumption” and
complete appropriate certification requirements. Item 17 will reflect type of assistance that is being assumed.

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-4- (Forms Manual Insert - Form RD 1940-1)

(General Instructions - continued)

D.

When a request for obligation of a project of community-wide interest and benefit is made, the State Office will furnish
to the National Office Exhibit A or B to RD Instruction 2015-C. Immediately after the Finance Office notifies the State
Director of the obligation date, the State Director will advise the Director of Information in the National Office that the
project announcement may be released.

E.

Appeal actions relative to loan/grant decisions reversed in accordance with 7 CFR Part II requires the effective
date of the action to be taken will be the originally proposed date of the initial decision from which the appeal was
taken. For all loan/grant approvals based on the reversal of an initial decision, the date in Item 27 will be the effective
date the initial action would have been taken, and the interest rate (Item 28) is the rate in effect as of the date indicated
in Item 27. The date to be inserted in Item 37 will be the date the form is signed by the approval officer who will be the
official reversing the appeal action.
INSTRUCTION FOR PREPARATION

Item 1

Enter Borrower's Case Number
For individuals (who are not business applicants), show the State and County code numbers followed by the Social
Security Number (SSN).
For organization and individual business applicants, show the State and County code numbers followed by the
taxpayer's identification (ID No.). When an applicant has not received a taxpayer ID No., a temporary number from the
block of numbers assigned to each State Office by the Finance Office will be used. Any temporary number assigned
must be replaced by the taxpayer's ID No. Form RD 450-10, "Advice of Borrower's Change of Address, Name, Case
Number, or Loan Number," must be processed through the field office terminal system, prior to loan closing. Only one
case number will be assigned to each borrower regardless of the type of loans or grants or number of separate facilities
unless an exception is authorized by the National Office. When an applicant has an existing case number other than its
taxpayer ID No., all existing case numbers will be changed to the taxpayer ID No. In this case, new loan number(s)
will be assigned to the loan(s) and grant(s) of the borrower in order of closing dates starting with the earliest at the
same time the existing case numbers are being changed to the taxpayer ID No. This should be accomplished prior to the
assigning of the loan number(s) for the new obligation(s). Follow the format shown below to complete the borrower's
case number.
Example:

Assigned Identification Number

3001 2000 0234567

Social Security or Tax ID

30012012 3 4567 89

Finance Office to assign ID

30012

FO Assign

Item 2

Enter the applicant's last name (comma, no space), first name or initial (space), middle name or initial. If the full name
will not fit in field no 1, show last name (comma) in field no. 1, show first name or initial and middle name or initial in
field no. 2. Names of all borrowers signing the Promissory Note must appear in this item, cosigners excluded. Enter
name of non-individual applicants with at least one space (no comma) between each word. Do not split a name between
two fields.
Example:

Individual Benjamin Edward McClydefester Jr. and his wife Mary
M C C L Y D E F E S T E R
B E N J AM I N

J R .

(2)

E

M C C L YD E F E S T E R , M A R Y

Example:

(1)

(3)

The Company of Washington, Whampler, and Owens Machine Tool Distributors Incorporated.
W A S H I N G T ON
A ND
T OO L

OWE N S
D I S T

W H A MP L E R
M A C H
I N C

(1)
(2)
(3)

(Instructions For Preparation - continued)

Item 3

Enter the number of name fields (lines) used to complete the borrower's name from Item 2.
Example:

Item 4

M I S S OU R I

Enter the county name.
Example:

Item 6

3

Enter the state name.
Example:

Item 5

(Forms Manual Insert - Form RD 1940-1) -5-

W A YN E

Enter applicable code for all guaranteed applicants.
1 - White, not of Hispanic Origin
2 - Black, not of Hispanic Origin
3 - American Indian or Alaskan Native
4 - Hispanic
5 - Asian or Pacific Islander
Example:

1

For Individual Type applicants complete only after the applicant's signature (when required) has been obtained and not
in the applicant's presence. Do not enter applicable code on applicant's copy.
For All Community Program applicants leave this item blank.
For All Other Organizational (Entity) Type applicants enter major portion of the organization - over 51 percent owned,
operated and managed on a day-to-day basis. If the major portion (51 percent) cannot be determined for B&I
applicants, NNC and IRP applicants, this item may be left blank.
Item 7

Enter applicable Code:
1 - Individual
2 - Partnership
3 - Corporation
4 - Public Body
5 - Association of Farmers
6 - Organization of Farmers
7 - Nonprofit - Secular
8 - Nonprofit - Faith Based
9 - Other
Example:

4

Item 8

Enter applicable Collateral Code:
1 - Real Estate Secured
2 - Real Estate and Chattel
3 - Note only or Chattel only
4 - Machinery only
5 - Livestock only
6 - Crops only
7 - Secured by Bonds
8 - Revolving Loan Fund Account

Item 9

Leave blank if none, or enter the Employee Relationship Code
0 - No relationship (use only for transfers at the same rate and terms)
1 - Employee
2 - Member of family
3 - Close relative
4 - Associate

(06-28-10) SPECIAL PN

-6- (Forms Manual Insert - Form RD 1940-1)

(Instructions For Preparation - continued)

Item 10 Enter applicable code for all insured loan/grant and credit sale applicants.
1 - Male (sole applicant)
2 - Female (sole applicant)
3 - Family unit (male-female as co-applicants, not counted under code 1 or 2)
4 - Organization - Male-owned (over 51 percent male-owned, operated, and managed on a day-to-day basis)
5 - Organization - Female-owned (over 51 percent female-owned, operated, and managed on a day-to-day
basis)
6 - Public Body
Example:

2

For Individual Type applicants enter applicable code 1 through 3.
For All Other Organizational (Entity) Type applicants enter major portion of the organization - over 51 percent owned,
operated and managed on a day-to-day basis. If the major portion (51 percent) cannot be determined for B&I
applicants, this item may be left blank.
Item 11 Enter applicable code:
1 - Married
2 - Separated
3 - Unmarried (including widowed or divorced)
Complete for insured loan/grants or credit sales to individuals only.
Example:

1

Item 12 Enter applicable code:
1 - Yes
2 - No
Complete for insured loan/grants or credit sales to individuals only.
Example:

1

Item 13 Enter applicable code:
1 - Yes
2 - No
Enter code 1 if a credit report was ordered in accordance with RD Instruction 1910-C for group loan and grant
applications, and the cost of the credit report is to be deducted from the borrower's first check.
Enter code 2 in all other cases. Code 2 will always be used for individual loans for which credit reports were ordered in
accordance with RD Instruction 1910-B (requiring collection of a nonrefundable credit report fee). Code 2 may be used
for group loans and grants where the credit report fee was collected from the applicant and will not be deducted from
the first loan or grant check.
If a correction is needed see FMI for Form RD 440-57.
Example:
Item 14

1

Enter code 1, 2, or 3, as appropriate, for all credit sales and other loan types.
1 - County Office (Direct payment coupons generated by Finance Office and payments made through
County Office via Concentration Banking System)
2 - Finance office (Direct payment coupons made to Finance Office by borrower via lockbox)
3 - No (Not on Direct payment)
Example:

2

(Instructions For Preparation - continued)

(Forms Manual Insert - Form RD 1940-1) -7-

Item 15 Enter the applicable:
1 - Monthly
2 - Annually
3 - Semiannually
4 - Quarterly
The amount of installments on a subsequent loan will be determined using the same type of installment plan (monthly
or annually) as used on the initial loan and credit sale. Use the applicable definition of an initial loan appearing in the
program instructions.
Example:

2

Item 16 Enter applicable code:
1 - Yes
2 - No

Example:

2

Item 17 Enter applicable code for Housing Preservation Grant (HPG) types only.
1 - Housing assistance is made in a community with a population of 10,000 or less.
2 - Housing assistance is made in a community with a population over 10,000.
Example:

1

Item 18 Enter applicable code to indicate primary purpose of the loan.
For Farmer Program loans:
08 - Annual Living and/or Operating Expense
09 - Equipment/Livestock Chattel Purchase
10 - Farmer Program Real Estate Program
11 - Capital Improvement/Construction Costs
12 - Refinance FmHA Insured Farmer Program Debt
13 - Reserved
14 - Refinance Debt from a different Creditor
15 - Small Business Assistance
Example:

0 8

(06-28-10) SPECIAL PN

-8- (Forms Manual Insert - Form RD 1940-1)
Item 19

(Instructions for Preparation - continued)

Enter the applicable code from the tables below:
FARMER PROGRAM LOANS

FARM OWNERSHIP AND RELATED LOANS

OPERATING TYPE CREDIT

Farm Enterprise Loans:
Regular:
036 FO-FE-Regular
031 FO-FE-Regular-SDA-Ethnic
124 FO-FE-Regular-SDA-Gender

Youth Loans:
151 OL-Youth-1
152 OL-Youth-1
052 OL-Youth-7
107 OL-Youth-7

Limited Resource:
034 FO-FE-Limited Resource
030 FO-FE-Limited Resource-SDA-Ethnic
125 FO-FE-Limited Resource-SDA-Gender

Beginning Farmer Loans:
Regular:
209 OL-Beginner Farmer-Regular-1
210 OL-Beginner Farmer-Regular-1
211 OL-Beginner Farmer-Regular-7
212 OL-Beginner Farmer-Regular-7

Beginning Farmer:
203 FO-FE-Beginner Farmer-Regular
205 FO-FE-Beginner Farmer-Regular-SDA-Ethnic
206 FO-FE-Beginner Farmer-Regular-SDA-Gender
204 FO-FE-Beginner Farmer-Limited
207 FO-FE-Beginner Farmer-Limited-SDA-Ethnic
208 FO-FE-Beginner Farmer-Limited-SDA-Gender
Beginning Farmer Down Payment:
200 FO-Beginning Farmer-Down Payment
201 FO-Beginning Farmer-Down Payment-SDA-Ethnic
202 FO-Beginning Farmer-Down Payment-SDA-Gender
Other Farm Enterprise Loans:
033 FO-FE-Debt Adjusted
Non-Farm Enterprise:
037 FO-NFE-Regular
044 FO-NFE-SDA-Ethnic
126 FO-NFE-SDA-Gender
035 FO-NFE-Limited Resource
Other Loan Programs:
038 Soil and Water
109 Soil and Water-Limited Resouce
110 Farm Ownership Credit Sale
040 Grazing Loan-Association
042 Indian land Acquisition
043 Indian Land Acquisition-Limited Resource

EMERGENCY TYPE CREDIT
056 EM-Actual Loss-Real Estate Purpose
060 EM-Citrus Grove Rehabiliation/Reestablishment
092 EM-Actual Loss-Operating Purpose

Year
Year-SDA
Year
Year-SDA

Limited Resource:
217 OL-Beginner
218 OL-Beginner
219 OL-Beginner
220 OL-Beginner

Farmer-Limited
Farmer-Limited
Farmer-Limited
Farmer-Limited

Year
Year-SDA
Year
Year-SDA

Resource-1
Resource-1
Resource-7
Resource-1

Year
Year-SDA
Year
Year-SDA

Beginning Farmer Special Assistance:
213 OL-Beginning Farmer-Regular-Special Assistance-1 Year
214 OL-Beginning Farmer-Regular-Special Assistance-1 YearSDA
215 OL-Beginning Farmer-Regular-Special Assistance-7 Year
216 OL-Beginning Farmer-Regular-Special Assistance-7 YearSDA
221 OL-Beginning Farmer-Limited Resource-Special Assistance1 Year
222 OL-Beginning Farmer-Limited Resource-Special Assistance1 Year-SDA
223 OL-Beginning Farmer-Limited Resource-Special Assistance7 Year
224 OL-Beginning Farmer-Limited Resource-Special Assistance7 Year-SDA
Non-Beginning Famer Loans:
Regular:
112 OL-Regular (Except Youth)-1
104 OL-Regular (Except Youth)-1
051 OL-Regular (Except Youth)-7
106 OL-Regular (Except Youth)-7

Year
Year-SDA
Year
Year-SDA

Limited Resource:
117 OL-Limited Resource-1 Year
119 OL-Limited Resource-1 Year-SDA
050 OL-Limited Resource-7 Year
105 OL-Limited Resource-7 Year-SDA
047 OL-Limited Resource-Delinquent Borrower
102 OL-Limited Resource-Delinquent Borrower-SDA
Other:
046 OL-Disaster Assistnace
049 OL-Debt Adjusted

(Instructions for Preparation - continued)

(Forms Manual Insert - Form RD 1940-1) -9-

COMMUNITY FACILITIES PROGRAMS

Loan Only
075
077
142
306

Community Facility Loan 1/ 2/
Community Health Center “HHS” 1/ 2/
EZ/EC Community Facility Loan 1/ 2/
Disaster – Community Facility Direct Loan 1/ 2/

Simultaneous Loans and Grants
238 Community Facility Loan and Grant 1/ 2/
239 Community Facility Grant concurrent with Guaranteed
Loan 1/ 2/
250 EZ/EC – Community Facility Loan and Grant 1/ 2/
272 EZ/EC – Community Facility Grant concurrent with
Guaranteed Loan 1/ 2/
307 Disaster – Community Facility Loan and Grant 1/ 2/

Grant Only
086 EDA 3/
097 Appalachian Regional Commission – CF 3/
237 Community Facility Grant 1/ 2 /
242 EZ/EC Community Facility Grant 1/ 2/
294 Rural Community Development Initiative Grant 1/ 2/
301 Tribal College Initiative Grant 1/ 2/
303 Economic Impact Initiative Grant 1/ 2/
305 Disaster – Community Facility Grant 1/ 2/
325 Economic Impact Initiative Planning Grant 1/ 2/
354 Delta Regional Commission Grant – CF 3/
361 Appropriations Earmark Grants 1/ 2/
393 Rural Cooperative Home Based Health Demonstration
planning 1/ 2/
394 Rural Cooperative Home Based Health Demonstration
Revolving Loan fund 1/ 2/
417 Delta Regional Authority – RCAP 1/2/

RURAL BUSINESS-COOPERATIVE PROGRAMS

Loan
071
076
079
091
094
143
144
187
188
227
228
316
317
387
489

Only
Nonprofit Nat’l Corporations Loan 1/ 2/
Rural Business and Industry Loan 1/ 2/
Intermediary Relending Program (IRP) 1/ 2/
B&I Drought and Disaster 1/ 2/
B&I Disaster Assistance for Rural Business
Enterprises 1/ 2/
EZ/EC – Business and Industry Loan 1/ 2/
EZ/EC – Intermediary Relending Program 1/ 2/
B&I Disaster 1/ 2/
Disaster – Intermediary Relending Program 1/ 2/
Rural Economic Development Loan – Electric 1/ 2/
Rural Economic Development loans – Telephone 1/ 2/
IRP – Native American Tribes 1/ 2/
IRP – Mississippi Delta 1/ 2/
IRP Delta Regional Authority 1/ 2/
Rural Microentrepreneur Assistance Program - Loan

Grant Only
078 Nonprofit Nat’l Corporations Grants 1/ 2/
081 Rural Business Enterprise Grants (RBEG) 1/ 2/
086 EDA 3/
134 Rural Cooperative Development Grants (RCDG) 1/ 2/
135 Value Added Development Grant 1/ 2/
136 Agricultural Marketing Resource Center Grants 1/ 2/
145 EZ/EC – Rural Business Enterprise Grants 1/ 2/
155 Television Demonstration Grants 1/2/
159 Rural Business Opportunity Grant (RBOG) 1/ 2/

(06-28-10) SPECIAL PN

Grant Only (Continued)
189 Appropriate Technology Transfer to Rural Areas 1/ 2/
229 Rural Economic Development Grants (Electric) 1/ 2/
230 Rural Economic Development Grants (Telephone) 1/ 2/
248 National Sheep Industry Improvement Center Grant 1/2
252 RBEG – Passenger Transportation 1/ 2/
258 Appalachian Regional Commission Grants – BP 1/ 2/
288 EZ/EC – Rural Business Opportunity Grants 1/ 2/
289 RCDG – Assist Minority Producers 1/2
290 Rural Business Opportunity Grants – REAP 1/ 2/
296 RCDG - Coop Research Agreement 1/ 2/
310 Native American Tribes – RBEG 1/ 2/
311 Native American Tribes – RBEG
Technical Assistance for Rural Transportation 1/ 2/
312 Native American Tribes – RBOG 1/ 2/
313 Mississippi Delta – RBEG 1/ 2/
314 Mississippi Delta – RBOG 1/ 2/
320 Agricultural Innovation Center 1/ 2/
355 Delta Regional Authority Grants – RBEG 1/ 2/
358 Renewable Energy Systems Grant 1/ 2/
370 Energy Efficiency Improvements Grant 1/ 2/
385 Delta Regional Authority Grants – RBOG 1/ 2/
386 Delta Regional Authority Grants – RCAP 3/
388 Agricultural Marketing Resource Center Grants –
Discretionary 1/ 2/
389 Value-Added Producer Development Grants –
Discretionary 1/ 2/
487 Rural Microentrepreneur Assistance Grants
488 Rural Microenterprise Development Organization
Grants

-10- (Forms Manual Insert - Form RD 1940-1)

(Instructions for Preparation - continued)

WATER AND ENVIRONMENTAL PROGRAMS

Loan Only

Grant Only (continued)

061
062
063
072
073
074
162
163
164
181
182
183

122

Domestic Water Only 1/ 2/
Waste Disposal and/or Sewage Treatment Only 1/ 2/
Combination Water and Waste projects 1/ 2/
Resource Conservation and Development 1/ 2/
Watershed (P.L. 566) 1/ 2/
Flood Prevention (P.L. 534) 1/ 2/
EZ/EC Domestic Water Only 1/ 2/
EZ/EC Waste Disposal Only 1/ 2/
EZ/EC Combination Water and Waste Project 1/ 2/
Disaster – Domestic Water Only 1/ 2/
Disaster – Waste Disposal Only 1/ 2/
Disaster – Combination Water and Waste Project 1/ 2/

131
132
133
165
166
167
171
172
173

Simultaneous Loans and Grants
067 Domestic Water Only 1/ 2/
068 Waste Disposal and/or Sewage Treatment Only 1/ 2/
069 Combination Water and Waste Projects 1/ 2/
168 EZ/EC – Domestic Water Only 1/ 2/
169 EZ/EC – Waste Disposal Only 1/ 2/
170 EZ/EC – Combination Water and Waste 1/ 2/
192 Disaster – Domestic Water Only 1/ 2/
193 Disaster – Waste Disposal Only 1/2/
194 Disaster – Combination Water and Waste 1/ 2/
Grant Only
064 Domestic Water Only 1/ 2/
065 Waste Disposal and/or Sewage Treatment Only 1/ 2/
066 Combination Water and Waste Projects 1/ 2/
085 Appalachian Regional Commission Grants – RUS 3/
086 EDA 3/
087 Technical Assistance and Training Grant
(P.L. 99-198) 1/ 2/
090 Agricultural Loan Mediation Program Grants 2/
093 Emergency Community Water Assistance Grants – RUS
Inst. 1778, Sec. 1778.11(b) (Limit $150,000) 1/ 2/
095 Emergency Community Water Assistance Grants – RUS
Inst. 1778, Sec. 1778.11(a) (Limit $500,000) 1/ 2/
120 Solid Waste Management Grant 1/ 2/
121 Emergency Community Water Assistance Grant
$75,000 Limit (306B Grants) 1/ 2/

TECHNICAL AND ASSISTANCE GRANTS

017
018
019
082

Rental Properties - Single/Multi-Unit (HPG)
Cooperative Housing Projects (HPG)
Individual Housing (HPG)
Technical Assistance (TA) Grant 1/ 2/
NOTE: See Form RD 1944-51 for all Multiple Family
Housing Loans and Grants
160 Technical Supr. Asst. (TSA) Grant 1/ 2/
160 Section 509 Housing Application Packaging
Grant (HAPG) 5/

184
185
186
190
191
251
285
286
287
353
373
374
375
391
392
418
419
420

Emergency Community Water Assistance Grant
$500,000 Limit (306B Grants) 1/ 2/
Rural AK Villages – Domestic Water Only 1/ 2/
Rural AK Village – Waste Disposal Only 1/ 2/
Rural AK Village – Combination Water and Waste 1/ 2/
EZ/EC – Domestic Water Only 1/ 2/
EZ/EC – Waste Disposal or Sewage Treatment 1/ 2/
EZ/EC – Combination Water and Waste 1/ 2/
Section 306C WWD Grants to Associations
Water Only 1/ 2/
Section 306C WWD Grants to Associations
Water Disposal and/or Sewage Treatment Only 1/ 2/
Section 306C WWD Grants to Associations
Combination Water and Waste 1/ 2/
Disaster – Domestic Water Only 1/ 2/
Disaster – Waste Disposal Only 1/ 2/
Disaster – Combination Water and Waste 1/ 2/
Disaster – Emergency Community Water Assistance
Grant $150,000 Limit (306A Grants) 1/ 2/
Disaster – Emergency Community Water Assistance
Grant $500,000 Limit (306A Grants) 1/ 2/
Rural; Water and Waste Disposal – Disaster
Supplemental 1/ 2/
Native American 306C – Water Only 1/ 2/
Native American 306C – Waste Disposal only 1/ 2/
Native American 306C – Combination Water and
Waste 1/ 2/
Delta Regional Grants – Water and Waste 3/
Pre-Development Planning Grants – Water Only 1/ 2/
Pre-Development Planning Grants – Waste Only 1/ 2/
Pre-Development Planning Grants –
Water and Waste 1/ 2/
Revolving Funds – Water and Waste 1/ 2/
Individually-Owned Water Well Systems Grants
Water and Waste 1/ 2/
Delta Regional Authority – RCAP, Water Only 1/2/
Delta Regional Authority – RCAP Waste Only 1/2/
Delta Regional Authority – RCAP Water & Waste 1/2/

(Instructions for Preparation - continued)

(Forms Manual Insert - Form RD 1940-1) -11-

FOOTNOTES:
1/ The National Office must be notified of requests for these loan types as required by RD Instruction 2015-C.
2/ Requires a 6-working day reservation period.
3/ Does not require a reservation period. The Finance Office Check Request Station may be used to request
obligation of funds for these assistance types.
4/ RRH association loans made for limited profit for full profit and individual type RRH loans do not require
a reservation period.
Example:

0 0 1

5/ RD Instruction 1944-B, "Housing Application Packaging Grants, " Exhibit B, "Fee Processing Instructions,"
provides for funding part of the packaging fee for Section 514 and 515 loans from program funds. The program fund
portion should be obligated on Form RD 3560-51, "Multi-Family Housing Obligation - Fund
Analysis."
Item 20

Reserved for future use. Do not complete at this time.

Item 21

Enter 2 for insured loans and credit sales. Codes 1 and 3 through 8 are reserved for guaranteed loans.

Item 22

Enter applicable code:
1 - Obligation Only
2 - Obligation/Check Request
3 - Correction of Obligation
Enter code 1 if funds are to be obligated only and no check is required. Enter code 2 if funds are to be obligated
and a check is requested at the time of obligation. If code 2 is entered, Item 26 must also be completed. Enter
code 3 to correct an obligated loan.
When code 3 is entered, complete: (1) Items 1-5, 24, or 25; (2) the loan number to be shown in the "Finance
Office Only block; (3) correct the applicable data as related to code 3 (Items 6-12, 16-18, 23, 27, 28 if the type
assistance also changed, 30-34). An attached explanation of the corrections is required
Requests for obligation of Self-Help Technical Assistance and Housing Preservation Grants must be mailed by the
field before September 10th of each fiscal year. Request for obligation of any other loan must be mailed or
telephoned, as appropriate, by the field before September 20th of each fiscal year. (In the event funds are still
available for obligation for any program at such cut-off dates, further requests for obligation may be submitted on
a case-by-case basis only after approval has been obtained from the National Office.)
Example: 1

Item 23

Enter applicable code:
1 - Initial
2 - Subsequent
Enter code 1 when the borrower (new loans or credit sale) is not currently indebted for the same project or type loan being
as appropriate for agreement with program instructions. Enter code 2 when: (1) the borrower is currently indebted for the
same type loan being made, or (2) an assumption of the same type as the loan being made will be closed simultaneously
with the loan.
Example: 1

Item 24

Enter fact amount of insured loan or credit sale (total amount if multiple credit sales) in tens of dollars.
Example:

(06-28-10) SPECIAL PN

2 5 00 0 0 0

-12- (Forms Manual Insert) - Form RD 1940-1)

(Instructions for Preparation - continued )

Item 25 Enter amount of grant in tens of dollars:
7 50 0 0

Example:

Item 26 Do not complete for "Community Facility" loans and grants, or "Association Projects."
For other loan/grant types, is a check is being requested, enter the amount of the request. Amounts must be in tens of
dollars.
Initial check requests should be scheduled so that check receipt will coincide with the scheduled loan closing date. Eight
calendar days should be used as a guide for the time elapsing between the check request and the scheduled delivery date.
Checks must be endorsed by the borrower within twenty (20) working days after the check date. Checks will not be
endorsed by the borrower prior to the date indicated on the check. Checks not issued through electronic funds transfer
will be post-dated seven (7) working days in advance of the date on the check. Checks not delivered for endorsement
by the borrower within the time frames established above must be cancelled. Reissued checks will be requested through
the use of Form RD 440-57. Approximately thirteen (13) calendar days will be required to receive the reissued check.
10 7 50 00 0

Example:

Item 27 Enter the date of loan, credit sale, or grant approvals, month, day, year. See Paragraph E under General Instructions (of
FMI) for cases involving appeals. For all programs EXCEPT Community and Business Programs, Nonprofit National
Corporation and MFH to nonprofit organizations and public bodies, this must be the same date as the dates in Item 36
and 37.
Example:

0 2 - 25 - 8 0

Item 28 Enter the interest rate in effect at the time of loan or credit sale approval. Upon request of an applicant for assistance
on eligible terms, the interest rate charge by Agency will be the lower of the rate in effect at the time of loan or credit
sale approval or loan or credit sale closing. If applicant does not indicate a choice, the loan will close at the interest rate
specified in this Item. Applicants for FP loans will indicate their choice in Item 36 of this form. Applicants
for CF and WWD assistance will indicate their preference in accordance with the letter of conditions issued at the time
of loan approval.
Example:

8 1/8 percent should be shown as

08 1 25 0

8 percent should be shown as

0 8 00 0 0

Item 29 Enter the number of year over which the loan or credit sale will be paid. For Business and Industry Loans insert the
longest maturity date of the loan or commitments (i.e. if three notes reflected 7, 15, and 30 years repayment term, insert
30 years.) No entry will be made in this item for grants.
Example:

3 3

Item 30 Enter applicable code:
1 - Full Profit
2 - Limited Profit
3 - Non-Profit
Example: 3

(Instruction for Preparation - continued)

(Forms Manual Insert - Form RD 1940-1) -13-

Item 31 Enter the appropriate disaster number associated with the note or commitment. Depending on the disaster designation,
the first digit of the code will be alphabetical. The last three digits will be numerical.
M 56 1

Example:
Item 32 Enter the type of sale code:
1 - Credit Sale Only
2 - Assumption Only
3 - Credit Sale with subsequent loan
4 - Assumption with subsequent loan
For sale code 2, a copy should not be forwarded to the Finance Office. For sale codes 1, 3, or 4, a copy should be
forwarded to the Finance Office with Item 24 reflecting the amount of the subsequent loan.
3

Example:
Item 33 Leave blank. This field will be completed by the Finance Office, Research & Re-entry Unit.
Item 34 This item will be completed to track loans made to Beginning Farmers/Ranchers. Enter the applicable code. If the
applicant is not a Beginning Farmers/Rancher, leave Blank.
A - This is a Down Payment FO loan and the balance of the purchase was financed with a guaranteed FO loan.
A State Beginning Farmer Program also provided assistance.
B - This is a Down Payment FO loan and the balance of the purchase was financed with a guaranteed FO loan.
No assistance was provided by a State Beginning Farmer Program.
C - This is a Down Payment FO loan made without an FO guaranteed but with assistance from a State Beginning
Farmer Program.
D - This is a Beginning Farmer/Rancher receiving direct FP assistance (other than a Down Payment FO loan), and
assistance was provided by a State Beginning Farmer Program.
F - This is a Beginning Farmer/Rancher receiving direct FP assistance (other than a Down Payment FO loan), and no
assistance was provided by a State Beginning Farmer Program.
Item 35 Approval Official will enter appropriate certification, comments and requirements.
Indicate in this space the specific purpose for which the loan is to be used and any conditions that must be met at or
before loan closing. If a guaranteed loan is involved, state: Approval of financial assistance is subject to the terms of
Form RD 449-14, "Conditional Commitment for Guarantee" or Form RD 1980-15, "Conditional Commitment for
Contract of Guaranteed (Line of Credit)," if a line of credit is involved. If an insured loan, credit sale or grant is involved
in which a "Letter of Conditions" is used, state: Approval of financial assistance is subject to the terms of the "Letter
of Conditions" dated.
For Community Programs applicants, in cases where initial and subsequent funding requests for the same project are
obligated in the same fiscal year for a loan at the same interest rate and maturity and will be closed using the same
security instrument, the same loan number may be assigned provided the applicant is notified of the consolidation.
Applicant notification of consolidation of the subsequent loan with the initial loan will be accomplished by including a
statement in this space for the subsequent loan request stating that the two requests will be combined into one loan and
closed using one security instrument provided State statues permit.
Loans obligated at different interest rates or in different fiscal years for the same project will not be combined into one
loan. However, grant fund requests for the same facility may be combined. Applicant notification of the consolidation
of the subsequent grant with the initial grant will be accomplished by a statement in this space for the subsequent grant
request stating that the two requests will be combined into one grant and closed using one Form RD 1942-31,
"Association Water and Sewer Grant Agreement."
If more space is needed the form will be supplemented by a memorandum.

(06-28-10) SPECIAL PN

-14- (Forms Manual Insert - Form RD 1940-1)

(Instructions for Preparation - continued)

Item 36 Applicant must sign and date the form. For an association or organization the name will be typed on line provided for
signature of the applicant. The official(s) authorized to sign for the association or organization will sign immediately
below the name of the association or organization and the official's title will be typed below the signature.
For FP loans and credit sales at eligible terms only - the applicant(s) should check off the appropriate box to
indicate whether they elect the interest rate to be charged on the loan to be the lower interest rate in effect at the time of
loan closing or loan approval. If applicant checks "No," the loan will be closed at the interest rate specified in Item 28
regardless of any change in the rates or terms which may occur subsequent to the date of loan approval.
The applicant for credit on ineligible terms (assumption or credit sale) will not sign of this item.
The first sentence of the certification will be deleted for Business and Industry Loans, Watershed Loans, Industrial
Development Grants, Labor Housing Grants, and Technical Assistance Grants. The applicant must initial the original,
acknowledging deletion of this sentence.
Item 37 Title and signature and typed or printed name of approving officer and approval date must be shown. For all programs
EXCEPT Community and Business Programs and MFH to nonprofit organizations and public bodies, this must be the
same date entered in Items 27 and 38.

Item 38 Enter the date this notice is sent to the applicant/lender. For all programs EXCEPT Community and
Business Programs and MFH to nonprofit organizations and public bodies, this must be the same date entered in Items
27 and 37.
It is mandatory for all loan/grant and credit sales programs to obtain initials on the original (above and to the right of the
date) by an Agency employee(s), designated by the State Director, to indicate that a copy of Form RD 1940-1 was sent
to the applicant. Initials on the original indicate that a notification copy of Form RD 1940-1 was distributed to the
applicant/lender on the date indicated in accordance with the Instructions.