July 7, 2006
SUBJECT: Dates – Work Plan Completion, Loan Cutoff, and Form 7
TO: All Electric Programs’ Distribution Borrowers
FROM: James R. Newby
The Rural Development Utilities Programs, Electric Programs has conducted a review of its
procedures in 7 CFR 1710 with regard to dates associated with a distribution borrower’s loan
application; namely, the work plan effective date, loan cutoff date and Form 7 date. Based upon
its review, the following procedures have been developed:
1) The approval of the work plan will establish its effective date, which would typically be
within one month of the date of its approval, i.e., the end of the previous month or the end
of the current month.
2) A loan application received date (APR date) which is established within 6 months of the
work plan effective date can use the work plan’s effective date as the cutoff date for the
3) If the APR date will be more than 6 months after the work plan effective date, the
borrower must use a cutoff date that is no more than 3 months before the loan
application’s APR date.
4) Should a cutoff date other than the effective date of the work plan be required, an
analysis of completed work plan projects will be performed to properly identify those
projects in the work plan which are now possible reimbursement projects and those that
continue to be proposed projects.
5) The Form 7 submitted with a loan application shall contain the most recent data available
which shall not be more than 90 days old when received by the Electric Programs.
These changes are intended to simplify the process of submitting distribution borrower’s loan
applications, which have required revisions to the status of work plan projects shortly after the
approval of the work plan. Revisions to the Code of Federal Regulations, Bulletins, etc., that are
required in connection with the implementation of the procedures