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What's New: Government Affairs

Federal Agency Proposes Rule Requiring Bonding for Construction Loan Guarantees

Tuesday, September 27, 2016  
  Federal Agency Proposes Rule Requiring Bonding for Construction Loan Guarantees 

The Economic Development Administration (EDA) has proposed revised regulations that would implement a law authorizing loan guarantees for small- and medium-sized manufacturers for the use or production of innovative technologies. If the loan that is being guaranteed will finance construction, the lender must use a construction management company or the borrower must supply a 100% payment and performance bond and builder’s risk insurance, unless waived by EDA.

Members should visit Government Relations / General Info (Members) for more information.



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