United States Department of Agriculture
PN 654: Changes to RD Instruction 440.1 and Forms RD 1940-1
February 4, 2026
Summary
This Procedure Notice updates USDA Rural Development (RD) manual instructions regarding interest rates, guarantee fees for community and business programs, and specific form requirements. Key changes include revised fee structures and mandatory updates to RD 1940-1 and RD 3560-8 forms, the latter now accounting for unborn children in household eligibility and HUD-mandated inflationary adjustments.
PROCEDURE NOTICE
RD MANUAL CHANGES
INSERT RD INS 440.1 INTEREST RATES, AMORTIZATION, GUARANTEE FEE, ANNUAL CHARGE, AND FIXED PERIOD. This Instruction is partially revised as follows:
Exhibit B is revised to update the Treasury Judgement rate and the effective date of February 1, 2026.
Exhibit K is revised to update the Guarantee Community Facilities to 1.25% and the Guarantee Business and Industry to 3%.
| REMOVE | INSERT |
|---|---|
| Exhibits B & K dated 01-16-26. | Exhibit B revised; and Exhibit K revised 02-04-26. |
FORM REPLACEMENT
RD 1940-1 (WSAL) REQUEST FOR OBLIGATION OF FUNDS dated 02-26. Prescribed in RD instructions 1902-A, 1942-A, 1942-G, 1944-B, 1944-I, 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. The Form and FMI are revised and updated. The Form and FMI can be located on the eForms website eForms Home (usda.gov).
| REMOVE | INSERT |
|---|---|
| FMI dated 01-26-05. | FMI revised 02-04-26. |
RD 3560-8 (WSAL) TENANT CERTIFICATION dated 02-26. Prescribed in RD Handbook HB-2-3560. The Form and FMI are revised to include instructions for considering an unborn child(ren) as a household member for both unit size and determining income eligibility.
Also included are changes to reflect the HUD inflationary rate adjustments to assets, passbook rate, elderly deduction, and dependent deduction amounts. The Form and FMI can be located on the eForms website eForms Home (usda.gov).
| REMOVE | INSERT |
|---|---|
| FMI dated 04-18-25. | FMI revised 02-04-26. |
oOo
Source: https://www.rd.usda.gov/media/file/download/pn654.pdf
Common questions
- What does "PN 654: Changes to RD Instruction 440.1 and Forms RD 1940-1" cover?
- This Procedure Notice updates USDA Rural Development (RD) manual instructions regarding interest rates, guarantee fees for community and business…
- Which agency issued this update?
- This update was issued by United States Department of Agriculture.
- When was it published?
- It was published on February 4, 2026.