7 CFR § 1734.6 - Disbursement of loans and grants.

---
identifier: "/us/cfr/t7/s1734.6"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1734.6 - Disbursement of loans and grants."
title_number: 7
title_name: "Agriculture"
section_number: "1734.6"
section_name: "Disbursement of loans and grants."
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1734"
part_name: "DISTANCE LEARNING AND TELEMEDICINE LOAN AND GRANT PROGRAMS"
positive_law: false
currency: "2026-03-24"
last_updated: "2026-03-24"
format_version: "1.1.0"
generator: "[email protected]"
authority: "7 U.S.C. 901  and 950aaa"
regulatory_source: "82 FR 55925, Nov. 27, 2017, unless otherwise noted."
cfr_part: "1734"
---


# 1734.6 Disbursement of loans and grants.

(a) For financial assistance of $100,000 or greater, prior to the disbursement of a grant and a loan, the recipient, if it is not a unit of government, will provide evidence of fidelity bond coverage as required by 2 CFR part 200, which is adopted by USDA through 2 CFR part 400.

(b) Grants and loans will be disbursed to recipients on a reimbursement basis, or with unpaid invoices for the eligible purposes contained in this subpart, by the following process:

(1) An SF 270, “Request for Advance or Reimbursement,” will be completed by the recipient and submitted to RUS not more frequently than once a month;

(2) RUS will review the SF 270 for accuracy when received and will schedule payment if the form is satisfactory. Payment will ordinarily be made within 30 days; and

(c) The recipient's share in the cost of the project must be disbursed in advance of the loan and grant, or if the recipient agrees, on a pro rata distribution basis with financial assistance during the disbursement period. Recipients will not be permitted to provide their contributions at the end of the project.

(d) A combination loan and grant will be disbursed on a pro rata basis based on the respective amounts of financial assistance provided.