7 CFR § 1740.42 - Interest rates.

---
identifier: "/us/cfr/t7/s1740.42"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "7 CFR § 1740.42 - Interest rates."
title_number: 7
title_name: "Agriculture"
section_number: "1740.42"
section_name: "Interest rates."
chapter_name: "RURAL UTILITIES SERVICE, DEPARTMENT OF AGRICULTURE"
part_number: "1740"
part_name: "RURAL ECONNECTIVITY PROGRAM"
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. 1981(b)(4), 7 U.S.C. 901  7 U.S.C. 950aaa  and 7 U.S.C. 950cc."
regulatory_source: "86 FR 11609, Feb. 26, 2021, unless otherwise noted."
cfr_part: "1740"
---


# 1740.42 Interest rates.

Interest rates for the different funding options that will become available will be included in the *Federal Register* as part of the funding announcement opening a funding window.

(a) Direct cost-of-money loans shall bear interest at a rate equal to the cost of borrowing to the Department of Treasury for obligations of comparable maturity.

(b) The agency may offer 100 percent loans at a reduced interest rate, and in such cases, the applicable interest rate will be stated in the *Federal Register* or applicable funding opportunity notice.