RCD No-Cost Extension Request Process

Current as of:

This page provides Rural Community Development (RCD) recipients with information on the no-cost extension (NCE) process and an overview of how to submit an NCE request if one is needed. This page also provides a downloadable template recipients may use to complete the cover letter that is required with the NCE request.

What is a No-cost Extension for an RCD Grant Recipient?

A no-cost extension (NCE) allows an RCD grant recipient to extend the budget end date and project period up to 12-months for the sole purpose of completing approved grant activities.

Note: A recipient can spend their remaining grant funds during the extension period on authorized activities because the budget period is extended. This one-time extension may not be exercised merely for the purpose of using unobligated balances.

When Should an NCE be Requested?
Recipients must submit an NCE request in GrantSolutions at least 10-calendar days prior to the end of the project and budget period. [Reference: 45CFR § Part 75.308(d)(2) — Revision of Budget and Program Plans].
What Should I Consider Before Submitting an NCE Request?

If a recipient believes the proposed grant activities will not be completed project period, the recipient should contact their Office of Community Services (OCS) Program Specialist by June 30th to discuss whether an NCE is needed. The recipient should be prepared to discuss the following:

  • The grant activities, goals, and objectives in their approved project proposal that have not been completed during the original project period and why;
  • There is a reasonable expectation that extending the project period will lead to project completion; and
  • That additional funding is not required to complete the unmet project goals.

Note: A recipient should initiate this discussion in advance of the 10-calendar day submission deadline to allow for time to discuss and plan for submitting the request.

What Do I Include in My NCE Request?

The NCE request must include the following:

  • Cover letter with signature of the authorizing official. The letter must include:
  • Grant Number
  • Remaining grant balance
  • Requested revised expiration date (recommended one year)
  • Supporting reasons for request
  • Description of the approved grant activities that remain unmet as they relate to approved goals and objectives
  • The proposed project activities planned and currently unmet
  • Indication that the funds will be used to complete activities which were approved, but not completed by the end of the project period. Note: The NCE allows for time to complete the project and meet objectives and goals, this includes drawing down the necessary funds.
  • SF-424 cover sheet signed by the authorized official
  • SF-424A — Budget Information and a Budget Narrative: There is a column for the current budget levels for each category that is on your Notice of Grant Award (NOA).

A downloadable template (DOCX) that recipients may use to complete the cover letter is available at the bottom of this page.

How is an NCE Requested?

To request an NCE, a recipient is required to prepare and submit a formal NCE Request through the Manage Amendment section in GrantSolutions at least 10-calendar days prior to the end of the project period.

For instructions on how to submit an amendment in GrantSolutions, refer to the following resources:

Note: After submitting the amendment, the grantee should follow up with the OCS Program Specialist via email and add a GrantNote to let them know it has been submitted.

Who Approves an NCE Request?

The assigned OCS Program Specialist and Office of Grants Management (OGM) Grants Management Specialist review the NCE Request submitted in GrantSolutions to approve or deny the request.

If the NCE is approved, a new Notice of Grant Award (NOA) is generated by OGM and the recipient will be notified via GrantSolutions. Recipients can review GrantSolutions or follow-up with their Program Specialist to check in on the status of their NCE Request.

What if the NCE Request is Not Approved?

If the NCE is denied, should procedure to close-out grant procedures.