Code of Colorado Regulations
1200 - Department of Agriculture
1204 - Markets Division
8 CCR 1204-11 - RULES PERTAINING TO THE COLORADO AGRICULTURAL FUTURE LOAN PROGRAM
Part 9 - Statement of Basis, Specific Statutory Authority and Purpose

9.1. Adopted December 8, 2021 - Effective January 30, 2022

Statutory Authority

The Commissioner of Agriculture adopts these rules pursuant to § 35-1.2-103(7)(a), (b), and (c), C.R.S.

Purpose

To create the Colorado Agricultural Future Loan Program providing funds to businesses, farmers, and ranchers to support the future of agriculture in Colorado.

To establish general eligibility requirements for the Program.

To establish application processes and procedures for the Program.

To establish processes and procedures for the review of applications and award of loan funds.

To establish processes and procedures for repayment and servicing of loans.

To establish processes and procedures for revolved funds.Factual and Policy Issues

This Commissioner adopts this Rule to fulfill the requirements of SB 21-248, which created a new "Colorado Agricultural Future Loan Program." SB 21-248 authorized the Commissioner to commence providing from $5 million to $10 million in Farm-to-Market Infrastructure Loans and Farm-to-Market Grants to Eligible Farmers and Ranchers and Eligible Businesses by June 30, 2022 and from $10 million to $20 million in Low Interest Loans to Eligible Farmers and Ranchers, and Eligible Businesses by December 31, 2022, and required the Commissioner to establish the program, including specifying the application process, the loan award and distribution process, and the criteria to be used.

In developing these Rules, the Department reviewed policies and program guidelines of previous loan programs administered by the Colorado Department of Agriculture as well as those administered by comparable entities. The Department also conducted listening sessions with agricultural stakeholders relating to the Colorado Agricultural Future Loan Program as well as sought stakeholder input on this Rule as adopted to help inform this rulemaking process.

9.2. Adopted July 10, 2024 - Effective August 30, 2024

Statutory Authority

The Commissioner of Agriculture adopts these rules pursuant to § 35-1.2-103(7)(b) and (c), C.R.S.

Purpose

To adapt the rule to meet legislative changes indicated in SB23-050.

To clarify CDA responsibilities related to the application process.

To clarify Financial Entity responsibilities related to the application process.

To ensure the application process is in alignment with the practical requirements of originating and servicing loans via a Financial Entity.

Factual and Policy Issues

This Commissioner amends this Rule to harmonize the requirements of the rule with modifications the General Assembly made to 35-1.2-101, et seq., C.R.S., in the 2023 legislative session. Senate Bill 23-050. These amendments include: adding a requirement that CDA ensure applicants approved for loans or grants meet the requirements for "eligible business" and "eligible farmers or ranchers," as defined at 35-1.2-102(5) and (6), C.R.S., which terms were amended in the 2023 session; removing references to mandatory spending provisions in part 1.4, which were repealed, effective January 1, 2023 (see SB 21-248); and amending the definitions of "eligible business" and "eligible farmer or rancher" to include the prospective provisions.

To comport the rule to the amended version of the statute, the reviewers re-organized the rule to set apart a newly named Part 3, "Loan Eligibility and Prioritization," moving parts of the old Part 3 into Part 4, which itself clarifies the distinct role of the Financial Entity, separately from the role of the Department of Agriculture.

The reviewers updated the rules to include criteria added to the definitions of "eligible business" and "eligible farmer or rancher," which both now include provisions for prospective consideration - prospective ownership and prospective income.

In reviewing the rule, the reviewers further updated provisions in Part 5 to be consistent with economic and practical matters that have caused changes to the program's functions.