Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Individuals. To be eligible for a loan under this chapter, the
applicant, if an individual, shall be:
(1) A
resident of this Commonwealth or show sufficient evidence that he intends to
become a resident.
(2) An active
resident operator or resident manager of the farm.
(3) Sufficiently educated, trained or
experienced to carry out the project and shall certify that he will participate
in the project for the duration of the loan period.
(4) Able to prove and document that the
farmland or farm enterprise for which the loan is acquired is located in this
Commonwealth.
(5) Able to
demonstrate the proceeds of the loan will be used for eligible sustainable
agriculture purposes as defined in the act and this chapter and that all loan
proceeds will be used exclusively for sustainable agriculture purposes in
Commonwealth farming operations only.
(6) Creditworthy.
(b)
Family farm partnership.
To be eligible for a loan under this chapter, if a family farm partnership, the
applicant's principal operating or managing partners shall:
(1) Be residents of this Commonwealth or
demonstrate they intend to become residents.
(2) Have no more than three unrelated
members.
(3) Have at least one
member residing on or actively operating or managing the farm.
(4) Demonstrate the applicant or the
principal operating or managing partners thereof have sufficient education,
training or experience to carry out the sustainable agriculture project
proposed in the loan application and shall certify he will participate in the
project for the duration of the loan period.
(5) Be able to prove and document that the
farmland or farm enterprise for which the loan is acquired is located in this
Commonwealth.
(6) Be able to
demonstrate the proceeds of the loan will be used for eligible sustainable
agriculture purposes as defined in the act and this chapter and that all loan
proceeds will be used exclusively for sustainable agriculture purposes in
Commonwealth farming operations only.
(7) Be creditworthy.
(c)
Family farm corporation.
To be eligible for a loan under this chapter, the applicant, if a family farm
corporation, shall meet the following requirements:
(1) The family farm corporation shall be
incorporated or registered to do business in this Commonwealth.
(2) The principal operating or managing
members or shareholders of the family farm corporation shall be residents of
this Commonwealth or show sufficient evidence that they intend to become
residents.
(3) At least one of the
majority stockholders of the family farm corporation shall reside on or
actively operate or manage the farm.
(4) None of the shareholders of the family
farm corporation may be corporations.
(5) The applicant or the principal operating
or managing members or shareholders of the family farm corporation shall have
sufficient education, training or experience to carry out the sustainable
agriculture project proposed in the loan application and shall guarantee he or
they will participate in the project for the duration of the loan
period.
(6) The family farm
corporation shall demonstrate that the farmland or farm enterprise for which
the loan is acquired is located in this Commonwealth.
(7) The family farm corporation shall be able
to demonstrate the proceeds of the loan will be used for eligible sustainable
agriculture purposes as defined in the act and this chapter and that all loan
proceeds will be used exclusively for sustainable agriculture purposes in
Commonwealth farming operations only.
(8) The family farm corporation shall be
creditworthy.
(d)
Corporate farm. To be eligible for a loan under this chapter,
the applicant, if a corporate farm, shall meet the following requirements:
(1) The corporate farm shall be incorporated
or registered to do business in this Commonwealth.
(2) The principal operating or managing
members or shareholders of the corporate farm shall have sufficient education,
training or experience to carry out the sustainable agriculture project
proposed in the loan application and shall guarantee the corporation will
participate in the project for the duration of the loan agreement.
(3) The corporate farm shall demonstrate that
the farm enterprise owns or leases farmland in this Commonwealth.
(4) The corporate farm shall be able to
demonstrate the proceeds of the loan will be used for eligible sustainable
agriculture purposes as defined in the act and this chapter and that all loan
proceeds will be used exclusively for sustainable agriculture purposes in
Commonwealth farming operations only.
(5) The corporate farm shall be
creditworthy.
(e)
Nonprofit educational institution. A nonprofit educational
institution is not eligible for a loan.
This section cited in 7 Pa. Code §
130c.18 (relating to review of a
loan application).