Current through Register Vol. 54, No. 44, November 2, 2024
(a)
Evaluation. The Board will evaluate the application based on
the applicant's eligibility as set forth in §
130c.17 (relating to applicant
eligibility).
(b)
Ranking. No single factor will be paramount. In rendering a
decision, the Board will rank the application based on the following criteria:
(1)
Financial
responsibility. Financial responsibility reflecting the ability of the
applicant to meet and satisfy all debt service as it becomes due and payable,
continue farm operations and protect the Department against undue risk. The
applicant's cash flow history, total assets controlled, equity owned,
contingent liabilities and history of earnings to date are significant measures
of financial responsibility.
(2)
Collateral offered on available security. The requirement of
collateral and collateral taken shall reasonably protect the Department,
provide the necessary control of equity and repayment and leave the applicant
in a position to reasonably manage the farm operation. The applicant's ability
to give the Department a first position in terms of a lien on collateral or to
share a first position, will be given great weight.
(3)
Repayment capacity. The
relevant criminal and credit history and ratings of the applicant as determined
from credit reporting services and other sources.
(4)
Tax obligations. The
payment to date of all tax obligations due and owing by the applicant to the
Commonwealth or any political subdivisions thereof.
(5)
Projected use. The
manner in which loan proceeds will be utilized in furthering sustainable
agriculture in this Commonwealth. This encompasses the goals of the project,
its impact on agriculture, the environment and society, its ability to increase
farm profitability and productivity, and the potential for success of the
project.
(6)
Capital needs
(amount of the loan). The Board will look at the capital needs of the
applicant in light of available funds.
(7)
Farming practices. The
intent to use practices that would improve soil fertility, lower the cost of
production, cause the optimum and environmentally compatible use of off-farm
inputs, such as chemical or synthetic fertilizers or pesticides, or otherwise
promote sustainable agriculture. These practices are further explained and
defined in §
130c.19 (relating to eligible
uses).
(c)
Discretion. The Board may exercise its judgment in reviewing
applications and in determining the amount of each loan so that, where
possible, the widest audience becomes acquainted with the principles of
sustainable agriculture. This discretion may be exercised to assure loan funds
are distributed to the maximum number of applicants and dispersed throughout
this Commonwealth.
