Current through Register Vol. 51, page 43, September 23, 2024
To be eligible for a loan, an applicant must meet the following
requirements:
(1) If the applicant is
an individual, the applicant must meet the following requirements:
(a) Be a resident of this state at the time
of loan closing;
(b) Have the
principal residence and the majority of the farm operation located in South
Dakota;
(c) Be age 18 or
older;
(d) Be a farmer or rancher
who has derived 60 percent of all gross income in the last tax year from
farming. Applications not meeting this qualification may be accepted only if a
waiver is obtained from the secretary. The secretary may issue a waiver for
extraordinary circumstances such as illness or enrollment in a higher education
institution or postsecondary technical institute or vocational
school;
(e) Be creditworthy
according to the standards of the lender;
(f) Be unable to provide the financing needed
from the applicant's own resources or to obtain it from conventional sources at
rates and terms the applicant can reasonably be expected to meet;
(2) If the applicant is a
cooperative, corporation, partnership, or other legal entity, it must meet the
following requirements:
(a) Have the majority
of memberships and stock in the entity owned by farmers who meet the criteria
in subdivisions (1)(a) to (1)(f), inclusive, of this section with other members
or stockholders furnishing their proportionate share of the costs;
(b) If the entity is not made up of farmers
who meet the criteria in subdivisions (1)(a) to (1)(f), the entity must
indirectly provide assistance to farmers or ranchers or members of their
families. The entity must be unable to provide the needed financing from its
own resources or to obtain such financing from conventional sources in the area
at rates and terms the entity can reasonably be expected to meet;
(3) If the applicant is applying
for a bridge loan, the applicant must meet the eligibility criteria of the
Lender or USDA program;
(4) If the
applicant is applying as a small or beginning farmer, the applicant must meet
the criteria set forth above and the small and beginning farmer definition set
forth in 12:07:05.01:01.
(5)
Coapplicants must meet the same criteria as applicants in the applicable
category.
General Authority: SDCL
38-6-8.1.
Law Implemented: SDCL
38-6-3,
38-6-8.
