South Dakota Administrative Rules
Title 12 - Department of Agriculture
Article 12:07 - Agriculture enterprise programs
Chapter 12:07:12 - Rural development loans and participations
Section 12:07:12:13 - Loan decision process

Universal Citation: SD Admin Rules 12:07:12:13

Current through Register Vol. 51, page 43, September 23, 2024

The secretary, in accordance with SDCL chapter 38-6, and the provisions of this chapter, must approve all loan the applications. The secretary shall base the decision on the following actions:

(1) The administrator shall review the application and the lender's recommendations, if applicable, based on the following criteria:

(a) The applicant and lender, if applicable, meet the requirements contained in this chapter;

(b) The project meets the requirements contained in this chapter;

(c) The application and the loan are consistent with the purposes of this chapter; and

(d) Availability of funds in the Rural Rehabilitation fund;

(2) The administrator shall review the application and submit a recommendation to the review committee;

(3) The review committee shall consider the application using the following criteria:

(a) The criteria given in subdivisions (1)(a) and (1)(b) of this section;

(b) The character, experience, management record, and background of the applicant;

(c) The net economic effect or stabilization of the project on the applicant's operation, the community, the area, and the state;

(d) The project's compliance with all local, state, and federal statutes and applicable regulations;

(e) The support of the community and the area;

(f) The competitive effect of the project on existing area businesses;

(g) The effect of the project on the environment, health, and safety of the people in the community and the state;

(h) The ability of the applicant to service the debt from the cash flow of operations, capital, or collateral;

(4) The review committee land the secretary make one of the following decisions:

(a) Approve as presented;

(b) Conditionally approve subject to modifications or performance of certain actions; or

(c) Deny.

General Authority: SDCL 38-6-8.1.

Law Implemented: SDCL 38-6-3, 38-6-8.

Disclaimer: These regulations may not be the most recent version. South Dakota may have more current or accurate information. We make no warranties or guarantees about the accuracy, completeness, or adequacy of the information contained on this site or the information linked to on the state site. Please check official sources.
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