Borrower eligibility.

CFR · 2024-01-01 · US · Title 7

To be eligible for a loan guarantee under this part, a Borrower must meet the requirements specified in this section at the time of each guaranteed loan's approval and through issuance of the loan note guarantee. A borrower must meet the eligibility requirements specified in paragraph (a) of this section and in paragraphs (b) through (e), as applicable, of this section. (a) (1) (2) (b) (1) (i) Borrowers organized under the applicable State or Tribal for-profit corporation laws may be eligible if they will be operated on a not-for-profit basis for the duration of the guaranteed loan; (ii) Single member not-for-profit corporations or not-for-profit corporations owned or substantially controlled by other corporations or associations are eligible if the member organization has significant ties with the project service area and provides a payment guarantee. (2) (i) Association with or control by a public body or bodies; or (ii) Broadly based membership and controlled primarily by members residing in the project service area. Membership must be open without regard to race, color, religion, national origin, sex, age, disability, sexual orientation, or marital or familial status. (3) (4) (c) (1) (2) (3) (d) (1) The borrower must be: (i) A cooperative, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; (ii) An Indian Tribe (iii) A Public Body; or (iv) An individual. (2) The borrower must be engaged in or proposing to engage in a busi

official document · source cfr-2024 · id 7:§ 5001.126