Financial feasibility.

CFR · 2024-01-01 · US · Title 7

(a) (1) Notwithstanding any other provision of this section, PLP lenders will follow their internal procedures on financial feasibility as agreed to by the Agency during PLP certification. (2) The applicant's proposed operation must project a feasible plan. (3) For standard eligible lenders, the projected income and expenses of the borrower and operation used to determine a feasible plan must be based on the applicant's proven record of production and financial management. (4) For CLP lenders, the projected income and expenses of the borrower and the operation must be based on the applicant's financial history and proven record of financial management. (5) For those farmers without a proven history, a combination of any actual history and any other reliable source of information that are agreeable with the lender, the applicant, and the Agency will be used. (6) The cash flow budget analyzed to determine a feasible plan must represent the predicted cash flow of the operating cycle. (7) Lenders must use price forecasts that are reasonable and defensible. Sources must be documented by the lender and acceptable to the Agency. (8) When a feasible plan depends on income from other sources in addition to income from owned land, the income must be dependable and likely to continue. (9) The lender will analyze business ventures other than the farm operation to determine their soundness and contribution to the operation. Except for CL, guaranteed loan funds will not be used to finance

official document · source cfr-2024 · id 7:§ 762.125