Eligibility requirements.

CFR · 2024-01-01 · US · Title 7

The applicant: (a) Must comply with the general eligibility requirements established at § 764.101. (b) Must be an established farmer. (c) Must be the owner-operator or tenant-operator as follows: (1) For a loan made under § 764.351(a)(1), must have been: (i) The owner-operator of the farm at the time of the disaster; or (ii) The tenant-operator of the farm at the time of the disaster whose lease on the affected real estate exceeds the term of the loan. The operator will provide prior notification to the Agency if the lease is proposed to terminate during the term of the loan. The lessor will provide the Agency a mortgage on the real estate as security for the loan; (2) For a loan made under § 764.351(a) (2) or (b), must have been the operator of the farm at the time of the disaster; and (3) In the case of an entity, the entity must be: (i) Engaged primarily and directly in farming in the United States; and (ii) Authorized to operate and own the farm, if the funds are used for farm ownership loan purposes, in the State in which the farm is located. (d) Must demonstrate the intent to continue the farming operation after the designated or declared disaster. (e) And all entity members must be unable to obtain sufficient credit elsewhere at reasonable rates and terms. To establish this, the applicant must obtain written declinations of credit, specifying the reasons for declination, from legally organized commercial lending institutions within reasonable proximity of the applicant

official document · source cfr-2024 · id 7:§ 764.352