§ 1703.35 - Section of the application covering the selection factors.

The application must contain a section addressing the “selection factors” consisting of the following:

(a) “Nature of the project” (§ 1703.46(g)(1)), which includes any information considered appropriate including aspects of the project that may not be obvious to an outside observer;

(b) “Job creation project” (§ 1703.46(g)(2)), which includes any information that is not readily apparent concerning whether the project would directly create jobs in rural areas. The number of the jobs and the basis for the job projection should be included under “Number of long-term jobs”;

(c) “Long-term improvements in economic development” (§ 1703.46(g)(3)), which addresses the extent to which the project will improve the productive potential of the labor force, industrial plant, infrastructure, natural resources and institutions by employing advanced technology, creating higher-skilled occupations, adding higher value to natural resources, creating jobs with higher-career potential, or is considered part of a knowledge intensive industry;

(d) “Diversifying the rural economy or alleviating underemployment” (§ 1703.46(g)(4)), which includes any information the borrower desires the Administrator to consider;

(e) “Supplemental funds” (§ 1703.46(h)(1)), which includes the name of each source and the respective amount of supplemental funds that was provided to the project within 6 months of submitting the application to RUS, and the amount that will be provided within two years of receiving RUS funds. Also indicate the nature and strength of the commitments to make these supplemental funds available, when these funds are expected to be disbursed, any special terms and conditions associated with the commitments, copies of the commitments, and, if established, the interest rate, term and deferment period on any loan for the project;

(f) “Economic conditions and job creation” (§ 1703.46(h)(2)), which includes:

(1) “Unemployment rates” (§ 1703.46(h)(2)(i)). List the county or counties in which the project will be located. It is not necessary to include the county, state or national unemployment rates. RUS obtains these rates from other Federal agencies;

(2) “Per capita personal income” (§ 1703.46(h)(2)(ii)). As with “Unemployment rates,” it is not necessary to include the county, state or national per capita personal income levels;

(3) “Change in population” (§ 1703.46(h)(2)(iii)). It is not necessary to include the county population levels;

(4) “Number of long-term jobs” (§ 1703.46(h)(2)(iv)). Include the number of long-term jobs that the project will directly create in rural areas and the total project cost;

(5) “Community-based economic development program” (§ 1703.46(h)(2)(v)). Explain if the project is part of a community-based economic development program; and

(6) “Plan for improving the marketable skills of people in rural areas” (§ 1703.46(h)(2)(vi)). Include information on any written plan for the project to provide opportunities or incentives to improve the marketable skills of rural residents through training and/or education. For projects that consist of providing training or education, indicate how it will benefit rural residents;

(g) “Location” (§ 1703.46(h)(3)), which indicates whether or not the project will be located in a town and, if so, the name of the town;

(h) “Support for the program—cushion of credit payments” (§ 1703.46(h)(4)), which mentions any cushion of credits payments made recently in accounts at RUS;

(i) “Demonstration project” (§ 1703.46(h)(5)), which includes a discussion of any commitments from the owner(s) of the project to be a demonstration project and a copy of the written commitment;

(j) “Probability of success” (§ 1703.46(h)(6)), which includes:

(1) “Owners and management of the project” (§ 1703.46(h)(6)(i)) that discusses how the knowledge, experience, education and training of the proposed owners and management of the project increases the likelihood of long-term success; and

(2) “Ultimate recipient's business plan” (§ 1703.46(h)(6)(ii)), that references an attached copy of the business plan.

(i) The plan should include:

(A) A description of the project;

(B) A description of the business, if applicable, its products and the prospects of the industry;

(C) What will be produced or accomplished;

(D) The area to be served;

(E) Any market research or marketing plan;

(F) Any operating plan;

(G) Total project costs and projected use of funds by purpose or category;

(H) A financial plan, including a feasibility study with projected balance sheets, income statements and cash flow statements;

(I) The source of supplemental funds, the nature and strength of commitments from other sources of financing, and the equity contribution;

(J) The proposed ownership and management of the project;

(K) A description of any coordination with a local, regional or state development organization; and

(L) Other relevant information.

(ii) The scope of the plan should reflect the amount requested in the application, the risks involved with developing and operating the project, and the overall cost of the project. The plan should describe any coordination with a local, regional or state development organization.