§ 1948.122 - Application.

An application will consist of:

(a) Form FmHA 1948-1, “Application For Loan (Intermediary Relending Program).”

(b) A written work plan and other evidence FmHA or its successor agency under Public Law 103-354 requires to demonstrate the feasibility of the intermediary's program to meet the objectives of this program. The plan must, at a minimum:

(1) Document the intermediary's ability to administer an Intermediary Relending Program in accordance with the provisions of this subpart. In order to adequately demonstrate the ability to administer the program, the intermediary must provide a complete listing of all personnel responsible for administering this program along with a statement of their qualifications and experience. The personnel may be either members or employees of the intermediary's organization or contract personnel hired for this purpose. If the personnel are to be contracted for, the contract between the intermediary and the entity providing such service will be submitted for FmHA or its successor agency under Public Law 103-354's review and the terms of the contract and its duration must be sufficient to adequately service the FmHA or its successor agency under Public Law 103-354 loan through to its ultimate conclusion. If FmHA or its successor agency under Public Law 103-354 determines the personnel lack the necessary expertise to administer the program, the loan request will not be approved.

(2) Document the intermediary's ability to commit financial resources under the control of the intermediary to the establishment of an Intermediary Relending Program. This should include a statement of the source(s) of non-FmHA or its successor agency under Public Law 103-354 funds for administration of the intermediary's operations and financial assistance for projects.

(3) Include a proposal for adequately securing the FmHA or its successor agency under Public Law 103-354 loan. The proposal should specifically address those items of security outlined in § 1948.113 of this subpart.

(4) Include a detailed statement of the proposed use of FmHA or its successor agency under Public Law 103-354 loan funds. This should include an outline of what will constitute project eligibility for financial assistance the intermediary will make available to ultimate recipients.

(5) Demonstrate a need for loan funds. As a minimum, the intermediary should identify a sufficient number of proposed and known ultimate recipients it has on hand to justify FmHA or its successor agency under Public Law 103-354 funding of its loan request.

(6) Include a list of proposed fees and other charges it will assess the ultimate recipients it funds.

(7) Demonstrate to FmHA or its successor agency under Public Law 103-354's satisfaction that the intermediary has secured commitments of significant financial support from public agencies and private organizations.

(8) Provide evidence to FmHA or its successor agency under Public Law 103-354's satisfaction that the intermediary has a proven record of obtaining private and/or philanthropic funds for the operation of similar programs to the one contained in this subsection.

(9) Include the intermediary's plan (specific loan purposes) for relending the loan funds. The plan must be of sufficient detail to provide FmHA or its successor agency under Public Law 103-354 with a complete understanding of what the intermediary will accomplish by lending the funds to the ultimate recipient and the complete mechanics of how the funds will get from the intermediary to the ultimate recipient. The eligibility criteria, the application process, method of disposition of the funds to the ultimate recipient, monitoring of the ultimate recipient's accomplishments, and reporting requirements by the ultimate recipient's management are some of the items that must be addressed by the intermediary's relending plan.

(c) Form FmHA 1940-20, “Request for Environmental Information,” for all projects identified in the intermediary's plan that are Class I or Class II actions under subpart G of part 1940 of this chapter.

(d) Comments from the State single point of contact, if the State has elected to review the program under Executive Order 12372, “Intergovernmental Review of Federal Programs.”

(e) Cost estimates and forecasts of contingency funds to cover inflation or project changes.

(f) A pro forma balance sheet at startup and for at least 3 additional projected years; financial statements for the last 3 years, or from inception of the operations of the intermediary if less than 3 years; and projected cash flow and earnings statements for at least 3 years supported by a list of assumptions showing the basis for the projections. The projected earnings statement and balance sheet must include one set of projections that shows the IRP fund only and a separate set of projections that shows the applicant organization's total operations.

(g) A written agreement will be signed by the intermediary to assure that there is no misunderstanding concerning FmHA or its successor agency under Public Law 103-354 audit requirements.

(h) Form FmHA 400-1, “Equal Opportunity Agreement.”

(i) Form FmHA 400-4, “Assurance Agreement.”

(j) Complete organizational documents, including evidence of authority to conduct the proposed activities.

(k) Evidence that the loan is not available at reasonable rates and terms from private sources or other Federal, State, or local programs.

(1) Latest audit report, if available.