§ 1980.114 - Evaluation and assessment of applications.

(a)-(b) [Reserved]

(c) Agency analysis of complete application. In addition to other applicable requirements under this part, an application for a guarantee must meet the following conditions:

(1) The proposed loan or line of credit is for authorized purposes, and the amounts of borrowed capital are appropriate to successfully carry on the agricultural operation.

(2) The operation's capital position is adequate taking its strengths and weaknesses into consideration.

(3) The applicant has adequate repayment ability and has a reasonable chance of securing non-guaranteed commercial credit for the operation in the future. Developing an acceptable farm plan is the responsibility of the lender and its borrower.

(4) Security is adequate, values are reasonable, and loan terms are consistent with the useful life of the security and Agency regulations.

(5) The projected budget is reasonable in light of the applicant's stated goals.

(d) [Reserved]

(e) Indication of acceptability. If the Agency's evaluation indicates that the guarantee may be approved, the Agency will consider the guarantee request for eligibility.

Administrative [Reserved]