764.51—Loan application.
(a)
A loan application must be submitted in the name of the actual operator of the farm. Two or more applicants applying jointly will be considered an entity applicant. The Agency will consider tax filing status and other business dealings as indicators of the operator of the farm.
(b)
A complete loan application, except as provided in paragraphs (c) through (f) of this section, will include:
(i)
A complete list of entity members showing the address, citizenship, principal occupation, and the number of shares and percentage of ownership or stock held in the entity by each member, or the percentage of interest in the entity held by each member;
(iv)
A copy of the entity's charter or any entity agreement, any articles of incorporation and bylaws, any certificate or evidence of current registration (good standing), and a resolution adopted by the Board of Directors or entity members authorizing specified officers of the entity to apply for and obtain the desired loan and execute required debt, security and other loan instruments and agreements;
(v)
In the form of married couples applying as a joint operation, items (i) and (iv) will not be required. The Agency may request copies of the marriage license, prenuptial agreement or similar documents as needed to verify loan eligibility and security. Items (ii) and (iii) are only required to the extent needed to show the individual and joint finances of the husband and wife without duplication.
(3)
A written description of the applicant's farm training and experience, including each entity member who will be involved in managing or operating the farm;
(4)
The last 3 years of farm financial records, including tax returns, unless the applicant has been farming less than three years;
(5)
The last 3 years of farm production records, unless the applicant has been farming less than 3 years;
(6)
Except for CL, documentation that the applicant and each member of an entity applicant cannot obtain sufficient credit elsewhere on reasonable rates and terms, including a loan guaranteed by the Agency;
(7)
Documentation of compliance with the Agency's environmental regulations contained in subpart G of 7 CFR part 1940 ;
(9)
A current financial statement and the operation's farm operating plan, including the projected cash flow budget reflecting production, income, expenses, and loan repayment plan;
(10)
A legal description of the farm property owned or to be acquired and, if applicable, any leases, contracts, options, and other agreements with regard to the property;
(13)
Any additional information deemed necessary by the Agency to effectively evaluate the applicant's eligibility and farm operating plan;
(16)
For CL only, and if the applicant wishes to request consideration for priority funding, plans to transition to organic or sustainable agriculture when the funds requested will be used to facilitate the transition.
(i)
The loan requested is $50,000 or less and the total outstanding Agency OL loan debt at the time of loan closing will be less than $100,000; or
(ii)
The loan requested is to pay annual operating expenses and the applicant is an existing Agency borrower who has received and timely repaid at least two previous annual OL loans from the Agency.
(4)
Submit items (1), (2), (7), (9), and (11) of paragraph (b) of this section. The Agency may require a Lo-Doc applicant to submit any other information listed in paragraph (b) of this section as needed to make a determination on the loan application.
(1)
Be current on all payments to all creditors including the Agency (if currently an Agency borrower).
(4)
Have a balance sheet that indicates a net worth of 3 times the requested loan amount or greater.
(5)
Have a FICO credit score from the Agency obtained credit report of at least 700. For entity applicants, the FICO credit score of the majority of the individual members of the entity must be at least 700.
(i)
Items specified in paragraphs (b)(1), (b)(2), (b)(3), (b)(7), (b)(11), (b)(15), and (b)(16) of this section,
(iii)
Upon Agency request, other information specified in paragraph (b) of this section necessary to make a determination on the loan application.
(2)
Applicants 18 years or older, must also provide items (11) and (12) of paragraph (b) of this section.
(3)
The Agency may require a youth loan applicant to submit any other information listed in paragraph (b) of this section as needed to make a determination on the loan application.
(f)
The applicant need not submit any information under this section that already exists in the applicant's Agency file and is still current.