§ 130c.17. Applicant eligibility.
(a) Individuals. To be eligible for a loan under this chapter, the applicant, if an individual, shall be:
(1) A resident of this Commonwealth or show sufficient evidence that he intends to become a resident.
(2) An active resident operator or resident manager of the farm.
(3) Sufficiently educated, trained or experienced to carry out the project and shall certify that he will participate in the project for the duration of the loan period.
(4) Able to prove and document that the farmland or farm enterprise for which the loan is acquired is located in this Commonwealth.
(5) Able to demonstrate the proceeds of the loan will be used for eligible sustainable agriculture purposes as defined in the act and this chapter and that all loan proceeds will be used exclusively for sustainable agriculture purposes in Commonwealth farming operations only.
(6) Creditworthy.
(b) Family farm partnership. To be eligible for a loan under this chapter, if a family farm partnership, the applicant’s principal operating or managing partners shall:
(1) Be residents of this Commonwealth or demonstrate they intend to become residents.
(2) Have no more than three unrelated members.
(3) Have at least one member residing on or actively operating or managing the farm.
(4) Demonstrate the applicant or the principal operating or managing partners thereof have sufficient education, training or experience to carry out the sustainable agriculture project proposed in the loan application and shall certify he will participate in the project for the duration of the loan period.
(5) Be able to prove and document that the farmland or farm enterprise for which the loan is acquired is located in this Commonwealth.
(6) Be able to demonstrate the proceeds of the loan will be used for eligible sustainable agriculture purposes as defined in the act and this chapter and that all loan proceeds will be used exclusively for sustainable agriculture purposes in Commonwealth farming operations only.
(7) Be creditworthy.
(c) Family farm corporation. To be eligible for a loan under this chapter, the applicant, if a family farm corporation, shall meet the following requirements:
(1) The family farm corporation shall be incorporated or registered to do business in this Commonwealth.
(2) The principal operating or managing members or shareholders of the family farm corporation shall be residents of this Commonwealth or show sufficient evidence that they intend to become residents.
(3) At least one of the majority stockholders of the family farm corporation shall reside on or actively operate or manage the farm.
(4) None of the shareholders of the family farm corporation may be corporations.
(5) The applicant or the principal operating or managing members or shareholders of the family farm corporation shall have sufficient education, training or experience to carry out the sustainable agriculture project proposed in the loan application and shall guarantee he or they will participate in the project for the duration of the loan period.
(6) The family farm corporation shall demonstrate that the farmland or farm enterprise for which the loan is acquired is located in this Commonwealth.
(7) The family farm corporation shall be able to demonstrate the proceeds of the loan will be used for eligible sustainable agriculture purposes as defined in the act and this chapter and that all loan proceeds will be used exclusively for sustainable agriculture purposes in Commonwealth farming operations only.
(8) The family farm corporation shall be creditworthy.
(d) Corporate farm. To be eligible for a loan under this chapter, the applicant, if a corporate farm, shall meet the following requirements:
(1) The corporate farm shall be incorporated or registered to do business in this Commonwealth.
(2) The principal operating or managing members or shareholders of the corporate farm shall have sufficient education, training or experience to carry out the sustainable agriculture project proposed in the loan application and shall guarantee the corporation will participate in the project for the duration of the loan agreement.
(3) The corporate farm shall demonstrate that the farm enterprise owns or leases farmland in this Commonwealth.
(4) The corporate farm shall be able to demonstrate the proceeds of the loan will be used for eligible sustainable agriculture purposes as defined in the act and this chapter and that all loan proceeds will be used exclusively for sustainable agriculture purposes in Commonwealth farming operations only.
(5) The corporate farm shall be creditworthy.
(e) Nonprofit educational institution. A nonprofit educational institution is not eligible for a loan.
Cross References This section cited in 7 Pa. Code § 130c.18 (relating to review of a loan application).
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