§ 138a.5. Limitation.
The Department will not guarantee a loan or provide an interest deferral unless the applicant demonstrates that the assistance would be used by the borrower for the production of agricultural commodities on land or in facilities suitable for the production and would:
(1) Facilitate the continued operation or transfer of a farm within this Commonwealth which is currently active. In utilizing this requirement, consideration may be given to the need for assistance in order to acquire productive assets to recover from:
(i) A natural disaster, other than a disease-related disaster, in the applicant’s location, such as fire, drought or flood if Federal or other assistance is not available on a timely basis.
(ii) A bankruptcy or an unforeseen financial setback which is not the fault of the borrower.
(2) Help the applicant convert all or part of a farm’s production to production of an agricultural commodity for which there is more likely to be an adequate market.
(3) Help the family farm enterprise to process or directly market agricultural commodities produced on the farm seeking assistance.
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