La. Admin. Code tit. 7 § III-313

Current through Register Vol. 50, No. 11, November 20, 2024

Section III-313 - Use of Loan and Grant Proceeds

A. Loan and grant proceeds may be used to:

1. pay current year expenses that are related to the preparation, planting, management and harvesting the current year crop as specified;

2. pay down or pay off existing crop production loans, if a financial institution has committed itself to furnish sufficient funding for preparing, planting, managing and harvesting the current year crop;

3. pay operating expenses (rent, insurance, utilities, etc.);

4. purchase inventory;

5. pay or refinance more expensive business-related debt to improve cash flow.

B. Loan and grant proceeds may not be used for:

1. acquisition of buildings or land;

2. new construction or reconstruction;

3. refinancing of State Bridge Loans or Community Development Block Grant loans;

4. payments of tax arrearages, government fines or penalties;

5. political or religious activities;

6. buying out any stockholder or equity holder in a business;

7. buying out or reimbursing any family member;

8. investing in instruments or investments for the sole purpose of a return on Investment; or

9. a loss or expense for which insurance benefits has been or is to paid or for which financial assistance has been or is to be provided from any other source, whether public or private.

La. Admin. Code tit. 7, § III-313

Promulgated by the Department of Agriculture and Forestry, Agricultural Finance Authority, LR 36:468 (March 2010).

AUTHORITY NOTE: Promulgated in accordance with R. S. 3:266.