Section 457-312-3 - Applicant EligibilityTo be eligible for financial assistance under the program, a Borrower must demonstrate each of the following:
A. The project to be financed must to the maximum extent possible use labor of low-income persons, farm families, and displaced farm families needing additional income to supplement their farming operations. The Borrower must provide a certification with the application of the percentage of its workforce which satisfies this criterion.B. The project must be located within a rural area of the State.C. The proposal is innovative in providing services and or products to the public.D. The Borrower is creditworthy and reasonably likely to repay the loan.E. The Borrower is a for-profit or nonprofit commercial entity (including sole proprietorships), other than a charitable or educational institution, church, organization affiliated with or sponsored by a church, or a fraternal organization.F. The Borrower has obtained funds from other sources of capital, including equity and debt, for at least 25% of the project contemplated.G. That the funds will not be used to purchase goods or services or render assistance in excess of what is needed to accomplish the Borrower's purpose, as determined by the Authority.H. That the funds will not be used for distribution or payment to the owner, partners, shareholders, or beneficiaries of the Borrower or members of their families when such persons will retain any portion of their equity in the Borrower.I. That the funds will not be used to provide assistance to government employees or military personnel.J. That the funds will not be used to provide assistance to principals or employees of the Authority who are directors, officers or have major ownership (20 percent or more) in the Borrower or an entity related to the Borrower.K. The Borrower, if an individual, is a citizen of the United States or one or more citizens of the United States own at least 51 % of the Borrower.94- 457 C.M.R. ch. 312, § 3