(a) Applicant. An applicant is eligible for a loan from the Authority if it meets the following criteria:
  (1) The applicant is a legal entity under the laws of the United States of America and the State of Texas;
  (2) The applicant has a principal place of business in the state;
  (3) The applicant is an eligible entity pursuant to §§28.73 or 28.74 of this subchapter (relating to Texas Rural Community Loan and Agriculture and Community Economic Development Loan);
  (4) The applicant submits an eligible application to the Authority;
  (5) If applicable, the lender submits required documentation to the Authority;
  (6) The applicant is not considered an ineligible person as defined by §28.87 of this subchapter (relating to Ineligible Persons);
  (7) The applicant has complied with state law and Authority rules; and
  (8) The applicant meets the criteria and guidelines in the Authority's credit policy.
(b) Project. The project is an eligible project if it provides significant benefits to agricultural development and/or rural economic development and is not considered an ineligible commitment as defined by §28.86 of this subchapter (relating to Prohibited Commitments).
(c) Project costs. Any proceeds provided by the Authority may be used only to finance expenditures incurred in connection with the development of the project as identified in the budget filed with the application and approved by the board.
(d) Ineligible project costs. Any expenditure that is not identified in the approved budget filed with the application, or is otherwise prevented by regulation or statute, is not eligible for financing hereunder, unless the applicant provides evidence accepted by the board that such expenditure is necessary for completion of the project, complies with regulation and statute, and will not increase the commitment approved.

Source Note: The provisions of this §28.75 adopted to be effective May 18, 2022, 47 TexReg 2856