(a) An applicant is eligible for an investment from the Department if, at minimum, it:      
        (1) Demonstrates its ability to administer and mobilize RED C4T funds to meet program objectives;       
        (2) Demonstrates it has sufficient funds to adequately leverage a RED C4T investment according to the Agreement and the program's Policy and Procedures;       
        (3) Is a legal entity formed, existing and in good standing under the laws of the United States of America and the State;       
        (4) Meets eligibility requirements defined in this subchapter and the solicitation document issued by the Department; and       
        (5) Is legally authorized to do business in this State and has a principal place of business in the State.       
      (b) Eligible expenditures. The proceeds of the RED C4T investment provided by the Department may be used only to finance loans and/or grants that meet the requirements set forth in this subchapter, the program's Policy and Procedures, and the Agreement signed by the Department and Recipient. All RED C4T loans and grants shall be approved by the Department in the Agreement.     
      (c) Ineligible expenditures. 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. RED C4T funds may not finance any loan and/or grant that is listed as a prohibited investment in §29.31 of this subchapter.     
     Source Note:        The provisions of this §29.26 adopted to be effective December 29, 2020, 45 TexReg 9409