4.3.602    QUALIFICATIONS

(1)  Application must be made to the Montana Department of Agriculture.  All application documents must be completed and presented to the department before the department loan committee will consider the request.

(2)  Each applicant must be unable to obtain the needed funds from a private lender or other sources at reasonable rates or terms.  Evidence shall consist of a statement, signed by a private lender, that financing was unavailable.

(3)  Applicant(s)  shall be at least 18 years of age.

(4)  An applicant's net worth including that of spouse and minor children cannot exceed $450,000 at the time of application as determined using generally accepted accounting principles (GAAP):

(a)  contingent assets or liabilities shall be included in the determination of net worth and total assets.  Contingent assets or liabilities are those for which contracts or agreements have been or are in the process of being entered into but for which the asset or liability will be recognized in the future.

(5)  Applicant(s)  must demonstrate access to assets necessary to carry out the proposed agricultural enterprise.

(6)  Applicant(s)  must demonstrate the experience, knowledge and ability necessary to conduct the proposed agricultural enterprise.

(7)  Applicant(s)  must demonstrate repayment capacity using proceeds from the agricultural enterprise or other acceptable income.

(8)  A two-member local committee must be established by the applicant to review the loan request.  The committee shall be composed of an officer from a bank in the borrower's home community or bank where the borrower normally conducts business, and an agricultural specialist.  Examples of agricultural specialists are county extension agents, vocational agriculture education teachers, and farm service agency district supervisors.  This committee will review the loan application and make recommendations concerning the proposed loan.

(9)  There is a nonrefundable application fee of $75.

 

History: 80-2-106, MCA; IMP, 80-2-103, MCA; NEW, 1985 MAR p. 1015, Eff. 7/26/85; AMD, 1998 MAR p. 2704, Eff. 10/8/98; AMD, 2000 MAR p. 3332, Eff. 12/8/00; AMD, 2004 MAR p. 1469, Eff. 7/2/04; AMD, 2004 MAR p. 2805, Eff. 11/19/04; AMD, 2024 MAR p. 126, Eff. 1/27/24.