S.D. Admin. R. 12:07:12:03

Current through Register Vol. 51, page 67, December 16, 2024

Section 12:07:12:03 - Eligibility requirements for applicant

To be eligible for a loan, an applicant must meet the following requirements:

(1) If the applicant is an individual, the applicant must meet the following requirements:

(a) Be a resident of this state at the time of loan closing;

(b) Have the principal residence and the majority of the farm operation located in South Dakota;

(c) Be age 18 or older;

(d) Be a farmer or rancher who has derived 60 percent of all gross income in the last tax year from farming. Applications not meeting this qualification may be accepted only if a waiver is obtained from the secretary. The secretary may issue a waiver for extraordinary circumstances such as illness or enrollment in a higher education institution or postsecondary technical institute or vocational school;

(e) Be creditworthy according to the standards of the lender;

(f) Be unable to provide the financing needed from the applicant's own resources or to obtain it from conventional sources at rates and terms the applicant can reasonably be expected to meet;

(2) If the applicant is a cooperative, corporation, partnership, or other legal entity, it must meet the following requirements:

(a) Have the majority of memberships and stock in the entity owned by farmers who meet the criteria in subdivisions (1)(a) to (1)(f), inclusive, of this section with other members or stockholders furnishing their proportionate share of the costs;

(b) If the entity is not made up of farmers who meet the criteria in subdivisions (1)(a) to (1)(f), the entity must indirectly provide assistance to farmers or ranchers or members of their families. The entity must be unable to provide the needed financing from its own resources or to obtain such financing from conventional sources in the area at rates and terms the entity can reasonably be expected to meet;

(3) If the applicant is applying for a bridge loan, the applicant must meet the eligibility criteria of the Lender or USDA program;

(4) If the applicant is applying as a small or beginning farmer, the applicant must meet the criteria set forth above and the small and beginning farmer definition set forth in 12:07:05.01:01.

(5) Coapplicants must meet the same criteria as applicants in the applicable category.

S.D. Admin. R. 12:07:12:03

17 SDR 141, effective 3/25/1991; 23 SDR 179, effective 4/29/1997; 28 SDR 119, effective 3/5/2002; 29 SDR 34, effective 9/18/2002; 38 SDR 45, effective 9/22/2011; 45 SDR 031, effective 9/13/2018

General Authority: SDCL 38-6-8.1.

Law Implemented: SDCL 38-6-3, 38-6-8.