Agriculture. Part1980:General. SubpartE:Business and industrial loan program. Section1980.452:FmHA or its successor agency under Public Law 103–354 evaluation of application.
FmHA or its successor agency under Public Law 103–354 will evaluate the application and make a determination whether the borrower is eligible, the proposed loan is for an eligible purpose and that there is reasonable assurance of repayment ability, sufficient collateral and sufficient equity and the proposed loan complies with all applicable statutes and regulations. If FmHA or its successor agency under Public Law 103–354 determines it is unable to guarantee the loan, the lender will be informed in writing. Such notification will include the reasons for denial of the guarantee. If FmHA or its successor agency under Public Law 103–354 is able to guarantee the loan, it will provide the lender and the borrower with Form FmHA or its successor agency under Public Law 103–354 449–14, listing all requirements for such guarantees. FmHA or its successor agency under Public Law 103–354 will include in the requirements of the Conditional Commitment for Guarantee a full description of the approved use of guaranteed loan funds as reflected in the Form FmHA or its successor agency under Public Law 103–354 449–1. The Conditional Commitment for Guarantee may not be issued on any loan until the State Director has been notified by the National Officer that the Statements of Personal History(s) have been processed and cleared. FmHA or its successor agency under Public Law 103–354 State Directors are the only persons authorized to execute Form FmHA or its successor agency under Public Law 103–354 449–14.