[Code of Federal Regulations]
[Title 7, Volume 15]
[Revised as of January 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 7CFR4279.108]

[Page 573]
 
                          TITLE 7--AGRICULTURE
 
  CHAPTER XLII--RURAL BUSINESS-COOPERATIVE SERVICE AND RURAL UTILITIES 
                   SERVICE, DEPARTMENT OF AGRICULTURE
 
PART 4279_GUARANTEED LOANMAKING--Table of Contents
 
                  Subpart B_Business and Industry Loans
 
Sec. 4279.108  Eligible borrowers.

    (a) Type of entity. A borrower may be a cooperative, corporation, 
partnership, or other legal entity organized and operated on a profit or 
nonprofit basis; an Indian tribe on a Federal or State reservation or 
other Federally recognized tribal group; a public body; or an 
individual. A borrower must be engaged in or proposing to engage in a 
business. Business may include manufacturing, wholesaling, retailing, 
providing services, or other activities that will:
    (1) Provide employment;
    (2) Improve the economic or environmental climate;
    (3) Promote the conservation, development, and use of water for 
aquaculture; or
    (4) Reduce reliance on nonrenewable energy resources by encouraging 
the development and construction of solar energy systems.
    (b) Citizenship. Individual borrowers must be citizens of the United 
States (U.S.) or reside in the U.S. after being legally admitted for 
permanent residence. Citizens and residents of the Republic of Palau, 
the Federated States of Micronesia, and the Republic of the Marshall 
Islands shall be considered U.S. citizens. Corporations or other 
nonpublic body organization-type borrowers must be at least 51 percent 
owned by persons who are either citizens of the U.S. or reside in the 
U.S. after being legally admitted for permanent residence.
    (c) Rural area. The business financed with a B&I Guaranteed Loan 
must be located in a rural area. Loans to borrowers with facilities 
located in both rural and non-rural areas will be limited to the amount 
necessary to finance the facility located in the eligible rural area. 
Rural areas are any areas other than:
    (1) A city or town that has a population of greater than 50,000 
inhabitants; and
    (2) The urbanized area contiguous and adjacent to such a city or 
town, as defined by the U.S. Bureau of the Census using the latest 
decennial census of the United States.
    (d) Other credit. All applications for assistance will be accepted 
and processed without regard to the availability of credit from any 
other source.

[61 FR 67633, Dec. 23, 1996, as amended at 67 FR 78130, Dec. 23, 2002]