Agency approval. All borrower mergers or consolidations (herein referred to as “mergers”) require approval by the Agency and the lender. The Agency may approve a merger when—

1. (a) The resulting organization will be eligible for a guaranteed loan and assumes all the liabilities and acquires all the assets of the merged borrower;
2. (b) The merger is in the best interest of the government and the merging organization;
3. (c) The resulting organization can meet all required conditions as contained in specific loan agreements; and
4. (d) All property can be legally transferred to the resulting organization.