(a) The applicant:

1. (1) Must comply with general eligibility requirements specified in § 764.101 except paragraphs (e) and (k) of that section;
2. (2) And anyone who will sign the promissory note, must not have received debt forgiveness from the Agency on any direct or guaranteed loan; and

3. (3) Must be the owner-operator or tenant-operator of a farm and be engaged in agricultural production after the time of loan is closed. In the case of an entity:

   1. (i) The entity is controlled by farmers engaged primarily and directly in farming in the United States;
   2. (ii) The entity must be authorized to operate a farm in the State in which the farm is located.