(a) For each application period:

1. (1) Loans to intermediaries will not exceed $5,000,000 to any intermediary;
2. (2) Loans to ultimate recipients will not exceed the loan limit for a Direct Farm Ownership loan as specified in § 761.8(a)(1)(i) of this chapter to any ultimate recipient.

(b) Loans to the ultimate recipient may not be used:

1. (1) For any land improvement, development purpose, acquisition or repair of buildings, acquisition of personal property, payment of operating costs, payment of finders' fees, or similar costs;
2. (2) For any purpose that will contribute to excessive erosion of highly erodible land or for the conversion of wetlands to produce an agricultural commodity as specified in 7 CFR part 12; or
3. (3) To resolve heirs' property issues on property that will not be used, or has traditionally not been used, for production agricultural purposes.