(b) Scoring. The Agency will use a point system to determine an eligible applicant's priority ranking for available loan funds. Points will be awarded only for factors indicated by well documented, reasonable plans which, in the opinion of the Agency, provide assurance that the work plan items have a high probability of being accomplished. Application content must contain sufficient information to assess the applicant's ability to manage an IRP revolving loan fund and allow the Agency to assign priority points in accordance with the criteria discussed in this section. The Agency will award points using the criteria identified in paragraphs (b)(1) through (9) of this section. Any application that does not meet the minimum value for receiving points associated with a criterion will receive no points for that criterion.

1. (1) Intermediary equity contribution for initial Agency IRP loan applications only (maximum 35 points). The Agency will award points under this criterion if the applicant is applying for its first ever Agency IRP loan and will contribute cash matching funds to the IRP revolving loan fund. These funds must be deposited into the IRP account at closing and are subject to the same use restrictions as Agency IRP loan funds. These funds must be loaned out to ultimate recipients in conjunction with Agency IRP loan funds. The amount of cash matching funds contributed will be:

   1. (i) At least 5 percent, but less than 10 percent of the requested loan amount—10 points.
   2. (ii) At least 10 percent, but less than 20 percent of the requested loan amount—15 points.
   3. (iii) At least 20 percent, but less than 30 percent of the requested loan amount—20 points.
   4. (iv) At least 30 percent, but less than 40 percent of the requested loan amount—25 points.
   5. (v) At least 40 percent, but less than 50 percent of the requested loan amount—30 points.
   6. (vi) More than 50 percent of the requested loan amount—35 points.

2. (2) Intermediary equity contribution for subsequent Agency IRP loan applications only (maximum 35 points). The Agency will award points under this criterion if the applicant is applying for a subsequent IRP loan and will contribute cash matching funds to the IRP revolving loan fund. The Agency must determine that the applicant's performance under their current IRP loan(s) is satisfactory in accordance with § 4274.330(f)(3) in order to be eligible and receive points under this criterion. These funds must be deposited into the IRP account at closing and are subject to the same use restrictions as Agency IRP Funds and loaned out to ultimate recipients in conjunction with Agency IRP loan funds. Cash matching funds are not required of subsequent applicants, but points will be awarded if the amount of cash matching funds contributed will be:

   1. (i) At least 5 percent, but less than 10 percent of the requested loan amount—10 points.
   2. (ii) At least 10 percent, but less than 20 percent of the requested loan amount—15 points.
   3. (iii) At least 20 percent, but less than 30 percent of the requested loan amount—20 points.
   4. (iv) At least 30 percent, but less than 40 percent of the requested loan amount—25 points.
   5. (v) At least 40 percent, but less than 50 percent of the requested loan amount—30 points.
   6. (vi) More than 50 percent of the requested loan amount—35 points.
3. (3) Community Representation (10 points). Governing board of directors where 50 percent or more of its members consist of business, banking, civic and community leaders that are representative of the rural communities within the service area(s) that intermediary serves. These board members are diversely spread across the service areas and represent at least 50 percent of the intermediary total service area. These board members are not employees of the intermediary. Statewide and national IRP lenders must have a board of directors with members that are also familiar with current economic conditions and the inherent credit risks of making and servicing loans outside of the intermediary's primary location to receive these points. Documentation in the workplan must address these qualifications.

4. (4) Leveraging (maximum 25 points). The Agency will award points if the intermediary will limit the funding of ultimate recipient project loans with Agency IRP funds. IRP revolving loan fund funds that consist of revolved funds may also be used as leveraging. However, any projects funded must continue to comply with the loan agreement and requirements of this subpart so long as any part of the Agency IRP loan remains unpaid. The intermediary's equity contribution will be the following percentages of an ultimate recipient's total project costs:

   1. (i) At least 10 percent, but less than 25 percent of the total project costs—5 points will be awarded;
   2. (ii) At least 25 percent, but less than 50 percent of the total project costs—10 points will be awarded; or
   3. (iii) Fifty percent or more of the total project costs—25 points will be awarded.

5. (5) Median household income (maximum 15 points). The Agency will award points under this criterion based on the degree to which the median household income in the service area of the intermediary exceeds the poverty line for a family of four. For applicant intermediaries whose service area includes multiple locations or geographic areas, weighted averages based on the populations will be used in calculating the area's median household income. For median household income computations, applicant intermediaries will use income data from the latest decennial census of the United States, updated according to changes in the consumer price index as published annually by the Agency. The poverty line used will be as defined in section 673(2) of the Community Services Block Grant Act (42 U.S.C. 9902(2)), which will be published annually by the Agency. If the median household income in the intermediary's service area exceeds the poverty line for a family of four by:

   1. (i) At least 50 percent, but not more than 75 percent, 5 points will be awarded;
   2. (ii) At least 25 percent, but less than 50 percent, 10 points will be awarded; or
   3. (iii) Below 25 percent, 15 points will be awarded.

6. (6) Unemployment (maximum 15 points). The Agency will award points under this criterion based on the extent to which the unemployment rate in the intermediary's service area exceeds the national unemployment rate. For unemployment computations, applicant intermediaries must use the unemployment data published by the Bureau of Labor Statistics, U.S. Department of Labor, for the most current month available at the time of application in comparison to the national unemployment rate for the same month. If the service area is a single city, town, or Indian Reservation and current, monthly unemployment data is not available for that city or town, the current, monthly unemployment rate for the county (or Indian Reservation) in which the service area is located should be used. For applicant intermediaries whose service area includes multiple locations or geographic areas, a weighted average based on the populations should be used in calculating the area's unemployment rate. If the unemployment rate in the intermediary's service area is:

   1. (i) Equal to, or less than 25 percent above the national unemployment rate, 5 points will be awarded;
   2. (ii) At least 25 percent above, but less than 50 percent above the national unemployment rate, 10 points will be awarded; or
   3. (iii) Fifty percent or more above the national unemployment rate, 15 points will be awarded.
7. (7) Trauma (maximum 15 points). Under this criterion, the Agency will award 15 points if 50 percent or more of the intermediary's service area is experiencing trauma due to a major natural disaster, as declared by the Federal Emergency Management Agency (FEMA), that occurred not more than three years prior to the filing of the application for assistance. Intermediaries with proposed statewide and nationwide service areas do not qualify for these points.

8. (8) Experience (maximum 30 points). The Agency will award points under this criterion based on the number of years the intermediary entity has in successfully making and servicing commercial loans. If the intermediary entity itself has actual experience in making and servicing commercial loans, with a successful record, for:

   1. (i) At least 1 but less than 3 years, 5 points will be awarded;
   2. (ii) At least 3 but less than 5 years, 10 points will be awarded;
   3. (iii) At least 5 but less than 10 years, 20 points will be awarded; or
   4. (iv) Ten or more years, 30 points will be awarded.

9. (9) Size of loan request (maximum 20 points). The Agency will award points under this criterion based on the size of the intermediary's loan request. If the size of the loan request is:

   1. (i) $500,000 or less, 20 points will be awarded; or
   2. (ii) Over $500,000, and up to $750,000, 10 points will be awarded

10. (10) Administrator (maximum 10 points). The Administrator may award up to 10 additional points to an application to account for either or both of the items identified in below:

    1. (i) The project meets the President/Secretary Initiative(s) (e.g., local foods, regional development, persistent poverty, energy-related, etc.); or
    2. (ii) The applicant's service area will include areas not currently served by existing IRP Intermediaries. Statewide and nationwide Intermediaries will not be considered for Administrator points with regard to whether an area is currently covered by an existing IRP fund.