1. (a) Rural Development will evaluate the application and score it based on the selection factors in this section. All applications will be ranked on a nationwide basis, based on the total points scored.

2. (b) The application will be evaluated and scored using the information provided in accordance with § 4280.39(b)(2) of this subpart.

   1. (1) Nature of the Project. Rural Development will award up to 60 points based on whether the Project:

      1. (i) Is a for-profit business, Business Incubator, industrial building or park, or an infrastructure connection project (such as streets or utilities)—20 points;
      2. (ii) Provides Technical Assistance to rural businesses or rural residents, or educates or provides medical care to rural residents—20 points;
      3. (iii) Will enhance rural economic development by providing Advanced Telecommunications services and computer networks for medical, educational, and job training services. This review will be based on the application's telecommunications design—20 points.

   2. (2) Number of direct full-time equivalent jobs created or saved within a 3-year period. To calculate full-time equivalent Direct-Jobs, count two part-time jobs as one full-time job or three part-time or seasonal jobs as one full-time job. If the total numbers of part-time and seasonal jobs add up to a fraction, round up to the next whole number after combining same. Indirect-Jobs or non-Rural jobs cannot be used for this calculation.

      If the number of Rural full-time equivalent direct-jobs jobs created or saved per $100,000 of total, Project cost is:	Then RuralDevelopment will award:
      (i) Greater than five	25 points.
      (ii) From one to five	15 points.

   3. (3) Supplemental funds for the Project. Points will be based on a calculation of the amount of supplemental funds to be provided to the Project. All supplemental funds used in the following calculation must be disbursed to the Project between the date of Rural Development receipt of the application and 1 year after the first advance of funds by Rural Development:

      If supplemental funds as a percentage of the Rural Development loan or grant to be provided to the Project are:	Then RuralDevelopment will award:
      (i) Greater than 200%	20 points.
      (ii) From 100% to 200%	10 points.
      (iii) From 50% to less than 100%	5 points.

   4. (4) Unemployment rate for the county(ies) where the Project is physically located. Rural Development will compare the current unemployment rate(s) in the county(ies) to the State and national unemployment rates, and, if applicable, award points under the following categories, whichever is greater:

      If the unemployment rate(s) in the county(ies) where the Project will be located:	Then RuralDevelopment will award:
      (i) Exceeds the national unemployment rate by 30% or more	15 points.
      (ii) Is greater than the national unemployment rate, but exceeds it by less than 30%	5 points.
      (iii) Exceeds the State unemployment rate by 30% or more	10 points.
      (iv) Is greater than the State unemployment rate but exceeds it by less than 30%	5 points.

   5. (5) Per capita personal income for the county(ies) where the Project is physically located. Rural Development will compare the per capita personal income in the county(ies) where the Project will be located to the national and State per capita personal income levels, and, if applicable, award points under the following categories, whichever is greater:

      If the per capita personal income level in the county(ies) is:	Then RuralDevelopment will award:
      (i) Less than or equal to 90% of the national level	15 points.
      (ii) Between 90 and 100% of the national level	5 points.
      (iii) Less than or equal to 90% of the State level	10 points.
      (iv) Between 90 and 100% of the State level	5 points.

   6. (6) Rural Area location.

      1. (i) If the Project is physically located in an incorporated city or town or equivalent having a population of 1,249 or less, or if it is physically located in an unincorporated area, Rural Development will award 20 points.
      2. (ii) If the Project is physically located in an incorporated area having a population of 1,250 to 2500, Rural Development will award 10 points.
   7. (7) Decline in population for the county where the Project is physically located. If there has been a decline in population in the county where the Project will be located over the time period covered by the two most recent decennial Censuses to the present (or equivalent time frame if using a data source other than the decennial Census), Rural Development will award 10 points.

   8. (8) Cushion of Credit Payments. Rural Development will determine the level of Cushion of Credit Payments on deposit by the Intermediary, as follows:

      If the Intermediary's Cushion of Credit account level is:	Then RuralDevelopment will award:
      (i) In excess of $300,000, or a dollar amount in excess of 3 percent of the Intermediary's total assets, whichever is less	15 points.
      (ii) Within the range of $100,000 to $299,999.99, or a dollar amount that is within the range of one percent to 2.99 percent of Intermediary's total assets, whichever is less	10 points.
      (iii) Within the range of $10,000 to $99,999.99, or a dollar amount that is within the range of 0.5 percent to .99 percent of Intermediary's total assets, whichever is less	5 points.

   9. (9) Initial loan and Grant. If the loan or Grant application will result in the first award to an Intermediary under these Programs, Rural Development will award 10 points.
   10. (10) County participation. If the Project will be the first REDLG Project financed in a county Rural Development will award 10 points.

   11. (11) The business plan for the Applicant's Ultimate Recipient will be evaluated by Rural Development and must include:

       1. (i) A description of the business or Project plans, its management, and, if applicable, its products and operating plans. (The business plan evaluated by Rural Development for Advanced Telecommunications will be its telecommunications and engineering design)—up to 15 points; and
       2. (ii) An appropriate financial plan, including actual balance sheets and income statements covering the most recent 3-year period (for applicants who have been in business this long), and projected balance sheets, income statements, and cash flow statements for the ensuing 3-year period, supported by assumptions showing the basis for the projections—up to 20 points.

[72 FR 29843, May 30, 2007, as amended at 80 FR 9913, Feb. 24, 2015]