b) Basic Eligibility Evaluation – Each grant application will be reviewed to assure compliance with the eligibility requirements as detailed below:

1. 1) Eligible Applicant – Eligible applicant as detailed in Section 640.230.
2. 2) Eligible Project Type – Project activities consistent with the eligible activities of a Rural Diversification Project as detailed in Section 640.240.

c) Evidence of Need – The applicant must show:

1. 1) The essential need which must be documented for agricultural or rural diversification (Section 6 (b)(i) of the Act): for example, absence of development projects; lack of knowledge, education or skills of economic development; potential opportunity for economic benefit, or related need.
2. 2) proof of the project's inability to acquire financing from other state authorities or agencies (Section 6(b)(i) of the Act), in an amount adequate to complete the project, such as a letter of partial funding or indication that other state and federal program funding has been considered.

d) Costs – The applicant must demonstrate that the project costs:

1. 1) are eligible program costs as defined in Section 640.250;
2. 2) can be substantiated given the amount of work to be undertaken and the results expected; and
3. 3) the amount to be paid from the Department's share does not exceed the maximum percentage participation as detailed in Section 640.310.

e) Program Objectives and Methodology – The applicant must demonstrate the activities and outcomes of the project are accomplishable, such that:

1. 1) objectives are measurable and describe benefit to the population or area being served;
2. 2) methods and sequence of activities logically address the problems or opportunities identified and achieve the objectives that have been set.