PURPOSE: This rule sets forth the requirements which must be met by the applicant in order to be an eligible borrower for a loan under this program.

1. (1) The following criteria must be met before making application for a loan through this authority:

   1. (A) If an individual, the applicant must be a citizen of the United States or a person who has been legally admitted for permanent residence in the United States and is a resident of Missouri at the time of the loan application; and
   2. (B) If a partnership, the principal partners or applicant must be citizens or permanent residents of the United States and residents of Missouri.

2. (2) The applicant must be a bona fide farmer or rancher—

   1. (A) Doing business in Missouri either as an individual or partnership, who is recognized in the community as one whose chief occupation is farming or ranching; and
   2. (B) Primarily and directly engaged in agricultural production or activity.

3. (3) The applicant must have a low or moderate net worth not to exceed one hundred fifty thousand dollars ($150,000). The net worth of an applicant includes:

   1. (A) If an individual—the individual, individual’s spouse and minor children’s net worth must be considered as the total net worth of the individual; and
   2. (B) If a partnership—net worth must include the net value of the partners’ capital accounts.
4. (4) The applicant must be unable to obtain a loan of equivalent terms from conventional sources without participation by the authority.

AUTHORITY: section 348.075, RSMo 1986.* Original rule filed July 12, 1984, effective Oct. 11, 1984. *Original authority: 348.075, RSMo 1981, amended 1995, 1997.