PURPOSE: This rule describes the operation of the program; defines terms; and establishes criteria for grant applicants, procedures for grant approval, funding of approved grants, and conditions under which amendments will be made.

1. (1) General Organization.

   1. (A) The Missouri Agricultural and Small Business Development Authority is authorized to borrow money and issue bonds, procure insurance or guarantees from any public or private entities, receive and accept from any source aid or contributions of money, property, labor, or other things of value to be used to carry out its purpose, enter into agreements with any department, agency, or instrumentality of the United States or this state for the purpose of providing for the financing and refinancing of any agricultural property and pollution control facilities or general property for small businesses, and to make agricultural development loans, small business development loans, small business pollution control facility loans, and agricultural products utilization grants.
   2. (B) The authority will make grants to persons or entities whose projects add value to agricultural products and aid the economy of a rural community.
   3. (C) All submissions or requests for information regarding this authority should be directed to the Missouri Department of Agriculture, Agricultural and Small Business Development Authority, P.O. Box 630, Jefferson City, MO 65102.

2. (2) Definitions. As used in this rule, the following terms shall mean:

   1. (A) “Agricultural products utilization grant,” a grant made from the agricultural products utilization fund as authorized in section 348.407, RSMo;
   2. (B) “Missouri Value-Added Grant Program,” program through which agricultural product utilization grants will be administered; and
   3. (C) Other terms used within 2 CSR 100-8 shall have the same meaning as those defined in section 348.400, RSMo.

3. (3) Criteria Relating to Grant Applicants and Missouri Value-Added Grant Program.

   1. (A) Eligibility requirements for agricultural products utilization grant applicants include:

      1. 1. Eligible applicants shall be a per-

son(s) who is at least eighteen (18) years of age and a Missouri resident, groups of individuals, businesses and organizations related to agriculture whose proposed project is based in Missouri;

1. 2. Eligible applicants must propose to

utilize the grant funds directly or subcontract with any public or private organization or other resource(s) to achieve grant proposal objectives;

1. 3. A proposed project must be located in

the state of Missouri and must add value to an agricultural product and benefit the economy of a rural community;

1. 4. Proposals and anticipated project

results must adhere to the potential for direct commercial application; and

1. 5. The eligibility of any person for a

grant under the program shall not be determined or otherwise affected by any consideration of that person’s race, religion, sex, creed, color, or location of residence, other than the project must be located in the state of Missouri.

1. (B) Grant funds may not be used for business start-up, business expansion, unless qualified on the basis of program criteria, paying off existing debt, substituting existing efforts or research already studied, covering institutional overhead costs, land purchases, building purchases, or capital equipment purchases.

1. (4) Procedure for Evaluation and Funding of Grant Proposals.

   1. (A) Grant proposals may be submitted at any time in the application format provided by the authority and as allowed by law. Applications will be reviewed as determined by the authority.
   2. (B) Priority will be given to proposals which demonstrate a commitment for funding from other sources. Preference will be given to proposals which allow greater utilization of agricultural products grown in Missouri or greater benefits to Missouri’s agricultural producers.
   3. (C) Priority will be given to proposals which provide the potential for near-term commercial application or widespread use of the project results.
   4. (D) When the proposal requires specific research which cannot possibly be carried out in rural Missouri, consideration will be given to the ultimate development and commercialization of the results of the proposal, with the same rural preference. 2 CSR 100-8
   5. (E) The authority reserves the right to increase or decrease the amount of requested funding based on its findings and on its level of available funds. Requests must be justified with respect to the scope of the project.
   6. (F) Each application will be considered by the authority and will compete with other applications for limited funds. A decision to accept, modify or deny each will be released.
   7. (G) The decision by the authority is binding and not subject to review or appeal.
   8. (H) Grant recipients will be required to enter into a contract with the authority.

2. (5) Amendments.

   1. (A) Subject to the provisions of the Act and the program, these guidelines may be amended from time-to-time in order to make them conform to the provisions of the Act or the program or to facilitate the making of grants through the Missouri Value-Added Grant Program.

AUTHORITY: section 348.403, RSMo Supp. 1997.* Original rule filed Oct. 28, 1997, effective May 30, 1998. *Original authority 1997.