(a) An administering corporation shall not approve a loan unless the following conditions are met:

1. (1) the administering corporation has determined that the loan applicant is an eligible business, based upon a diligent investigation which may include, without limitation:

   1. (i) interviews with persons holding ownership interests in or management positions with the loan applicant;
   2. (ii) visits to the project site or to the site of the applicant's business operations; and
   3. (iii) the review of the organizational documents and other books and records of the applicant, and such other documents as may be provided by the applicant pursuant to requests made by the administering corporation;

2. (2) the project which the Loan applicant seeks to undertake is:

   1. (i) an eligible project;
   2. (ii) feasible;
   3. (iii) located in the service delivery region served by the administering corporation; and
   4. (iv) will comply with any applicable environmental rules or regulations;
3. (3) there is a reasonable likelihood of repayment of the loan requested by the applicant;
4. (4) the applicant has agreed to first consider persons eligible to participate in Job Training Partnership Act (29 U.S.C. 1501, et seq.) programs. Such persons shall be referred to the applicant by administrative entities of service delivery areas created pursuant to such act or by the Job Service Division of the State Department of Labor; and
5. (5) the administering corporation has not advanced any previous loan to the applicant using trust fund proceeds.