The commissioner , in accordance with SDCL chapter 1 - 53 , and the provisions of this chapter, must approve all loan application s . The commissioner shall base the decision on the following actions:

1. (1) The administrator shall review the application and the lender's recommendations, if applicable, based on the following criteria:

   1. (a) The applicant and lender, if applicable, meet the requirements contained in this chapter;
   2. (b) The project meets the requirements contained in this chapter;
   3. (c) The application and the loan are consistent with the purposes of this chapter; and
   4. (d) Availability of funds in the Rural Rehabilitation fund;
2. (2) The administrator shall review the application and submit a recommendation to the review committee;

3. (3) The review committee shall consider the application using the following criteria:

   1. (a) The criteria given in subdivisions (1)(a) and (1)(b) of this section;
   2. (b) The character, experience, management record, and background of the applicant;
   3. (c) The net economic effect or stabilization of the project on the applicant's operation, the community, the area, and the state;
   4. (d) The project's compliance with all local, state, and federal statutes and applicable regulations;
   5. (e) The support of the community and the area;
   6. (f) The competitive effect of the project on existing area businesses;
   7. (g) The effect of the project on the environment, health, and safety of the people in the community and the state;
   8. (h) The ability of the applicant to service the debt from the cash flow of operations, capital, or collateral;

4. (4) The review committee and the commissioner shall make one of the following decisions:

   1. (a) Approve as presented;
   2. (b) Conditionally approve subject to modifications or performance of certain actions; or
   3. (c) Deny.

Source: 17 SDR 141, effective March 25, 1991; 38 SDR 45, effective September 22, 2011; 45 SDR 31, effective September 13, 2018; SL 2019, ch 235, § 37 and 38, effective April 14, 2019.

General Authority: SDCL 1 -53-30 .

Law Implemented: SDCL 1-53-24, 1-53-29 .

Prior versions effective: 2018-09-13, 2011-09-22.