1. (a) Projects. An applicant is eligible for assistance from the Authority if the proposed project meets the following criteria:

   1. (1) the applicant currently has a project financed with the Authority's assistance;
   2. (2) the board determines that it is in the best interest of the program to renew the existing obligation; and
   3. (3) the requested assistance amount is not more than the existing obligation, and will be used to renew or extend the existing obligation.

2. (b) Project costs. The proceeds of the financial assistance provided by the Authority may be used to finance costs incurred in connection with the production, processing, marketing, or export of Texas agricultural products or in connection with the development of other agricultural-related rural projects, including, but not limited to, the costs of:

   1. (1) acquisition of and improvements to land or interests in land;
   2. (2) acquisition, construction, rehabilitation, operation, and maintenance of buildings, improvements, and structures;
   3. (3) site preparations;
   4. (4) architectural, engineering, legal, and related services;
   5. (5) acquisition, installation, rehabilitation, operation and maintenance of machinery, equipment, furnishings, and facilities;
   6. (6) acquisition, processing, or distribution of inventory;
   7. (7) research and development;
   8. (8) financing fees and charges;
   9. (9) interest during acquisition or construction;
   10. (10) necessary reserve fund;
   11. (11) acquisition of licenses, permits, and approvals from any governmental entity;
   12. (12) pre-export and export expenses; and
   13. (13) insect eradication and suppression programs.
3. (c) Ineligible project costs. Under the loan guaranty program, costs which are not eligible include, but are not limited to, refinancing of existing debt, where the refinancing will improve the lender's position in the loan, whether classified or not, by allowing for the refinancing of those projects through the program.

Source Note:The provisions of this §28.7 adopted to be effective April 23, 1991, 16 TexReg 2051; amended to be effective March 10, 1992, 17 TexReg 1533; amended to be effective January 6, 1993, 17 TexReg 9027; amended to be effective January 17, 1994, 19 TexReg 66; amended to be effective October 4, 1994, 19 TexReg 7434; amended to be effective October 4, 1995, 20 TexReg 7596; amended to be effective August 24, 1999, 24 TexReg 6472; amended to be effective November 28, 1999, 24 TexReg 10320; amended to be effective September 28, 2005, 30 TexReg 6049; transferred effective October 1, 2007, as published in the Texas Register September 28,2007, 32 TexReg 6793.