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

   1. (1) the project provides significant benefits for the maintenance, expansion or development of rural economic development activity;
   2. (2) the project will create or retain employment in the rural area;
   3. (3) the applicant provides a reasonable level of equity for the project as defined in the credit policy and procedures;
   4. (4) the applicant is a legal entity under the laws of the United States of America and the State of Texas; and
   5. (5) the applicant has a principal place of business in the state.
2. (b) Project costs. The proceeds of the commitment provided by the Authority may be used only to finance expenditures incurred in connection with the development of the project as identified in the budget filed with the application and approved by the board.
3. (c) Ineligible project costs. Any expenditure that is not identified in the approved budget filed with the application, or is otherwise prevented by regulation or statute, is not eligible for financing hereunder, unless the applicant provides evidence that such expenditure is necessary for completion of the project and will not increase the commitment approved.

Source Note:The provisions of this §28.47 adopted to be effective September 6, 2000, 25 TexReg 8623; amended to be effective September 28, 2005, 30 TexReg 6048; transferred effective October 1, 2007, as published in the Texas Register September 28, 2007, 32 TexReg 6793.