A. Investment in efforts to manufacture and market new products for sheep or goat disease prevention and control; predator control; genetic and reproductive performance.

B. Investment in the development, production, and commercialization of new sheep or goat products.

C. Investment in development and use of new equipment and processes to process sheep or goat products.

A. Pay more than 50 percent of project costs.

B. Fund any project where commercialization is not expected for 5 or more years.

C. Fund any activity that does not benefit the sheep or goat industries.

D. Pay for assistance to any private business enterprise which does not have at least 51 percent ownership by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence.

A. Applicants may be a cooperative, corporation, partnership, or other legal entity organized and operated on a profit or nonprofit basis; an Indian tribe on a Federal or State reservation or other Federally recognized tribal group; or a public body. Applicant must have credentials demonstrating expertise in project content.

B. Corporations or other nonpublic body organization-type applicants must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. Citizens and residents of the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands shall be considered U.S. citizens.

A. To increase production or improve production efficiency.

B. To improve marketing efficiency or product quality.

C. Business and industrial acquisitions when the loan will keep the business from closing, or prevent the loss of infrastructure in the sheep or goat industries.

D. Business conversion, construction, enlargement, repair, modernization, or development in processing facilities for sheep, goats or their products.

E. Purchase and development of land, easements, rights-of-way, buildings, or facilities for the purpose of sheep or goat production or processing.

F. Purchase of equipment, leasehold improvements, machinery, supplies, or inventory for sheep or goat production or processing.

G. Transportation services or facilities needed by the sheep and goat industries.

H. Startup costs and working capital.

I. Purchase of membership, stocks, bonds, or debentures necessary to obtain a loan from Farm Credit System institutions and other lenders provided that the purchase is required for all of their borrowers. Purchase of startup cooperative stock in new sheep or goat cooperatives.

J. Interest (including interest on interim financing) during the period before the first principal payment becomes due or when the facility becomes income producing, whichever is earlier.

K. Feasibility studies.

L. To refinance outstanding debt when it is determined that the project is viable and refinancing is necessary to improve cash flow.

M. Takeout of interim financing.

N. Fees and charges for relevant services and routine lender fees.

O. Center guarantee fee.

P. Constructing or equipping facilities for lease to private businesses engaged in commercial or industrial operations.

A. Any illegal business activity.

B. The guarantee of loans made by other Federal agencies.

C. Any activity that does not benefit the sheep or goat industries.

A. An eligible lender is any Federal or State chartered bank, Farm Credit Bank, other Farm Credit System institution with direct lending authority, Bank for Cooperatives, Savings and Loan Association, or mortgage company that is part of a bank-holding company. These entities must be subject to credit examination and supervision by either an agency of the United States or a State Government. Eligible lenders may also include credit unions provided they are subject to credit examinations and supervision by either an agency of the United States, State, other public bodies, or by the National Credit Union Administration, and insurance companies provided they are regulated by a State or National insurance regulatory agency. Eligible lenders include the National Rural Utilities Cooperative Finance Corporation.

B. Other lenders not meeting the above criteria may be considered by the Center for eligibility to become a guaranteed lender provided the Center determines that they have the legal authority to operate a lending program and sufficient lending expertise and financial strength to operate a successful lending program. Such a lender must:

(i) Have a record of successfully making at least three commercial loans annually for at least the most recent 3 years, with delinquent loans not exceeding 10 percent of loans outstanding and historic losses not exceeding 10 percent of dollars loaned, or when the proposed lender can demonstrate that it has personnel with equivalent previous experience and where the commercial loan portfolio was of a similar quantity and quality; and

(ii) Have tangible balance sheet equity of at least 7 percent of tangible assets and sufficient funds available to disburse the guaranteed loans it proposes to approve within the first 6 months of being approved as a guaranteed lender.

A. Processing applications for guaranteed loans.

B. Developing and maintaining adequately documented loan files.

C. Recommending to the NSIIC only loan proposals that are eligible and financially feasible.

D. Obtaining valid evidence of debt and collateral in accordance with sound lending practices.

E. Supervising construction, if any.

F. Distribution of loan funds.

G. Servicing guaranteed loans in a prudent manner, including liquidation if necessary.

H. Following Center and Agency regulations.

I. Obtaining Center approvals or concurrence as required.

J. Continuing advice to the Center on the status of all guaranteed loans.

A. A borrower may be a cooperative, corporation, partnership, or other eligible legal entity; a federally recognized Indian tribe; or a public body. A borrower must be engaged in or proposing to engage in a business. Business may include manufacturing, processing, wholesaling, retailing, providing services, producing sheep or goats, or other activities that will:

B. Corporations or other nonpublic body organization-type borrowers must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. Citizens and residents of the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands shall be considered U.S. citizens.

C. Applicants must agree to account for amounts received from the guaranteed lender and the Center using generally accepted accounting principles.

D. Applicant must demonstrate an assured source of repayment.

A. Loan amount. The total amount of loans guaranteed by the Center to any one borrower, including the outstanding principal and interest balance of any existing Center guaranteed loans, and new loan request, must not exceed $1 million. The amount of a direct loan cannot exceed $1 million.

B. Percent of guarantee. The percentage of guarantee is a matter of negotiation between the lender and the Center. The maximum percentage of guarantee is 80 percent of the loan.

A. Rate. A loan from the Fund will be made at an interest rate set by the Board.

B. Term. The term of a loan may not exceed the shorter of: the useful life of the activity financed or 40 years.

C. Guarantee fee. The borrower shall pay to the lender, which shall then pay to the Center, a guarantee fee equal to 1 percent per annum on the guarantee amount computed on a daily basis but paid in arrears as payments are made to the lender.

A. Marketing research related to sheep or goat products,

B. Production research in sheep or goat reproduction, physiology, genetics, nutrition, or animal health,

C. Feasibility studies for new marketing or production or processing organizations or entities serving the sheep or goat industries.

D. The commercialization of sheep or goat products that have been developed by public or private institutions.

A. Applicants may be a Federal or State agency, institution of higher learning, non-profit association, or other contracting organization with proven abilities to perform responsibly in the field of economic, business management or other needed research or study area.

B. Applicant must have the financial, legal, administrative, and experience with proven ability to perform responsibly in the field of economic, business management, or other needed research area necessary to assume and carry out the responsibilities imposed by the Agreement.

A. The Center may not provide more than 50 percent of the project costs unless expressly approved by the Board.

B. Project costs may not include overhead expenses when calculating matching funds.

C. Projects must be completed in a timely basis from the date funds are received from Center. Multi-year projects must be set up so that the interim results are reviewed annually.

A. Contributions to production research such as: sheep or goat disease prevention and control; predator control and genetic and reproductive performance.

B. Technology research, investigations, and basic feasibility studies in any field or discipline for the purpose of generating principles, facts, technical knowledge, new technology, or other information that may be useful to the sheep or goat industries in the development and commercialization of new products, processes, or services.

C. The collection, interpretation, and dissemination of principles, facts, technical knowledge, new technology, or other information that may be useful to the sheep or goat industries in the development and commercialization of new products, processes, or services.

D. Providing loans and grants to small businesses and cooperatives for purposes of generating, evaluating, developing, and commercializing new products, processes, or services.

E. Matching funds to Federal, State or private projects where the primary purpose is to enhance the production or marketing of sheep or goat products. Calculation of the matching fund amount is not to include indirect costs such as rent, electricity, telephone, library services, etc.

F. Start-up capital to new eligible producers of sheep or goats.

G. Capital to expand production from existing eligible sheep or goat producers.

H. Sponsoring of special industry meetings, seminars, or workshops.

I. Set up an endowment for a fellowship program for research at land grant university.

J. Set up a revolving fund with an intermediary that may lend monies in accordance with the Center’s strategic plan.

A. Pay more than 50 percent of project costs except as expressly approved by the Board.

B. Pay more than 25 percent of the award for overhead.

C. Duplicate research in progress or completed.

D. Pay costs of preparing the application package for funding under this program.

E. Pay costs incurred prior to the effective date of the grant made.

F. Fund political activities.

G. Fund any activity that does not benefit the sheep or goat industries.

H. Pay for assistance to any private business enterprise which does not have at least 51 percent ownership by those who are either citizens of the United States or reside in the United States after being legally admitted for permanent residence.

A. Applicants may be a cooperative, an association, corporation, partnership, institute of higher learning, research institution, or other eligible legal entity; a federally recognized Indian tribe; or a public body. Applicant must have credentials demonstrating expertise in project content.

B. Corporations or other nonpublic body organization-type applicants must be at least 51 percent owned by persons who are either citizens of the U.S. or reside in the U.S. after being legally admitted for permanent residence. Citizens and residents of the Republic of Palau, the Federated States of Micronesia, and the Republic of the Marshall Islands shall be considered U.S. citizens.

C. Applicants must agree to account for the amounts using generally accepted accounting principles.

A. Joint efforts. The Center may provide additional funding to projects initiated by other public or private entities that serve to accomplish one or more of the Center's goals listed in this plan. Funds can be contributed as grants, loans, guaranteed loans, or cooperative agreements as detailed above.

B. Bond issues. The Center may provide security for, or make principal or interest payments on, revenue or general obligation bonds issued by a state, if the proceeds from the sale of the bonds are deposited in the Fund. The bond issue must be for projects that will improve or expand the sheep or goat industry's infrastructure.

Applicants may be a Federal or State agency; a Federally recognized Indian tribe ; or any other public body.

Return