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1783.5 What are the eligibility criteria for grant recipients?
(a) The applicant must be a private entity.
(b) The applicant must be organized as a non-profit entity.
(c) The applicant must have the legal capacity and lawful authority to perform the obligations of a grantee under this part.
Example 1 to paragraph (c): If the organization is incorporated as a non-profit corporation, it must have corporate authority under state law and its corporate charter to engage in the practice of making loans to legal entities.
Example 2 to paragraph (c): If the organization is an unincorporated association, state law may prevent the organization from entering into binding contracts, such as a grant agreement.
(d) The applicant must have sufficient expertise and experience in making and servicing loans to assure the likelihood that the objectives of this part can be achieved.