(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.
 
     
    
        
            Code of Federal Regulations
        
        
            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.
            
        
    
    
        
            Code of Federal Regulations
        
        
            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.