(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.