<html xmlns="http://www.w3.org/1999/xhtml"><head><meta charset="UTF-8" /><title></title><meta name="Generator" content="PowerTools for Open XML" /><style>span { white-space: pre-wrap; } p.s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0 { margin-top: 0; margin-bottom: 0; margin-left: 0; margin-right: 0; text-indent: 0.00in; text-align: justify; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; line-height: 108%; } span.s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000000 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000001 { color: black; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: bold; margin: 0; padding: 0; } span.s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002 { color: black; background: white; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } span.s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000003 { color: #0000FF; background: white; font-family: 'Times New Roman', 'serif'; font-size: 12pt; font-style: normal; font-weight: normal; margin: 0; padding: 0; } </style></head><body><div><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    </span><a href="https://sdlegislature.gov/Rules?Rule=12:21:01:06"><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000000">12:21:01:06</span></a><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000001">.  Eligibility.</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> To be eligible for assistance under this chapter, the </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">applicant must</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">:</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    (1)  </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">B</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">e a resident of South Dakota </span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">and be at least eighteen years of age </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">at the time the bond is issued to finance the loan;</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    (2)  </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">Demonstrate</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> to the lender and the authority sufficient training and experience for the anticipated farm operations;</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    (3)  </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">A</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">s a condition of loan closing, demonstrate to the satisfaction of the lender and the authority </span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">that the applicant has </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">access as needed to working capital, farm machinery, livestock, and agricultural land;</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    (4)  </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">Be a first-time farmer as defined in 26 U.S.C.</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> § 147(</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">c</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">)</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">(2)(C)</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">(December 31, 2024)</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">;</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    (5)  </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">Establish t</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">he agricultural land and agricultural improvements </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">will</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> be used for farming only by the </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">applicant</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">, the </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">applicant</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">'s spouse, </span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">or </span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">the </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">applicant</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">'s minor children;</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    (6)  </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">M</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">eet </span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">the </span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">net worth requirements </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">set forth</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> in § </span><a href="https://sdlegislature.gov/Rules?Rule=12:21:01:04"><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000003">12:21:01:04</span></a><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">;</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> and</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    (7)  </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">M</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">eet the requirements of </span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">26 U.S.C. </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">§</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> 147(c)(2)(G) and 26 U.S.C. </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">§</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> 144(a) (December 31, 2024)</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">, concerning related persons.</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000001">Source:</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> 22 SDR 97, effective January 22, 1996; 23 SDR 91, effective December 9, 1996; 35 SDR 67, effective September 30, 2008</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">; 52 SDR 49, effective November 17, 2025</span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">.</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000001">General Authority:</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-70"><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000003">1-16B-70</span></a><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">.</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">    </span><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000001">Law Implemented:</span><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0"> SDCL </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-1"><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000003">1-16B-1</span></a><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">(3), </span><a href="https://sdlegislature.gov/Statutes?Statute=1-16B-57"><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0-000003">1-16B-57</span></a><span class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecC0">.</span></p><p dir="ltr" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ecP0"><span xml:space="preserve" class="s0a1d3ee4-6d48-4315-b902-c1648fd082ec000002"> </span></p></div></body></html>