---
kind: "section"
citation: "7 C.F.R. § 1735.14"
title: "7"
number: "1735.14"
heading: "Borrower eligibility."
url: "https://uscodex.org/cfr/7/1735.14"
---

# §1735.14. Borrower eligibility.

- (a) **RUS makes loans to—**
  - (1) Entities providing, or who may hereafter provide, telephone service in rural areas;
  - (2) Public bodies providing telephone service in rural areas as of October 28, 1949; and
  - (3) **Cooperative, nonprofit, limited dividend or mutual associations.**
  - (4) For purposes of [§ 1735.10(a)(2)](/cfr/7/1735.10.md?p=a-2):
    - (i) Any entity eligible to borrow from the RUS;
    - (ii) State or local governments;
    - (iii) Indian Tribes (as defined in [§ 4](/cfr/7/4.md) of the Indian Self-Determination and Education Assistance Act ([25 U.S.C. 450b](/usc/25/450b.md)); or
    - (iv) An emergency communications equipment provider that in the sole discretion of RUS offers adequate security for a loan where the State or local government that has jurisdiction over the proposed project is prohibited by law from acquiring debt.
- (b) **RUS does not make loans to individuals.**
- (c) RUS gives preference to those borrowers (including initial loan applicants) already providing telephone service in rural areas, and to cooperative, nonprofit, limited dividend, or mutual associations. To be eligible for a loan, a borrower:
  - (1) Must have sufficient authority to carryout the purposes of the RE Act; and
  - (2) **Must be incorporated or a limited liability company.**

## Notes

### Amendments

[58 FR 66253, Dec. 20, 1993, as amended at 64 FR 50429, Sept. 17, 1999; 65 FR 42619, July 11, 2000; 76 FR 56094, Sept. 13, 2011]

### Source

Source: 54 FR 13351, Apr. 3, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.

### Authority

Authority: 7 U.S.C. 901 et seq., 1921 et seq., and 6941 et seq.

### Source

Source: 54 FR 13352, Apr. 3, 1989, unless otherwise noted. Redesignated at 55 FR 39395, Sept. 27, 1990.

### Amendments

[58 FR 66253, Dec. 20, 1993, as amended at 64 FR 50429, Sept. 17, 1999; 65 FR 42619, July 11, 2000; 76 FR 56094, Sept. 13, 2011]