Section 2110 - Eligibility for loans and limitations(a) Applicant eligibility criteria.-- To be eligible for a sustainable agriculture loan, an applicant must demonstrate all of the following: (1) That the applicant is a resident of this Commonwealth or that its principal operating or managing members or shareholders, in the case of either a family farm partnership or a family farm corporation, are Commonwealth residents or show sufficient evidence that he or they intend to become a resident or residents.(2) That the applicant will use the proceeds of the loan for eligible sustainable agriculture purposes, as defined by this act, and that the farmland or farm enterprise for which the loan is acquired is located in this Commonwealth. Corporate farm applicants must demonstrate that the farming enterprise owns or leases farmland in this Commonwealth and that the proceeds of the loan will be used for sustainable agricultural purposes in Commonwealth farming operations only.(3) That the applicant is creditworthy based on the applicant's net worth, cash flow projections, credit rating and the type of farmland or farm enterprise involved.(b) Loan eligibility criteria.-- Applications for sustainable agriculture loans shall be reviewed and ranked using the following criteria: (1) The ability of the applicant to meet and satisfy all debt service as it becomes due and payable.(2) The relevant criminal and credit history and ratings of the applicant as determined from credit reporting services and other sources.(3) The payment to date of all tax obligations due and owing by the applicant to the Commonwealth or any political subdivisions thereof.(4) The manner in which loan proceeds will be utilized in furthering sustainable agriculture in this Commonwealth.(5) The amount of the loan.(6) The intent to use practices that would improve soil fertility, lower the cost of production, cause the optimum and environmentally compatible use of off-farm inputs, such as chemical or synthetic fertilizers, insecticides and herbicides, or otherwise promote sustainable agriculture. Practices that promote sustainable agriculture could include, but not be limited to, practices that involve using on-farm labor and resources, such as animal and plant manure to enrich soil, planting a diverse array of crops, rotating crops, planting cover crops to defend against insects and weeds and using mechanical tillage to control weeds and relying on natural systems, such as biological controls and natural predators.(c) Loan limitations.-- Loans may not exceed $15,000 for farm enterprises which are not corporate farms or $25,000 for corporate farms. The loan repayment period shall be based on the stated purpose for the loan, the amount of the loan and the nature of the farmland or farm enterprise involved, but in no event shall the repayment period exceed seven years. Interest on the loans shall be calculated using simple interest at the percentage rate that was equal to the Federal Reserve discount rate at the time the loan was made.1994, Dec. 12, P.L. 891, No. 129, § 10, effective in 60 days.