The following persons or entities are ineligible to receive
financial assistance under the Rural Economic Development Finance
Program:
(1) A principal, executive officer, director, shareholder,
member, or partner of a recipient, or any subsidiary, parent, affiliate
or related entity or person of a recipient;
(2) A member of the immediate family of a principal,
executive officer, director, shareholder, member, or partner of a
recipient;
(3) A related interest of a principal, executive officer,
director, shareholder, member, or partner of recipient;
(4) A person if the investment would result in violation
of Chapter 176 of the Texas Local Government Code;
(5) A person (or any principal executive officer, director,
shareholder, or member) who has been convicted of a felony;
(6) A person (or any principal, executive officer,
director, shareholder, or member) that has demonstrated a pattern
or practice of defalcation of accounts or funds;
(7) A person (or any principal executive officer, director,
shareholder, or member) who has mis-certified its status as a minority
and/or woman owned business enterprise;
(8) A person (or any principal executive officer, director,
shareholder, or member) who has been debarred from participating in
other federal or state programs;
(9) A person (or any principal executive officer, director,
shareholder, or member) that has been convicted of, or subjected to
a civil judgment for fraud;
(10) A person (or any principal executive officer,
director, shareholder, or member) who has been convicted of, or subjected
to a civil judgment for, federal or state antitrust law violations;
(11) A person (or any principal executive officer,
director, shareholder, or member) who has been convicted of a criminal
offense relating to embezzlement, theft, forgery, bribery, falsification,
or destruction of records, making false statements, receiving stolen
property, making false claims, obstruction of justice, or conspiracy
to do the same;
(12) A person (or any principal executive officer,
director, shareholder, or member) who has been convicted of a criminal
offense indicating a breach of trust, dishonesty or lack of integrity,
or conspiracy to do the same;
(13) A business engaged in speculative activities that
develop profits from fluctuations in price rather than through normal
course of trade, such as stock investments, commodities futures, and
currency trading;
(14) A business that earns more than half of its annual
net revenue from lending activities unless the business is a Community
Development Financial Institution;
(15) A business engaged in pyramid sales, where a participant's
primary incentive is based on the sales made by an ever-increasing
number of participants, or a multi-level marketing organization or
business;
(16) A business engaged in activities that are prohibited
by federal or Texas law; and
(17) A business engaged in gambling enterprises, with
the sole exception of a retail grocery or convenience store business
that earns less than 33% of its annual net revenue from lottery sales.
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