Applicants must meet the following requirements to be eligible for financial assistance through this program.

(a) Eligible entities. Entities are eligible for assistance through this program if all the following requirements are met:

(1) System for Award Management (SAM) registration and Unique Entity Identifier (UEI). Applicants and Recipients must be registered in SAM. This registration must remain current, accurate, and complete at the time of application, while the application is under consideration for funding, and while a Recipient has an active Federal Award. This registration includes obtaining a UEI, or its successor, and completing the process for “All Awards” through SAM.gov. When registering in SAM.gov, all Applicants must select the All Awards option.

(2) Small Business Administration (SBA) profile. An Applicant applying as a Rural Small Business must establish and maintain an active SBA profile within SAM.gov and be identified as a Small Business through the Small Business Search feature, or its successor.

(3) Legal authority. Each Applicant must have the legal authority necessary to apply for and carry out the purpose of the Federal Award.

(4) Entity type. The Applicant must be organized or incorporated under State. Tribal, or Federal law and must meet the definition of an Agricultural Producer or Rural Small Business at the time of application.

(5) Existing Business. The Applicant must be an Existing Business at least 12 months prior to the start of the Project Period.

(6) Ownership and control. The Applicant must be the Highest-Level Owner or wholly owned by an Indian Tribe. All Applicants must own the RES or EEI that is the subject of the Project and own or control the site for the Project. This ownership must be in place at least 12 months prior to the Project Period for the Project through the time of application and continue until the final payment is disbursed for the Project.

(7) Financial capability. The Applicant is financially sustainable and can maintain the Project into the future.

(i) Current ratio. The balance sheet from the Applicant's most recent fiscal year must show a current ratio of at least 1:1, which means that its current liabilities do not exceed its current assets.

(ii) Cash flow. The cash flow statement for the Applicant's most recent fiscal year must show a positive cash flow.

(iii) Revenue. The Applicant must have available at the time of application satisfactory sources of revenue in an amount sufficient to provide for the operation, management, maintenance, and any debt service of the Project for the Useful Life of the Project. In addition, the Applicant must control the revenues and expenses of the Project, including revenues and expenses related to operation and maintenance.

(8) Number of awards. No more than one award from each Highest-Level Owner and entities owned by its individual owners or each corporation/business wholly owned by an Indian Tribe will be approved each Federal Fiscal Year. Notwithstanding corporations/businesses wholly owned by Indian tribes, the Highest Level Owners individually are eligible for only one award per FFY and may not apply to the program using a different entity owned in whole or in part.

(b) Ineligible entities. Entities are ineligible for assistance from all programs listed in this subpart if any of the following occurs:

(1) Outstanding judgment. An outstanding judgment has been obtained against the entity by the United States in a Federal Court (other than in the United States Tax Court). The entity is ineligible for assistance until the judgment is paid in full or otherwise satisfied. Funds from this program may not be used to satisfy the judgment.

(2) Federal income tax delinquency. The entity is delinquent on the payment of Federal income taxes.

(3) Federal debt delinquency. The entity is delinquent on Federal debt.

(4) Debarment or suspension. The entity is debarred or suspended or is otherwise excluded from or ineligible for participation in Federal assistance programs.

(5) Felony criminal violation. The entity has been convicted of a felony criminal violation under any Federal law within the past 24 months.

(6) Unpaid Federal tax liability. The entity has any unpaid Federal tax liability that has been assessed, for which all judicial and administrative remedies have been exhausted or have lapsed, and that is not being paid in a timely manner pursuant to an agreement with the authority responsible for collecting the tax liability, unless a Federal agency has considered suspension or debarment of the organization and has made a determination that this further action is not necessary to protect the interests of the Government.

(7) Individual. The entity is an individual.

(8) Active Federal Award. The entity has an active award through this program for which the Project Period is not scheduled to end until after September 30 of the year in which the application is submitted.

(9) Foreign ownership. If the entity has foreign investment or ownership, the Agency will evaluate the entity's ability to participate in the Rural Energy for America Program consistent with applicable law. Entities that are headquartered in countries determined to be foreign adversaries as defined by 15 CFR 791.4, are not eligible to participate in the program.

(10) Business operations. Entities that derive income from one or more of the following activities:

(i) Gambling activity. Business operations deriving income from gambling activity. Gambling activities include any lease income from space or machines used for gambling activities. State or authorized lottery proceeds and net revenues generated from gaming by a Tribe pursuant to Tribal law or the Indian Gaming Regulatory Act, 25 U.S.C. 2107 et seq., conducted in part for the purpose of raising funds for the approved Project are excluded.

(ii) Sexual activities. Business operations deriving income from activities of a sexual nature.

(iii) Racing activities. Business operations deriving income from racetracks or facilities for conducting either professional or amateur races of animals, or by professional or amateur drivers or jockeys, or any other type of racing.

(iv) Illegal activities. Business operations deriving income from activities prohibited by local, state, Tribal, or federal law.