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Current as of January 02, 2025 | Updated by Findlaw Staff
Federal procurement standards prohibit transactions that involve a real or apparent Conflict of Interest for owners, employees, officers, agents, or their Immediate Family members having a personal, professional, financial or other interest in the outcome of the project; including organizational conflicts, and conflicts that restrict open and free competition for unrestrained trade. In addition, the use of funds is limited to only the eligible activities identified in § 4284.925 and prohibits other uses of funds. Ineligible uses of grant and Matching Funds awarded under this subpart include, but are not limited to:
(a) Support costs for services or goods going to or coming from a person or entity with a real or apparent Conflict of Interest, except as specifically noted for limited in-kind Matching Funds in § 4284.925(a) and (b);
(b) Pay costs for scenarios with noncompetitive trade practices;
(c) Plan, repair, rehabilitate, acquire, or construct a building or facility (including a processing facility);
(d) Purchase, lease purchase, or install fixed equipment, including processing equipment;
(e) Purchase or repair vehicles, including boats;
(f) Pay for the preparation of the grant application;
(g) Pay expenses not directly related to the funded project for the processing and marketing of the Value–Added Agricultural Product;
(h) Fund research and development;
(i) Fund political or lobbying activities;
(j) Fund any activities prohibited by 2 CFR parts 200 through 400, and 48 CFR subpart 31.2;
(k) Fund architectural or engineering design work;
(l) Fund expenses related to the production of any Agricultural Commodity or product, including, but not limited to production planning, purchase of seed or rootstock or other production inputs, labor for cultivation or harvesting crops, and delivery of raw commodity to a processing facility;
(m) Conduct activities on behalf of anyone other than a specifically identified Independent Producer or group of Independent Producers, as identified by name or class. The Agency considers conducting industry-level feasibility studies or business plans, that are also known as feasibility study templates or guides or business plan templates or guides, to be ineligible because the assistance is not provided to a specific group of Independent Producers;
(n) Pay for goods or services from a person or entity that employs the owner or an Immediate Family member;
(o) Duplicate current services or replace or substitute support previously provided;
(p) Pay any costs of the project incurred prior to the date of grant approval, including legal or other expenses needed to incorporate or organize a business;
(q) Pay any judgment or debt owed to the United States;
(r) Purchase land;
(s) Pay for costs associated with illegal activities; or
(t) Purchase the Agricultural Commodity to which value will be added (raw commodity) from the applicant entity; applicant-owned or related entity, or members of the applicant entity.
Cite this article: FindLaw.com - Code of Federal Regulations Title 7. Agriculture § 7.4284.926 Ineligible uses of grant and Matching Funds - last updated January 02, 2025 | https://codes.findlaw.com/cfr/title-7-agriculture/cfr-sect-7-4284-926/
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature before relying on it for your legal needs.
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