Projects must meet certain requirements to be eligible for funding through this program. Those requirements are as follows:

(a) Eligible projects. Eligible projects must meet all of the following requirements. Failure to meet one or more of these requirements will render the application ineligible for funding.

(1) Project purpose. The sole purpose of the project must be to increase and improve the ability of Agricultural Producers to market Value-Added Agricultural Products, with at least one goal related to increasing and improving the ability of Local Agricultural Producers to market Value-Added Agricultural Products

(2) Amount requested. The minimum amount requested for an award must be $600,000 and the maximum amount that can be requested is $1,000,000.

(3) Matching Funds. Matching Funds are required for at least one-third of the Project Cost. For example, if the Project Cost is $1,500,000, Matching Funds must be at least $500,000. Matching Funds must be from non-Federal sources (unless otherwise provided by statute) and may be provided in cash by the applicant or by a third party or in-kind by a third party. They must be available for use during the Period of Performance, and they must be used for allowable expenses. Applicants may not use unrecovered Indirect Costs as Matching Funds.

(4) Allowable use of funds. The project must use award and Matching Funds for allowable purposes. See § 4284.1025 for additional information.

(5) Agricultural support. The project has the support of at least three organizations whose primary mission is to support agriculture in the State in which the Center is located.

(6) Period of Performance. The Period of Performance must be three (3) years. The Period of Performance must start within 90 days of award approval, unless otherwise authorized by the Agency.

(7) Contracts with other Centers. Contracts and/or subawards with other Centers funded through this program must be limited to 10 percent or less of total Project Costs.

(b) Ineligible projects. Projects are ineligible for assistance through this program if the application:

(1) Includes a conflict of interest (see § 4284.1006 for more information), where the expenses associated with the conflict of interest exceed 10 percent of the Project Cost. If the costs associated with the conflict of interest are 10 percent or less, the process in paragraph (b)(5) of this section will be followed.

(2) Requests less than the minimum or more than the maximum grant amount.

(3) Focuses assistance on only one Agricultural Producer or business.

(4) Earns revenue from processing or selling a product as part of the project. Centers may charge fees for services provided, but they cannot earn revenue from processing a product or from sales associated with a product they helped develop.

(5) Includes unallowable costs totaling more than 10 percent of Project Costs. If the application includes 10 percent or less of Project Costs in unallowable costs, and the application is otherwise eligible and selected for funding, those unallowable costs must be removed. If time permits, the Agency may allow those unallowable costs to be replaced with allowable costs. Otherwise, the amount of the Award will be reduced accordingly. If we cannot determine the percentage of unallowable costs, your application will not be considered for funding.