The business financed with a B&I; loan must be located in a rural area. Loans to borrowers with facilities located in both rural and non-rural areas will be limited to the amount necessary to finance the facility located in the eligible rural area. Cooperatives that are headquartered in a non-rural area may be eligible for a B&I; loan if the loan is used for a project or venture that is located in a rural area. Rural areas are any areas other than:
(a) A city or town that has a population of greater than 50,000 inhabitants; and
(b) The urbanized area contiguous and adjacent to such a city or town, as defined by the U.S. Bureau of the Census using the latest decennial census of the United States. [67 FR 78130, Dec. 23, 2002] Sec. Sec. 1980.406-1980.410 [Reserved]