(a) Engineering Feasibility. For loans for construction projects only, a proposed project shall be feasible from an engineering assessment, which means that it can be designed, constructed, and operated in accordance with generally-accepted engineering principles and procedures, for the purpose for which the project is created. The engineering feasibility requirement does not apply to loans made only for the purpose of preparing “Plans, Specifications, and Estimates” for an airport construction project. This section is not required for a loan to match an FAA AIP grant.

(b) Economic Feasibility. For revenue-generating loans only, a proposed project shall be economically justified. Sponsor's completed “Checklist for Economic Feasibility,” on the back of the “Revenue Generating Loan-Application” form [DOA-0020 (Rev. 01/2005)], must show that total projected monetary benefits of the project equal or exceed total costs over the service life of the proposed project, where “total costs” means the sum of capital, maintenance, and administrative costs over the service life of the project.

(c) Financial Feasibility. The Department may refuse any loan if it determines that the sponsor does not have the financial ability to repay the loan in accordance with section 4073.