If the applicant is an individual, to qualify for financial assistance under this part the applicant shall satisfy the Authority that: the applicant is of good moral character; the applicant has a reputation for financial responsibility, as determined from creditors, employers, and other individuals who have personal knowledge of the applicant; the applicant is a resident of the State or the principal place of business of the applicant is in the State; and the applicant is unable to obtain adequate business financing on reasonable terms through normal lending channels because the applicant: belongs to a group that historically has been deprived of access to normal economic or financial resources; has a documented disability; has any other social or economic impediment that is beyond the control of the applicant but that does not limit the ability of the applicant to perform the contract or other activity for which the applicant would be receiving financial assistance, including: the lack of formal education or financial capacity; or geographical or regional economic distress; or does not meet the established credit criteria of at least one financial institution. If the applicant is a business enterprise that is not a sole proprietorship, to qualify for financial assistance under this part at least 70% of the business enterprise shall be owned by individuals who meet the qualifications for an individual applicant under subsection (a) of this section. An applicant for a loan guaranty shall have applied for and been denied a loan by a financial institution.