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Code of Federal Regulations (Last Updated: April 5, 2024) |
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Title 13 - Business Credit and Assistance |
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Chapter I - Small Business Administration |
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Part 120 - Business Loans |
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Subpart B - Policies Specific to 7(a) Loans |
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Limitations on Use of Proceeds |
§ 120.201 - Refinancing unsecured or undersecured loans.
Latest version.
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§ 120.201 Refinancing unsecured or undersecured loans.
A Borrower may not use 7(a) loan proceeds to pay any creditor in a position to sustain a loss causing a shift to SBA of all or part of a potential loss from an existing debt.