![]() |
Code of Federal Regulations (Last Updated: July 5, 2024) |
![]() |
Title 13 - Business Credit and Assistance |
![]() |
Chapter I - Small Business Administration |
![]() |
Part 120 - Business Loans |
![]() |
Subpart C - Special Purpose Loans |
![]() |
Builders Loan Program |
§ 120.394 - What are the eligible uses of proceeds?
Latest version.
-
§ 120.394 What are the eligible uses of proceeds?
A Borrower must use the loan proceeds solely to acquire, construct or substantially rehabilitate an individual residential or commercial building for sale. “Substantial” means rehabilitation expenses of more than one-third of the purchase price or fair market value at the time of the application. A Borrower may use up to 20 33 percent of the proceeds to acquire land, and up to 5 percent for community improvements such as curbs and sidewalks.
[61 FR 3235, Jan. 31, 1996, as amended at 82 FR 39503, Aug. 21, 2017]