13 CFR 120.312
§ 120.312 DAL-1 use of proceeds and other program conditions.
United States · 13 CFR — Business Credit and Assistance · Status: effective
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- Citation
- 13 CFR 120.312, § 120.312 DAL-1 use of proceeds and other program conditions, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/52063
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Full text
(a) DAL-1 applicants must submit appropriate documents to establish program eligibility.
(b) Generally, applicants may use loan proceeds for any 7(a) loan purposes. Loan proceeds may not be used:
(1) To purchase or construct facilities if construction grants and mortgage assistance are available from another Federal source; or
(2) For supportive services (expenses incurred by a DAL-1 organization to subsidize wages of low producers, health and rehabilitation services, management, training, education, and housing of disabled workers).
(c) SBA does not consider a DAL-1 organization to have a conflict of interest if one or more of its Associates is an Associate of the Lender.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.