13 CFR 120.394
§ 120.394 What are the eligible uses of proceeds?
United States · 13 CFR — Business Credit and Assistance · Status: effective
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- Citation
- 13 CFR 120.394, § 120.394 What are the eligible uses of proceeds?, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/52096
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Full text
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 33 percent of the proceeds to acquire land, and up to 5 percent for community improvements such as curbs and sidewalks.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.