13 CFR 120.397
§ 120.397 Are there any special restrictions?
United States · 13 CFR — Business Credit and Assistance · Status: effective
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- Citation
- 13 CFR 120.397, § 120.397 Are there any special restrictions?, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/52099
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Full text
The borrower must not use loan proceeds to purchase vacant land for possible future construction or to operate or hold rental property for future rehabilitation. SBA may allow rental of the property only if the rental will improve the ability to sell the property. The sale must be a legitimate change of ownership.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.