13 CFR 120.912
§ 120.912 Borrowed contributions.
United States · 13 CFR — Business Credit and Assistance · Status: effective
Cite this
- Citation
- 13 CFR 120.912, § 120.912 Borrowed contributions, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/52250
- Permanent ID
ys:prov:52250@1- SHA-256
bc2a95427833c3b5f6a6875e330dccc164191eea9848c1c8c5869900f5d5d43c
The hash is SHA-256 of this version's text, with every run of whitespace collapsed to a single space and the ends trimmed. The ID always leads back here, and checking it says whether the text you cited is still the current version.
Full text
The Borrower may borrow its cash contribution from the CDC or a third party. If any of the contribution is borrowed, the interest rate must be reasonable. If the loan is secured by any of the Project assets, the loan must be subordinate to the liens securing the 504 Loan, and the loan may not be repaid at a faster rate than the 504 Loan unless SBA gives prior written approval. A third party lender may not receive voting rights, stock options, or any other actual or potential voting interest in the small business.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.