Eligible loan purposes.

CFR · 2024-01-01 · US · Title 7

(a) Funds may be used: (1) To construct, enlarge, extend, or otherwise improve essential community facilities primarily providing fire or rescue services primarily to rural residents and rural business. Rural businesses would include facilities such as educational and other publicly owned facilities. “Otherwise improve” includes but is not limited to the following: (i) The purchase of major equipment, such as fire trucks and ambulances, which will, in themselves, provide an essential service to rural residents. (ii) The purchase of existing facilities when it is necessary either to improve or to prevent a loss of service. (iii) The construction or development of an essential community facility requisite to the beneficial and orderly development of a community operated on a nonprofit basis in accordance with § 1942.17(d) of this subpart. This subpart includes those projects meeting the definition of a small community facility project. (2) To pay the following expenses, but only when such expenses are a necessary part of a loan to finance facilities authorized in paragraph (a)(1) of this section: (i) Reasonable fees and costs such as legal, engineering, architectural, fiscal advisory, recording, environmental impact analyses, archaeological surveys and possible salvage or other mitigation measures, planning, establishing or acquiring rights. (ii) Interest on loans until the facility is self-supporting but not for more than 3 years unless a longer period is approved by the Natio

official document · source cfr-2024 · id 7:§ 1942.112