Loan purposes.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) The Secretary may relend funds to eligible intermediaries for projects that: (i) Promote community development; (ii) Establish new businesses; (iii) Establish and support microlending programs; and (iv) Create or retain employment opportunities. (2) Such loan purposes may include, but are not limited to, those purposes identified in paragraphs (b)(2)(i) through (xx) of this section. (i) Business and industrial acquisitions when the loan will keep the business from closing, prevent the loss of employment opportunities, or provide expanded job opportunities. (ii) Business construction, conversion, enlargement, repair, modernization, or development. (iii) Purchase and development of land, easements, rights-of-way, buildings, facilities, leases, or materials. (iv) Purchase of equipment, leasehold improvements, machinery, or supplies. (v) Pollution control and abatement. (vi) Transportation services. (vii) Start-up operating costs and working capital. (viii) Interest (including interest on interim financing) during the period before the facility becomes income producing, but not to exceed three years. (ix) Feasibility studies. (x) Debt refinancing. (A) The intermediary is responsible for making prudent lending decisions based on sound underwriting principles when considering the restructuring of an ultimate recipient's debt. (B) Refinancing debts may be allowed only when it is determined by the intermediary that the project is viable, and refinancing is necessary to cr

official document · source cfr-2024 · id 7:§ 4274.320