Eligible uses of funds.

CFR · 2024-01-01 · US · Title 7

Eligible uses of funds must be consistent with § 4279.101(b) and § 4279.108(a) and include, but are not limited to, the following: (a) Purchase and development of land, buildings, and associated infrastructure for commercial or industrial properties, including expansion or modernization. (b) Business acquisitions provided that jobs will be created or saved. A business acquisition is considered the acquisition of an entire business, not a partial stock acquisition in a business. (c) Leasehold improvements when the lease contains no reverter clauses or restrictive clauses that would impair the use or value of the property as security for the loan. The term of the lease must be equal to or greater than the term of the loan. (d) Constructing or equipping facilities for lease to private businesses engaged in commercial or industrial operations. Financing for mixed-use properties, involving both commercial business and residential space, is authorized provided that not less than 50 percent of the building's projected revenue will be generated from business use. (e) Purchase of machinery and equipment. (f) Startup costs, working capital, inventory, and supplies in the form of a permanent working capital term loan. (g) Debt refinancing when it is determined that the project is viable and refinancing is necessary to improve cash flow and create new or save existing jobs. Debt being refinanced must be debt of the borrower reflected on its balance sheet. The lender's analysis must docum

official document · source cfr-2024 · id 7:§ 4279.113