Loans from the microlenders to microentrepreneurs.

CFR · 2024-01-01 · US · Title 7

The primary purpose of making a program loan to a microlender is to enable that microlender to make microloans to rural microenterprises and microentrepreneurs. It is the responsibility of each microlender to make microloans in such a fashion that the terms and conditions of the microloan will support microborrower success while enabling the microlender to repay its loan from the Agency. It is the responsibility of each microborrower to repay the microlender in accordance with the terms and conditions agreed to with the microlender. The microlender is responsible for full repayment to the Agency of its loan regardless of the performance of its microloan portfolio. (a) (b) (1) No microloan may have a term of more than 10 years; (2) The interest rate charged to the microborrower will be established at or before the microloan closing and at such a rate that the microloan is affordable to the microborrower and provides a reasonable margin of earnings to the microlender. (c) (d) (e) (f) (1) Working capital; (2) The purchase of furniture, fixtures, supplies, inventory or equipment; (3) Debt refinancing; (4) Business acquisitions; and (5) The purchase or lease of real estate that is already improved and will be used for the location of the subject business only, provided no demolition or construction will be accomplished with program funds. Neither interior decorating, nor the affixing of chattel to walls, floors, or ceilings are considered to be demolition or construction. (g)

official document · source cfr-2024 · id 7:§ 4280.322