Ineligible microloan purposes and uses.

CFR · 2024-01-01 · US · Title 7

Agency loan funds will not be used for the payment of microlender administrative costs or expenses and microlenders may not make microloans under the program for any of the purposes and uses identified as ineligible in paragraphs (a) through (n) of this section. (a) Construction costs including property demolition, renovation, elimination of walls, or property additions. (b) The financing of timeshares, apartments, duplexes, or other residential housing. (c) Assistance that will cause a conflict of interest or the appearance of a conflict of interest including but not limited to: (1) Financial assistance to principals, directors, officers, or employees of the microlender, or their close relatives, as defined; or (2) Financial assistance to any entity which would appear to benefit the microlender or its principals, directors, or employees, or their close relatives, as defined, in any way other than the normal repayment of debt. (d) Distribution or payment to a microborrower when such will use any portion of the microloan for other than business purposes. (e) Microloans to a charitable institution not gaining sufficient revenue from business sales or services to support the operation and repay the microloan. (f) Microloans to a fraternal organization. (g) Any microloan to an applicant that has an RMAP-funded microloan application pending with another microlender or that has an RMAP-funded microloan outstanding with another microlender that would cause the applicant to owe a com

official document · source cfr-2024 · id 7:§ 4280.323