Enterprises that may be ineligible for Financing.

CFR · 2024-01-01 · US · Title 7

(a) (b) (1) (i) It is not engaged in a regular and continuous business operation (for purposes of this paragraph (b), the mere receipt of payments such as dividends, rents, lease payments, or royalties is not considered a regular and continuous business operation); or (ii) Its employees are not carrying on the majority of day to day operations, and the Enterprise does not provide effective control and supervision, on a day to day basis, over persons employed under contract; or (iii) It passes through substantially all of the proceeds of the Financing to another entity. (2) (3) (c) (i) Any Enterprise classified under sector 233 (Building, Developing, and General Contracting) of the NAICS Manual, or (ii) Any Enterprise listed under sector 531 (Real Estate) unless at least 80 percent of its revenue is derived from non-Affiliate sources. (2) You are not permitted to finance an Enterprise, regardless of NAICS classification, if the Financing is to be used to acquire or refinance real property, unless the Enterprise: (i) Is acquiring an existing property and will use at least 51 percent of the usable square footage for an eligible business or commercial purpose; or (ii) Is constructing or renovating a building and will use at least 67 percent of the usable square footage for an eligible business or commercial purpose; or (iii) Occupies the subject property and uses at least 67 percent of the usable square footage for an eligible business or commercial purpose. (d) (1) The assets of

official document · source cfr-2024 · id 7:§ 4290.720