Eligible uses of loan funds.

CFR · 2024-01-01 · US · Title 7

Guaranteed loan funds can only be used for the items specified in this section. In addition, RD may allow a recipient of a loan guarantee under this Part to use up to 10 percent of project funds to construct, improve, or acquire broadband infrastructure related to the project financed, subject to the requirements of 7 CFR part 1980, subpart M. (a) (1) When necessary to ensure the successful operation or protection of the project authorized in § 5001.103, subpart B: (i) Costs for the construction or relocation of public buildings, roads, bridges, fences, utilities, or to make other public improvements; and (ii) Costs for the relocation of private buildings, roads, bridges, fences, or utilities, and other private improvements. (2) To pay the cost of conduit, such as pipe, tube, or tile for protecting electric wires or cables, and its installation in conjunction with financing facilities authorized in § 5001.103, subpart B, when the cost of the conduit is less than 25 percent of the total project cost. The Borrower must be the owner of the conduit. The conduit must be installed at the time of project construction and must be for public use. (3) When necessary as part of a guaranteed loan to finance a project: (i) Guarantee fees, as determined under § 5001.454; (ii) Lender fees, as provided in § 5001.403; (iii) Professional service fees and charges provided the Agency agrees that the amounts are reasonable and customary in the area; (iv) Interest on guaranteed loans until the fac

official document · source cfr-2024 · id 7:§ 5001.121