Ineligible uses of loan funds.

CFR · 2024-01-01 · US · Title 7

Projects that receive a loan guarantee under this part cannot use the guaranteed loan funds for those expenses or purposes identified in paragraphs (a) through (m) of this section and for any other item the Agency identifies in accordance with § 5001.10. (a) Payment in excess of actual costs ( (b) Notwithstanding § 5001.102(d), payment on any other Federal loan or debt. (c) Payment of a Federal judgment, State or Federal tax lien, or other debt owed to the United States. (d) Loan finder or broker fees. (e) Refinancing debt that is owned by a loan packager or broker or their respective affiliates. (f) For loans as specified under CF and WWD, costs normally provided by a business or industrial user ( (g) For loans as specified under CF and WWD, any portion of the cost of a project that does not serve a rural area. (h) Rental for the use of equipment or machinery owned by the borrower. (i) For purposes not directly related to operating and maintaining the project. (j) Any EEI not identified in the applicable energy assessment or energy audit. (k) Agricultural tillage equipment, used equipment, and vehicles are ineligible for loans as specified under REAP. (l) Guaranteed loan funds cannot be used for the distribution or payment to a member of the immediate family of an owner, partner, stockholder, or member of the borrower except for a change in ownership of the business where the selling person does not retain an ownership interest and the Agency determines in writing the price

official document · source cfr-2024 · id 7:§ 5001.122