13 C.F.R. § 120.397

Current through November 30, 2024
Section 120.397 - Are there any special restrictions?

The borrower must not use loan proceeds to purchase vacant land for possible future construction or to operate or hold rental property for future rehabilitation. SBA may allow rental of the property only if the rental will improve the ability to sell the property. The sale must be a legitimate change of ownership.

13 C.F.R. §120.397