Section 120.312 - DAL-1 use of proceeds and other program conditions(a) DAL-1 applicants must submit appropriate documents to establish program eligibility.(b) Generally, applicants may use loan proceeds for any 7(a) loan purposes. Loan proceeds may not be used:(1) To purchase or construct facilities if construction grants and mortgage assistance are available from another Federal source; or(2) For supportive services (expenses incurred by a DAL-1 organization to subsidize wages of low producers, health and rehabilitation services, management, training, education, and housing of disabled workers).(c) SBA does not consider a DAL-1 organization to have a conflict of interest if one or more of its Associates is an Associate of the Lender.