---
kind: "section"
citation: "12 C.F.R. § 705.4"
title: "12"
number: "705.4"
heading: "Permissible uses of loan funds."
url: "https://uscodex.org/cfr/12/705.4"
---

# §705.4. Permissible uses of loan funds.


NCUA may make loans from the Fund to Participating Credit Unions for various uses. The following is a non-exhaustive list of permissible uses or projects:

- (a) Development of new products or services for members, including new or expanded share draft or credit card programs;
- (b) Partnership arrangements with community-based service organizations or government agencies;
- (c) Loan programs, including, but not limited to, microbusiness loans, payday loan alternatives, education loans, and real estate loans;
- (d) Acquisition, expansion, or improvement of office space or equipment, including branch facilities, ATMs, and electronic banking facilities; and
- (e) **Operational programs such as security or disaster recovery.**

## Notes

### Authority

Authority: 12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782, 1784, 1785 and 1786.

### Source

Source: 76 FR 67587, Nov. 2, 2011, unless otherwise noted.