---
kind: "section"
citation: "13 C.F.R. § 120.201"
title: "13"
number: "120.201"
heading: "Refinancing unsecured or undersecured loans."
url: "https://uscodex.org/cfr/13/120.201"
---

# §120.201. Refinancing unsecured or undersecured loans.


A Borrower may not use 7(a) loan proceeds to pay any creditor in a position to sustain a loss causing a shift to SBA of all or part of a potential loss from an existing debt.


## Notes

### Authority

Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

### Source

Source: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.