§120.312. DAL-1 use of proceeds and other program conditions.
13 C.F.R. § 120.312
DAL-1 applicants must submit appropriate documents to establish program eligibility.
Generally, applicants may use loan proceeds for any 7(a) loan purposes. Loan proceeds may not be used:
To purchase or construct facilities if construction grants and mortgage assistance are available from another Federal source; or
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).
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.
Notes, amendments, and revision history
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.