---
kind: "section"
citation: "13 C.F.R. § 120.312"
title: "13"
number: "120.312"
heading: "DAL-1 use of proceeds and other program conditions."
url: "https://uscodex.org/cfr/13/120.312"
---

# §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.

## 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.