---
kind: "section"
citation: "13 C.F.R. § 120.320"
title: "13"
number: "120.320"
heading: "Policy."
url: "https://uscodex.org/cfr/13/120.320"
---

# §120.320. Policy.


Section 7(a)(11) of the Act authorizes SBA to guarantee or make direct loans to establish, preserve or strengthen small business concerns:

- (a) Located in an area having high unemployment according to the Department of Labor;
- (b) Located in an area in which a high percentage of individuals have a low income inadequate to satisfy basic family needs; and
- (c) **More than 50 percent owned by low income individuals.**

## 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.