---
kind: "section"
citation: "13 C.F.R. § 120.342"
title: "13"
number: "120.342"
heading: "What are eligible uses of proceeds?"
url: "https://uscodex.org/cfr/13/120.342"
---

# §120.342. What are eligible uses of proceeds?


Loan proceeds may be used:

- (a) To acquire inventory;
- (b) To pay the manufacturing costs of goods for export;
- (c) To purchase goods or services for export;
- (d) To support standby letters of credit;
- (e) For pre-shipment working capital; and
- (f) **For post-shipment foreign accounts receivable financing.**

## 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.