---
kind: "section"
citation: "13 C.F.R. § 120.350"
title: "13"
number: "120.350"
heading: "Policy."
url: "https://uscodex.org/cfr/13/120.350"
---

# §120.350. Policy.


Section 7(a)(15) of the Act authorizes SBA to guarantee a loan to a:

- (a) **Qualified employee trust (“ESOP”) to—**
  - (1) Help finance the growth of its employer's small business; or
  - (2) Purchase ownership or voting control of the employer; and a
- (b) Small business concern, if the proceeds from the loan are only used to make a loan to a qualified employee trust that results in the qualified employee trust owning at least 51 percent of the small business concern.

## Notes

### Amendments

[87 FR 38908, June 30, 2022]

### 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.

### Amendments

[87 FR 38908, June 30, 2022]