---
kind: "section"
citation: "13 C.F.R. § 120.353"
title: "13"
number: "120.353"
heading: "Eligibility."
url: "https://uscodex.org/cfr/13/120.353"
---

# §120.353. Eligibility.


SBA may assist a qualified employee trust (or equivalent trust) that meets the requirements and conditions for an ESOP prescribed in all applicable IRS, Treasury and Department of Labor (DOL) regulations. In addition, the following conditions apply:

- (a) The small business must provide the funds needed by the trust to repay the loan; and
- (b) The small business must provide adequate collateral.

## 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.