---
kind: "section"
citation: "13 C.F.R. § 120.871"
title: "13"
number: "120.871"
heading: "Leasing part of Project Property to another business."
url: "https://uscodex.org/cfr/13/120.871"
---

# §120.871. Leasing part of Project Property to another business.

- (a) The costs of interior finishing of space to be leased out to another business are not eligible Project costs.
- (b) Third-party loan proceeds used to renovate the leased space do not count towards the 504 first mortgage requirement or the Borrower's contribution.

## 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.