---
kind: "section"
citation: "49 C.F.R. § 24.304"
title: "49"
number: "24.304"
heading: "Reestablishment expenses—nonresidential moves."
url: "https://uscodex.org/cfr/49/24.304"
---

# §24.304. Reestablishment expenses—nonresidential moves.


In addition to the payments available under §§ [24.301](/cfr/49/24.301.md) and [24.303](/cfr/49/24.303.md), a small business, farm, or nonprofit organization is entitled to receive a payment, not to exceed $33,200, for expenses actually incurred in relocating and reestablishing such small business, farm, or nonprofit organization at a replacement site.

- (a) **Eligible expenses.** Reestablishment expenses must be reasonable and necessary, as determined by the agency. They include, but are not limited to, the following:
  - (1) Repairs or improvements to the replacement real property as required by Federal, State, or local law, code, or ordinance.
  - (2) Modifications to the replacement property to accommodate the business operation or make replacement structures suitable for conducting the business.
  - (3) **Construction and installation costs for exterior signing to advertise the business.**
  - (4) Redecoration or replacement of soiled or worn surfaces at the replacement site, such as paint, paneling, or carpeting.
  - (5) **Advertisement of replacement location.**
  - (6) Estimated increased costs of operation during the first 2 years at the replacement site for such items as:
    - (i) Lease or rental charges;
    - (ii) Personal or real property taxes;
    - (iii) Insurance premiums; and
    - (iv) **Utility charges, excluding impact fees.**
  - (7) **Other items that the agency considers essential to the reestablishment of the business.**
- (b) **Ineligible expenses.** The following is a nonexclusive listing of reestablishment expenditures not considered to be reasonable, necessary, or otherwise eligible:
  - (1) **Purchase of capital assets, such as office furniture, filing cabinets, machinery, or trade fixtures.**
  - (2) Purchase of manufacturing materials, production supplies, product inventory, or other items used in the normal course of the business operation.
  - (3) **Interest on money borrowed to make the move or purchase the replacement property.**
  - (4) Payment to a part-time business in the home which does not contribute materially, defined at [§ 24.2(a)](/cfr/49/24.2.md?p=a), to the household income.
  - (5) Construction costs for a new building at the business replacement site, or costs to construct, reconstruct or rehabilitate an existing building. (See appendix A to this part, [section 24.304(b)(5)](#b-5).)

## Notes

### Authority

Authority: 42 U.S.C. 4601 et seq. ; 49 CFR 1.85.

### Source

Source: 89 FR 36944, May 3, 2024, unless otherwise noted.