---
kind: "section"
citation: "7 C.F.R. § 1436.10"
title: "7"
number: "1436.10"
heading: "Down payment."
url: "https://uscodex.org/cfr/7/1436.10"
---

# §1436.10. Down payment.

- (a) A minimum down payment representing the difference between the net cost of the facility and the amount of the loan determined in accordance with [§ 1436.9](/cfr/7/1436.9.md) will be made by the loan applicant to the supplier or contractor before either the partial or final loan disbursements.
- (b) The down payment must be in cash unless some other form of payment is approved by CCC. The down payment may be obtained by the borrower from another lending source.
- (c) The down payment may not include any trade-in, discount, rebate, credit, deferred payment, post-dated check, or promissory note to the supplier or contractor.
- (d) The minimum down payment for an FSFL will be 5 percent for an FSFL microloan and 15 percent for all other FSFLs, with the down payment to be calculated as a percentage of net cost as specified in [§ 1436.9](/cfr/7/1436.9.md). As specified in [§ 1436.8](/cfr/7/1436.8.md), a larger down payment may be required to meet security requirements.

## Notes

### Amendments

[66 FR 4612, Jan. 18, 2001, as amended at 74 FR 41590, Aug. 18, 2009; 81 FR 25595, Apr. 29, 2016]

### Authority

Authority: 7 U.S.C. 7971 and 8789; and 15 U.S.C. 714 through 714p.

### Source

Source: 66 FR 4612, Jan. 18, 2001, unless otherwise noted.

### Amendments

[66 FR 4612, Jan. 18, 2001, as amended at 74 FR 41590, Aug. 18, 2009; 81 FR 25595, Apr. 29, 2016]