Use of Loan Proceeds

Eligible Purposes

The following are appropriate uses of loan proceeds:
  • Business acquisition, construction, conversion, enlargement, repair, modernization, or development cost
  • Purchasing and development of land, easements, rights-of-way, buildings, facilities, leases, or materials
  • Purchasing of equipment, leasehold improvements, machinery, or supplies
  • Pollution control and abatement
  • Transportation services
  • Start up operating costs, working capital
  • Feasibility studies
  • Reasonable fees and charges

Ineligible Purposes

Loan proceeds may not be used for:
  • The transfer of ownership unless the loan will keep the business from closing or prevent the loss of employment opportunities
  • Community antenna television services or facilities
  • Legitimate business activity when more than 10% of the annual gross revenue is derived from legalized gambling activity
  • Any illegal activity
  • Any hotels, motels, tourist homes, or convention centers
  • Any transit, recreation, or amusement centers
  • Any eligible project that is in violation of either a Federal, State, or Local environmental protection law or regulation