13 CFR 120.201 - Refinancing unsecured or undersecured loans.

Regulations last checked for updates: Nov 25, 2024

Title 13 - Business Credit and Assistance last revised: Nov 20, 2024

View all text of Subpart B [§ 120.200 - § 120.223]

§ 120.201 - Refinancing unsecured or undersecured loans.

A Borrower may not use 7(a) loan proceeds to pay any creditor in a position to sustain a loss causing a shift to SBA of all or part of a potential loss from an existing debt.

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: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.

cite as: 13 CFR 120.201