25 CFR 103.7 - Must the borrower have equity in the business being financed?

Regulations last checked for updates: Nov 24, 2024

Title 25 - Indians last revised: Mar 22, 2024

View all text of Subpart A [§ 103.1 - § 103.8]

§ 103.7 - Must the borrower have equity in the business being financed?

The borrower must be projected to have at least 20 percent equity in the business being financed, immediately after the loan is funded. If a substantial portion of the loan is for construction or renovation, the borrower's equity may be calculated based upon the reasonable estimated value of the borrower's assets after completion of the construction or renovation.

authority: 25 U.S.C. 1498,1511

source: 66 FR 3867, Jan. 17, 2001, unless otherwise noted.

cite as: 25 CFR 103.7