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 PurposesLoan 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
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