13 C.F.R. § 120.913 Limitations on any contributions by a Licensee.
Title 13 - Business Credit and Assistance
Subject to part 107 of this chapter, a Licensee may provide financing for all or part of the Borrower's contribution to the Project. SBA will consider Licensee funds to be derived from federal sources if the Licensee has Leverage (as defined in §107.50 of this chapter). If the Licensee does not have Leverage, SBA will consider the investment to be from private funds. Licensee financing must be subordinated to the 504 loan and must not be repaid at a faster rate than the Debenture. (Refer to §120.930(a) for additional limitations.) [68 FR 57987, Oct. 7, 2003]
Title 13: Business Credit and Assistance
PART 120—BUSINESS LOANS
Subpart H—Development Company Loan Program (504)
The Borrower's Contribution
§ 120.913 Limitations on any contributions by a Licensee.
