§ 120.312. DAL-1 use of proceeds and other program conditions.
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/us/cfr/t13/s§ 120.312·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
(a)DAL-1 applicants must submit appropriate documents to establish program eligibility.
(b)Generally, applicants may use loan proceeds for any 7(a) loan purposes. Loan proceeds may not be used:
(1)To purchase or construct facilities if construction grants and mortgage assistance are available from another Federal source; or
(2)For supportive services (expenses incurred by a DAL-1 organization to subsidize wages of low producers, health and rehabilitation services, management, training, education, and housing of disabled workers).
(c)SBA does not consider a DAL-1 organization to have a conflict of interest if one or more of its Associates is an Associate of the Lender.