Document Citation: 13 CFR 123.604

Header:
CODE OF FEDERAL REGULATIONS
TITLE 13 -- BUSINESS CREDIT AND ASSISTANCE
CHAPTER I -- SMALL BUSINESS ADMINISTRATION
PART 123 -- DISASTER LOAN PROGRAM
SUBPART G -- ECONOMIC INJURY DISASTER LOANS AS A RESULT OF THE SEPTEMBER 11, 2001 TERRORIST ATTAC

Date:
01/17/2012

Document:
§ 123.604 How can my business spend my economic injury disaster loan under this subpart?

(a) You can only use the loan proceeds for working capital necessary to carry your concern until resumption of normal operations and for expenditures necessary to alleviate the specific economic injury, but not to exceed that which the business could have provided had the injury not occurred.

(b) Loan proceeds may not be used to:

(1) Refinance indebtedness which you incurred prior to September 11, 2001;

(2) Make payments on loans owned by another federal agency (including SBA) or a Small Business Investment Company licensed under the Small Business Investment Act;

(3) Pay, directly or indirectly, any obligations resulting from a federal, state or local tax penalty as a result of negligence or fraud, or any non-tax criminal fine, civil fine, or penalty for non-compliance with a law, regulation, or order of a federal, state, regional, or local agency or similar matter;

(4) Repair physical damage; or

(5) Pay dividends or other disbursements to owners, partners, officers, or stockholders, except for reasonable remuneration directly related to their performance of services for the business.