{"data":{"id":"us/13-cfr-120.312","jurisdiction":"us","citation":"13 CFR 120.312","heading":"DAL-1 use of proceeds and other program conditions.","body":"(a) DAL-1 applicants must submit appropriate documents to establish program eligibility.\n(b) Generally, applicants may use loan proceeds for any 7(a) loan purposes. Loan proceeds may not be used:\n(1) To purchase or construct facilities if construction grants and mortgage assistance are available from another Federal source; or\n(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).\n(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.","path":["Title 13—Business Credit and Assistance","CHAPTER I—SMALL BUSINESS ADMINISTRATION","PART 120—BUSINESS LOANS","Subpart C—Special Purpose Loans"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-13.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:18Z","sha256":"ec2d212b40a955d2c72647f2e9efd5ce12490f7c9210081bdc5d8959580d2520","source_id":"us-cfr","stale":true,"prev":"us/13-cfr-120.311","next":"us/13-cfr-120.313"},"notice":"GroundRules: Original legal text. Not legal advice."}