{"data":{"id":"us/13-cfr-120.394","jurisdiction":"us","citation":"13 CFR 120.394","heading":"What are the eligible uses of proceeds?","body":"A Borrower must use the loan proceeds solely to acquire, construct or substantially rehabilitate an individual residential or commercial building for sale. “Substantial” means rehabilitation expenses of more than one-third of the purchase price or fair market value at the time of the application. A Borrower may use up to 33 percent of the proceeds to acquire land, and up to 5 percent for community improvements such as curbs and sidewalks.","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":"72f82f6b04c3a22abc4ac71f55a2a69ce4af0d34b35ee8e593d013cdeb0e9792","source_id":"us-cfr","stale":true,"prev":"us/13-cfr-120.393","next":"us/13-cfr-120.395"},"notice":"GroundRules: Original legal text. Not legal advice."}