{"data":{"id":"us/13-cfr-120.884","jurisdiction":"us","citation":"13 CFR 120.884","heading":"Ineligible costs for 504 loans.","body":"Costs not directly attributable and necessary for the Project may not be paid with proceeds of the 504 loan. These include, but are not limited to, the following:\n(a) Debt refinancing (other than interim financing), except as provided in § 120.882(e) and (g).\n(b) A CDC may not use 504 loan proceeds to pay any creditor in a position to sustain a loss causing a shift to SBA of all or part of a potential loss from an existing debt.\n(c) Third-Party Loan fees (commitment, broker, finders, origination, processing fees of permanent financing).\n(d) Ancillary business expenses, such as:\n(1) Working capital;\n(2) Counseling or management services fees;\n(3) Incorporation/organization costs;\n(4) Franchise fees; and\n(5) Advertising.\n(e) Fixed-asset Project components, such as:\n(1) Short-term equipment, furniture, and furnishings (unless essential to and a minor portion of the Project);\n(2) Automobiles, trucks, and airplanes; and\n(3) Construction equipment (except for heavy duty construction equipment integral to the business' operations with a remaining useful life of a minimum of 10 years).","path":["Title 13—Business Credit and Assistance","CHAPTER I—SMALL BUSINESS ADMINISTRATION","PART 120—BUSINESS LOANS","Subpart H—Development Company Loan Program (504)"],"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":"57c4267d3799fc0c7c666852c3fe4965261511ec3402082e060dad78fd914686","source_id":"us-cfr","stale":true,"prev":"us/13-cfr-120.883","next":"us/13-cfr-120.890"},"notice":"GroundRules: Original legal text. Not legal advice."}