1. Regulations
  2. title 13
  3. chapter I
  4. part 120
  5. subpart B
  6. subjgrp 198
  7. § 120.201

View all text of Subjgrp 198 [§ 120.201 - § 120.202]

§ 120.201 - Refinancing unsecured or undersecured loans.

A Borrower may not use 7(a) 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.

AUTHORITY: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

SOURCE: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.

CITE AS: 13 CFR 120.201