SBA SOP 50 10 8.1, B.Ch3.A.2 — Ineligible Uses of Proceeds
Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section B.Ch3.A.2 (Ineligible Uses of Proceeds). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 1 provision(s) quoted from SBA's .docx.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8.1, B.Ch3.A.2 — Ineligible Uses of Proceeds — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.
SOP 50 10 8.1 B.Ch3.A.2
2. Ineligible Uses of Proceeds Proceeds must not be used for non-working capital debt refinance, changes of ownership, to pay delinquent withholding taxes or similar funds held in trust (e.g., state or local sales taxes), or for floor plan financing. MARC loan proceeds may not be used to pay a creditor in a position to sustain a loss. Although 7(a) MARC loans may not be used to fund a change of ownership, a 7(a) MARC loan may be made to a business at the same time as the change of ownership to support working capital needs. See change of ownership rules outlined in Appendix 15.
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Source of record: https://claudeforcompliance.com/regs/sba-sop81-b-ch3-a-2/
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