13 CFR 120.201 : Business Credit And Assistance (Parts 1-100 To Parts 501-599) — (Parts 1-100 To Parts 501-599) — Small Business Administration (Parts 1-100 To Parts 148-199) — Business Loans (§ 120.1 To § 120.1900) — Policies Specific To 7(A) Loans (§ 120.200 To § 120.223) — Limitations On Use Of Proceeds (§ 120.201 And § 120.202) — Refinancing unsecured or undersecured loans.

4 Aug 2016

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.

13 CFR 120.201