SBA Programs: Ineligible Use of Funds

InSource Capital Services is a specialist in SBA LOAN programs.

Ineligible Use Of Proceeds

There are certain restrictions for the use of SBA loans. The following is a list of purposes which SBA loans can not finance:

• To refinance existing debt where the lender is in a position to sustain a loss and SBA would take over that loss through refinancing;

• To effect a partial change of business ownership or a change that will not benefit the business;

• To permit the reimbursements of funds owed to any owner. This includes any equity injection, or injection of capital for the purposes of the businesses continuance until the loan supported by SBA is disbursed;

• To repay delinquent state or federal withholding taxes or other funds that should be held in trust or escrow; and

• For a non sound business purpose.
   

Explore the different types of SBA Loans