StacksVerified U.S. regulatory reference

13 CFR §120.201

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
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.