13 CFR §120.312

1. (a)DAL-1 applicants must submit appropriate documents to establish program eligibility.
2. (b)Generally, applicants may use loan proceeds for any 7(a) loan purposes. Loan proceeds may not be used:
   1. (1)To purchase or construct facilities if construction grants and mortgage assistance are available from another Federal source; or
   2. (2)For supportive services (expenses incurred by a DAL-1 organization to subsidize wages of low producers, health and rehabilitation services, management, training, education, and housing of disabled workers).
3. (c)SBA does not consider a DAL-1 organization to have a conflict of interest if one or more of its Associates is an Associate of the Lender.