StacksVerified U.S. regulatory reference

13 CFR §120.397

Verified against eCFR.gov as of June 20, 2026View official text on eCFR.gov ↗
The borrower must not use loan proceeds to purchase vacant land for possible future construction or to operate or hold rental property for future rehabilitation. SBA may allow rental of the property only if the rental will improve the ability to sell the property. The sale must be a legitimate change of ownership.