SBA will not authorize nor may a Borrower use loan proceeds for the following purposes (including the replacement of funds used for any such purpose):
(a) Payments, distributions or loans to Associates of the applicant (except for ordinary compensation for services rendered);
(b) Refinancing a debt owed to a Small Business Investment Company (``SBIC'') or a New Markets Venture Capital Company (``NMVCC'');
(c) Floor plan financing or other revolving line of credit, except under Sec. 120.340 or Sec. 120.390;
(d) Investments in real or personal property acquired and held primarily for sale, lease, or investment (except for a loan to an Eligible Passive Company or to a small contractor under Sec. 120.310);
(e) A purpose which does not benefit the small business; or
(f) Any use restricted by Secs. 120.201 through 120.203 and 120.884 (specific to 7(a) loans and 504 loans respectively). [61 FR 3235, Jan. 31, 1996, as amended at 76 FR 9218, Feb. 17, 2011; 76 FR 63545, Oct. 12, 2011]