The SBA Lender limits proceeds to eligible uses under 13 CFR 120.120 (land, site improvements, buildings, construction, fixed assets (for 504, with a useful life of at least 10 years at a fixed location); and for 7(a) also inventory, supplies, raw materials and working capital, including business software and cloud services, and permitted revolving lines). Where proceeds buy the Lender's or Third Party Lender's own Other Real Estate Owned, the application carries an independent appraisal (with liquidation value for 7(a)) made before closing and an explanation of how the lender acquired the property and, after a business failure there, why the new Applicant will succeed, and for 7(a) the guaranty is reduced to the extent the price exceeds the lesser of the lender's cost or liquidation value. Farm proceeds exclude land beyond the operation's needs, which must be separately financed and documented.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.