When proceeds buy, improve or refinance real estate, the SBA Lender ensures the Applicant (or the OC, with the EPC leasing it 100%) occupies at least 51% of the Rentable Property of an existing building (leasing out up to 49%), or 60% of new construction (up to 20% permanently leased and 20% temporarily, to be taken back within 10 years), within no more than one year of closing. Proceeds do not improve space leased to third parties, and residential space counts only where the business needs a resident and it is under 49%. A CDC submits no closing package unless the Borrower will occupy and operate at funding, or SLPC approved an extension in advance (followed by a 327 action certifying compliance). Throughout the loan, the collateral property or business premises may not be leased to a business engaged in or facilitating illegal activity (such as a marijuana dispensary); the Lender or CDC notifies SBA counsel on learning of such a lease.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.