The CDC ensures the Borrower contributes, excluding administrative costs, at least 10% of the project in cash, property bought with cash, or project land (equity in previously acquired land, buildings or equipment that are part of the project may count), 15% for a new business or a limited or special purpose property and 20% for both (with the debenture share and non-federal financing share adjusted as the regulation requires), and addresses in its credit memorandum whether the property is limited or special purpose with its reasoning (the SOP's list of examples). A borrowed contribution is subordinate to the Third Party Loan and debenture, is not repaid faster than the 504 loan when secured by the project property without SBA's written approval, and otherwise is shown to be repaid from business cash flow or other sources. It considers requiring more contribution or collateral where cash flow is marginal, working capital limited, debt recently increased, customers concentrated or net worth thin.
The graph holds this control, the 0 it maps to, and the evidence behind each claim, over MCP and REST.