120.884—Ineligible costs for 504 loans.
Costs not directly attributable and necessary for the Project may not be paid with proceeds of the 504 loan. These include, but are not limited to, the following:
(b)
A CDC may not use 504 loan proceeds to pay any creditor in a position to sustain a loss causing a shift to SBA of all or part of a potential loss from an existing debt.
(c)
Third-Party Loan fees (commitment, broker, finders, origination, processing fees of permanent financing).
(1)
Short-term equipment, furniture, and furnishings (unless essential to and a minor portion of the Project);
(3)
Construction equipment (except for heavy duty construction equipment integral to a business' operations and meeting the IRS definition of capital equipment).