Exhibit D (13 CFR §120.110) — DV Diamond Club (E.D. Mich.)

Summary

Exhibit D to the verified complaint in DV Diamond Club of Flint, LLC v. U.S. Small Business Administration, Case 4:20-cv-10899-MFL-DRG (E.D. Mich.), filed April 8, 2020 as ECF No. 1-5. The two-page exhibit is a printout of §120.110 of Title 13 of the Electronic Code of Federal Regulations, current as of April 1, 2020, headed with the question of what businesses are ineligible for SBA business loans. The section lists ineligible business types from non-profit businesses through speculative businesses. Its item (p) covers businesses that present live performances of a prurient sexual nature or derive more than de minimis gross revenue from products, services or displays of that nature. Its item (r) covers businesses primarily engaged in political or lobbying activities.

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Full text

4/3/2020   Case 4:20-cv-10899-MFL-DRG ECFeCFR
                                          No.—1-5
                                               Code of Federal
                                                    filed      Regulations PageID.70
                                                           04/08/20                                               Page 1 of 2
  ELECTRONIC CODE OF FEDERAL REGULATIONS

                                 e-CFR data is current as of April 1, 2020

  Title 13 → Chapter I → Part 120 → Subpart A → §120.110


  Title 13: Business Credit and Assistance
  PART 120—BUSINESS LOANS
  Subpart A—Policies Applying to All Business Loans


  §120.110 What businesses are ineligible for SBA business loans?

       The following types of businesses are ineligible:

       (a) Non-profit businesses (for-profit subsidiaries are eligible);

      (b) Financial businesses primarily engaged in the business of lending, such as banks, finance companies, and factors
  (pawn shops, although engaged in lending, may qualify in some circumstances);

      (c) Passive businesses owned by developers and landlords that do not actively use or occupy the assets acquired or
  improved with the loan proceeds (except Eligible Passive Companies under §120.111);

       (d) Life insurance companies;

       (e) Businesses located in a foreign country (businesses in the U.S. owned by aliens may qualify);

       (f) Pyramid sale distribution plans;

       (g) Businesses deriving more than one-third of gross annual revenue from legal gambling activities;

       (h) Businesses engaged in any illegal activity;

       (i) Private clubs and businesses which limit the number of memberships for reasons other than capacity;

       (j) Government-owned entities (except for businesses owned or controlled by a Native American tribe);

       (k) Businesses principally engaged in teaching, instructing, counseling or indoctrinating religion or religious beliefs, whether
  in a religious or secular setting;

       (l) [Reserved]

       (m) Loan packagers earning more than one third of their gross annual revenue from packaging SBA loans;

      (n) Businesses with an Associate who is incarcerated, on probation, on parole, or has been indicted for a felony or a crime
  of moral turpitude;

       (o) Businesses in which the Lender or CDC, or any of its Associates owns an equity interest;

       (p) Businesses which:

       (1) Present live performances of a prurient sexual nature; or

      (2) Derive directly or indirectly more than de minimis gross revenue through the sale of products or services, or the
  presentation of any depictions or displays, of a prurient sexual nature;

      (q) Unless waived by SBA for good cause, businesses that have previously defaulted on a Federal loan or Federally
  assisted financing, resulting in the Federal government or any of its agencies or Departments sustaining a loss in any of its
  programs, and businesses owned or controlled by an applicant or any of its Associates which previously owned, operated, or
  controlled a business which defaulted on a Federal loan (or guaranteed a loan which was defaulted) and caused the Federal
  government or any of its agencies or Departments to sustain a loss in any of its programs. For purposes of this section, a
                                                                                                                   EXHIBIT D
  compromise agreement shall also be considered a loss;
                                                                                                                                Page 1
       (r) Businesses primarily engaged in political or lobbying activities; and
https://gov.ecfr.io/cgi-bin/text-idx?SID=503b0536a9fd8a9c526a5cb291cd3a0b&mc=true&node=se13.1.120_1110&rgn=div8                      1/2
4/3/2020   Case 4:20-cv-10899-MFL-DRG ECFeCFR
                                          No.—1-5
                                               Code of Federal
                                                    filed      Regulations PageID.71
                                                           04/08/20                                               Page 2 of 2
       (s) Speculative businesses (such as oil wildcatting).

  [61 FR 3235, Jan. 31, 1996, as amended at 82 FR 39502, Aug. 21, 2017]

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                                                                                                                       EXHIBIT D
                                                                                                                           Page 2

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1-att5-exhibit-d-13-c-f-r-120-110.pdf

Original

archive.org