Purchase of business property

§ 1813. Purchase of business property (a) Any loan to a veteran, if made pursuant to the provisions of this chapter, is automatically guaranteed if such loan is for one or more of the following purposes: (1) To be used for the purpose of engaging in business or pursuing a gainful occupation. (2) For the cost of acquiring for such purpose land, buildings, supplies, equipment, machinery, tools, inventory, or stock in trade. (3) For the cost of the construction, repair, alteration, or improvement of any realty or personality used for such purpose. (4) To provide the funds needed for working capital for such purpose. (b) No loan may be guaranteed under this section unless— (1) the proceeds of such loan will be used by the veteran for any of the specified purposes in connection with bona fide pursuit of a gainful occupation by the veteran; (2) such property will be useful in and reasonably necessary for the efficient and successful pursuit of such business or occupation; (3) the ability and experience of the veteran, and the conditions under which he proposes to pursue such business or occupation, are such that there is a reasonable likelihood that he will be successful in the pursuit of such business or occupation; and (4) the price paid or to be paid by the veteran for such property, or for the cost of construction, repairs, or alterations, does not exceed the reasonable value thereof as determined by the Administrator.