Costs

Costs. Under State and federal laws, the proceeds of a loan may be used by a Borrower to finance the following (“Eligible Costs”): A. The acquisition of raw land to the extent of twenty-five percent (25 %) of the loan proceeds; B. Acquisition, construction, rehabilitation, improvement, and expansion of buildings and other improvements; (i). (NOTE: The loan may not be used to acquire an existing building unless an amount equal to fifteen percent (15%) of the building cost, separate and apart from land costs, is used for renovation or improvement purposes.); B. Acquisition of new machinery and equipment; and (i). (NOTE: Except under limited circumstances, loans may not be used for the acquisition of used equipment.) C. Capitalized interest and, if approved by MBFC, necessary reserve funds. Any cost incurred prior to approval by MBFC will not be eligible for reimbursement with Bond proceeds. Most expenses incurred thereafter can be reimbursed provided they are cost related to the Project. Cost of issuance is not an Eligible Cost reimbursable out of the proceeds of a loan.