12 CFR § 705.4 - Permissible uses of loan funds.

---
identifier: "/us/cfr/t12/s705.4"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "12 CFR § 705.4 - Permissible uses of loan funds."
title_number: 12
title_name: "Banks and Banking"
section_number: "705.4"
section_name: "Permissible uses of loan funds."
chapter_name: "NATIONAL CREDIT UNION ADMINISTRATION"
subchapter_number: "A"
subchapter_name: "REGULATIONS AFFECTING CREDIT UNIONS"
part_number: "705"
part_name: "COMMUNITY DEVELOPMENT REVOLVING LOAN FUND ACCESS FOR CREDIT UNIONS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "12 U.S.C. 1756, 1757(5)(D), and (7)(I), 1766, 1782, 1784, 1785 and 1786."
regulatory_source: "76 FR 67587, Nov. 2, 2011, unless otherwise noted."
cfr_part: "705"
---


# 705.4 Permissible uses of loan funds.

NCUA may make loans from the Fund to Participating Credit Unions for various uses. The following is a non-exhaustive list of permissible uses or projects:

(a) Development of new products or services for members, including new or expanded share draft or credit card programs;

(b) Partnership arrangements with community-based service organizations or government agencies;

(c) Loan programs, including, but not limited to, microbusiness loans, payday loan alternatives, education loans, and real estate loans;

(d) Acquisition, expansion, or improvement of office space or equipment, including branch facilities, ATMs, and electronic banking facilities; and

(e) Operational programs such as security or disaster recovery.