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13 CFR § 120.320 - Policy.

---
identifier: "/us/cfr/t13/s120.320"
source: "ecfr"
legal_status: "authoritative_unofficial"
title: "13 CFR § 120.320 - Policy."
title_number: 13
title_name: "Business Credit and Assistance"
section_number: "120.320"
section_name: "Policy."
chapter_name: "SMALL BUSINESS ADMINISTRATION"
part_number: "120"
part_name: "BUSINESS LOANS"
positive_law: false
currency: "2026-04-05"
last_updated: "2026-04-05"
format_version: "1.1.0"
generator: "[email protected]"
authority: "15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182."
regulatory_source: "61 FR 3235, Jan. 31, 1996, unless otherwise noted."
cfr_part: "120"
---

# 120.320 Policy.

Section 7(a)(11) of the Act authorizes SBA to guarantee or make direct loans to establish, preserve or strengthen small business concerns:

(a) Located in an area having high unemployment according to the Department of Labor;

(b) Located in an area in which a high percentage of individuals have a low income inadequate to satisfy basic family needs; and

(c) More than 50 percent owned by low income individuals.