In addition to the eligibility requirements specified in subpart A, to be an eligible Borrower for a 504 loan, a small business must:

1. (a) Use the Project Property (except that an Eligible Passive Company may lease to an Operating Company); and
2. (b) Together with its Affiliates, meet one of the size standards set forth in § 121.301(b) of this chapter.

[61 FR 3235, Jan. 31, 1996, as amended at 68 FR 57987, Oct. 7, 2003]