Section 71.5. Machinery and equipment

(a) Machinery and equipment to be acquired with loan funds shall be purchased by the eligible business or by an affiliate thereof outright, through a lease/purchase option or through an installment sale option.

(b) Machinery and equipment to be upgraded with loan funds shall be owned by the eligible business or by an affiliate thereof.

(c) When machinery and equipment is owned or to be purchased by an affiliate of an eligible business, the affiliate shall be involved in industrial processes, mining, manufacturing or other industrial sectors as described in § 71.3 (relating to eligible business).

(d) An eligible business may place an order for machinery and equipment, or may place a security deposit on machinery and equipment, prior to receiving approval of its loan application from the Department. Machinery and equipment to be financed with loan funds may not be installed or upgraded prior to the Department’s approval of the loan.