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Updated about 3 years ago,
Uses of Loan Proceeds from 1031 Exchange
I am interested in buying a 2 unit commercial property with an SBA loan. I have 1031 Exchange money and my own cash to fund this. In the larger unit I want to open a business and I will lease the smaller unit. Both units will require construction so the units can be converted to retail spaces. The business I want to open will need working capital from the SBA loan for first year business expenses. Can I use 1031 Exchange money to help fund all of this (purchase, construction, business expenses / working capital)?
Thank you!