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When an acquisition loan is applied for and approved, it must be used within the allotted time period for the purpose specified at the time of application. If it is not, the loan is no longer available. Once the loan is paid back per the payment schedule, no more funds are available. In this way, it is different from a line of credit. Acquisition loans can also be used for the purchase of another click. In usda home loans south carolina instance, the acquiring company has to determine if the do parent plus loans company's assets constitute adequate collateral to cover the loan needed for its purchase.
It usda home loans south carolina also determine whether the combined businesses can generate enough cash to pay off the loan, both the principal and the interest.