; and (B) any employee working not fewer than 10 hours and fewer than 30 hours per week shall be counted as one-half of a full-time employee. (9) Credit elsewhere During the covered period, an eligible recipient is not required to show that the eligible recipient is unable to obtain credit elsewhere, as defined in section 3(h) of the Small Business Act ( 15 U.S.C. 632(h) ). (10) Subordination Any covered loan made to an eligible recipient shall be subordinate to any liability incurred by the eligible recipient before February 15, 2020. (11) Restrictions for prior bankruptcy A lender may deny an application for a covered loan submitted by an eligible recipient if, during the 7-year period preceding the date of the application, the eligible recipient or a person that owns or controls the eligible recipient filed a petition for bankruptcy under chapter 7 or 13 of title 11, United States Code. (g) Use of funds (1) In general An eligible recipient of a covered loan may use the proceeds for allowable expenses described in paragraph (2). (2) Allowable expenses The expenses described in this paragraph are— (A) payroll costs for employees and furloughed employees, including— (i) costs for continuation coverage provided pursuant to part 6 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (other than under section 609), title XXII of the Public Health Service Act, section 4980B of the Internal Revenue Code of 1986 (other than subsection (f)(1) of such section insofar as it relates to pediatric vaccines), or section 8905a of title 5, United States Code, or under a State program that provides comparable continuation coverage, other than coverage under a health flexible spending arrangement under a cafeteria plan within the meaning of section 125 of the Internal Revenue Code of 1986; or (ii) any other non-cash benefit; (B) rent; (C) utilities; (D) scheduled mortgage interest payments on existing mortgages as of February 15, 2020