A bank should not, however, attach conditions which almost certainly detract from the client's ability to pay back the loan. Banks do this all the time, they c

A bank should not, however, attach conditions which almost certainly detract from the client's ability to pay back the loan. Banks do this all the time, they call it "interest". The government is trying to make sure that the money is used wisely, much like banks want me to spend my loan on a house rather than hookers and blow. their money, their decision what conditions to attach to best meet their goals, which may not just be financial.