SBA SOP 50 10 8, C.Ch2.C.1 — Interim Financing

sba-sop-c-ch2-c-1

Verbatim text of SBA SOP 50 10 8 section C.Ch2.C.1 (Interim Financing), effective 2025-06-01. 2 provision(s) quoted from the SOP PDF. SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.

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See also

SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.

Verbatim regulatory text (2)

Verbatim provisions from SBA SOP 50 10 8, C.Ch2.C.1 — Interim Financing — each quote is a verified substring of the regulator-published source snapshot, not retyped. Quoted for reference; this is not legal advice. The operational layer (P&P updates, prompts) lives in the regulation update kits.

SOP 50 10 8 C.Ch2.C.1

Effective 2025-06-01 · publisher's stamp for this provision

1. Interim Financing A construction escrow account may be used with SBA’s prior approval if acquisition of machinery and equipment or other portions of a project (such as a parking lot, landscaping, etc.) represents a relatively minor portion of the total project, and it has been contracted for delivery at a specified price and date, but cannot be installed or delivered prior to acquisition or completion of the plant, the debenture may be sold, provided (see Paragraph A.8, Construction Loan Provisions, of this Chapter): i. The proceeds authorized for acquisition of such assets are held in escrow by the CSA, Title Company, CDC attorney, or bank to complete Project components; ii. All required lien positions and collateral are obtained prior to closing; iii. Disbursement from such account(s) must be approved by the CDC and SBA, supported by invoices, and be made payable jointly to the small business and the designated contractor; and

Source: SBA SOP 50 10 8, C.Ch2.C.1 — Interim Financing · source URL · snapshot 535743ffe062cc34

SOP 50 10 8 C.Ch2.C.1.iv

Effective 2025-06-01 · publisher's stamp for this provision

iv. Funds not disbursed after 1 year will be applied to pay down the Third Party Lender’s loan. The interim financing must be fully disbursed and the project completed prior to the sale of the Debenture with one exception. A portion of the debenture proceeds may be put into an escrow account to complete a minor portion of the total project (see 13 CFR § 120.961). The Interim Lender must make a number of certifications at the time of the debenture closing. The certifications are stated in SBA Form 2288 and 13 CFR §§ 120.891 and 120.892. If the Interim Lender cannot certify as required, then the debenture cannot be funded.

Source: SBA SOP 50 10 8, C.Ch2.C.1.iv — Funds not disbursed after 1 year will be applied to pay down the Third Party · source URL · snapshot 535743ffe062cc34

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Source of record: https://claudeforcompliance.com/regs/sba-sop-c-ch2-c-1/ · register sba-sop-c-ch2-c-1 · verbatim, source-snapshotted regulator text from the Claude for Compliance corpus. To work from every register at once, download the corpus and follow the methodology.