SBA SOP 50 10 8, C.Ch3.A — DETERMINING SBA’S SHARE OF THE PROJECT COSTS
Verbatim text of SBA SOP 50 10 8 section C.Ch3.A (DETERMINING SBA’S SHARE OF THE PROJECT COSTS), effective 2025-06-01. 1 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 SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8, C.Ch3.A — DETERMINING SBA’S SHARE OF THE PROJECT COSTS — 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.Ch3.A
A. DETERMINING SBA’S SHARE OF THE PROJECT COSTS To price a debenture, you must determine SBA’s share of a project’s total cost. The following hypothetical project for a new business or for a Limited or Special Purpose Property will identify the amount of funds required to fund both the eligible project costs (Net Debenture) plus the administrative costs totals the Gross Debenture amount. To illustrate, assume that total project costs (land, building and machinery and equipment and eligible soft costs) are $1,000,000. Assuming SBA will finance 35% of the project costs for 20 or 25 years, participation in project financing would be as follows: % Participation Amount 50% Third-Party Lender $500,000 35% 504 Net Debenture $350,000 15% Small Business $150,000 100% Total Project Costs $1,000,000
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