SBA SOP 50 10 8.1, C.Ch1.C.8 — Contingency Fund
Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section C.Ch1.C.8 (Contingency Fund). Effective 2026-10-01 for applications received by SBA on or after that date; SOP 50 10 8 governs applications submitted through 2026-09-30. 1 provision(s) quoted from SBA's .docx.
SBA lending corpus: SOP 50 10 and the active notices, with the expiry watcher.
Verbatim regulatory text
Verbatim provisions from SBA SOP 50 10 8.1, C.Ch1.C.8 — Contingency Fund — 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 8.1 C.Ch1.C.8
8. Contingency Fund May not exceed 15% of the Project construction costs: a. If the residual contingency amount does not exceed 2% of the debenture just prior to closing, it may be refunded to the small business as working capital at the time the debenture is funded. b. If the contingency residual is in excess of 2% of the debenture just prior to closing, the funds may not be distributed to the small business as working capital, and the debenture must be reduced by the unused amount.
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Source of record: https://claudeforcompliance.com/regs/sba-sop81-c-ch1-c-8/
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