SBA SOP 50 10 8, C.Ch2.C.1 — Interim Financing
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 SBA's own document page serves superseded editions, and the SOP is further amended by policy notices — read this with the notices that touch it.
Verbatim regulatory text
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
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
SOP 50 10 8 C.Ch2.C.1.iv
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.
Operationalizing SBA SOP 50 10 8, C.Ch2.C.1 — Interim Financing
This is verbatim, source-snapshotted regulator text from the Claude for Compliance open corpus. To turn a rule like this into compliance work product: gap-analyze your policies and procedures (P&Ps) against these requirements to surface stale, conflicting, or missing provisions; operationalize any change with a ready-to-run update kit; and produce audit-ready evidence — every step grounded only in the regulator’s own words, never invented.
To work from the whole rulebook rather than this one page: download the corpus — every register on this site, verbatim, each with its source snapshot and effective date — then follow the methodology. It asks your assistant to answer only from the downloaded text, cite the register id and effective date it used, and tell you when the corpus does not cover something instead of filling the gap from memory. Running it locally also means no one sees which regulations you are looking at.
Source of record: https://claudeforcompliance.com/regs/sba-sop-c-ch2-c-1/
· register sba-sop-c-ch2-c-1 · Claude for Compliance. Free to read and download;
see regulatory updates and methodology.