SBA SOP 50 10 8.1, C.Ch1.C.9 — “Do-it-yourself” Construction

sba-sop81-c-ch1-c-9

Verbatim text of SBA SOP 50 10 8.1 (with Technical Policy Updates) section C.Ch1.C.9 (“Do-it-yourself” Construction). 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.

This register: .xlsx .csv

See also

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

Verbatim regulatory text (1)

Verbatim provisions from SBA SOP 50 10 8.1, C.Ch1.C.9 — “Do-it-yourself” Construction — 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.9

Effective 2026-10-01 · publisher's stamp for this provision

9. “Do-it-yourself” Construction “Do-it-yourself” construction, including renovations, and/or installation of machinery and equipment, or situations where the Applicant acts as its own contractor have proven to be generally unsatisfactory and can cause problems with lien waivers and mechanics liens, causing potential losses to lenders and/or SBA. “Do-it-yourself” construction, including renovations, (e.g., installation of carpeting or painting) and/or installation of machinery and equipment may be permitted, if the CDC can justify and document in the loan file that: a. The Borrower/contractor is experienced in the type of construction and has all appropriate licenses; b. The cost is the same as, or less than, either: i. What an unaffiliated contractor would charge as evidenced by two bids on the work; or ii. A single estimate provided by a third-party construction management firm, or by the Third-Party Lender’s existing internal construction management department if the Third-Party Lender has an existing internal construction management department that routinely manages construction for its similarly-sized non-SBA guaranteed commercial loans. c. The Borrower/contractor will not earn a profit on the construction.

Source: SBA SOP 50 10 8.1, C.Ch1.C.9 — “Do-it-yourself” Construction · source URL · snapshot 0fb0c4692cf52938

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Source of record: https://claudeforcompliance.com/regs/sba-sop81-c-ch1-c-9/ · register sba-sop81-c-ch1-c-9 · 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.