13 CFR 120.890

§ 120.890 Source of interim financing.

United States · 13 CFR — Business Credit and Assistance · Status: effective

Cite this

Citation: 13 CFR 120.890, § 120.890 Source of interim financing, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/52244
Permanent ID: ys:prov:52244@1
SHA-256: 3cc13b9aadf4f27f946a197a3b3e56d72210f49d88458f109bcfbd75f7d36a5e

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Full text

A Project may use interim financing for all Project costs except the Borrower's contribution. Any source (including a CDC) may supply interim financing provided: (a) The financing is not derived from any SBA program, directly or indirectly; (b) The terms and conditions of the financing are acceptable to SBA; (c) The source is not the Borrower or an Associate of the Borrower; and (d) The source has the experience and qualifications to monitor properly all Project construction and progress payments. (If the source lacks such experience or qualifications, SBA may require the interim loan to be managed by a third party such as a bank or professional construction manager.)

Legislative history

This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.