Glossary · Doing the deal
Construction loan disbursement schedule
In short
This is a timeline detailing when funds from a loan for construction or renovation will be released, typically based on completed work stages. Buyers need to understand it to manage project cash flow and contractor payments.
What it means in a deal
If your SBA 7(a) loan includes funds for construction or major renovation, the lender will set up a disbursement schedule. Funds are not released all at once; instead, they're paid out as specific milestones are met, often after inspections. You need to coordinate this closely with your contractors to avoid payment delays and ensure project continuity.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Construction loan disbursement schedule
- After SBA 7(a) loan approval, what's the typical timeframe for closing and disbursement?
- How does a lender resolve an E-Tran error where the authorized loan amount is incorrect after approval but before disbursement?
- Can an SBA 7(a) loan cover construction or renovation of a business property?
- Can an SBA 7(a) loan be used for construction or renovation of business property?
- Can an SBA 7(a) loan be used to buy a commercial building currently under construction?
- Can I use an SBA 7(a) loan for construction or renovation of a business property?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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