{"ok":true,"canonical_url":"https://dealroom.so/glossary/construction-loan-disbursement-schedule","api_url":"https://dealroom.so/api/public/glossary/construction-loan-disbursement-schedule","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"construction-loan-disbursement-schedule","term":"Construction loan disbursement schedule","group":"Doing the deal","definition":"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":"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.","url":"https://dealroom.so/glossary/construction-loan-disbursement-schedule","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"renovation","term":"Renovation","url":"https://dealroom.so/glossary/renovation"},{"slug":"land-purchase","term":"Land purchase","url":"https://dealroom.so/glossary/land-purchase"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[{"question":"After SBA 7(a) loan approval, what's the typical timeframe for closing and disbursement?","url":"https://dealroom.so/sba-7a/questions/after-sba-7-a-loan-approval-what-s-the-typical-timeframe-for-closing-and-disbursement"},{"question":"How does a lender resolve an E-Tran error where the authorized loan amount is incorrect after approval but before disbursement?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-resolve-an-e-tran-error-where-the-authorized-loan-amount-is-incorrect-af"},{"question":"Can an SBA 7(a) loan cover construction or renovation of a business property?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-construction-or-renovation-of-a-business-property"},{"question":"Can an SBA 7(a) loan be used for construction or renovation of business property?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-for-construction-or-renovation-of-business-property"},{"question":"Can an SBA 7(a) loan be used to buy a commercial building currently under construction?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-buy-a-commercial-building-currently-under-construction"},{"question":"Can I use an SBA 7(a) loan for construction or renovation of a business property?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-for-construction-or-renovation-of-a-business-property"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Construction loan disbursement schedule","url":"https://dealroom.so/glossary/construction-loan-disbursement-schedule","source_type":"DealRoom Data"}}