SBA Construction Loans: Underwriting Through Disbursement Under the New SOP 50 10 8.1 — Tues, Sept 15
Credit Analysis, Construction Risk Controls and New Requirements for 7(a) and 504 Loans
Coleman Professional Webinar Training
Date: Tuesday, September 15, 2026
Time: 2:00 p.m. Eastern
Includes e-certification & recording
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Construction loans require lenders to underwrite both the operating business and a project whose budget, collateral value and funding requirements can change between approval and completion. Construction risk, cost overruns and the availability of funds to complete the project therefore become part of the credit decision.
SOP 50 10 8.1, effective October 1, 2026, changes several requirements affecting SBA construction transactions. The new SOP addresses construction contingencies, borrower-managed construction, project modifications, disbursement extensions, appraisal requirements and other issues lenders must incorporate into underwriting and loan administration.
Insurance is also an important part of the construction credit decision. Lenders must determine the appropriate coverage, document the requirement and incorporate applicable insurance conditions into the SBA Terms and Conditions and credit memorandum. Construction transactions may involve Builder’s Risk, workers’ compensation, hazard, liability, flood and other coverage depending on the project and collateral.
Join Kyle Gustafson, National Client Manager at Partner ESI, for a working session on SBA construction loan underwriting from the initial credit decision through construction, draws and final completion. The discussion will address Standard 7(a), 7(a) Small, Builders CAPLine and 504 transactions, including ground-up construction, additions, substantial renovations and borrower-managed projects.
What Kyle Will Cover
- Repayment, project feasibility and completion risk from approval through final draw.
- Sources and uses, borrower equity, contingencies and cost overruns.
- SOP 50 10 8.1 changes, including the new 15% 504 construction contingency.
- Contractor qualifications, borrower-as-contractor projects and construction management.
- Hazard, Builder’s Risk, workers’ compensation, flood and life insurance requirements.
- The $350,000 7(a) construction threshold and SBA bonding and insurance waivers.
- Completed-value appraisals, collateral analysis and lien position.
- Equity verification, inspections, draws, lien waivers and cost-to-complete analysis.
- Change orders, cost reallocations, 327 actions and 504 construction delays.
Instructor
Kyle Gustafson is National Client Manager at Partner ESI. He will lead a practical discussion of the underwriting, documentation and construction-control issues SBA lenders must address as a project moves from approval through completion.
This session is designed for SBA lenders, credit officers, underwriters, closers, construction administrators and program managers responsible for evaluating, documenting or administering SBA construction loans.
How the Webinar Works
Webinar Platform & Recording
We use Microsoft Teams as the webinar platform. All Coleman webinars are recorded and a link is sent to all attendees.
Single Site License
The single site license grants your institution one viewing of the webinar. It is permissible to use a single site license on one device in a conference room to be viewed by multiple attendees The webinar can be viewed on any device.
Multiple Site License
A multiple site license is an unlimited access pass for anyone at your institution. You will be given a link that will be usable to anyone with your email domain.
Webinar Links and Handouts
The webinar link will be sent out prior to the session, and included again when we send the presentation and handouts.
Participants Earn Certificates of Participation
All Coleman Webinar attendees will receive a certificate of participation. This documents your continuing education history for SBA and your regulators.
Questions
Questions throughout the webinar are strongly encouraged. There are two ways to ask a question. The first is to ask the question via the chat in Microsoft Teams. The second is to send an email to anna@colemanreport.com. Also, feel free to ask pre and post-webinar questions.
The Fine Print
1) Substitutions are allowed at no charge.
2) Cancellations receive a 100% credit for any Coleman product.
3) As with all our products, we offer a 100% money back satisfaction guarantee — no questions asked.
3 Easy Ways to Order
1) ONLINE — Register and pay via Quickbooks
2) EMAIL –Send an email to cindy@colemanreport.com with “Webinar Registration” in the Subject Line. We will do all the paperwork and either send you a sales receipt or an invoice.
3) PHONE — Call us at 818-790-4591.
Bob Coleman
Publisher, Coleman Report
bob@colemanreport.com