# Can I act as my own general contractor on an SBA loan?

**Short answer:** Possibly. SBA calls do-it-yourself construction generally unsatisfactory. It is allowed if the lender documents you are experienced and licensed, the cost matches or beats outside bids, and you earn no profit. Source: SOP 50 10 8.1, Sec. B, Ch. 6, Para. A.4.

Canonical page: https://www.sbaexpress.loans/answers/be-own-general-contractor-sba-loan/
Last checked: 2026-11-08

Possibly, with documentation. SOP 50 10 8.1, Section B, Ch. 6, Para. A.4, says do-it-yourself construction and borrowers acting as their own contractor have proven generally unsatisfactory. They can cause problems with lien waivers and mechanics' liens.

## What the lender must justify in the file

- You are experienced in the type of construction and hold all appropriate licenses.
- The cost is the same as or less than what an unaffiliated contractor would charge.
- You will not earn a profit on the construction.

The cost test uses 2 bids, or a single estimate from a third-party construction manager or the lender's internal construction department.

The same rule covers renovations and the installation of machinery and equipment.

## 504 loans

Section C, Ch. 1, Para. C.9, uses the same three tests. The Certified Development Company (CDC) justifies and documents them. The single estimate can come from a third-party firm or the Third Party Lender's internal department.

## What stays required

On a new building or an addition, the lender must obtain evidence of seismic code compliance. That applies with or without a contractor (Para. A.4; 13 CFR § 120.174).

## What the SOP does not say

It sets no minimum years of construction experience. Each lender decides whether to allow it.

## Sources

- [SOP 50 10 8.1, Sec. B, Ch. 6, Para. A.4, Construction Loan Provisions (about pp. 202-204)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SOP 50 10 8.1, Sec. C, Ch. 1, Para. C.9 (about pp. 227-228)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.174](https://www.ecfr.gov/current/title-13/section-120.174)