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What does BSPRA mean?BSPRA stands for Builders and Sponsors Profit and Risk Allowance. You will find this term with government sponsored loan programs such as Sec. 221(d) loans for apartment construction. The builder’s (or sponsor) profit is built into the loan. This allowance is equal to 10% of all costs other than land. This allowance allows for a reduction in the amount of cash needed. An example of how this works is: BSPRA = $584,500 Land Value = $650,000 Total Costs = $7,079,500 Construction Loan at 90% Costs = $6,371,550 Do you have an apartment construction project, contact me to learn more about this loan program. Return From BSPRA to Commercial Glossary
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