Definition
A draw schedule is the agreed timeline under which a lender releases portions of a loan as construction milestones are met, rather than all at once.
Why It Matters Financially
A draw schedule ties funding to progress, protecting both the association and lender and limiting interest costs on undrawn funds. It aligns financing with the actual pace of work.
Example Use Case
An association’s loan releases funds on a draw schedule as each phase of concrete restoration is completed and inspected.
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Related Terms
Loan Covenant, Association Loan, Concrete Restoration, Closing Costs, Interest-Only Period