A financing sources-and-uses schedule that balances by phase

A sources-and-uses schedule explains where transaction money comes from and what it pays for. Its first test is arithmetic: total sources equal total uses. Its more important timing test is whether available sources can pay each use when that payment is due. A future construction advance cannot fund today’s seller wire merely because both appear in the same balanced budget.

This template separates preclosing, closing and future work. It uses gross loan funding as a source and records fees and restricted reserves as uses. That consistent presentation prevents a fee from being deducted from loan proceeds and then counted again as a use. The OCC’s CRE handbook, printed page 34, discusses construction funding plans and the amount and timing of borrower equity. The schedule below is a sponsor planning tool, not an OCC form or a lender commitment.

Download the blank and completed schedules

Download the blank CSV or download the completed hypothetical CSV. The files contain data, not spreadsheet formulas. Add your own totals or use SUMIFS to group amount by side and phase. Treat a missing amount as unresolved, not as zero.

line_id,side,category,description,amount,phase,funding_status,source_ref,notes
U001,use,,,,,,,
S001,source,,,,,,,

Field schema and arithmetic controls

line_id is a unique reference. side is either source or use. category groups debt, equity, acquisition, costs, work or reserve. description explains the actual payment or funding source. amount is a nonnegative dollar value; an explicit zero is different from an unknown amount. Use explicit adjustment rows if a later revision requires a credit.

phase establishes when the money is needed. Use dates or milestones in a live deal, rather than leaving “future” undefined. funding_status distinguishes paid, expected, conditional and verified amounts. source_ref points to the evidence supporting the entry: purchase agreement, fee letter, approved budget or current lender proposal. notes preserves assumptions that a total would otherwise hide.

Perform three checks. Total sources minus total uses must equal zero. The same calculation must equal zero for each phase after any explicitly recorded carry-forward cash. Finally, the debt sources must reconcile to the commitment, initial funded balance and remaining conditional availability in the loan documents. These are separate checks; passing one does not imply the others pass.

The Excel copy adds a calculated row-status column. Any populated row missing its ID, numeric nonnegative amount, valid side or valid phase blocks the phase and total summaries as n.a.; a completely empty row is ignored. “Complete” means those arithmetic fields are present, not that funding or evidence is verified. CSV copies contain the original input fields only. When expanding the Excel schedule beyond its prepared rows, extend both the row-status formulas and every summary range; otherwise new rows are outside the calculated totals.

Completed example: one budget with three funding dates

The following fictional acquisition has a $4 million purchase price, $120,000 of closing costs, $500,000 of later work and a $180,000 restricted reserve. Total uses are $4.8 million. The sponsor has already paid a $100,000 acquisition deposit, credited against the purchase price at closing.

A hypothetical lender offers $3.3 million: $3 million initially funded and $300,000 conditionally available for later work. The sponsor contributes $1.5 million in total. The initial loan advance is shown gross. Assume the $120,000 costs include a $60,000 origination charge; do not deduct that charge again from the $3 million source.

line_id,side,category,description,amount,phase,funding_status,source_ref,notes
U001,use,acquisition,Purchase deposit,100000,preclosing,paid,PSA-1,Credited toward total purchase price
U002,use,acquisition,Purchase balance,3900000,closing,expected,PSA-1,Price less deposit already paid
U003,use,costs,Closing costs,120000,closing,estimated,BUDGET-1,Includes 60000 origination charge
U004,use,reserve,Restricted reserve deposit,180000,closing,required_assumption,TERM-1,Restricted cash is not free operating cash
U005,use,work,Postclosing improvements,500000,future,estimated,BID-1,Draw timing and eligible costs require confirmation
S001,source,equity,Sponsor deposit funding,100000,preclosing,paid,EQ-1,Already invested
S002,source,debt,Initial gross loan funding,3000000,closing,indicative,TERM-1,Fees remain separately included in uses
S003,source,equity,Sponsor closing cash,1200000,closing,planned,EQ-2,Availability must be verified
S004,source,debt,Conditional future loan advances,300000,future,conditional,TERM-1,Subject to release conditions
S005,source,equity,Sponsor future work equity,200000,future,planned,EQ-2,Timing and funding order require confirmation

The sponsor’s remaining contribution after paying the deposit is $1.4 million, split between closing and later work. Calling the entire $1.5 million “cash required at closing” overstates the closing wire. Calling the remaining $1.4 million “total equity” understates the sponsor’s total contribution.

Test the calendar behind the balanced totals

Suppose the contractor requires $250,000 immediately after closing, while the lender reimburses eligible costs only after inspection. The future phase balances overall, but the $200,000 planned work equity is insufficient to bridge that first $250,000 payment. The sponsor needs another $50,000 of temporary liquidity, a different payment schedule or lender-approved advance mechanics. The loan commitment has not changed; the timing requirement has.

A live model should therefore expand the future phase into draw periods. Record eligible costs, retainage, inspection timing, equity-first provisions and any commitment expiration. Confirm each condition from the actual documents. A budget assumption is not evidence that a lender will release funds on that date.

Keep reserves and changes visible

The $180,000 reserve is a use at closing because it becomes restricted cash. Later reserve payments should be tracked in a separate operating or draw schedule. Counting those same payments again as new project uses without showing the reserve release as a funding source would duplicate the cash requirement.

If a cost increases, revise the line, preserve the prior version and identify its funding source. Do not silently increase debt to make the totals balance. Additional debt may be unavailable or require approval. Separate contingency within the budget from liquidity outside it; the latter is not project funding until the sponsor actually commits it.

Before a funding decision, reconcile the schedule to the settlement statement, lender funding instructions and current payoff or vendor figures. A balanced planning budget helps expose questions. It does not replace those transaction-specific documents or confirm that conditional funds will be available.