What is Sponsor's Profit and Risk Allowance (SPRA)?

Sponsor’s Profit and Risk Allowance, or SPRA, is no more than 10% of the total estimated cost of: architect's fees, carrying and financing charges, legal, organizational, and audit expenses. In contrast to Builder-Sponsor’s Profit and Risk Allowance (BSPRA), SPRA is used when there is no identity of interest between the mortgagor and general contractor.