{"ok":true,"canonical_url":"https://dealroom.so/glossary/non-owner-occupied-property","api_url":"https://dealroom.so/api/public/glossary/non-owner-occupied-property","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"non-owner-occupied-property","term":"Non-owner-occupied property","group":"The loan itself","definition":"This refers to real estate where the business owner does not operate their primary business. For SBA 7(a) loans, real estate must generally be owner-occupied, meaning your business must use at least 51% of the space.","what_it_means":"If the business you're buying includes real estate, the SBA loan can only finance the portion that your business will occupy. Any part of the property rented out to other tenants (non-owner-occupied) is typically ineligible for direct SBA financing, unless your business occupies a majority and the rental income is incidental. This impacts total project costs and your equity injection.","url":"https://dealroom.so/glossary/non-owner-occupied-property","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"total-project-costs","term":"Total project costs","url":"https://dealroom.so/glossary/total-project-costs"},{"slug":"equity-injection","term":"Equity injection","url":"https://dealroom.so/glossary/equity-injection"}],"related_questions":[{"question":"If the business property is essential but less than 51% owner-occupied, is it still eligible for financing?","url":"https://dealroom.so/sba-7a/questions/if-the-business-property-is-essential-but-less-than-51-owner-occupied-is-it-still-eligible"},{"question":"Can a business primarily generating passive income from non-owner-occupied commercial real estate rentals be 7(a) eligible?","url":"https://dealroom.so/for-lenders/questions/can-a-business-primarily-generating-passive-income-from-non-owner-occupied-commercial-real"},{"question":"Can the value of my owner-occupied commercial real estate serve as collateral for an acquisition loan?","url":"https://dealroom.so/sba-7a/questions/can-the-value-of-my-owner-occupied-commercial-real-estate-serve-as-collateral-for-an-acqui"},{"question":"What is the rule for an owner-occupied real estate portion of an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-rule-for-an-owner-occupied-real-estate-portion-of-an-sba-7-a-loan"},{"question":"Are non-owner spouses always required to personally guarantee SBA loans?","url":"https://dealroom.so/sba-7a/questions/are-non-owner-spouses-always-required-to-personally-guarantee-sba-loans"},{"question":"Can investor funds from non-owner individuals be used for the equity injection?","url":"https://dealroom.so/sba-7a/questions/can-investor-funds-from-non-owner-individuals-be-used-for-the-equity-injection"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Non-owner-occupied property","url":"https://dealroom.so/glossary/non-owner-occupied-property","source_type":"DealRoom Data"}}