{"ok":true,"canonical_url":"https://dealroom.so/glossary/occupancy-requirement","api_url":"https://dealroom.so/api/public/glossary/occupancy-requirement","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":"occupancy-requirement","term":"Occupancy Requirement","group":"The loan itself","definition":"The SBA's occupancy requirement dictates that for real estate loans, the borrower's business must occupy a significant portion of the property being financed.","what_it_means":"For an existing building, your business generally must occupy at least 51% of the total rentable property. If you're buying or constructing new real estate, you'll need to occupy at least 60% initially, with plans to occupy up to 80% over time. This rule ensures the loan supports your operating business.","url":"https://dealroom.so/glossary/occupancy-requirement","official_sources":[{"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"},{"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"}],"related":[{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"}],"related_questions":[{"question":"What is the minimum owner-occupancy requirement for real estate purchased with an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/what-is-the-minimum-owner-occupancy-requirement-for-real-estate-purchased-with-an-sba-7-a-"},{"question":"Is \"insurable interest\" always a legal requirement for obtaining business life insurance?","url":"https://dealroom.so/sba-7a/questions/is-insurable-interest-always-a-legal-requirement-for-obtaining-business-life-insurance"},{"question":"Is profitability a strict requirement for getting an SBA 7(a) loan?","url":"https://dealroom.so/sba-loans/basics/is-profitability-a-strict-requirement-for-getting-an-sba-7-a-loan"},{"question":"Is a blanket lien on all business assets a standard SBA requirement?","url":"https://dealroom.so/sba-7a/questions/is-a-blanket-lien-on-all-business-assets-a-standard-sba-requirement"},{"question":"How is the equity injection requirement affected if I'm purchasing a franchise?","url":"https://dealroom.so/sba-7a/questions/how-is-the-equity-injection-requirement-affected-if-i-m-purchasing-a-franchise"},{"question":"Is the collateral requirement less strict for smaller SBA 7(a) loan amounts?","url":"https://dealroom.so/sba-loans/basics/is-the-collateral-requirement-less-strict-for-smaller-sba-7-a-loan-amounts"}]},"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 — Occupancy Requirement","url":"https://dealroom.so/glossary/occupancy-requirement","source_type":"DealRoom Data"}}