{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-occupancy-percentage","api_url":"https://dealroom.so/api/public/glossary/owner-occupancy-percentage","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":"owner-occupancy-percentage","term":"Owner-occupancy percentage","group":"The loan itself","definition":"This is the percentage of a property's total square footage that the buyer's business will occupy. The SBA requires the operating business to occupy a significant portion of any real estate being purchased with a 7(a) loan.","what_it_means":"If you're buying real estate with your business, the SBA requires you to occupy at least 51% of the property. This ensures the loan primarily supports your operating business, not just a real estate investment. Plan for this occupancy from day one, or the deal won't fly.","url":"https://dealroom.so/glossary/owner-occupancy-percentage","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":"use-of-loan-proceeds","term":"Use of Loan Proceeds","url":"https://dealroom.so/glossary/use-of-loan-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":"What is the minimum ownership percentage that requires a personal guarantee?","url":"https://dealroom.so/sba-loans/basics/what-is-the-minimum-ownership-percentage-that-requires-a-personal-guarantee"},{"question":"Is it necessary to obtain separate life insurance policies for each owner in a multi-owner business?","url":"https://dealroom.so/sba-7a/questions/is-it-necessary-to-obtain-separate-life-insurance-policies-for-each-owner-in-a-multi-owner"},{"question":"What is the maximum percentage of an SBA 7(a) loan guaranty?","url":"https://dealroom.so/for-lenders/questions/what-is-the-maximum-percentage-of-an-sba-7-a-loan-guaranty"},{"question":"What is the typical down payment (equity injection) percentage for a franchise acquisition?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-down-payment-equity-injection-percentage-for-a-franchise-acquisition"},{"question":"What percentage of the loan does the SBA actually guarantee to the bank?","url":"https://dealroom.so/sba-loans/basics/what-percentage-of-the-loan-does-the-sba-actually-guarantee-to-the-bank"}]},"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 — Owner-occupancy percentage","url":"https://dealroom.so/glossary/owner-occupancy-percentage","source_type":"DealRoom Data"}}