{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-occupancy-requirement","api_url":"https://dealroom.so/api/public/glossary/owner-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":"owner-occupancy-requirement","term":"Owner-occupancy requirement","group":"The loan itself","definition":"An SBA rule requiring that the buyer, as the new owner, actively manage and operate the business financed by the 7(a) loan. This prevents passive investments.","what_it_means":"This means you must be involved in the day-to-day operations and hold at least 51% ownership, or a significant minority if you're part of a management team that collectively owns 51%. The SBA wants to ensure you're committed to the business's success.","url":"https://dealroom.so/glossary/owner-occupancy-requirement","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":"key-principal","term":"Key principal","url":"https://dealroom.so/glossary/key-principal"},{"slug":"passive-minority-owner","term":"Passive minority owner","url":"https://dealroom.so/glossary/passive-minority-owner"},{"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 specific personal net worth threshold that triggers a personal guaranty requirement for an owner?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-personal-net-worth-threshold-that-triggers-a-personal-guaranty-requir"},{"question":"Are there any specific training or experience requirements for the business owner?","url":"https://dealroom.so/sba-loans/basics/are-there-any-specific-training-or-experience-requirements-for-the-business-owner"},{"question":"How does a partner buyout impact the personal guarantee requirements for the remaining owner?","url":"https://dealroom.so/sba-7a/questions/how-does-a-partner-buyout-impact-the-personal-guarantee-requirements-for-the-remaining-own"},{"question":"What specific residency requirements must a non-citizen owner meet for 7(a) loan eligibility?","url":"https://dealroom.so/for-lenders/questions/what-specific-residency-requirements-must-a-non-citizen-owner-meet-for-7-a-loan-eligibilit"},{"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"}]},"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 requirement","url":"https://dealroom.so/glossary/owner-occupancy-requirement","source_type":"DealRoom Data"}}