{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate","api_url":"https://dealroom.so/api/public/glossary/owner-occupied-commercial-real-estate","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-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","group":"Reading the business","definition":"Commercial property where the business taking out the loan occupies at least 51% of the total rentable space. This is a common use of SBA 7(a) loan funds for business acquisitions.","what_it_means":"If your acquisition includes real estate, the SBA has specific occupancy requirements. For existing buildings, your business must occupy 51% or more of the net rentable area. For new construction or renovations, it's 60% within one year, increasing to 80% within ten years. This impacts how much of the real estate can be financed.","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate","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":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"}],"related_questions":[{"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":"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":"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":"What specific environmental review is required for commercial real estate included in an SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-specific-environmental-review-is-required-for-commercial-real-estate-included-in-an-s"},{"question":"Can an SBA 7(a) loan be used to purchase commercial real estate for my business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-commercial-real-estate-for-my-business"},{"question":"Can I use an SBA 7(a) loan to buy commercial real estate for my business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-commercial-real-estate-for-my-business"}]},"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-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate","source_type":"DealRoom Data"}}