{"ok":true,"canonical_url":"https://dealroom.so/glossary/owner-occupied-property","api_url":"https://dealroom.so/api/public/glossary/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":"owner-occupied-property","term":"Owner-occupied property","group":"The loan itself","definition":"Real estate where the business you are acquiring occupies at least 51% of the net rentable area. This is a critical requirement for using an SBA 7(a) loan to purchase real estate.","what_it_means":"If your deal includes real estate, the SBA 7(a) loan can finance it only if your operating business will occupy at least 51% of the property. For new construction, you must occupy 60% within a year and 80% within 10 years. This condition dictates how much of the property can be financed.","url":"https://dealroom.so/glossary/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":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"7a-loan","term":"7(a) loan","url":"https://dealroom.so/glossary/7a-loan"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"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 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":"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":"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":"If the business property is owned by the seller's separate entity, can the SBA 7(a) loan include financing for both the business and the property?","url":"https://dealroom.so/sba-7a/questions/if-the-business-property-is-owned-by-the-seller-s-separate-entity-can-the-sba-7-a-loan-inc"}]},"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 property","url":"https://dealroom.so/glossary/owner-occupied-property","source_type":"DealRoom Data"}}