{"ok":true,"canonical_url":"https://dealroom.so/glossary/real-estate-holding-company","api_url":"https://dealroom.so/api/public/glossary/real-estate-holding-company","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":"real-estate-holding-company","term":"Real Estate Holding Company","group":"Reading the business","definition":"This is a separate legal entity that owns the real estate used by an operating business. The operating company then leases the property from the REHCO.","what_it_means":"In a 7(a) deal involving real estate, you might buy the operating company and lease the real estate from a separate entity owned by the seller. The SBA prefers the operating company to own the real estate if possible, or for the buyer to purchase both entities. If not, the lease terms are crucial.","url":"https://dealroom.so/glossary/real-estate-holding-company","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":"operating-company","term":"Operating Company","url":"https://dealroom.so/glossary/operating-company"},{"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":"sba-guaranty","term":"SBA guaranty","url":"https://dealroom.so/glossary/sba-guaranty"}],"related_questions":[{"question":"Can an SBA 7(a) loan be used to acquire a business that is primarily an investment or passive real estate holding company?","url":"https://dealroom.so/for-lenders/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-business-that-is-primarily-an-investment-or-passi"},{"question":"What happens if my business real estate is owned separately from my operating company?","url":"https://dealroom.so/sba-loans/basics/what-happens-if-my-business-real-estate-is-owned-separately-from-my-operating-company"},{"question":"Can an SBA 7(a) loan be used to acquire a business that is primarily a holding company?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-acquire-a-business-that-is-primarily-a-holding-company"},{"question":"What happens if the business real estate is held in a separate entity owned by the buyer, not the operating company?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-real-estate-is-held-in-a-separate-entity-owned-by-the-buyer-n"},{"question":"If the business real estate is in a separate entity, what documentation is needed to link it to the operating company?","url":"https://dealroom.so/sba-7a/questions/if-the-business-real-estate-is-in-a-separate-entity-what-documentation-is-needed-to-link-i"},{"question":"Can an SBA 7(a) loan be used to purchase a business with a complex organizational structure, like a holding company?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-purchase-a-business-with-a-complex-organizational-structure"}]},"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 — Real Estate Holding Company","url":"https://dealroom.so/glossary/real-estate-holding-company","source_type":"DealRoom Data"}}