{"ok":true,"canonical_url":"https://dealroom.so/glossary/residential-zoning","api_url":"https://dealroom.so/api/public/glossary/residential-zoning","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":"residential-zoning","term":"Residential zoning","group":"Reading the business","definition":"This is a local rule limiting land use to homes. If the business operates on such land, it's likely illegal or grandfathered in, which is a significant risk for a buyer.","what_it_means":"Check the property's zoning before you buy. If a business is operating commercially on residential zoning without proper permits or a valid variance, you could face forced relocation or closure. This is a deal-breaker if not resolvable.","url":"https://dealroom.so/glossary/residential-zoning","official_sources":[],"related":[{"slug":"zoning-restriction","term":"Zoning restriction","url":"https://dealroom.so/glossary/zoning-restriction"},{"slug":"local-zoning-ordinance","term":"Local zoning ordinance","url":"https://dealroom.so/glossary/local-zoning-ordinance"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"}],"related_questions":[{"question":"What if the business for a 7(a) loan requires substantial inventory or equipment incompatible with residential zoning?","url":"https://dealroom.so/for-lenders/questions/what-if-the-business-for-a-7-a-loan-requires-substantial-inventory-or-equipment-incompatib"}]},"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 — Residential zoning","url":"https://dealroom.so/glossary/residential-zoning","source_type":"DealRoom Data"}}