{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-the-business-operates-out-of-a-building-that-the-seller-owns-personally-not-through-the","api_url":"https://dealroom.so/api/public/questions/if-the-business-operates-out-of-a-building-that-the-seller-owns-personally-not-through-the","question":"If the business operates out of a building that the seller owns personally (not through the business entity), how does that impact the acquisition loan?","topic":"Real estate","audience":"borrower","bot_mode":"buyer","short_answer":"This impacts the loan by requiring a separate real estate transaction, either a purchase of the property from the seller or a lease agreement, which must be part of the overall acquisition plan.","rule":"If the real estate is personally owned by the seller, the buyer can either purchase the real estate along with the business (often with the same SBA loan, if eligible) or enter into a new lease agreement. If leasing, the lease terms must be favorable and documented. If purchasing, the real estate must be appraised and meet collateral requirements.","example":"A buyer is acquiring a business for $700,000. The building, valued at $500,000, is owned by the seller personally. The buyer uses an SBA 7(a) loan to finance both the $700,000 business acquisition and the $500,000 real estate purchase, totaling $1,200,000.","what_lenders_check":"Lenders ensure the real estate component is properly structured, whether through purchase or lease, to provide stable occupancy for the business. If purchased, a lien will be required on the property; if leased, the lease terms will be scrutinized for reasonableness and length.","required_facts":["Seller-owned real estate","Separate transaction","Real estate purchase","New lease agreement","Appraisal/lease review"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"}],"related_questions":[{"question":"Can I include the purchase of commercial real estate, where the business operates, within the same SBA 7(a) loan for a $2 million deal?","url":"https://dealroom.so/sba-7a/questions/can-i-include-the-purchase-of-commercial-real-estate-where-the-business-operates-within-th"},{"question":"What type of property appraisal is required if my $1.2 million SBA loan includes commercial real estate?","url":"https://dealroom.so/sba-7a/questions/what-type-of-property-appraisal-is-required-if-my-1-2-million-sba-loan-includes-commercial"},{"question":"Can I use an SBA 7(a) loan to purchase the real estate where the business operates?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-the-real-estate-where-the-business-operates"},{"question":"What happens if the business I am acquiring is located in a leased property?","url":"https://dealroom.so/sba-7a/questions/what-happens-if-the-business-i-am-acquiring-is-located-in-a-leased-property"},{"question":"What kind of environmental due diligence is required if the business real estate is included in the loan?","url":"https://dealroom.so/sba-7a/questions/what-kind-of-environmental-due-diligence-is-required-if-the-business-real-estate-is-includ"},{"question":"Can an SBA 7(a) loan be used to buy a business that has environmental issues?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-be-used-to-buy-a-business-that-has-environmental-issues"}],"related_terms":[{"term":"Out of pocket","url":"https://dealroom.so/glossary/out-of-pocket"},{"term":"Pass-Through","url":"https://dealroom.so/glossary/pass-through"},{"term":"Personally Liable","url":"https://dealroom.so/glossary/personally-liable"},{"term":"Not-for-Profit Business","url":"https://dealroom.so/glossary/not-for-profit-business"},{"term":"Indemnification from the Seller","url":"https://dealroom.so/glossary/indemnification-from-the-seller"},{"term":"Alienate the Business","url":"https://dealroom.so/glossary/alienate-the-business"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-14","sba_rule_sources_checked_through":"2026-06-14"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/if-the-business-operates-out-of-a-building-that-the-seller-owns-personally-not-through-the","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}