{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-business-real-estate-is-owned-separately-by-the-seller","api_url":"https://dealroom.so/api/public/questions/what-happens-if-a-business-real-estate-is-owned-separately-by-the-seller","question":"What happens if a business real estate is owned separately by the seller?","topic":"Real estate","audience":"borrower","bot_mode":"buyer","short_answer":"If the seller owns the real estate separately, the buyer can purchase it with the SBA 7(a) loan, or lease it from the seller or a third party.","rule":"If the business being acquired operates in real estate owned by the seller personally, the buyer has options: they can purchase the real estate as part of the SBA loan project, or they can establish a lease agreement. The SBA requires adequate lease terms for the latter.","example":"A buyer purchases a print shop for $400,000, and the seller also owns the building. The buyer can request a $600,000 SBA loan to cover both the business ($400,000) and the real estate ($200,000), or negotiate a suitable long-term lease with the seller.","what_lenders_check":"If purchasing, lenders ensure the real estate is properly appraised and included in the loan documents. If leasing, they review lease terms, ensuring they are commercially reasonable and provide stability for the business.","required_facts":[],"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":"Business real estate","url":"https://dealroom.so/glossary/business-real-estate"},{"term":"Passive real estate business","url":"https://dealroom.so/glossary/passive-real-estate-business"},{"term":"Real Estate","url":"https://dealroom.so/glossary/real-estate"},{"term":"Veteran-owned business","url":"https://dealroom.so/glossary/veteran-owned-business"},{"term":"Owner-occupied business real estate","url":"https://dealroom.so/glossary/owner-occupied-business-real-estate"},{"term":"Real estate entity","url":"https://dealroom.so/glossary/real-estate-entity"}],"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":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/what-happens-if-a-business-real-estate-is-owned-separately-by-the-seller","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."]}