Glossary · Reading the business
In short
This refers to property owned for the purpose of generating rental income. While often a good investment, it's generally not directly eligible for an SBA 7(a) loan unless it's owner-occupied.
An SBA 7(a) loan cannot be used solely to purchase investment real estate. If the business you're acquiring is primarily income-producing real estate (e.g., a pure landlord business), it's likely ineligible. However, if the business occupies and operates from the property, it may qualify as owner-occupied commercial real estate.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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