Glossary · The loan itself
In short
This refers to real estate where the business owner does not operate their primary business. For SBA 7(a) loans, real estate must generally be owner-occupied, meaning your business must use at least 51% of the space.
If the business you're buying includes real estate, the SBA loan can only finance the portion that your business will occupy. Any part of the property rented out to other tenants (non-owner-occupied) is typically ineligible for direct SBA financing, unless your business occupies a majority and the rental income is incidental. This impacts total project costs and your equity injection.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
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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