Glossary · The loan itself
In short
The SBA's occupancy requirement dictates that for real estate loans, the borrower's business must occupy a significant portion of the property being financed.
For an existing building, your business generally must occupy at least 51% of the total rentable property. If you're buying or constructing new real estate, you'll need to occupy at least 60% initially, with plans to occupy up to 80% over time. This rule ensures the loan supports your operating business.
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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