Glossary · The loan itself
In short
Describes commercial real estate where the business owner occupies and uses at least 51% of the property. This is a key requirement for SBA loans financing real estate.
If your acquisition includes real estate, the SBA wants to ensure you, the buyer, will operate your business from at least 51% of that property. This is crucial for real estate components of a 7(a) loan. If the business occupies less than 51%, the real estate portion of the loan might be ineligible or require a different structure.
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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