Glossary · The loan itself
In short
This is commercial property where your small business occupies at least 51% of the space. It's a key eligibility requirement for using an SBA 7(a) loan to purchase real estate.
When acquiring a business that includes real estate, the SBA wants to see that your business will be the primary tenant. If you occupy less than 51% at closing, the property is ineligible, or you'll need a plan to reach 51% occupancy within a year. This is fundamental for real estate components of a 7(a) deal.
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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