Glossary · Reading the business
In short
Commercial property where the business taking out the loan occupies at least 51% of the total rentable space. This is a common use of SBA 7(a) loan funds for business acquisitions.
If your acquisition includes real estate, the SBA has specific occupancy requirements. For existing buildings, your business must occupy 51% or more of the net rentable area. For new construction or renovations, it's 60% within one year, increasing to 80% within ten years. This impacts how much of the real estate can be financed.
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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