Glossary · The loan itself
In short
Real estate where the business you are acquiring occupies at least 51% of the net rentable area. This is a critical requirement for using an SBA 7(a) loan to purchase real estate.
If your deal includes real estate, the SBA 7(a) loan can finance it only if your operating business will occupy at least 51% of the property. For new construction, you must occupy 60% within a year and 80% within 10 years. This condition dictates how much of the property 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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