SBA loans generally cannot be used for pure investment property, but mixed-use owner-occupied properties may qualify.
SBA loans generally cannot be used for pure investment property. The SBA is intended to support operating businesses, not passive real estate investment.
A mixed-use property may qualify if the borrower operating business occupies the required portion of the property. For an existing building, that is commonly at least 51% owner occupancy.
If the borrower is mainly collecting rent rather than operating a business from the property, SBA financing is usually not the right fit.
SBA loans may finance owner-occupied commercial real estate, often with up to 90% financing in eligible structures.
SBA real estate usually requires owner occupancy, often 51% for existing buildings and 60% initially for new construction.
SBA loans usually cannot finance pure rental property, but owner-occupied mixed-use property may qualify under occupancy rules.
SBA loans may be used to buy land when the land is tied to an eligible owner-occupied business project.
SBA 504 often suits fixed-asset real estate projects, while SBA 7(a) may offer more flexibility for mixed-use business needs.
SBA loans may be used for eligible owner-occupied commercial construction when plans, budget, and repayment support the project.
Have an SBA loan scenario to review? Market Direct Capital can help evaluate structure, eligibility, and next steps.
Request Quote