SBA loans usually cannot finance pure rental property, but owner-occupied mixed-use property may qualify under occupancy rules.
SBA loans usually cannot be used to buy pure rental property. The financed property generally must be used by the borrower operating business, not held mainly as an investment.
A property with some rental income may still qualify if the business occupies enough of the space to meet SBA owner-occupancy requirements.
Borrowers should separate SBA-eligible owner-occupied real estate from passive rental property before applying.
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 generally cannot be used for pure investment property, but mixed-use owner-occupied properties may qualify.
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.
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