Owner-Occupied Commercial Real Estate Financing
Purchase the commercial property your business will occupy with an SBA 7(a) loan. Get the space you need with only 10% down and terms up to 25 years.
What is Owner-Occupied Commercial Real Estate?
Owner-occupied CRE (OOCRE) is when a business uses an SBA 7(a) loan to purchase commercial property that it will occupy and operate from. This is different from investment properties—the business lives and works in the space it owns.
Build Equity
Instead of paying rent to a landlord, your monthly payments build equity in an asset your business owns.
Tax Benefits
Benefit from mortgage interest deductions, depreciation, and property tax deductions.
Stability & Control
No lease renewal worries. You control the space and can customize it for your business needs.
As Low as 10% Down — or Even 0%
With conventional commercial loans, you typically need 20-30% down. SBA 7(a) loans require as little as 10% down, meaning you preserve more working capital for inventory, equipment, and operations.
Low Equity Injection Requirements
The SBA 7(a) program typically requires a minimum 10% equity injection. Established businesses may qualify for reduced requirements, and existing businesses expanding in the same industry and geographic area may qualify without equity injection. Contact us to see if you qualify.
Financing Comparison
$100K down on $1M property
$250K down on $1M property
You save:
$150K
More capital to grow your business
Property Types That Qualify
Your business must occupy at least 51% of the property. The remaining space can be leased to other tenants.
Office Buildings
Retail Spaces
Warehouses
Medical Offices
Restaurants
Mixed-Use Properties
The 51% Rule
Your business must occupy and use at least 51% of the property. The remaining 49% can be leased to other businesses, providing additional income to offset your mortgage payment.
Loan Details & Terms
Flexible financing designed for owner-occupied commercial real estate
Loan Amount
Up to $5MM
SBA 7(a) maximum
Real Estate Term
Up to 25 Years
Longer amortization
Equipment Term
Up to 10 Years
If included in loan
Down Payment
Minimum 10%
SBA requirement
The Rent Swap: Stop Paying Your Landlord's Mortgage
If you're already paying rent for your business space, you may be closer to owning than you think. Here's how the numbers can work:
Currently Renting
SBA 7(a) Ownership
Similar monthly cost — but now you're building equity, locking in your space, and creating an asset. With a minimum 10% equity injection, you preserve 90% of your capital for operations and growth.
Real Deal Example
See how an SBA 7(a) loan helped a real business acquire the perfect space
ABC Manufacturing, Inc.
The Challenge
ABC Manufacturing was growing rapidly but outgrew their leased warehouse. They needed a 10,000 sq ft space to consolidate operations, but couldn't afford a large down payment while maintaining working capital for machinery and inventory.
The Solution: SBA 7(a) Loan
Monthly Payment
Comparable to Rent
Monthly mortgage payments are often similar to what you're already paying in rent — but now you're building equity instead.
Results
Qualification Requirements
Here's what lenders typically look for when evaluating your application
Credit Score
Good credit is helpful, but we work with a range of profiles. Real estate as collateral gives us more flexibility on credit requirements.
Time in Business
We work with established businesses and newer companies alike. With real estate collateral, we can be more flexible — even businesses operating less than a year may qualify with strong projections.
Cash Flow & DSCR
We evaluate both historical cash flow and projections. Projection-based lending is available for newer businesses, especially when real estate secures the loan.
Personal Guarantee
Owner(s) with 20%+ equity typically must guarantee the loan personally.
Collateral
The property itself serves as collateral, typically valued at or above the loan amount.
Down Payment
Minimum 10% in liquid funds. Some lenders may require 15-20% depending on your profile.
📋 Documents You'll Need
Be prepared with recent business and personal tax returns (3 years), profit & loss statements, bank statements, balance sheet, and Personal Financial Statement (SBA Form 413).
Download SBA Form 413 TemplateFrequently Asked Questions
How long does the approval process take?
Typically 30-45 days from application to funding, depending on document verification and appraisal completion.
Can I refinance an existing property I already own?
Yes, if you use the proceeds to improve or expand your business operations in that property.
What if my credit score isn't perfect?
We work with a wide range of credit profiles. When real estate is used as collateral, we have significantly more flexibility. Contact us for a personalized evaluation — your overall financial picture matters more than a single number.
Can I lease part of the property to another tenant?
Yes! You must occupy 51%+ of the property. The remaining space can generate rental income to offset your mortgage.
Are there restrictions on property location?
Properties must be in the US. Some properties (agriculture, passive investment) are not eligible.
What if I use the property for multiple business purposes?
Your primary business must occupy 51%+. You can have secondary uses in the remaining space.
Related Resources
Learn more about CRE financing and other business loan options
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