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Stop Paying Rent. Buy the Building Your Business Operates In.
Owner-occupied commercial real estate loans let you purchase the property your business uses — with as little as 10% down through SBA programs. Compare SBA 504, SBA 7(a), and conventional options across multiple lenders.
Which Owner-Occupied CRE Loan Is Right for You?
Three main loan structures cover most owner-occupied purchases. The best fit depends on your down payment, business age, property type, and timeline.
💡 Best for established businesses (2+ years) buying an existing building. Fixed rate for the life of the loan protects against rate increases.
💡 More flexible than 504 — can include working capital, equipment, and real estate in one loan. Good for newer businesses or mixed-use needs.
💡 Fewer restrictions than SBA. Faster approval and fewer forms. Better for borrowers with strong financials who want simplicity over lowest rate.
Why Business Owners Stop Renting and Buy
Owning the property your business operates in is one of the most effective ways to build long-term wealth while reducing operating costs.
Build Equity Instead of Paying Rent
Every mortgage payment builds equity in an asset you own. Monthly rent payments disappear forever. Over 10–20 years, the difference in net worth can be substantial — especially as property values appreciate.
Lock In Your Occupancy Cost
Lease renewals can bring 10–30% rent increases. A fixed-rate owner-occupied CRE loan gives you a predictable payment for 20–25 years, protecting your business from landlord decisions.
Potential Rental Income
If you occupy 51%+ of the building, the remaining space can be leased to tenants. Rental income can offset your mortgage payment and accelerate your break-even.
Tax Advantages
Interest payments on owner-occupied CRE loans are generally tax-deductible. Depreciation on the building can also reduce your taxable income. Consult your CPA for specifics.
Property Types We Support
Most commercial property types qualify for owner-occupied financing as long as your business occupies at least 51% of the space.
Do You Qualify?
SBA 504 and conventional owner-occupied loans have overlapping but distinct requirements. Here's what most lenders look for.
How It Works — Step by Step
Identify the Property
Have a property in mind or actively searching? Share the address, asking price, and your business's current space needs. We'll assess lender fit before you go under contract.
Submit to BestLoanUSA
Complete our single application. No hard credit pull at this stage. Share your business financials, property details, and intended use.
Advisor Review with Jason
Jason Kim, our Managing Director of Commercial Lending, reviews your deal and identifies whether SBA 504, SBA 7(a), or conventional financing is the best fit — and which lenders are most likely to approve.
Lender Matching & Term Sheet
We submit to matched lenders and return competing term sheets. You compare rates, terms, fees, and prepayment structures side by side.
Documentation & Underwriting
Typical docs: 2 years personal + business tax returns, YTD P&L, business bank statements, purchase contract, and property appraisal (ordered at commitment).
Close & Take Ownership
Conventional loans close in 30–45 days. SBA 7(a) in 45–60 days. SBA 504 in 60–90 days. You take title to the property and begin building equity from day one.
Frequently Asked Questions
An owner-occupied CRE loan finances a commercial property where your business occupies at least 51% of the space. Unlike investment property loans that rely on tenant rents, these loans are underwritten based on your business's cash flow and ability to repay. SBA 504 and SBA 7(a) are the most common programs.
With an SBA 504 loan, the minimum down payment is 10% for an existing building — one of the lowest in commercial real estate. SBA 7(a) typically requires 10–20%. Conventional bank loans generally require 20–30% down. The lower your down payment, the more working capital you preserve.
SBA 504 is specifically designed for real estate and equipment — it offers a fixed rate on the CDC portion and terms up to 25 years, but has more paperwork and a longer timeline (60–90 days). SBA 7(a) is more flexible — it can include working capital and equipment alongside real estate — but rates are variable and the max loan is $5M. For pure real estate purchases, 504 usually wins on rate and term.
Yes. As long as your business occupies at least 51% of the space (or 60% for new construction), you can lease the remaining space to tenants. Rental income can help offset your mortgage payment and may be counted in underwriting as additional revenue.
Conventional loans typically close in 30–45 days. SBA 7(a) loans take 45–60 days. SBA 504 loans require the most time — typically 60–90 days — due to CDC and SBA review. If your purchase contract has a 30-day close requirement, conventional financing is the more realistic path.
For SBA 504, yes — lenders want to see an established operating history. SBA 7(a) and conventional loans may work with slightly newer businesses depending on the lender. Startups or businesses under 2 years typically need a stronger down payment, more collateral, or a co-borrower.
Ready to Get Started?
Access the capital your business needs
Comprehensive financing solutions backed by expert advisory guidance. One application, multiple lender options, transparent terms.
Secure & confidential
No credit impact
Advisor-led process
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Disclaimer:
BestLoanUSA operates as a business financing advisory and coordination platform. We are not a direct lending institution. All financing offers are subject to lender credit approval and specific terms. Interest rates, fees, and terms vary by lender and are subject to change without notice. Rates displayed represent average or typical offerings and individual terms may differ based on creditworthiness, business qualifications, and market conditions. Loan amounts, approval timelines, and product availability vary by lender.