Owner-Occupied Commercial Real Estate Loans

Start with the property and your numbers: the price, how much of the building your business will use (at least 51% of an existing building for SBA loans, 60% of a new one), two years of business tax returns if you have them, a year-to-date P&L and your down payment. A lender or CDC then sizes the loan from your business cash flow, orders an appraisal and issues a commitment. BestLoanUSA is not a lender — we compare SBA 504, SBA 7(a) and bank options from 30+ lenders, with no hard credit pull to start.

Yes, when your business will occupy the building. SBA 504 and SBA 7(a) both finance owner-occupied real estate: 504 splits the project between a bank loan and a fixed-rate CDC loan with as little as 10% down, while 7(a) can combine the building with working capital or equipment in one loan. A building bought mainly to lease to others is an investment property and uses a conventional, DSCR or other investor loan instead.

For SBA loans the rule is fixed: your business (or an affiliated operating company) must occupy at least 51% of an existing building, or at least 60% of a newly built one from the start and all but the permanently leased space (up to 20%) within ten years. Conventional banks set their own definition for their owner-occupied pricing, so ask each lender what share of the space it requires.

Yes. Since November 15, 2024, SBA 504 debt refinancing without expansion can reach 90% of the property’s value, including eligible business expenses paid out in cash, and the old 20% cap on those expenses is gone (SBA direct final rule, 89 FR 79734). A conventional rate-and-term or cash-out refinance is the alternative, usually at 65–75% (80% multifamily) of value.

An owner-occupied CRE loan finances a property where your business occupies at least 51% of the space. SBA 504 and 7(a) are the most common programs.

Not since March 1, 2026. SBA now requires 100% of a business’s direct and indirect owners to be U.S. citizens or U.S. nationals whose principal residence is in the U.S.; lawful permanent residents (green card holders) can no longer hold any ownership in an SBA 7(a) or 504 borrower (SBA Policy Notice 5000-876441). Conventional bank, DSCR and other non-SBA loans are still available to those owners.

SBA 504: 10% for an established business buying a general-purpose building; 15% if the business is two years old or less or the building is special-purpose; 20% if both (13 CFR 120.910). SBA 7(a): set by the lender, commonly 10–20%. Conventional: 25–35%.

504 offers a fixed rate and terms up to 25 years but takes longer (60–90 days). 7(a) is more flexible and can include working capital but has a $5M cap and variable rates.

Yes. With SBA financing your business must occupy at least 51% of an existing building (60% of a new one); you can lease the rest to tenants — for new construction, up to 20% permanently.

Conventional: 30–45 days. SBA 7(a): 30–60 days. SBA 504: 60–90 days.

Not for SBA: a business two years old or less can use SBA 504 with 15% down instead of 10% (20% if the building is special-purpose). SBA 7(a) and conventional may work with newer businesses depending on strength of the deal.