Buy a building for my business
Owner-occupied commercial real estate, also known as owner-user commercial real estate.
51%+
of the building’s leaseable space occupied by your business
10%
SBA 504 and SBA 7(a): low as 10% down
20–25%
Typical down payment on conventional financing
What owner-occupied means
This section will talk about Owner-occupied commercial real estate – also known as owner-user commercial real estate. (For investment properties- click here) The owner must occupy more than half—51% or more—of the building’s leaseable space for the purposes of running their own business. A business that has the same ownership as a holding company that owns the property is also considered owner-occupied.
Property types that qualify
Special-use properties that also qualify
Not eligible for owner-occupied financing
Financing options available
Helpful resources and links
Small Business Development Centers and lender matching
- Small Business Development Center – Washington
- Small Business Development Center – Oregon
- Small Business Development Center – Idaho
- SBA Lender Match
Helpful links
Calculators
Loan Payment Calculator (use 25 year loan term)
FAQ
How much of a down payment do I need?
SBA provides as low as 10% down payment and conventional is about 20-25%. This does need to be in cash ready to be used. Banks generally don’t like borrowed down payments.
Do I need to occupy the entire building?
No, but you do need to occupy at least 51% and you can rent out the rest. Anything where you cant occupies over 51% then is considered an investment property. Generally, banks will want to see that the business can afford the entire loan payment without any rental income from a tenant.