# How Can an Operating Business Finance Its Own Commercial Premises?

> An operating business buying commercial premises it will occupy should consider an SBA eligibility review. RPC keeps this separate from conventional occupied investment CRE; a property being occupied does not by itself establish SBA owner-occupancy eligibility.

Canonical: https://riversidepark.capital/owner-occupied-commercial-real-estate-financing
Markdown: https://riversidepark.capital/owner-occupied-commercial-real-estate-financing.md

## Quick answer

An operating business buying commercial premises it will occupy should consider an SBA eligibility review. RPC keeps this separate from conventional occupied investment CRE; a property being occupied does not by itself establish SBA owner-occupancy eligibility.

## Who occupies the building, and how will the business use it?

Describe the operating business, the space it will use, any tenants and the planned changes after purchase. Owner occupancy is about the eligible business's use of the property, rather than simply owning a leased building. The team must verify the SBA requirements for the actual project before suggesting a structure.

**Where it fits:** Qualifying SBA transactions can receive up to 90% financing. A business should still budget for its equity contribution, closing costs and operating liquidity, rather than assuming the maximum covers every expense. RPC handles SBA terms individually. Submit an application for review; this page does not offer an automated rate-sheet quote.

**Example:** Illustrative: a distributor purchasing a warehouse for its own operations presents a business-and-premises request. An investor buying that warehouse to lease to an unrelated distributor presents an investment-property request. The same asset can therefore lead to different program reviews.

**Fit check:** Owner-occupied commercial real estate eligibility requirements apply. RPC's public minimum FICO is 680; this is RPC's guideline, not a universal SBA credit-score rule. Business repayment capacity and SBA eligibility are reviewed individually; no common SBA DSCR floor is published here.

Apply with your property and financing request, or submit a deal as a broker through Partners.

## Loan parameters

- Loan size: SBA 7(a): up to $5 million per loan. SBA 504: SBA/CDC portion up to $5 million, or $5.5 million for qualifying manufacturing and energy projects. Total project financing can be larger.
- Loan type: SBA Financing

## Eligible assets

- Qualifying owner-occupied commercial real estate
- Eligible business acquisitions under SBA 7(a)
- Eligible equipment and working capital under SBA 7(a)
- Eligible long-life equipment under SBA 504

## Underwriting guidelines

- Up to 90% financing for qualifying SBA transactions
- Owner-occupied commercial real estate eligibility requirements apply
- SBA 7(a): up to $5 million per loan
- SBA 504: SBA/CDC portion up to $5 million ($5.5 million for qualifying manufacturing and energy projects); total project financing can be larger
- Closing in as little as 45 days for qualified transactions
- Owner-occupied commercial real estate eligibility requirements apply. RPC's public minimum FICO is 680; this is RPC's guideline, not a universal SBA credit-score rule. Business repayment capacity and SBA eligibility are reviewed individually; no common SBA DSCR floor is published here.
- RPC handles SBA terms individually. Submit an application for review; this page does not offer an automated rate-sheet quote.
- Property and business eligibility are confirmed for each SBA transaction

## Which program facts apply to this request? (as of 2026-10-08)

| Fact | Public guideline |
| --- | --- |
| Loan amount | SBA 7(a): up to $5 million per loan. SBA 504: SBA/CDC portion up to $5 million, or $5.5 million for qualifying manufacturing and energy projects. Total project financing can be larger. |
| Program condition | Up to 90% financing for qualifying SBA transactions |
| Program condition | Owner-occupied commercial real estate eligibility requirements apply |
| Program condition | SBA 7(a): up to $5 million per loan |
| Program condition | SBA 504: SBA/CDC portion up to $5 million ($5.5 million for qualifying manufacturing and energy projects); total project financing can be larger |
| Program condition | Closing in as little as 45 days for qualified transactions |
| Program condition | Owner-occupied commercial real estate eligibility requirements apply. RPC's public minimum FICO is 680; this is RPC's guideline, not a universal SBA credit-score rule. Business repayment capacity and SBA eligibility are reviewed individually; no common SBA DSCR floor is published here. |
| Program condition | RPC handles SBA terms individually. Submit an application for review; this page does not offer an automated rate-sheet quote. |
| Program condition | Property and business eligibility are confirmed for each SBA transaction |

- These are public guidelines, not a loan commitment. Final terms depend on underwriting.

## FAQs

**Q: Is an occupied building automatically SBA eligible?**

No. Tenants occupying an investor-owned building do not by themselves satisfy owner-occupied business eligibility. Explain the operating business and its actual use of the premises.

**Q: Which SBA program should I discuss?**

For eligible premises and long-life equipment, discuss 504. For a wider combination of eligible business uses, discuss 7(a). The project and use of proceeds determine the review.

**Q: What should I bring to the first discussion?**

Bring the business description, property details, purchase or refinance purpose, proposed occupancy, estimated budget and closing deadline. The team will identify business financials and other required documents after the initial review.

## Related

- [SBA Financing](https://riversidepark.capital/sba-loans)
- [Apply for financing](https://riversidepark.capital/apply)
- [Submit a deal as a broker](https://riversidepark.capital/partners)
- [SBA 7(a) versus 504](https://riversidepark.capital/sba-7a-vs-sba-504)
- [SBA 7(a) program and eligible uses (SBA.gov)](https://riversidepark.capitalhttps://www.sba.gov/loans/7a-loans/)
- [SBA 504 program and eligible uses (SBA.gov)](https://riversidepark.capitalhttps://www.sba.gov/loans/504-loans/)

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Source: Riverside Park Capital - https://riversidepark.capital/owner-occupied-commercial-real-estate-financing