Business plans for buying your building with an SBA loan
SBA 504 and 7(a) loans let operating businesses buy, build or renovate the property they occupy, often with as little as 10% down. Lenders need to see that the business can carry the new occupancy cost and that the deal meets the SBA's occupancy rules.
Written by a former underwriter who approved a large volume of SBA owner-occupied real estate loans.
- SBA 7(a)
- SBA 504
- 36-month projections
- Written assumptions
- DSCR
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What a lender checks on a owner-occupied real estate loan
Your plan answers these before the credit officer has to ask.
Occupancy rules
Your business must occupy at least 51% of an existing building, and a higher share of new construction. The plan shows exactly how the space is used.
Rent vs. ownership
Your current rent compared with the new mortgage, taxes, insurance and maintenance.
Global cash flow
Cash flow from the operating company and the real estate holding company together, the way lenders actually test it.
Deal structure
For a 504, typically a bank first lien around 50%, a CDC loan around 40% and about 10% from you, more for startups or special-purpose property.
Tenant income
Rent from any space you lease to others, and how dependable it is.
Third-party reports
How the appraisal, environmental review and any construction budget fit the timeline.
Numbers your plan will show
Every figure comes with a written assumption, across 36 months of P&L, balance sheet and cash flow.
- Current rent vs. new occupancy cost
- Global DSCR
- Loan-to-value
- Tenant rental income
- Business cash flow trend
- Equity injection
Plans for every kind of request
Startups, acquisitions, expansions and property purchases, for SBA 7(a), SBA 504 and conventional bank loans.
- SBA 504 purchase
- SBA 504 construction
- SBA 7(a) real estate
- Renovation & expansion
- Refinance
- Purchase with business acquisition
Common questions
Is a 504 or a 7(a) better for buying my building?
A 504 usually gives a lower down payment and a long fixed rate on the CDC portion, and works best for real estate and heavy equipment. A 7(a) is more flexible and can combine the property with working capital or a business purchase. The plan is written to match whichever structure your lender uses.
Can I lease part of the building to other tenants?
Yes, as long as your business meets the SBA's occupancy requirement. The plan shows how the space is split and how tenant rent supports the loan.
My business is established. Do I still need a business plan?
Many lenders still ask for one, because the new occupancy cost changes your cash flow. A short plan with projections answers that question before underwriting asks it.
SBA business plans for any industry
Ready to put your loan request in front of a lender?
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