SBA Loan for Real Estate

searcher profile

January 06, 2023

by a searcher from Massachusetts Institute of Technology in New York, NY, USA

Is it possible to use the SBA to just purchase real estate and subsequently keep as rental properties? I thought the SBA was just for business acquisitions and perhaps real estate that came with the businesses, but I wasn't sure.


If not, are there other loans available to buy real estate (with lower equity % than typical 20-25% for CRE loans)? Thanks

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commentor profile
Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
No, SBA loans can only be used for business purposes including acquiring or building 51% or more owner-occupied commercial properties, meaning those properties must be occupied by a business that you own.

There are no other standard commercial financing options that would provide the opportunity to purchase commercial / investment properties with less money down. Sorry.
commentor profile
Reply by a searcher
from Brigham Young University in Kahului, HI, USA
No.

I believe any real estate purchases have to be >50% occupied by your business.
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