Owner-Occupied
The borrower's operating business uses 51%+ of the building's rentable square footage. Required for SBA financing on real estate.
Calculators, eligibility checks, and downloads built from the docs we use on closings every week. Free, instant, no email gate.
Tap any tool to jump straight to it.
Practitioner templates and checklists. Built from the docs I use on closings.
The SBA 7(a) is the workhorse for owner-occupied real estate, business acquisitions, and partner buyouts. Maximum loan size is $5MM, terms up to 25 years for real estate, and rates float over the prime rate.
$—
The 504 is for owner-occupied commercial real estate and heavy equipment. Lower fixed rate on the second-position CDC piece; up to $5.5MM in CDC debenture. The structure is 50% bank / 40% CDC / 10% borrower equity.
$—
DSCR is what every credit officer reads first. NOI ÷ Annual Debt Service. SBA underwriting wants 1.20x minimum global. Conventional lenders typically push for 1.25x+. Anything under 1.0x means the property doesn't carry the debt.
—
LTV = Loan Amount ÷ Appraised Value. The cap depends on program and property type. Owner-occupied SBA pushes higher (90%); investor / non-owner conventional usually maxes near 70%.
—
You don't refinance because rates dropped. You refinance because the math says the after-fee savings beat your hold period.
$—
The month-by-month look at where your payment is actually going. Useful for projecting interest expense and modeling early payoff.
$—
Seven questions. Tells you which loan program your deal fits before you start packaging it. Not financial advice. The real underwrite happens with the file.
The fastest read on what a property is worth at today's yield. Net Operating Income divided by property value, expressed as a percentage. Investors use this to compare deals. Lenders use it as a sanity check on the appraised value.
—
Walk from gross scheduled rent to Net Operating Income line by line. This is the structure underwriting uses and the structure your tax return tracks. Get this right and DSCR, cap rate, and global cash flow all line up.
$—
Annual pre-tax cash flow over total cash invested. The most honest read on a real estate investment's first-year yield from the operator's perspective. Strips out appreciation, tax benefits, and principal pay-down. Just shows what hits the bank account.
—
SBA loans carry a one-time guarantee fee that varies by loan size, plus packaging and standard closing costs. The all-in number is usually 3 to 4% of the loan amount on the 7(a) side. This calculator gets you to that number quickly.
$—
The three-number gut-check that tells you if a deal will fly before you spend two weeks packaging it. LTV, property DSCR, and global DSCR rolled into one verdict. Use this before you ask the borrower for a single document.
—
The borrower's operating business uses 51%+ of the building's rentable square footage. Required for SBA financing on real estate.
The CDC's second-position loan, funded by an SBA-guaranteed bond and locked at a fixed rate for the life of the loan (20 or 25 years).
Non-construction costs in a project: appraisal, environmental, title, legal, lender fees. Usually 3–7% of project cost.
An existing lender agrees to subordinate or stand behind the new SBA lien — typical when refinancing seller financing or partner notes.
DSCR that includes all of the borrower's other debt obligations — personal residences, other businesses, vehicles. SBA wants 1.15x global minimum.
Required from any 20%+ owner of a business borrowing under SBA. Spousal guarantee may be required if a spouse owns 20%+ as well.