Underwrite the opportunity
We review sponsorship, property performance, business plan, and priorities before approaching the market.
Owner-Occupied financing
Commercial Real Estate Loans for Business Owner-Operators
Quick answer: Owner-occupied commercial loans provide financing for businesses purchasing or refinancing the commercial property they operate from. Whether through SBA programs, conventional bank financing, or credit union balance-sheet loans, these facilities allow business owners to build equity in their operating real estate rather than paying rent. Commercial Lending Solutions sources owner-occupied financing for office, retail, industrial, medical, and mixed-use properties from $2 million and up.
NationwideMarket coverage
1,000+Capital relationships
$2MM+CLS engagement floor
24 hoursInitial response
When it fits
When Owner-Occupied financing fits.
Owner-occupied commercial real estate financing is fundamentally different from investment property lending because the primary repayment source is the business itself, not property rental income. This means lenders evaluate global cash flow: the business earnings and personal income of the owner-operator, not just the property DSCR. SBA programs are the most popular execution for owner-occupied commercial because they allow up to 90 percent financing with below-market rates and long amortization. Conventional bank and credit union programs are the alternative for borrowers who exceed SBA size standards, have stronger financials, or need larger loan sizes than SBA maximum limits.
Structure before pricing: leverage, recourse, reserves, prepayment, and closing certainty can matter as much as the headline coupon. We test those trade-offs before recommending a path.
01
Medical, dental, and veterinary practices purchasing clinic space
02
Law firms, accounting firms, and professional services buying office buildings
03
Manufacturers and distributors acquiring owner-user industrial facilities
04
Restaurants and retailers purchasing their operating location
05
Auto repair, car wash, and service businesses buying commercial property
06
Childcare centers, gyms, and wellness operators purchasing their facilities
Lender selection
How We Source Owner-Occupied Capital
We do not treat the lender list as a directory. We target the desks whose current appetite fits the asset, sponsorship, market, and business plan, then compare the full execution, not only the rate.
| Capital source | Where it may fit |
|---|---|
| SBA-Approved Banks (504 and 7(a)) | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| Certified Development Companies (CDCs) | Program-specific capital evaluated for current appetite, proceeds, pricing, recourse, flexibility, and certainty of close. |
| Conventional Commercial Banks | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| Credit Unions | Relationship-oriented capital that can offer local market knowledge and structural flexibility, with recourse often considered. |
| Community Development Financial Institutions (CDFIs) | Mission-oriented capital that may support eligible communities, sponsors, and projects outside conventional lender criteria. |
How we work
One process. Multiple capital sources.
We position the transaction, identify the lenders most likely to compete, and compare proposals on economics and execution risk, not just headline rate.
A well-structured financing process should create real choices for the borrower, not simply deliver the first term sheet.
Target the right lender desks
The transaction is matched to lenders whose current appetite fits the property, market, and structure.
Create a comparable field
Proposals are evaluated across rate, proceeds, recourse, reserves, prepayment, and closing certainty.
Manage execution through closing
We coordinate lender diligence, third-party reports, and issue resolution until the loan funds.
National reach
Market knowledge where the deal requires it.
We arrange owner-occupied financing nationwide while matching each transaction to capital sources active in that market and property type.
Atlanta, GABoston, MAChicago, ILDallas, TXDenver, COHouston, TXLos Angeles, CAMiami, FLNashville, TNNew York, NYPhoenix, AZSan Diego, CASan Francisco, CASeattle, WATampa, FL
Browse all markets →
Questions
Owner-Occupied financing, clarified.
The final structure depends on the asset, sponsorship, and market. These are the starting parameters we discuss most often.
Working out equity? Our commercial property down payment guide covers typical requirements by loan type: 20% to 30% conventional, 10% for SBA owner occupied.
It is financing for a business buying or refinancing the building it operates from, rather than an investment property leased to third parties. The primary repayment source is the operating business, not rental income, so lenders underwrite company earnings alongside the real estate. Loan sizes typically run from $2 million to $20 million.
SBA programs require the business to occupy at least 51% of an existing building, or 60% of a newly constructed one with a plan to reach 80% over time. The remaining space can be leased out, and that rental income helps carry the debt. Conventional bank programs generally apply a similar majority-occupancy test.
Rates run from 5.50% to 8.50% with terms of 10 to 25 years, and the long amortization is the real draw. SBA 504 pairs a bank first mortgage with a fixed-rate debenture second, producing a blended cost below most conventional commercial debt. Conventional bank and credit union programs are the alternative above SBA size limits.
On global cash flow, meaning the business earnings plus the owner's personal income measured against total debt service, usually at a 1.20x to 1.25x minimum. Expect three years of business and personal tax returns, interim financials, and a debt schedule. Leverage reaches 90% through SBA and roughly 75% conventional, and full recourse with a personal guarantee is standard.
Conventional bank and credit union executions close in 45 to 60 days. SBA 504 typically takes 60 to 90 days because the transaction involves two lenders, a certified development company, and a debenture funding calendar that settles monthly after closing. Building the credit package correctly at submission is what keeps that timeline from slipping.
Let's evaluate the right owner-occupied structure.
Share the property and financing request. We will respond within 24 hours with an initial view.