If you are building a new facility, the requirements are stricter: your business must occupy 60% of the space immediately and up to 80% over 10 years. 2. Alternative Business Loan Types for Investors
Securing a small business loan to purchase rental property is possible, but it differs significantly from a traditional residential mortgage. While standard small business loans (like SBA loans) generally prohibit financing properties used solely for passive rental income, there are specific "owner-occupied" exceptions and alternative commercial loan types designed for real estate investors. 1. Can You Use SBA Loans for Rental Property? small business loan to buy rental property
To qualify for an SBA 504 or 7(a) loan , your business must occupy at least 51% of the square footage in an existing building. If you are building a new facility, the