Do SBA Lenders Require Relocation?

May 20, 2025

by a searcher from Hult International Business School in Cincinnati, OH, USA

I’ve heard that SBA lenders often require buyers to be on-site and may even expect them to relocate to the city where the business is located. I’ve also heard of buyers signing a residential lease like renting an apartment in the business’s city to show lenders they’ll be present regularly, even if they don’t actually plan to live there. They just treat it as a business expense. Curious if anyone here has gone that route or if it actually works in practice. Interested to hear from the experience of others.

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Reply by a lender
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA

Great question. It is not a firm requirement from the SBA that you be onsite, but most lenders are going to want the Borrower to be onsite if there is a physical presence. If it is a digital business or has a remote workplace, then managing it remotely is typically not an issue. Some lenders will require the buyer sign a lease locally to verify they do plan to be local to operate the business if it requires local management. I would be happy to discuss options and lender interpretation when they see this at any time. You can reach me here or directly at redacted One thing to keep in mind, if you are doing a leveraged business acquisition using SBA financing and will have a personal guarantee, you want to be sure the business operates successfully. Even though sellers may be offsite, it does not always mean that business can operate without a new owner being onsite. It may have taken years for a seller to get comfortable not being onsite everyday. You likely will not have the same trust with those employees. So you should plan for the worst and being there as much as possible early on to encourage a smooth transition.

Reply by a lender
from University of Southern California in Los Angeles, CA, USA

Relocation isn’t explicitly required by the SBA, but I’m definitely seeing lenders push for it more frequently—especially once you cross the $2.5M deal mark. Smaller deals typically just need a clear operating plan showing the borrower will spend meaningful time onsite. But above $2.5M, lenders increasingly want stronger assurances: some ask for a signed residential lease upfront, others are comfortable if it’s clearly outlined in the business plan and discussed on the underwriting call. The business type makes a difference too. For remote-friendly industries (e-commerce, SaaS, certain B2B services), lenders are usually more flexible. But for businesses like construction or home services, lenders are consistently pushing for a “boots on the ground” approach. The key here is to clarify early what your lender expects, and document exactly how you’ll maintain an active presence after closing. I can find you a lender based on whatever option you would prefer. We work with all the major SBA lenders and can find the right lender for you. You can reach me here or directly at redacted You can also click here to schedule a meeting with me: https://cal.com/ishan-jetley-3d73m8/30min. Look forward to chatting!

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