SBA 'OWNER-OCCUPIED' STIPULATION & AFFILIATES

searcher profile

March 14, 2019

by a searcher from Michigan State University in St. Louis, MO, USA

SBA has a 51% owner-occupied stipulation for real estate. The question is, can a business owner looking to acquire a building buy the building with SBA financing with a real estate holding company, and then occupy the building as a tenant paying rent, while meeting the occupancy requirement? Both the Property Co landlord/ borrower and the Operating Co tenant have the same ownership; however, it is a two-person 50/50 partnership tenant, and a one-person 100% "one of the two partners" landlord, looking to buy the building.

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commentor profile
Reply by a lender
from California State University, Sacramento in Seattle, WA, USA
SBA allows a real estate holding company as the borrower with the operating company providing a guaranty. Any 20% or more owner (of either the holding company and/or operating company) must personal guarantee. There does not need to be any mirror image ownership and/or same % ownership between the hold co and the operating co. Happy to further discuss at redacted ###-###-#### .
commentor profile
Reply by a lender
from Rutgers, The State University of New Jersey in Syracuse, NY, USA
Listen to Lisa she knows the SBA Operating procedures
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