Using 504 loan for purchase of business when the real estate is held by a 3rd party

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May 10, 2026

by a searcher from Northeastern University in Minneapolis, MN, USA

Has anyone used a 504 loan to fund a business and real estate when the real estate is NOT owned by the seller of the business? Can this be done? And what is best practice to approach this?
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Reply by a lender
from University of Southern California in Los Angeles, California, USA
We can help with this and have done this a few time. Agree with Keith, a 7a acquisition would make more sense here and the cashflow of the business will have to be high enough to service the debt. Please use this meeting link to schedule a meeting with my team: https://cal.com/team/sba/searchfunder. We can help!
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Reply by a lender
from Sam Houston State University in 5324 Community Dr, Houston, TX 77005, USA
You would have to get a 7a for the business acquisition and the 504 could be used for the CRE. Happy to discuss options.
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