Small Business Lending FAQ: What Makes Real Estate Eligible for an SBA Loan?

Looking to purchase a piece of commercial real estate for your small business?

Whether you’re looking to purchase an existing building, build on a piece of property, or remodel an existing business location, there are several things to consider when applying for an SBA real estate loan:

1. The building must be owned and occupied by the small business.

As a small business owner, you must conduct business operations out of the building you purchased using a the small business loan.

2. Investment real estate is not eligible for SBA financing

Small business owners may rent out a portion of the building they purchased with the SBA loan, but a majority of the space must be used for the operation of the small business.



About Bruce Hurta

Bruce Hurta has extensive experience in Small Business Lending. He has served in a number of commercial lending and banking capacities in his career including, President of a Houston-area community bank for 6 years, managed Independence Funding Company, a non-bank start-up in 1994, where he developed his SBA lending expertise. Bruce spent 4 years in Finance as a bank examiner for the Texas Banking Department, 7 years in executive management at two community banks, and 14 years as SBA Lender. He is active in the commercial realtor and business brokerage communities, along with various business and industry organizations. Bruce Hurta is Vice President - Business Development in Houston, TX for Fidelity Bank SBA Lending nationwide. Fidelity Bank offers SBA 7(a) loans, SBA 504 loans, and USDA loans for small businesses to purchase or construct new buildings for their small business operations, to acquire a business, to expand a business or to buy out a business partner.
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