What if your business didn’t just pay the bills — but built your equity too?

Maybe it’s a gym. A salon. A med spa.

Or a retail storefront with rentals on top of the building where YOU want to live for convenience.

Or maybe you want to launch a small daycare in a freestanding building under $350K.

Whatever the dream — you know that you’re ready to stop renting and start owning.

But here’s the part most don’t realize:

👇

Most lenders see these kinds of deals as a bit too niche.

• Smaller loan amounts

• Owner-occupied use

• Sometimes with mixed-use or live-work setups

• And often led by a real operator, not a commercial real estate investor with 30+ doors

The result?
Fewer funding options. A few more tradeoffs. And a little more creativity required to get your deal cross the finish line.

The SBA 7(a) loan is the flagship loan program backed by the U.S. Small Business Administration (SBA).
It’s designed to help small businesses get funding when traditional banks might say no.

Here’s the quick breakdown:

🔹 Who it’s for:

• Business owners buying commercial property

• Entrepreneurs acquiring or expanding a business

• Those needing working capital, equipment, or even to refinance debt

🔹 Key features:

• Low down payment — often just 10%

• Longer terms — up to 25 years for real estate, 10 years for working capital

• Lower monthly payments thanks to the extended amortization

• Backed by the SBA, but funded by private lenders (banks or non-banks)

🔹 Rates & Requirements:

• Variable interest rate (often Prime + 2.5–3%). Be careful, this can be more than 10% and it changes when the interest rate changes making it hard to plan your payment.

• Must be a for-profit business operating in the U.S.

• Must show ability to repay and have reasonable credit

• Can require a personal guarantee and full documentation

🔹 Real-world use cases:

• Buying a building for your gym, daycare, or retail shop

• Purchasing equipment or inventory

• Expanding to a second location

• Rolling in business debt under more favorable terms

📌 Just know: it’s paperwork-heavy, slower to close, and strict on personal credit and income documentation.

🔹 Option 1: SBA 7(a)
For owner-users backed by the government.

✅ 10% down
✅ Can finance real estate + working capital or equipment
✅ 25-year amortization = lower monthly payments
✅ Great if your books are clean and credit strong

But keep in mind:
Heavy paperwork and documentation
⏳ Slower closing timeline
🏠 And no residential use — so living above your business? Not allowed.

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🔹 Option 2: Private Lending with Flexibility (yes, we have options)
This path is for business owners who may not check every SBA box — but still have a solid vision and skin in the game. And want to have living quarters above or incorporated into the building.

✅ Credit as low as 650 can qualify with fixed rate terms
✅ More flexible with income, ownership history, and deal structure
✅ You can live upstairs in a mixed-use property
✅ Faster, simpler underwriting process

The tradeoff?

💵 You’ll likely need more money upfront ~25% down
📈 Slightly higher fees and rates
📊 But you get funding where others typically say no!

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There are limited loan choices available nationwide to small business owners, if you happen to be in this situation.  However, if you’ve got the vision, the business, and the willingness to bring some equity to the table…

📍We can help you own your space.

Searching for a place and want to see if it will qualify for funding?  Take our 5 minute fundability quiz!

DISCLAIMER: This is not real estate, legal, or financial advice. Please contact your preferred attorney or financial adviser for help specific to your needs or issue.