SBA Loans for Commercial Real Estate

If you run a business and want to own the building you operate in — or buy, expand, or refinance owner-occupied property — an SBA loan is often the most powerful tool available: low down payment, long terms, and flexibility a conventional loan can’t match. The SBA program we broker is the 7(a). And SBA outcomes swing on one thing most owners overlook: which lender you take the deal to. Two SBA lenders can look at the same file and come back with a yes and a no. Northern Ridge Capital matches your deal to the SBA lender most likely to approve it and price it well, the same way we run the rest of the $5M–$30M market. We’re a broker, not a lender.

First: SBA is for owner-users, not passive investors

SBA real-estate loans require the property to be owner-occupied — at least 51% of an existing building, 60% for new construction. If your business occupies the space, you qualify; if you’re buying purely as an investment to lease out, SBA isn’t the right tool and conventional financing is (and we place that too). For owner-users, the trade is excellent: far less money down, and terms a bank won’t match on its own.

504 vs 7(a) — and why we focus on the 7(a)

There are two SBA programs for commercial property. They solve different problems, and it’s worth knowing the difference:

The 504 is a bank-plus-CDC structure built around long fixed-rate real estate. It’s a separate program, and it isn’t what we do. Northern Ridge Capital focuses on the SBA 7(a) — the more flexible loan, and the one that lets an operating business fold real estate, equipment, working capital, or an acquisition into a single facility.

What the SBA 7(a) does for business owners

The 7(a) is the most flexible loan the SBA backs — one loan, up to $5 million, with real-estate maturities up to 25 years and no balloon. Its edge is what the proceeds can cover:

• Buy or build owner-occupied real estate — the building your business operates in.
• Acquire a business — a full purchase or a partner buyout.
• Finance equipment — the machinery and systems your operation runs on.
• Refinance business debt — when it measurably improves your cash flow.
• Fund working capital — the cash to run and grow after closing.

Rates are fixed or variable, set off a base rate (Prime, and as of 2026 also SOFR or Treasury) plus a spread the SBA caps by loan size; down payments are often around 10%. See the full SBA 7(a) guide for terms, qualifying criteria, costs, timeline, and the 7(a) loan family.

What changed in 2026 (most owners don’t know this yet)

• Ownership must be 100% U.S. citizens or nationals (effective March 1, 2026). Green-card holders are no longer eligible owners on new SBA loans — a real change from prior rules that catches people off guard.
• The cumulative 7(a) + 504 cap doubled to $10 million per borrower (effective July 4, 2026). The individual 7(a) loan cap stays at $5 million.
• SOP 50 10 8 is the current rulebook governing eligibility, equity injection, and underwriting. Lenders interpret it differently — which is exactly why lender selection matters.

SBA program terms above reflect SBA rules and published pricing as of mid-2026 and can change; they are general information, not a quote, an offer, or an eligibility determination. Your eligibility and terms depend on your business, the property, and lender underwriting. See full disclosures.

Why the lender you choose decides your SBA deal

This is the part that costs owners the most. SBA sets the program, but each lender sets its own credit box, industry appetite, and processing speed on top of it. One lender specializes in your industry and approves cleanly; another declines the same file, or drags it out for months. Going to a single bank and hoping is how good owners get a needless no, or a slow yes that loses the building. We know which SBA lenders actually want a deal like yours, and we run a real process instead of a coin flip.

How we place SBA 7(a) commercial real estate loans

We’re a debt brokerage with $600M+ in deal experience across underwriting and brokerage. Our SBA lane is the 7(a): we figure out whether a 7(a) or a conventional structure actually serves you best, package the file the way SBA lenders want to see it, and take it to the lenders most likely to approve and price it well from a network of 700+. You get a clear recommendation and competing options, not one bank’s take-it-or-leave-it answer. See the full SBA 7(a) guide →

SBA loans — FAQ

What’s the difference between SBA 504 and 7(a)?

7(a) is one flexible loan up to $5 million that can bundle owner-occupied real estate with working capital, equipment, or a business acquisition. 504 is a separate bank-plus-CDC structure (50/40/10) built around long-term fixed-rate real estate, with up to 90% financing. Northern Ridge Capital brokers the 7(a).

Do you broker SBA 504 loans?

No. We focus on the SBA 7(a). The 504 is a different program with a different structure (a bank first mortgage plus a CDC debenture), and it isn’t part of what we do. If your need is straight owner-occupied real estate, we can also place a conventional structure.

Can I use a 7(a) to buy the building my business operates in?

Yes — as long as your business occupies at least 51% of an existing building (60% for new construction). Real-estate maturities run up to 25 years.

How much can I borrow with a 7(a)?

Up to $5 million on a standard 7(a), with the SBA guaranteeing up to $3.75 million of it. As of July 4, 2026 you can carry up to $10 million in cumulative SBA debt, though any single 7(a) loan still caps at $5 million.

Does my property have to be owner-occupied?

Yes. SBA requires the business to occupy at least 51% of an existing building (60% for new construction). SBA is for owner-users, not passive investors. Buying purely to lease out? Conventional financing is the right path, and we place that too.

How long does an SBA loan take to close?

Plan on roughly 30 to 60 days depending on the lender and how clean the file is; the fastest deals close in about three weeks. The single biggest speed factor is choosing a lender who actively does deals like yours — that’s where we save you the most time.

Did SBA rules change in 2026?

Yes. As of March 1, 2026 SBA requires 100% ownership by U.S. citizens or nationals (green-card holders are no longer eligible owners), and as of July 4, 2026 the cumulative SBA limit per borrower doubled to $10 million. The current rulebook is SOP 50 10 8.

Is Northern Ridge Capital an SBA lender?

No. We’re a commercial mortgage broker (CA DRE #02093377). We match your deal to the SBA 7(a) lenders most likely to approve and price it well, and run them competitively. Commercial real estate and owner-occupied business property only.

About

Justin Ashcraft is the principal of Northern Ridge Capital, a commercial real estate debt brokerage placing $5M–$30M in multifamily, retail, industrial, and SBA financing nationwide within its licensed footprint, with $600M+ in deal experience across underwriting and brokerage. Licensed in California, DRE #02093377.

Northern Ridge Capital is a licensed commercial mortgage broker (CA DRE #02093377), not a lender or an SBA lender, and arranges financing on commercial real estate and owner-occupied business property only (no residential). SBA program details and rates reflect SBA rules and published pricing as of mid-2026, are subject to change, and are not an offer, a commitment, or an eligibility determination. For informational purposes only; not financial, legal, or tax advice. Full disclosures.