Owner-occupied property financing worksheet

How to use

Use this worksheet to size and compare SBA 504, SBA 7(a), and conventional bank perm on the same owner-user deal. Each section walks the binding-constraint math, the typical 2026 pricing band, and the decision driver. Not tax or legal advice, confirm program eligibility with an SBA-experienced lender and counsel before signing any term sheet.

Section 1, SBA 504 sizing (50/40/10 structure)

SBA 504 is the workhorse for owner-user real estate from $1M to $25M+ project size. The structure splits the project cost into three pieces and is sized off occupancy and use-of-proceeds tests, not pure DSCR.

• Bank first mortgage, 50% of project cost, market-rate (5.75% to 7.5% in 2026), 5/10 yr fixed via swap, 25 yr amort.
• CDC debenture, 40% of project cost, 25-year fixed (around 6.0% to 6.5% in 2026 per SBA program data).
• Sponsor equity, 10% of project cost (15% on special-use, 20% on start-up + special-use).
• Occupancy test (existing building), owner-user must occupy ≥ 51%.
• Occupancy test (new construction), owner-user must occupy ≥ 60% on closing, ramping to 80% within 10 years.
• Project cost cap, CDC debenture max $5M (most uses), $5.5M (manufacturing or energy-efficient).

Section 2, SBA 7(a) sizing (single loan)

SBA 7(a) is the alternative for sub-$5M deals or where multi-purpose use of proceeds (working capital + equipment + real estate) is needed. Single loan, single set of docs, faster execution.

Section 3. Conventional bank perm sizing

Conventional bank perm is the third path: cleanest structure, fastest execution where a bank relationship exists, no SBA program rules, but no SBA leverage either.

Section 4. Decision matrix

Choose the path by deal size, leverage need, rate-certainty preference, and timing. The right answer depends on the operating-company finance strategy as much as the real-estate sizing math.

Owner-user sizing decision drivers