Buy the building your company works from.
This is owner-occupied real estate. The tenant is you. We finance the purchase of the property the business already runs in, and we put more than one lender on it.
The company is the tenant. You should own the dirt.
A lease coming due, a landlord ready to sell, a facility you have outgrown. The collateral is the building. The cash flow is the operating company. Lenders price those differently, which is why a single bank quote is a poor way to buy it.
Who finances the building.
SBA 504 is built for this. It is one lender path among several, used when the occupancy and the project qualify.
A first mortgage plus a CDC second, for owner-occupied commercial property.
When the real estate is part of a larger business acquisition.
Conventional commercial mortgages on the building you occupy.
When the tenancy, the age of the building, or the leverage sits outside a bank box.
Who owner-occupied real estate financing is for.
The operating company is the tenant, and you want to own the building it works from. A lease is ending, a landlord will sell, or the facility has been outgrown. The cash flow that pays the mortgage is the company's, and the collateral is the property.
This is not a loan against a building you intend to lease to someone else, and it is not a speculative development. The SBA's 504 page says loans cannot be made for speculation or investment in rental real estate. If the building is being bought as part of buying the company, start with acquisition financing. If the building still has to be built or renovated, that is construction financing.
How lenders typically finance the building.
A bank can make a conventional commercial mortgage on property you occupy. The term, the amortization, and how much of the purchase price they will lend all move with the building, the lease you are replacing, and the company's cash flow. One bank's quote is one quote.
SBA 504 financing is for major fixed assets. The SBA says certified development companies originate a 504 loan in collaboration with a senior lender, and that the maximum 504 loan amount is $5.5 million. The same page introduces the program as long-term, fixed-rate financing of up to $5 million, so confirm the cap that applies to the project with the CDC. A 504 loan cannot be used for working capital or inventory. See 504 loans.
When real estate rides along with a larger business acquisition, lenders often look at 7(a) instead of a standalone 504. The SBA states that 7(a) proceeds can acquire or improve real estate, and that the maximum 7(a) loan is $5 million. A July 2026 SBA announcement says a borrower who secures a 7(a) loan first may also access up to $5 million of 504 financing, for a combined $10 million. That announcement is here. Read it against the project. It is not a promise that both loans will be approved.
A credit fund is the lender that will look when the building's age, the occupancy, or the leverage sits outside a bank or 504 box. It is still a loan. The comparison that matters is proceeds, recourse, and what you have to sign, not the monthly quote alone.
Documents a lender usually asks for.
The lender decides the file. These are the documents commercial mortgage and 504 lenders commonly request when the tenant is the operating company.
- A purchase contract or an option, and what is included in the price
- Three years of company financial statements and tax returns, plus a year-to-date statement
- The current lease, if you are buying from the landlord, and a simple occupancy picture: who uses the building
- Any environmental report, survey, or appraisal the lender orders
- A sources-and-uses page, including the equity you will put in at closing
- Insurance and organizational documents the lender needs for the borrowing entity
How the financing is run.
The property purchase is the assignment. The steps are the same four used on every mandate. Engagement: a letter is signed, the books are reviewed, and the case a lender will back is built. Market: the materials are prepared and the lenders who actually finance this use of proceeds are mapped. Competition: they see the deal at the same time, so the house bank or the vendor's lender has to beat the field. Close: the offers are compared, the terms are negotiated, and the one you accept is taken to signing.
No duration is promised here, and no rate. A lender's credit process sets the clock. What the mandate changes is who is asked, and whether the first term sheet is the only one.
What Siddwell is and isn't.
Siddwell is an investment bank hired to advise on the financing and to run a competition among lenders. Siddwell is not a lender, not a licensed loan broker, and not a business broker. The lender makes the credit decision. If you would rather meet SBA lenders on your own, the SBA's Lender Match tool introduces participating lenders, and you apply with the lender, not with the SBA.
Is this for investment property?
No. This page is for real estate your own company will occupy. A building you intend to lease to someone else is a different lender market, and not this mandate.
Where does an SBA 504 loan fit?
504 is a lender structure for owner-occupied commercial real estate. It belongs on this deal when the project qualifies. It is not a separate service from buying the building.
Can the real estate loan sit inside a larger acquisition?
Yes. If you are buying the company and the building together, start with Buy a business. The property financing is part of that stack.
Is a 504 loan a mortgage from the SBA?
The SBA says a 504 loan is originated by a certified development company working with a senior lender. It finances major fixed assets. It is not a loan the SBA makes to you directly, and it is not for working capital.
Can I use this page for a building I will rent out?
No. This mandate is owner-occupied property. The SBA's 504 page says loans are not for investment in rental real estate.
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