On mixed-use buildings with apartments or retail, that math often falls short.
A real example
A New York solar contractor with about 20 years in business is buying a mixed-use building: a restaurant space, office/workshop, three apartments, and a yard. By measured square footage, the business space was about 31%, well under 51%. Whether the outdoor yard counts depends on zoning allowing contractor storage there.
What to do
- Measure occupancy before signing a contract.
- Check zoning for your intended use, including outdoor storage.
- If SBA doesn't fit, conventional owner-user or bridge financing can.
Related: SBA 504 · Owner-occupied