Question 1

I want to buy the building my restaurant near Kyle Field already operates out of. How much of it do I actually have to occupy?

Accepted Answer

At least 51 percent, if it's an existing building. SBA rules require the business to occupy a majority of an existing building it finances. Ground-up construction is a different, stricter test: at least 60 percent of the new space must be occupied by your business, and no more than 20 percent may be permanently leased to other tenants, with the remainder covered by an absorption plan. That 60-percent-and-lease-the-rest shorthand you may have heard skips the 20 percent leasable cap, and it's the detail that trips up a game-day restaurant or retail buildout planning to lease part of a new building to a second tenant.

Question 2

I'm buying out my franchise partner in a location near campus that's been open less than two years. How much cash do I need to bring to closing?

Accepted Answer

Plan on 15 percent down, not the 10 percent you may have heard quoted for SBA 504. The ordinary borrower contribution on a 504 loan is 10 percent, but it steps up to 15 percent if the business has been operating less than two years or the property is single-purpose, and to 20 percent if both apply. A recent franchise buyout in a location that hasn't hit its two-year mark, which is common near a campus with this much annual turnover in student-facing retail, typically lands in that 15 percent tier. Talk to your lender early so the contribution requirement doesn't surprise you at the term sheet.

Question 3

Are SBA loan fees still waived the way they were in 2025?

Accepted Answer

No, and any guide that still says so is out of date. Fees were reinstated for fiscal year 2026, covering loans approved October 1, 2025 through September 30, 2026: the 7(a) upfront guarantee fee runs 2 to 3.5 percent or more depending on loan size, and the 504 program carries a 0.50 percent upfront fee plus a 0.209 percent annual fee. Small manufacturers get a partial break (7(a) upfront waived on loans of $950,000 or less, 504 fees waived), which could matter to a BioCorridor supplier, but a general retail or office buyout near campus should budget for these fees as part of the closing costs.

Question 4

Is there a cap on how large an SBA 504 loan can get for a professional office building near campus?

Accepted Answer

Yes, and it's lower than some marketing suggests: $5 million standard, with a $5.5 million ceiling reserved for small manufacturers and qualifying energy projects. A professional practice or office buyer in College Station or Bryan, outside those two carve-outs, underwrites to the $5 million cap on the 504 portion of the deal. That's a federal regulation, not a lender preference, so it applies the same whether the property sits in Brazos County or anywhere else.

Question 5

What kind of College Station-Bryan business actually fits an SBA loan?

Accepted Answer

Owner-occupied buyers in three local categories: game-day hospitality, student-facing services, and BioCorridor suppliers. Restaurants and hotels that key off Kyle Field's seven-plus home football weekends, contractor and service businesses built around a campus enrolling more than 74,000 students, and manufacturers or suppliers tied to Bryan's BioCorridor (anchored by FUJIFILM Diosynth Biotechnologies and G-CON Manufacturing) are the businesses most likely to be buying the real estate they operate from rather than leasing it. If that's your business and you're ready to own instead of rent, an SBA loan is usually the cheapest long-term money available for the purchase.

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