Question 1

Does the SBA occupancy rule work for a Sacramento medical suite or a Midtown professional office?

Accepted Answer

Yes, and it's the mechanics that decide it, not the tenant type. Under 13 CFR 120.131, an existing building needs your business in at least 51% of the rentable space, with the rest free to lease out. New construction is stricter: a 60% owner-occupancy floor, only 20% permanently leasable to a third party, and an absorption plan for the remaining 20%. That fits Sacramento's owner-user pattern directly: government is roughly a quarter of the metro's payroll, and the professional offices, medical suites and service businesses that cluster around a capital economy are a common 504 and 7(a) buyer profile here, not an edge case.

Question 2

How much do I need to put down on a 504 loan for owner-user industrial space along I-5 or Highway 99?

Accepted Answer

Ten percent is the floor, not the rule. Under 13 CFR 120.910, a borrower puts in 10% on an ordinary project, 15% if the business has operated less than two years or the building is single purpose, and 20% if both apply. That structure question matters here because owner-user industrial along the I-5 and Highway 99 corridors, and in West Sacramento's port-adjacent industrial district, is one of the metro's clearer 504 use cases. If a seller won't wait on an SBA approval, a bridge loan can get you to closing while the SBA file works through underwriting.

Question 3

I heard SBA fees were waived. Is that still true for a loan I close in Sacramento this year?

Accepted Answer

No. Fees came back for fiscal 2026, and any page still saying otherwise is stale. For loans approved between October 1, 2025 and September 30, 2026, the 7(a) upfront guaranty fee is back at 2% to 3.5% and up depending on size, after being zero under $1 million in fiscal 2025. The 504 upfront fee returned at 0.50%, with the annual service fee cut to 0.209%. Budget the upfront fee into your closing costs rather than finding it at the commitment letter. Small manufacturers keep a real carve-out: no 7(a) upfront fee at or under $950,000, and waived 504 fees.

Question 4

Will I be working with a Sacramento SBA district office, or can you tell me local approval volumes?

Accepted Answer

We can't name one, and you should be skeptical of any page that does. No verified SBA district office assignment or local 7(a)/504 volume figure for Sacramento County was located in a current sourcing pass, so we don't publish one and you shouldn't take one at face value from a competitor's page either. What we can tell you is how we work: we place your file across a network of more than 20 SBA lenders and match your scenario to the strongest approval, rather than routing you through a single office or lender relationship.

Question 5

I have a partner who's a green card holder. Does that block an SBA loan on a Sacramento purchase?

Accepted Answer

It can, and the rule tightened in 2026. Effective March 1, 2026, SBA guidance requires that 100% of an applicant's direct and indirect owners be US citizens or US nationals with a US principal residence; lawful permanent residents, including green card holders, may not hold any ownership percentage in the borrowing entity. This is a change from the older standard operating procedure text still posted in some places, so don't rely on an outdated guide. Sort out ownership structure before you go far into a Sacramento deal, since a partner's status can determine whether the file is eligible at all.

Question 6

What's the 504 project cap if I'm buying industrial or manufacturing space in the Sacramento area?

Accepted Answer

$5 million standard, $5.5 million if you qualify as a small manufacturer. Under 13 CFR 120.931, the 504 debenture caps at $5 million for most projects, rising to $5.5 million only for small manufacturers under NAICS codes 31 through 33 and for qualifying energy projects. Manufacturers also carry a fee advantage: waived 504 fees and no 7(a) upfront fee at or under $950,000. That combination is worth flagging on the first call if your business sits along the I-5 or Highway 99 industrial corridor and does any manufacturing under those NAICS codes.

Question 7

What is the smallest SBA loan you will place in Sacramento?

Accepted Answer

$350,000, and we place up to $5 million and beyond. Financing runs to up to 90% of the project on terms as long as 25 years, at market SBA rates, for owner-occupied commercial real estate under 7(a) or 504. That fits the owner-user pattern around a capital economy: professional offices, medical and dental suites, and service space, plus owner-user industrial along the corridors. A pure investment property does not qualify for SBA at all. Subject to underwriting.

Question 8

Is an SBA loan as document-light as your other Sacramento programs?

Accepted Answer

No, and you should plan for that from the first call. Our asset-based programs qualify off the property and the equity, but an SBA file is fully documented: business and personal returns, financials, and the ownership structure all get reviewed, and there is no version of this that skips them. Expect 30 to 90 days rather than a hard money timeline. If a seller will not wait, a bridge loan can carry you to closing while the SBA file works. Subject to underwriting.

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