Question 1

How much of the building must my business occupy?

Accepted Answer

At least 51% of an existing building, and at least 60% of a new construction project. SBA rule 13 CFR 120.131 sets those floors. For new construction only 20% may be permanently leased, with an absorption plan for the rest; "60% and rent the rest" is wrong. If you want a building bigger than your business needs, the limit decides the deal, so tell us the square footage early. We place loans across SBA lenders; we are not ourselves an SBA lender.

Question 2

How big can a 504 loan be, and how much do I put in?

Accepted Answer

The 504 maximum is $5M for most projects; $5.5M applies only to small manufacturers and qualifying energy projects. The 504 portion is capped at 40% of the project (13 CFR 120.930) and the borrower's contribution is 10% ordinarily, 15% if the business has operated under two years or the building is single-purpose, and 20% if both (13 CFR 120.910). "Just 10% down" without those carve-outs is the usual 504 marketing error. Terms are subject to underwriting.

Question 3

I heard SBA fees were waived. What did FY2026 actually charge?

Accepted Answer

SBA reinstated fees for FY2026, covering loans approved October 1, 2025 through September 30, 2026. In that fiscal year the 7(a) upfront fee ran 2% to 3.5% or more by loan size, and the 504 upfront fee was 0.50%. Small manufacturers kept 7(a) fees at 0% up to $950,000 and 504 fees waived. Fee schedules reset each fiscal year, and FY2027 began October 1, 2026, so confirm the schedule that applies on your approval date before you rely on a number.

Question 4

Can one of my partners be a green card holder?

Accepted Answer

Not under the SBA rule effective March 1, 2026. Under that rule, 100% of direct and indirect owners must be US citizens or nationals with a US principal residence, and legal permanent residents may not own any percentage. Some SBA documents still show the older text, but the notice governs. Check every owner in the ownership chart before you apply, and talk to your attorney if you are restructuring.

Question 5

What happens to the property tax when I buy the building I operate in?

Accepted Answer

It resets to your purchase price, then grows no more than 2% a year. The City of Visalia's FY 2026-27 rate is 1.084518% all in, so a $1,000,000 building carries about $10,845 a year (1,000,000 x 1.084518%) before direct assessments. A lease renews at market each term; owning fixes the base and lets it creep at no more than 2%. The rate depends on the parcel's tax rate area, so confirm it. Talk to your CPA.

Question 6

If I build my own facility in Visalia, what fees come with it?

Accepted Answer

Impact fees the city prints, with a credit for some commercial infill. Commercial and office projects that meet the city's infill criteria can get up to 25% off the transportation impact fee under the FY 2026-27 fee book. New construction must also meet the SBA's 60% occupancy floor, so put those fees and the fire, police and drainage per-acre charges in the project budget. We found no impact fee data for the city of Tulare or Porterville. Confirm with the city.

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