# Can a landlord or real estate investor get an SBA loan?

**Short answer:** Generally no. A business primarily engaged in owning real estate and leasing it for any purpose is ineligible. An Eligible Passive Company is the exception. Source: 13 CFR § 120.110(c); SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3.

Canonical page: https://www.sbaexpress.loans/answers/can-a-landlord-or-real-estate-investor-get-an-sba-loan/
Last checked: 2026-11-08

Generally no. 13 CFR § 120.110(c) bars passive businesses owned by developers and landlords. The test is whether they actively use or occupy the assets the loan buys or improves. SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3 is more specific.

## What is ineligible

- A business primarily engaged in owning or purchasing real estate and leasing it for any purpose.
- A business primarily engaged in subdividing land into lots and developing it for resale on its own account.
- Apartment buildings and mobile home parks.

An ineligible business cannot get an SBA loan for any purpose, even to buy or build a property for its own use (Para. E.3).

## What can work

An operating business can buy its own building if it occupies enough of it. For an existing building, it must occupy 51% of the rentable property and may lease up to 49%. For new construction, it must occupy 60% (13 CFR § 120.131; Sec. A, Ch. 3, Para. C).

An Eligible Passive Company can hold the property and lease 100% of it to your eligible operating company. That is the exception in 13 CFR § 120.111.

## Investment property

Proceeds cannot buy property held primarily for future development, sale, lease or investment, with limited exceptions (Sec. A, Ch. 3, Para. B).

## Sources

- [13 CFR § 120.110(c)](https://www.ecfr.gov/current/title-13/section-120.110)
- [SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3 (pp. 18-20)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.131](https://www.ecfr.gov/current/title-13/section-120.131)
- [SOP 50 10 8.1, Sec. A, Ch. 3, Paras. B-C (pp. 53-54)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [13 CFR § 120.111](https://www.ecfr.gov/current/title-13/section-120.111)