Can apartment buildings or mobile home parks get SBA loans?
Short answer
No. Under SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3, apartment buildings and mobile home parks are not eligible. A mixed-use building can work when an operating business occupies at least 51% of the rentable space (13 CFR § 120.131).
No. Under SOP 50 10 8.1, Sec. A, Ch. 1, Para. E.3, apartment buildings and mobile home parks are not eligible. They fall under the passive business rule in 13 CFR § 120.110(c).
Mixed-use buildings
A different rule covers an operating business that buys a building with apartments in it. For an existing building, the business must occupy at least 51% of the rentable property and may lease up to 49%. Source: 13 CFR § 120.131(b). Sec. A, Ch. 3, Para. C applies those limits to commercial and residential tenants alike.
In a building zoned for both uses, the owner may occupy or rent out the space zoned residential, within those limits. Loan proceeds cannot improve or renovate space that will be subleased to a third party.
Residential space that is part of the business
If the nature of the business requires a resident owner or manager, the loan can include essential residential space. That space must suit the needs of the business and cannot exceed 49% of the total property. The SOP's example is a livestock operation that needs someone on the premises at all times.
Hotels and extended stays
Short-stay lodging is tested differently. Hotels and similar businesses are eligible if more than 50% of prior-year revenue comes from guests staying 30 days or less (Para. E.3).
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