For many New York business owners, buying commercial real estate feels out of reach. Between high property values, steep down payment requirements, and complex underwriting, the barriers can seem overwhelming. But with the SBA 7(a) program, those obstacles can be overcome.

In a recent Mamaroneck transaction, we used an SBA 7(a) loan to help a local business owner move from tenant to property owner—building equity and long-term stability with far less cash out of pocket than a conventional loan would require.

Why the SBA 7(a) Worked Best

While the SBA 504 program is great for fixed-rate financing, the 7(a) loan is more flexible. It can be used not just for the property purchase, but also for renovations, equipment, working capital, and refinancing existing debt.

In Mamaroneck, our client needed more than just acquisition financing—they wanted to renovate the space to fit their operations and free up capital for growth. The 7(a) gave them:

• Up to 90% financing for the purchase
• Long repayment terms (up to 25 years for real estate)
• Financing for property improvements and business needs, all in one loan

Meeting SBA 7(a) Requirements

To qualify, the business needed to demonstrate:

• U.S.-based, for-profit operations that met SBA size standards
• At least 51% owner-occupancy of the building
• A clear repayment ability, supported by financials and projections

Our client checked every box. Their business plan and clean financial package helped expedite underwriting and gain approval quickly.

The Results in Mamaroneck

With the SBA 7(a), the borrower:

• Purchased their building with a minimal down payment
• Rolled renovation costs into the financing package
• Locked in a 25-year amortization, keeping payments manageable
• Preserved working capital to reinvest back into the business

The combination of ownership, equity-building, and flexibility positioned them for growth well beyond the closing table.

Key Takeaways for Business Owners

If you’re exploring commercial real estate in New York, here’s what the Mamaroneck transaction shows about the SBA 7(a):

1. Flexibility matters – 7(a) covers more than just the property.
2. Occupancy is key – Plan to use at least 51% of the building.
3. Be ready with financials – A strong package speeds approval.
4. Think long-term – The 25-year amortization keeps payments in line with cash flow.
5. Choose experienced partners – SBA lending requires lenders who know the process inside and out.

Learn More

Our Mamaroneck deal is proof that the SBA 7(a) program can make ownership possible, even in a high-cost market. If you’re a business owner considering buying your building—or combining property ownership with financing for improvements or working capital—the SBA 7(a) could be your best path forward.

For more resources, visit: Mortgage1 Mamaroneck SBA Financing Blog