Owner-Occupied Bank Loan Made Easy With Our Local Lenders

December 9, 2025

As a business owner or manager in the Southeast Texas Gulf Coast region, you understand the importance of making strategic decisions to foster growth. One critical area to review can be whether you’re making the most of your company’s physical space.

You may have started by renting a commercial space, which is a practical first step. However, as your business expands, you may need more room to grow, face a rent increase, or desire more control over the use of your property.

Replacing rent with owner-occupied commercial real estate is a significant milestone that can unlock benefits for your business. An owner-occupied bank loan may provide the financing you need to purchase, construct, or renovate a property where your business will operate.

Today, we’ll review the owner-occupied loan options available for your business, the benefits of property ownership, and how Texas Gulf Bank makes the loan application process straightforward for your company.

Why Consider Owner-Occupied Property?

Shifting from renting property to owning your own space is a big decision. You are responsible for all critical aspects of owner-occupied real estate, including operational costs such as building maintenance, property taxes, and insurance. However, the potential benefits of owning your own property could far outweigh the added responsibilities.

When your business occupies at least 51% of a commercial property you own, it is considered owner-occupied. This arrangement offers more than just a place to do business; it’s a strategic investment in your company’s future.

Some key advantages of pursuing an owner-occupied property loan include the following:

Build Equity: Instead of paying rent to a landlord, your monthly payments build equity in a valuable real estate asset.
Stabilize Costs: Owning your property protects your business from unpredictable rent hikes, allowing for more stable and predictable overhead costs.
Increase Control: You have the freedom to customize and renovate the space to meet your specific operational needs without seeking landlord approval.
Generate Rental Income: If you have unused space in your building or property, you can lease it out to tenants, potentially generating an additional stream of revenue.
Improve Cash Flow: Fixed mortgage payments may be more manageable for your company compared to escalating rent, which can help improve your overall cash flow throughout the life of the loan.

What’s the Best Owner-Occupied Bank Loan Option For You?

At Texas Gulf Bank, we offer multiple business loans and financing solutions designed to help businesses acquire their own properties. Our local lenders have decades of experience working with companies in the region, and we can help you identify the ideal loan for your situation.

Commercial Real Estate Loans

A traditional owner-occupied commercial real estate loan is a popular choice for businesses ready to purchase or construct their own facility. These loans can finance everything from the acquisition of an existing building to ground-up construction projects.

Our lenders work closely with you to understand your project’s scope, budget, and timeline. We conduct a thorough review – including site visits and financial checks – to work to help ensure every project we finance has the best chance of being set up for success. We aim to structure a loan package that meets your needs and helps you close on time.

Because commercial real estate loans are generally intended to cover the entire construction process, the terms of each loan are typically 12 to 18 months. The timeline can vary depending on the size and scope of the construction project.

Then, depending on how your approved loan is structured, you may be able to convert this initial loan into a mini-permanent mortgage once construction is complete.*

*NOTE: Some creditors may offer one-time-close construction loans that include a permanent mortgage, but our one-time close construction loans only include a mini-permanent mortgage.
*non-SBA loans (conventional loans)

SBA Loans for Small Businesses

For many small businesses in the region, securing a conventional loan can be challenging. The Small Business Administration (SBA) is a federal agency dedicated to encouraging small business growth by making financing options more accessible, especially for growing companies and established businesses.

Their primary way of supporting businesses is by partnering with banks, such as Texas Gulf Bank, to provide an SBA loan that guarantees a portion of the loan amount to eligible small business owners.

The SBA offers two primary loan programs: the SBA 7(a) loan and the SBA 504 loan. These loans are an excellent option for acquiring owner-occupied commercial real estate that generally require less upfront equity (lower down payment). Let’s review the details of each option.

SBA 7(a) Loans

The SBA 7(a) loan is a versatile SBA loan program. Funds can be used for a wide range of business expenses, including purchasing or constructing an owner-occupied building or renovating an existing property. SBA 7(a) real estate loan funds can be combined with non-real estate uses such as working capital, inventory and closing related costs.

The built-in flexibility makes the 7(a) loan an ideal choice for businesses that need access to a fixed-rate loan for real estate transactions.

SBA 504 Loans

The SBA 504 loan program is specifically designed for financing major fixed assets, such as real estate. These loans are a great fit if your primary goal is to purchase land or a building for your business. Specific to real estate, these funds can be used for these purposes:

Purchase existing commercial buildings
Construct new facilities
Refinancing of debt originally used for purchase or construction of owner-occupied properties

Unlike the 7(a) loan, 504 loan funds cannot be used for working capital or inventory. However, they often come with higher loan limits and low long-term fixed interest rates, which may help create long-term stability for your business.

These loans are available in 10, 20, and 25 year loan terms, allowing qualified borrowers the ability to determine how long to spread out payments to repay the loan.

– Not sure whether a 7(a) or 504 loan is the best fit for your business? Our SBA lending team can walk you through the differences and help you decide which option to consider.

A Streamlined, Relationship-Based Application Process

Navigating the loan application process can feel complex, but at Texas Gulf Bank, we prioritize a personal experience for local business leaders. As a community bank with over 110 years of history in the region, we are committed to building lasting relationships with our clients.

Work with Our Local Lenders

You will work directly with an experienced local lender who understands the unique real estate challenges and opportunities in the region. Our team of lenders, including dedicated SBA loan specialists, will guide you through every step.

We take the time to understand your business goals, guide you through the application process, and structure a loan that is customized to your needs.

Prepare for Your Application

To help ensure a smooth and efficient approval process, it is helpful to gather the necessary documentation ahead of time. While requirements may vary depending on the loan type, you will generally need to provide us with the following pieces of information:

A completed commercial real estate loan application
A detailed project budget and explanation of the property type
Business financial statements and tax returns for the past three years
A current year-to-date balance sheet and income statement
Personal financial statements and tax returns for all guarantors on the loan
A plat or survey of the property
Building plans and elevations for the expected construction work

Having these documents ready allows our team to review your application promptly. Thanks to our in-house loan review process, you can expect a clear and transparent lending decision.

Partner with a Bank Committed to Your Success

Applying for an owner-occupied bank loan could be an essential step toward your business’s long-term growth.

At Texas Gulf Bank, we are more than just a lender; we are your financial partner, committed to helping your business thrive. Our deep roots in the local business community give us a unique perspective and a genuine investment in your success.

If you are ready to explore how owning your own commercial property could benefit your business, we invite you to connect with our team.

Contact our bank directly to speak with a lender.
Email our SBA team at sbaloans@texasgulfbank.com for SBA-related questions.
Visit one of our local banking centers to discuss your financing options in person.

Experience the Texas Gulf Bank difference working with our team of experienced lenders.

All loans subject to credit approval.