The quick read: A Florida business buying the building it will operate from has three main ways to finance it: an SBA 504 package, an SBA 7(a) loan or a conventional bank owner-occupied mortgage. The 504 asks for at least 10% of project cost on a standard deal, and both SBA routes require the business to occupy at least 51% of an existing building. Florida then taxes the debt itself when the mortgage is recorded: documentary stamp tax of 35 cents per $100 and a one-time intangible tax of 2 mills, which comes to $5,500 on a $1 million loan by our arithmetic. Price the 504 against a bank loan from one complete package, then set the down payment.
Which loans can a Florida owner-user choose?
A Florida business buying a building it will occupy can choose an SBA 504 package, an SBA 7(a) loan or a conventional bank owner-occupied mortgage, and both SBA routes require the business to occupy at least 51% of an existing building under 13 CFR 120.131. A bank sets its own occupancy and leverage rules.
The SBA 504 pairs two lenders. SBA's lender resources page describes a typical 504 project as a private-sector loan with a senior lien covering up to 50% of the project cost, a Certified Development Company (CDC) loan backed by a 100% SBA-guaranteed debenture with a junior lien covering up to 40% of the total cost, and a contribution from the borrower of at least 10%. SBA's 504 page says the loan can fund the purchase, construction or renovation of existing buildings or land, that 10-, 20- and 25-year maturities are available, and that the rate is pegged to an increment above the current market rate for 10-year U.S. Treasury issues. That benchmark was 5.00% on October 23, 2026, according to the Federal Reserve Bank of St. Louis (FRED series DGS10). The same page rules out working capital, inventory and speculation or investment in rental real estate, and it says 504 loans are available only through CDCs.
SBA's 504 page states two different maximums. Its opening line offers financing of up to $5 million, while its body says the maximum 504 loan is $5.5 million. The regulation explains the gap: 13 CFR 120.931 limits the 504 loan to an outstanding balance of $5 million for each borrower and its affiliates, and to $5.5 million for each project for small manufacturers and for projects that cut energy consumption by at least 10%. That limit applies to the CDC's 504 loan, which sits behind the bank's first mortgage. A 504 project must also create or retain jobs at a ratio SBA sets by Federal Register notice under 13 CFR 120.861, or meet one of the community development or public policy goals listed in 13 CFR 120.862.
The SBA 7(a) puts one lender on the loan. SBA lists acquiring, refinancing or improving real estate and buildings among 7(a) uses and says the maximum 7(a) loan is $5 million. Its program comparison allows a maturity of 25 years, including extensions, for real estate, with the rate negotiated between borrower and lender subject to SBA maximums. Eligibility includes being unable to obtain the desired credit on reasonable terms from non-federal, non-state and non-local government sources.
A conventional bank loan follows the bank's own policy. The interagency real estate lending guidelines published at 12 CFR Part 365 tell institutions to set internal loan-to-value limits that should not exceed 85% for improved property, a category that includes completed commercial property. NerdWallet's small-business real estate loan guide (updated May 21, 2026) says a standard commercial mortgage usually carries a shorter term with a balloon payment due at the end and has higher down payment requirements, with a typical repayment term of 5 to 10 years.
Occupancy decides eligibility before price does. Under 13 CFR 120.131, which covers both 7(a) and 504 financing, a business buying or renovating an existing building may permanently lease up to 49% of the rentable space if it occupies at least 51%. For new construction the business must occupy at least 60%, may permanently lease up to 20%, and must plan to occupy some of the remaining space within three years and all of it within ten. When the borrower is a holding company that leases 100% of the building to the operating business, the operating business must meet the same test.
SBA 504 structure (SBA): bank up to 50%, CDC up to 40%, borrower at least 10%
SBA 504 loan limit (13 CFR 120.931): $5 million per borrower; $5.5 million per project for small manufacturers and energy projects
SBA 7(a) maximum (SBA): $5 million
SBA real estate maturity (SBA): up to 25 years
10-year Treasury yield, October 23, 2026 (FRED DGS10): 5.00%
Supervisory loan-to-value limit, improved property (12 CFR Part 365): 85%
How much cash does the purchase take?
A standard SBA 504 purchase needs at least 10% of project cost from the business, rising to 15% for a business operating two years or less or a limited or single-purpose building and to 20% when both apply, under 13 CFR 120.910, while a bank sets its own down payment inside an 85% loan-to-value ceiling.
Illustrative example (our arithmetic, not a quote or a lender offer): a Florida business that has operated for more than two years buys a general-purpose building for $2,000,000. The bank-loan column assumes a 75% loan-to-value, a hypothetical figure picked for comparison; each bank sets its own.
SBA 504 on a $2,000,000 purchase: bank first mortgage $1,000,000, CDC loan $800,000, business cash $200,000
Bank loan at an assumed 75%: loan $1,500,000, business cash $500,000
Cash the 504 leaves in the business (our arithmetic): $300,000
The 10% floor rises for two kinds of Florida owner-user. A business that has operated for two years or less, or one buying a limited or single-purpose building, must contribute at least 15%, which is $300,000 on the same purchase, and at least 20%, or $400,000, when both apply. Section 120.910 lets that contribution come from a CDC or any other source except an SBA business loan program. In either case 13 CFR 120.920 also requires the bank's loans to total at least 50% of project cost.
Cash at closing goes beyond the down payment: the deed tax and both mortgage taxes in the next section add to it. Budget the property tax at the purchase price, not the seller's last bill: section 193.1555 of the 2025 Florida Statutes assesses nonresidential property at just value as of January 1 of the year after a change of ownership, then limits each later annual increase in assessed value to 10% of the prior year's figure for levies other than school district levies. For a fuller walk through equity sources and reserves, see how much down payment you need to buy a building for your business.
What do Florida's mortgage taxes add at closing?
Florida taxes the loan itself when the mortgage is recorded: documentary stamp tax of 35 cents on each $100 of the debt under section 201.08(1)(b) and a one-time nonrecurring tax of 2 mills per dollar under section 199.133, which by our arithmetic totals $5,500 on a $1 million loan, or 0.55%.
Both rates are in the 2025 Florida Statutes. Section 201.08(1)(b) says the documentary stamp tax is paid on the mortgage at the time of recordation. Section 199.135 makes the intangible tax due when the instrument is presented for recording, paid to the clerk of the circuit court, and makes the taxpayer solely liable for it while allowing the taxpayer to pass the amount on to the borrower or mortgagor. Budget both as closing costs that rise with the loan amount.
That scaling matters when you compare routes. On the illustrative $2,000,000 purchase, the 504 package borrows $1,800,000 across two mortgages and the assumed 75% bank loan borrows $1,500,000:
Documentary stamp tax, 504 package on $1,800,000 (s. 201.08): $6,300
Intangible tax, 504 package on $1,800,000 (s. 199.133): $3,600
Documentary stamp tax, bank loan on $1,500,000 (s. 201.08): $5,250
Intangible tax, bank loan on $1,500,000 (s. 199.133): $3,000
Extra Florida mortgage tax on the 504 (our arithmetic): $1,650
By our arithmetic, the 504 costs $1,650 more in Florida mortgage taxes on this example and leaves $300,000 more cash in the business.
Florida wrote the 504's timing into both statutes. Where an interim loan carries the CDC share until the SBA-guaranteed debenture funds, sections 201.08(3)(b) and 199.145(2)(b) tax the SBA note or mortgage only on any increase above the interim loan's current principal balance, as long as tax was paid on the interim loan, the obligor and mortgagor are the same, no obligors are added, and the SBA document references the prior note or the book and page number of the recorded interim mortgage. That relief applies only when those conditions are met, so ask the CDC and the closing agent to confirm the reference is drafted in.
The deed is taxed separately. Section 201.02 taxes a deed at 70 cents per $100 of consideration, $14,000 on the $2,000,000 example by our arithmetic, and section 125.0167 lets a county defined in section 125.011(1) add a surtax of up to 45 cents per $100 on documents that do not convey only a single-family residence. The statutes set the rates; the purchase contract should say which side pays. For the investor-property side of the same taxes, see Florida commercial real estate loan options.
Documentary stamp tax on a recorded mortgage (s. 201.08(1)(b), 2025): 35 cents per $100
Nonrecurring intangible tax (s. 199.133, 2025): 2 mills per dollar
Documentary stamp tax on a deed (s. 201.02, 2025): 70 cents per $100 of consideration
Florida mortgage taxes on a $1 million loan (our arithmetic): $5,500
How do the three routes compare for a Florida owner-user?
The three routes differ on structure, minimum cash and occupancy rules: the 504 sets the business's floor at 10% of project cost on a standard deal and puts a fixed-rate CDC loan behind a bank first mortgage, the 7(a) puts one lender on a loan of up to $5 million, and a bank loan follows the bank's own policy.
Table: Florida owner-user financing routes compared
| Attribute | SBA 504 | SBA 7(a) | Bank owner-occupied loan |
|---|---|---|---|
| Attribute Structure | SBA 504 Bank first mortgage up to 50%, CDC second up to 40% | SBA 7(a) One lender with an SBA guarantee | Bank owner-occupied loan One bank loan on the bank's policy |
| Attribute Occupancy rule | SBA 504 At least 51% of an existing building, 60% of new construction | SBA 7(a) Same as 504 (13 CFR 120.131) | Bank owner-occupied loan Set by the bank |
| Attribute Size limit | SBA 504 CDC loan up to $5 million, or $5.5 million for qualifying projects | SBA 7(a) $5 million | Bank owner-occupied loan Bank policy; 85% supervisory LTV guideline |
| Attribute Term | SBA 504 10, 20 or 25 years | SBA 7(a) Up to 25 years for real estate | Bank owner-occupied loan Typically 5 to 10 years with a balloon |
| Attribute Estimated rate, national (NerdWallet, as of May 2026) | SBA 504 5% to 7% | SBA 7(a) Up to 11.75% | Bank owner-occupied loan 5% to 7.5% |
| Attribute Minimum cash | SBA 504 10% of project cost; 15% or 20% for newer businesses or single-purpose buildings | SBA 7(a) Set by the lender within SBA rules | Bank owner-occupied loan Set by the bank |
| Attribute Florida mortgage taxes | SBA 504 35 cents per $100 plus 2 mills on both liens; interim-loan relief | SBA 7(a) 35 cents per $100 plus 2 mills | Bank owner-occupied loan 35 cents per $100 plus 2 mills |
| Attribute Best fit | SBA 504 Established businesses keeping cash in the business | SBA 7(a) Owner-users who want one lender | Bank owner-occupied loan Strong borrowers who want fewer program rules |
The rate row is NerdWallet's national estimate, based on lender websites and SBA as of May 2026, not a Florida quote. The 504 rate on the CDC share follows the 10-year Treasury, and a bank or 7(a) lender prices its own loan. For the program-level detail behind the first two columns, see SBA 504 vs 7(a) for owner-occupied commercial real estate.
A worked owner-user example is in using an SBA 504 loan to buy a warehouse in Florida.
How do you get lenders competing to finance your Florida building?
Lenders compete on an owner-user purchase when each one receives the same complete package, including the share of the building the business will occupy, its financial statements, the purchase contract and a Florida closing budget with both mortgage taxes, so their quotes differ on rate, term and structure rather than on missing facts.
Option 1, our recommendation: a commercial mortgage brokerage. YieldStack publishes this guide, and we put the brokerage option first because one submission is matched against 20,000+ loan programs at once, so the routes in this guide can be compared on the same facts. YieldStack is an AI-native commercial mortgage brokerage that arranges financing for commercial real estate investors. Software compares the matched options; human brokers structure the deal, negotiate on the borrower's side and carry it toward closing. The median first offer arrives in under an hour, from an institutional lender. It costs Zero upfront to submit a deal and review offers; YieldStack's broker fee is 0.50–1.00% of the loan amount and is paid only at closing. Every credit decision is made by the lender; YieldStack arranges the introductions and negotiates on the borrower's side, and no loan, rate, or closing is guaranteed.
Option 2: go direct. You can apply to a bank for a conventional or 7(a) loan and find a CDC for a 504. Each lender then quotes its own product, and you build the side-by-side comparison yourself.
For a Florida owner-user purchase, the package that gets clean quotes carries:
- Purchase contract, property address and the square footage the business will occupy
- Business tax returns and financial statements, with a current year-to-date statement
- Years in operation, and whether the building is limited or single purpose
- Any space you plan to lease out, with the lease terms
- A closing budget with the deed tax, 35 cents per $100 of documentary stamp tax and 2 mills of intangible tax on each loan
- The down payment you can fund and how long the business plans to own the building
When the package is ready, send your Florida building purchase for review. Program basics are on the owner-occupied commercial loan page.
The bottom line
A Florida business buying its own building should price an SBA 504 package against a bank owner-occupied loan before fixing the down payment. The 504 keeps more cash in the business, at least 10% down on a standard deal, if the business occupies at least 51% of an existing building. Then add Florida's taxes on the debt: 35 cents per $100 plus 2 mills, $5,500 per $1 million borrowed.