How we can help
Real estate is typically financed with SBA 504 or commercial mortgages. We can help with the business side: the remodel, coolers, and working capital around a move.
Check if my store qualifies →Key takeaways
- SBA 504 offers long-term fixed rates and low down payments for owner-occupied buildings.
- Your store must generally occupy at least 51% of an existing building to use SBA programs. You can lease the rest to tenants.
- Owning the building protects your license location and your customer base.
- Expect an appraisal and an environmental review. Former gas station sites need extra scrutiny.
Market overview
- Programs
- SBA 504, SBA 7(a), conventional commercial mortgage
- Down payment
- As low as 10% (SBA); 20%–30% conventional
- Terms
- Up to 25 years (SBA); 5–25 yrs amortization conventional
- Occupancy
- 51%+ owner-occupied for SBA (existing buildings)
- Time to close
- Typically 60–120 days
Typical market ranges, not offers.
Why liquor store owners buy their buildings
- Location stability. In many jurisdictions, liquor licenses are tied to a specific premises. Relocating can require approvals, distance-from-schools or churches reviews, and public notice. Owning removes the risk of a landlord forcing a move
- Predictable occupancy cost. A fixed-rate SBA 504 payment doesn't rise with the market
- Equity build-up. Your payments build an asset you can borrow against or sell
- Rental income. Lease extra space to compatible tenants
Real estate loan options compared
| SBA 504 | SBA 7(a) | Conventional | |
|---|---|---|---|
| Down payment | Often 10% | Often 10% | 20%–30% |
| Term / amortization | Up to 25 years | Up to 25 years | Often 5–10-year term, 20–25-year amortization |
| Rate | Fixed on CDC portion; bank portion varies | Usually variable; fixed available | Fixed or variable |
| Can include business acquisition? | No | Yes | Sometimes |
| Prepayment penalty | Yes, declining over first 10 years (CDC portion) | Yes, for terms of 15+ years, during first 3 years | Varies |
| Best for | Pure real estate with lowest long-term cost | Real estate + business in one loan | Strong borrowers with large down payments |
Learn more in SBA 7(a) vs. 504 for liquor stores.
How the SBA 504 is structured
A typical 504 splits the project into three parts: about 50% from a bank first mortgage, up to 40% from a Certified Development Company (CDC) backed by the SBA at a long-term fixed rate, and about 10% from you. Startups and special-purpose properties may require 15%.
Illustrative example: Buying the building
A store owner buys their 6,000 sq ft building for $1,500,000. With a 504 and 10% down ($150,000), the remaining $1,350,000 over 25 years at an assumed blended 9.25% works out to about $11,561/month. Compare that to the current rent plus expected escalations over the next decade.
Hypothetical scenario for illustration. Numbers are rounded and are not a quote or offer.
What lenders review on liquor store real estate
- Appraisal of the property (usually ordered by the lender)
- Environmental review, with extra scrutiny for former gas stations, dry cleaners, and auto uses
- Business tax returns showing the store can cover the mortgage
- Owner-occupancy (51%+ of existing buildings for SBA)
- Zoning and license compatibility with the location
- Title, survey, and insurance
Frequently asked questions
Can I buy the building my liquor store is in with an SBA loan?
Can I buy a building with tenants plus my liquor store?
Should I buy the store and the building at the same time?
Sources
We cite primary sources: federal agencies, regulations, and official program rules. Rules vary by state and change over time.
General education, not legal, tax, or financial advice. Loan programs, state alcohol laws, and lender requirements change and vary by state. Disclosures.