Glossary · Reading the business
Occupancy Rate
In short
This is the percentage of available space or units that are currently occupied or in use, commonly seen in real estate or service businesses. It's a key indicator of revenue generation.
What it means in a deal
For businesses like hotels, self-storage, or laundromats, the occupancy rate is a direct driver of revenue and profitability. You need to analyze the historical occupancy rates and the factors affecting them during due diligence to project future cash flow and ensure repayment capacity.
Related terms
Common questions about Occupancy Rate
- What is the minimum owner-occupancy requirement for real estate purchased with an SBA 7(a) loan?
- What alternative base rates are available for variable-rate 7(a) loans besides the Wall Street Journal Prime rate?
- What is the 'Prime Rate' when talking about SBA 7(a) loan rates?
- What specific alternative base rates are permissible for variable rate 7(a) loans?
- What is the Wall Street Journal Prime Rate's role in SBA 7(a) loan interest rates?
- What are the maximum allowable interest rates for variable rate 7(a) loans, including the permissible spread?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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