Colorado’s SBA Shift: From Gen X Buyers to CRE Boomers

As Colorado businesses look for greater control, predictability, and permanence in an uncertain economic environment, Small Business Administration (SBA) 504 financing is playing a bigger role in helping them secure property. From the bustling Front Range to revitalized urban corridors, the demand for owner-occupied commercial real estate is rising fast. At the same time, Gen X entrepreneurs and business buyers are increasingly leaning on SBA 7(a) loans to fund acquisitions and expansions. Here's what lenders need to know about the forces shaping Colorado's SBA lending activity in 2025:

RISE OF OWNER-OCCUPIED CRE

  • SBA 504 demand remains strong for owner-occupied CRE in Denver and the Front Range. Owner-occupied purchases are rising, especially in well-located properties near transit and lifestyle amenities.¹

  • Urban revitalization in Cherry Creek and LoDo is fueling a surge in owner-occupancy and business growth.²

    Particularly in high-quality and amenity-rich offices, buyers prefer to tailor the space to meet their business’ needs.

DOWNTOWN & MIXED-USE HUBS

  • Urban revitalization efforts, especially in areas like Cherry Creek and LoDo, are drawing business owners eager to capitalize on location and community development. ²

FINANCING & CONSTRUCTION CONDITIONS

  • After years of rapid cost escalation, Denver projects in early 2025 are seeing only about a 4.5% annual increase, down from prior double-digit surges. This trend makes buying owner-occupied commercial real estate far more viable than even a year ago.⁴

  • Gen X business buyers (ages 40s–50s) are using SBA 7(a) loans to finance acquisitions.

  • Expansion in healthcare, logistics, and personal services is trending.

From Main Street service providers to specialized medical practices and growth-minded Gen X entrepreneurs, borrowers are embracing SBA financing as a way to build permanence and control in uncertain times. Entrepreneurs are not waiting for perfect conditions. They are securing permanent space, acquiring growth-ready businesses, and investing in assets that give them staying power in a state with a resilient and steadily growing economy.

What Role does B:Side Play?

Colorado lenders should take advantage of the SBA 504 loan program to capitalize on the trends listed above. Here is a snapshot of B:Side Capital’s Colorado SBA 504 lending and 7(a) partnership activity for SBA FY 2025 (reported through June 30, 2025):

  • Average Gross Debenture on 504 projects: $952,011

  • Average Loan Amount on 7(a) projects: $826,311

  • 49 total SBA 504 and 7(a) lending partners for projects approved in Colorado

  • Most active 504 lender in Colorado: FirstBank

  • Most active 7(a) lender in Colorado: NBH Bank

  • Colorado cities with the most 504 activity: Denver (15 approvals), Colorado Springs (7 approvals), Littleton (4 approvals)

Ready to increase your bank’s SBA lending activity? Get in touch with our Client Relations Team to learn more.

Sources:
¹ Hoff & Leigh “Q1 2025 Denver Market Report”

² Cherry Creek Alliance “2024/2025 State of Cherry Creek Report”

³ Colliers “Q1 2025 Office Market Report”

⁴ “Rider Levett Bucknall Construction Cost Report North America Q1 2025” 

B:Side Capital