{"ok":true,"canonical_url":"https://dealroom.so/glossary/land-purchase","api_url":"https://dealroom.so/api/public/glossary/land-purchase","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"land-purchase","term":"Land purchase","group":"The loan itself","definition":"This involves buying land for your business operations, which an SBA 7(a) loan can finance if it's for an owner-occupied business. It's relevant if you plan new construction or expansion.","what_it_means":"An SBA 7(a) loan can be used to purchase land, but only if the land will be primarily used for your owner-occupied business. For example, if you're building a new facility, the land cost can be part of the total project. Be prepared to show your intent for business use and potential construction plans.","url":"https://dealroom.so/glossary/land-purchase","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"},{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"}],"related":[{"slug":"owner-occupied-business-real-estate","term":"Owner-occupied business real estate","url":"https://dealroom.so/glossary/owner-occupied-business-real-estate"},{"slug":"construction-loan-disbursement-schedule","term":"Construction loan disbursement schedule","url":"https://dealroom.so/glossary/construction-loan-disbursement-schedule"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"}],"related_questions":[{"question":"What are the requirements if I plan to develop raw land purchased with an SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-if-i-plan-to-develop-raw-land-purchased-with-an-sba-loan"},{"question":"Can a 7(a) loan finance the purchase of undeveloped land for future business expansion?","url":"https://dealroom.so/for-lenders/questions/can-a-7-a-loan-finance-the-purchase-of-undeveloped-land-for-future-business-expansion"},{"question":"Can I use an SBA 7(a) loan to purchase raw land for future business use?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-purchase-raw-land-for-future-business-use"},{"question":"Can an SBA 7(a) loan be used to purchase the land and building for my business?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-be-used-to-purchase-the-land-and-building-for-my-business"},{"question":"What environmental due diligence is required for raw land purchased with an SBA 7(a) loan for future business use?","url":"https://dealroom.so/sba-7a/questions/what-environmental-due-diligence-is-required-for-raw-land-purchased-with-an-sba-7-a-loan-f"},{"question":"Can an SBA 7(a) loan finance property improvements on leased land or buildings?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-property-improvements-on-leased-land-or-buildings"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Land purchase","url":"https://dealroom.so/glossary/land-purchase","source_type":"DealRoom Data"}}