{"ok":true,"canonical_url":"https://dealroom.so/glossary/purchase-of-land","api_url":"https://dealroom.so/api/public/glossary/purchase-of-land","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":"purchase-of-land","term":"Purchase of Land","group":"Reading the business","definition":"Buying the ground itself, separate from any buildings on it. This is a significant asset that can serve as collateral and impact your occupancy costs.","what_it_means":"For an SBA 7(a) loan, if the business owns its land, the purchase of this land will be part of the total project costs. The land will be appraised and serves as valuable collateral for the loan. Confirm zoning and environmental conditions before closing.","url":"https://dealroom.so/glossary/purchase-of-land","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":"fixed-asset-purchase","term":"Fixed Asset Purchase","url":"https://dealroom.so/glossary/fixed-asset-purchase"},{"slug":"improvement","term":"Improvement","url":"https://dealroom.so/glossary/improvement"},{"slug":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"}],"related_questions":[{"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":"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"},{"question":"Can I use an SBA 7(a) loan to buy land for my business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-land-for-my-business"},{"question":"Can I use an SBA 7(a) loan to buy the land for my business?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-the-land-for-my-business"}]},"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 — Purchase of Land","url":"https://dealroom.so/glossary/purchase-of-land","source_type":"DealRoom Data"}}