{"ok":true,"canonical_url":"https://dealroom.so/glossary/raw-land","api_url":"https://dealroom.so/api/public/glossary/raw-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":"raw-land","term":"Raw Land","group":"The loan itself","definition":"This refers to undeveloped land without structures or utilities. The SBA generally does not allow 7(a) loan proceeds to be used for the purchase of raw land if it's purely for investment.","what_it_means":"While a 7(a) loan can finance commercial real estate for an owner-occupied business, it's not for speculative raw land purchases. If the business you're acquiring includes land, ensure there's a clear business purpose for that land and it's not purely for future development unrelated to the core business operations.","url":"https://dealroom.so/glossary/raw-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":"owner-occupied-commercial-real-estate","term":"Owner-occupied commercial real estate","url":"https://dealroom.so/glossary/owner-occupied-commercial-real-estate"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"}],"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 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":"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 I use an SBA 7(a) loan to buy inventory or pay for raw materials?","url":"https://dealroom.so/sba-loans/basics/can-i-use-an-sba-7-a-loan-to-buy-inventory-or-pay-for-raw-materials"},{"question":"Can the fair market value of raw materials I contribute to the acquired business count towards equity?","url":"https://dealroom.so/sba-7a/questions/can-the-fair-market-value-of-raw-materials-i-contribute-to-the-acquired-business-count-tow"},{"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 — Raw Land","url":"https://dealroom.so/glossary/raw-land","source_type":"DealRoom Data"}}