For SBA lenders
Short answer
Yes, an SBA 7(a) loan can be used to acquire a home-based business, provided the business itself is eligible, the loan proceeds are used for eligible business purposes, and it's not a passive real estate investment.
The SBA does not prohibit loans to home-based businesses. The eligibility depends on the nature of the business (must not be an ineligible type), the use of loan proceeds (must be for business assets, working capital, or an eligible portion of the home if mixed-use), and the demonstration of a viable business operation.
A buyer wants to acquire a successful online marketing business that the seller currently operates from their home office. The SBA 7(a) loan can be used to purchase the business assets, goodwill, and provide working capital, even though the buyer also plans to operate it from their home.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
More on eligibility determinations
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