SBA 7(a) Q&A
Short answer
No, the buyer is not always required to purchase the real estate. They can opt to lease it from the seller or a third party, if appropriate.
While an SBA 7(a) loan can finance the purchase of real estate along with a business, it is not a mandatory requirement. If the seller owns the real estate separately, the buyer can lease it. The lease terms, however, must be commercially reasonable and acceptable to the SBA lender, as rent payments impact the business's cash flow.
You are acquiring a manufacturing business for $1,500,000, and the seller owns the building separately. You can structure the deal to purchase the business assets and operations, and then enter into a long-term lease agreement with the seller for the building, rather than buying the real estate itself with the SBA loan.
Insider move
Lenders evaluate the lease terms to ensure they are arm's length, commercially reasonable, and do not unduly burden the business's cash flow. They also consider the stability of the lease arrangement and the impact on collateral if the business does not own its premises.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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.
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