SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase a commercial building that is currently under construction, provided specific conditions are met regarding completion and occupancy.
Loan funds can finance real estate purchases, including properties under construction, if there is a clear plan and budget for completion and the business intends to occupy a substantial portion upon completion. The lender must ensure the project is viable.
A business owner wants to purchase a partially built office complex to relocate and expand. An SBA 7(a) loan can cover the purchase price and the remaining construction costs, with appropriate safeguards for project completion.
Insider move
Lenders will require detailed construction contracts, budgets, and timelines, along with independent inspections, to mitigate the risks associated with financing an incomplete property and ensure project viability.
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 2026-06-14. 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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