SBA loan basics
Short answer
Yes, an SBA 7(a) loan can definitely be used to purchase commercial real estate for your business, including a new building or land and existing structures.
Acquiring real estate is a primary eligible use of SBA 7(a) loan funds. The loan can cover the purchase price of land and buildings, construction costs, or renovation expenses, provided the property is primarily (at least 51% for existing buildings, 60% for new construction) owner-occupied.
A manufacturing company wants to buy a new warehouse for $1.5 million. An SBA 7(a) loan can finance this purchase, covering a significant portion of the cost, provided the company will occupy at least 51% of the building for its operations.
Insider move
Lenders assess the value of the real estate, require environmental due diligence (e.g., Phase I ESA), and ensure the owner-occupancy requirements are met, as these are critical for real estate secured loans.
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
SBA 7(a) Loans Overview
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 use of funds
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