SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase commercial real estate that will be occupied by your small business, providing a long repayment term and potentially lower down payment.
The 7(a) program allows for the purchase of commercial real estate for owner-occupied businesses, meaning the business must occupy at least 51% of the property. Loans involving real estate typically offer longer repayment terms, up to 25 years, helping to reduce monthly payments.
A small manufacturing company wants to buy its current leased facility for $1,500,000. An SBA 7(a) loan could finance up to 90% of this purchase, allowing the company to build equity and control its overhead.
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 2026-06-14. 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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