SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase land and existing buildings, or to construct new facilities, for your business.
SBA 7(a) loans are commonly used for commercial real estate acquisition, construction, or renovation. This helps businesses own their operational space, providing stability and potential equity growth.
A small manufacturing company wants to move from leased space to its own facility. It obtains a $1.5 million SBA 7(a) loan to buy a commercial property consisting of land and a warehouse building.
Lenders will require a full appraisal of the real estate to ensure the purchase price is justified and the property provides sufficient collateral. Environmental due diligence (e.g., Phase I ESA) is also typically required for real estate transactions.
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.
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