SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase land for your business, even if construction is planned for a later date. However, the land must be for the immediate or future expansion of your eligible business.
Purchase of land is an eligible use of SBA 7(a) loan proceeds. If the land is being acquired with the intention of future owner-occupied business use, it generally qualifies. The business must occupy at least 51% of the property if it's existing, or 60% if it's new construction (with plans to reach 80% occupancy over time).
A growing landscaping company wants to buy a vacant 5-acre lot next to their current facility to eventually build a larger office and storage space. They can apply for an SBA 7(a) loan to cover the land purchase, even if construction won't start for another year, as long as it's for their eligible business expansion.
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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