SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used for new construction of business facilities, including the purchase of land and the costs associated with building.
Eligible uses for 7(a) loans include the acquisition of land and buildings, and the construction of new facilities. The loan funds can cover all aspects of the project, from site preparation to final construction, provided it's for an eligible small business.
A growing manufacturing company needs a larger production facility. They can use an SBA 7(a) loan to buy a vacant parcel of land and finance the construction of a new 20,000 square foot building.
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 2026-06-13. 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.
Terms in this answer
Pre-qualify your SBA 7(a) deal
Tell us the business, the price, and where you are — we'll point you to the lenders most likely to fund a deal like yours and flag anything that trips up approval.
Free · No documents · Usually same-day