SBA loan basics
Short answer
Yes, an SBA 7(a) loan can finance the purchase of commercial real estate that your business will occupy, making it a popular option for owner-occupied properties.
The purchase of owner-occupied commercial real estate is a fully eligible use of 7(a) loan funds. The business generally needs to occupy at least 51% of the property if it's an existing building, or 60% if it's new construction, allowing the remaining space to be leased out for rental income.
A retail store owner wants to buy the building they currently lease. They secure a $1 million SBA 7(a) loan, financing 90% of the purchase price, to acquire the building where their store occupies 80% of the space.
Insider move
Lenders must verify the owner-occupancy percentage and ensure proper environmental due diligence is performed for the real estate. They also confirm the property valuation is sound.
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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