SBA loan basics
Short answer
Yes, an SBA 7(a) loan is commonly used to purchase commercial real estate that will be occupied and used by your business. It's one of the most popular uses.
SBA 7(a) loans can finance the acquisition of commercial real estate. For real estate purchases, the business must occupy at least 51% of the property if it's an existing building, or 60% for new construction, within a reasonable timeframe. The maximum repayment term for real estate portions is 25 years.
A manufacturing company needs a new facility. They secure a $1.5 million SBA 7(a) loan, using $1.2 million to purchase a building where they will occupy 80% of the space, and the remaining $300,000 for equipment and working capital.
Insider move
Lenders evaluate the property's appraised value, the environmental risks, and ensure the borrower meets the owner-occupancy requirements. They also verify that the property's location and condition are suitable for the business.
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.
More on use of funds - real estate
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