SBA loan basics
Short answer
Yes, purchasing commercial real estate to house your business is a very common and eligible use of SBA 7(a) loan funds.
SBA 7(a) loans can be used to purchase land and buildings, including construction of new facilities or renovation of existing ones, provided the real estate is primarily occupied and used by the applicant business for its operations.
A retail business currently leasing space wants to purchase its own building for $1 million. An SBA 7(a) loan can be used to finance the purchase of this commercial property, with a typical 25-year repayment term.
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.
More on use of funds - real estate
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