SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase commercial real estate that will be occupied by your business.
Proceeds from a 7(a) loan can be used to acquire land and buildings for business operations. A significant portion of the property, typically at least 51% for existing buildings, must be occupied by the borrowing business.
A coffee shop owner wants to buy the building they currently lease. They can apply for a $700,000 SBA 7(a) loan to purchase the building, provided their coffee shop will occupy more than half the space.
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 2026-06-14. 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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