SBA loan basics
Short answer
Yes, purchasing land on which a business operates or plans to operate is an eligible use of funds for an SBA 7(a) loan.
Acquiring real estate, including land, for an eligible small business's operations is a core purpose of the 7(a) loan program. The land must be used for a legitimate business activity, not for speculative investment.
A farmer wants to buy an adjacent parcel of land to expand their agricultural operations. An SBA 7(a) loan can be used to finance this land purchase, as it directly supports the business.
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.
More on loan uses
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