SBA loan basics
Short answer
Yes, an SBA 7(a) loan is commonly used to purchase real estate that houses your business, including the building you currently rent. This can help stabilize occupancy costs.
SBA 7(a) loan proceeds are eligible for the acquisition of commercial real estate. This includes purchasing an existing building occupied by the business. The loan term for real estate is typically up to 25 years, making payments more manageable.
A retail store currently paying $5,000 monthly rent decides to buy its building. With an appraisal confirming the building's value at $800,000, an SBA 7(a) loan can finance the purchase, converting rent into equity.
Insider move
Lenders will require an independent appraisal of the property, verify clear title, and ensure the business occupies at least 51% of the property if it's an existing building. They also assess if the business can afford the mortgage payments.
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.
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