SBA loan basics
Short answer
Yes, an SBA 7(a) loan can absolutely be used to purchase commercial real estate that your business will occupy, such as an office building, warehouse, or retail space.
Financing the purchase of owner-occupied commercial real estate is a primary eligible use for 7(a) loan proceeds. The business must occupy at least 51% of the property if it's an existing building, or at least 60% if it's new construction, with plans to occupy more over time.
A dentist wants to buy the building where her practice is currently located. An SBA 7(a) loan can finance the $700,000 purchase price of the building, allowing the dentist to own the property her business operates from, rather than leasing. The loan term for real estate can be up to 25 years.
Insider move
Lenders conduct extensive due diligence on real estate, including appraisals, environmental assessments (Phase I ESA if needed), and title searches. They ensure the property is owner-occupied according to SBA rules and that the loan amount is justified by the property's value.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 - Lender and Development Company Loan Programs
SBA 7(a) Loans Overview
Types of 7(a) Loans
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 uses of funds
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