SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to finance the purchase of a new business location, including the construction of a new building, if it's for the primary use of the business.
The SBA 7(a) program supports real estate financing, which includes the acquisition of land, existing buildings, and the construction of new facilities. The property must be at least 51% occupied by the borrowing business (for existing buildings) or 60% for new construction. The repayment term for real estate can extend up to 25 years, making it an attractive option for long-term property investments.
A growing veterinary clinic needs a larger facility. They can use a $1.5 million SBA 7(a) loan to purchase a plot of land and construct a new, custom-designed clinic building that they will occupy entirely.
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.
More on what it can be used for
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