SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to finance new construction, renovation, or leasehold improvements for owner-occupied business real estate.
Construction and renovation are eligible uses for 7(a) funds, provided the property will be primarily occupied by the small business. For new construction, the business must occupy at least 60% of the property within one year of completion and 80% eventually.
A dental practice wants to build a new clinic. They can use an SBA 7(a) loan to cover the land purchase, construction costs, and even equipment installation, provided they will occupy the majority of the new facility.
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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