SBA loan basics
Short answer
Yes, an SBA 7(a) loan is an excellent option for purchasing commercial real estate that your business will occupy. It can also finance construction or renovation of business property.
SBA 7(a) loan proceeds can be used for the acquisition of land and buildings, including construction of new facilities or renovation of existing ones, provided that the borrower occupies at least 51% of the property for existing buildings or 60% for new construction. The real estate must be for eligible business purposes.
A manufacturing company currently leasing its facility wants to buy its own 10,000 square foot warehouse. An SBA 7(a) loan can cover the purchase price of the warehouse, allowing the business to build equity and potentially stabilize occupancy costs.
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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