SBA loan basics
Short answer
Yes, an SBA 7(a) loan can be used to purchase commercial real estate that will be occupied by your small business, and it is a common use of the program.
The purchase of real estate (land and buildings) is an eligible use of 7(a) loan proceeds, provided the small business occupies at least 51% of the property for existing buildings or 60% for new construction. This allows businesses to own their premises, building equity over time.
A manufacturing company currently leasing its facility decides to buy the building it operates from. They secure an $800,000 SBA 7(a) loan, which covers the purchase price of the property, where their operations will continue to occupy 100% of the space.
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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