Glossary · The loan itself
Land purchase
In short
This involves buying land for your business operations, which an SBA 7(a) loan can finance if it's for an owner-occupied business. It's relevant if you plan new construction or expansion.
What it means in a deal
An SBA 7(a) loan can be used to purchase land, but only if the land will be primarily used for your owner-occupied business. For example, if you're building a new facility, the land cost can be part of the total project. Be prepared to show your intent for business use and potential construction plans.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Land purchase
- What are the requirements if I plan to develop raw land purchased with an SBA loan?
- Can a 7(a) loan finance the purchase of undeveloped land for future business expansion?
- Can I use an SBA 7(a) loan to purchase raw land for future business use?
- Can an SBA 7(a) loan be used to purchase the land and building for my business?
- What environmental due diligence is required for raw land purchased with an SBA 7(a) loan for future business use?
- Can an SBA 7(a) loan finance property improvements on leased land or buildings?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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