Glossary · Doing the deal
Real Estate Acquisition
In short
This refers to buying the physical land and buildings where the business operates. An SBA 7(a) loan can finance this alongside the business purchase, provided you occupy at least 51% of the space.
What it means in a deal
If the business you're buying owns its real estate, an SBA 7(a) loan can fund the acquisition of both the business and the property. Crucially, your new business must occupy at least 51% of the property's space. This is often a significant portion of total project costs and triggers requirements like an appraisal and environmental assessments.
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 Real Estate Acquisition
- Are environmental questionnaires always required for real estate involved in an SBA 7(a) acquisition?
- What is the difference in repayment terms between real estate and non-real estate loans?
- Are there specific environmental review requirements for real estate included in an SBA 7(a) acquisition?
- If a business acquisition includes real estate with known environmental risks, can it still be financed?
- What level of environmental due diligence is required for leasehold improvements only, without real estate acquisition?
- If the business owns real estate, must the buyer also purchase the real estate with the business?
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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