Can you use an SBA loan to buy real estate?
Yes: SBA loans are one of the best ways to buy commercial real estate, provided your business will occupy the property. The SBA 504 program exists largely for this purpose (up to $5.5M for fixed assets and real estate), and the 7(a) program (up to $5M) funds property too. The key restriction: SBA money buys owner-occupied business property, not pure investment real estate you'd rent entirely to others. Meanwhile, every rent check you write builds your landlord's equity instead of yours. Quordx Capital matches buyers with SBA-approved lenders from its 50+ lender network through one free application.
Last updated · Reviewed by Cody Dreis
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How SBA real estate financing works
The 504 is the purpose-built tool: a bank funds roughly half the project, a Certified Development Company (CDC) funds about 40% through an SBA debenture, and you contribute typically 10% (15–20% for special-use properties like hotels or for startups). The CDC portion carries a fixed rate for the life of the loan tied to the 10-year Treasury. The May 2026 debenture rate was 4.82% for 20- and 25-year terms, with effective rates typically in the 5–7% range. The 7(a) alternative offers up to $5M with more flexibility, useful when you're bundling real estate with working capital or an acquisition, at variable rates currently around 10.5%–14% by loan size. And under the SBA's May 2026 rule (effective July 2026), eligible borrowers can combine 7(a) and 504 for up to $10M of cumulative SBA exposure on larger projects. Expect an appraisal, environmental review, and full financial underwriting; SBA real estate deals take weeks to months, so build that into your purchase timeline.
SBA real estate options
SBA 504:: Up to $5.5M, ~10% down, long fixed rates around 5–7% effective. Best for straightforward owner-occupied purchases or construction.
SBA 7(a):: Up to $5M, flexible uses. Best when the property is part of a bigger transaction, like buying a business with its building.
Commercial real estate financing (conventional):: $100K–$10M+. Best for investors, non-owner-occupied deals, or buyers who need to close faster than SBA allows.
How Quordx Capital Works
One 5-minute application starts everything. Upload your financials: bank statements, business tax returns, and P&L/balance sheet for a real estate deal, and Quordx Capital's matching process pinpoints 3–7 lenders from the 50+ network that actively fund SBA and conventional CRE at your project size, ranked by approval likelihood. First responses typically come within 24–48 hours, with closing following the appraisal and SBA timeline.
What to Expect
The honest trade: SBA real estate financing offers the lowest down payment (around 10%) and among the best fixed rates available to small businesses, in exchange for a slower, document-heavy process. If your closing deadline can't absorb that, your Quordx Capital matches will include conventional CRE lenders who move faster at different terms, and you'll see the full cost comparison before deciding. Matching is free, fee-free, and obligation-free.
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