{"ok":true,"canonical_url":"https://dealroom.so/glossary/economic-life","api_url":"https://dealroom.so/api/public/glossary/economic-life","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"economic-life","term":"Economic Life","aka":"Useful life","group":"Reading the business","definition":"The period over which an asset is expected to be useful to its owner, generating revenue or providing service. The SBA uses this to determine loan terms for certain assets.","what_it_means":"When financing assets like equipment or leasehold improvements, the SBA loan term cannot exceed the asset's economic life. An appraisal will often assess this. Ensure the proposed loan term aligns with the useful life of the major assets you are acquiring to avoid issues with loan approval.","url":"https://dealroom.so/glossary/economic-life","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"useful-life","term":"Useful life","url":"https://dealroom.so/glossary/useful-life"},{"slug":"appraisal","term":"Appraisal","url":"https://dealroom.so/glossary/appraisal"},{"slug":"leasehold-improvement","term":"Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"}],"related_questions":[{"question":"How does a lender determine affiliation for size purposes when evaluating common economic dependence?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-determine-affiliation-for-size-purposes-when-evaluating-common-economic-"},{"question":"Can I use a conditional grant from a local economic development agency as equity?","url":"https://dealroom.so/sba-7a/questions/can-i-use-a-conditional-grant-from-a-local-economic-development-agency-as-equity"},{"question":"Under what conditions does a shared economic interest trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/under-what-conditions-does-a-shared-economic-interest-trigger-affiliation-for-sba-size-sta"},{"question":"When is term life insurance more suitable than permanent life insurance for business protection?","url":"https://dealroom.so/sba-7a/questions/when-is-term-life-insurance-more-suitable-than-permanent-life-insurance-for-business-prote"},{"question":"Is a decreasing term life insurance policy acceptable for the SBA's life insurance requirement on a 7(a) loan?","url":"https://dealroom.so/for-lenders/questions/is-a-decreasing-term-life-insurance-policy-acceptable-for-the-sba-s-life-insurance-require"},{"question":"How are appropriate business life insurance coverage amounts calculated?","url":"https://dealroom.so/sba-7a/questions/how-are-appropriate-business-life-insurance-coverage-amounts-calculated"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Economic Life","url":"https://dealroom.so/glossary/economic-life","source_type":"DealRoom Data"}}