{"ok":true,"canonical_url":"https://dealroom.so/glossary/useful-life-of-assets","api_url":"https://dealroom.so/api/public/glossary/useful-life-of-assets","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":"useful-life-of-assets","term":"Useful life of assets","group":"Reading the business","definition":"This refers to the estimated period an asset is expected to be economically productive for the business. It's important because the loan term for fixed assets generally cannot exceed their useful life, impacting your repayment schedule.","what_it_means":"For an SBA 7(a) loan, the maximum term is often determined by the weighted average useful life of the assets being financed, typically up to 10 years for equipment and 25 years for real estate. Understand the asset breakdown in the deal to estimate your potential loan term.","url":"https://dealroom.so/glossary/useful-life-of-assets","official_sources":[{"slug":"13-cfr-part-120","title":"13 CFR Part 120 — Business Loans","official_url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120","official_label":"View on eCFR","authority_tier":1,"publisher":"Office of the Federal Register","source_guide_url":"https://dealroom.so/sba-7a/sources/13-cfr-part-120"},{"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":"amortization","term":"Amortization","url":"https://dealroom.so/glossary/amortization"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"},{"slug":"depreciation","term":"Depreciation","url":"https://dealroom.so/glossary/depreciation"},{"slug":"term-maturity","term":"Term / maturity","url":"https://dealroom.so/glossary/term-maturity"}],"related_questions":[{"question":"Can life insurance be used to ensure fair distribution of assets among non-active heirs in a family business?","url":"https://dealroom.so/sba-7a/questions/can-life-insurance-be-used-to-ensure-fair-distribution-of-assets-among-non-active-heirs-in"},{"question":"When can a lender release its lien on specific business assets during the life of an SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/when-can-a-lender-release-its-lien-on-specific-business-assets-during-the-life-of-an-sba-7"},{"question":"Can personal retirement accounts or life insurance cash values be used as collateral if business assets are insufficient?","url":"https://dealroom.so/sba-7a/questions/can-personal-retirement-accounts-or-life-insurance-cash-values-be-used-as-collateral-if-bu"},{"question":"What factors primarily influence the premium cost of business life insurance?","url":"https://dealroom.so/sba-7a/questions/what-factors-primarily-influence-the-premium-cost-of-business-life-insurance"},{"question":"How does a collateral assignment of life insurance protect a lender?","url":"https://dealroom.so/sba-7a/questions/how-does-a-collateral-assignment-of-life-insurance-protect-a-lender"},{"question":"What is the typical amount of key-person life insurance coverage needed?","url":"https://dealroom.so/sba-7a/questions/what-is-the-typical-amount-of-key-person-life-insurance-coverage-needed"}]},"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 — Useful life of assets","url":"https://dealroom.so/glossary/useful-life-of-assets","source_type":"DealRoom Data"}}