{"ok":true,"canonical_url":"https://dealroom.so/sba-7a/questions/if-the-business-real-estate-is-leased-can-the-acquisition-loan-still-be-for-a-25-year-term","api_url":"https://dealroom.so/api/public/questions/if-the-business-real-estate-is-leased-can-the-acquisition-loan-still-be-for-a-25-year-term","question":"If the business real estate is leased, can the acquisition loan still be for a 25-year term?","topic":"Real estate & term","audience":"borrower","bot_mode":"buyer","short_answer":"No, if the business real estate is leased, the maximum term for an SBA 7(a) business acquisition loan is typically 10 years.","rule":"SBA 7(a) loan terms are generally limited to 10 years for business acquisitions without real estate. Only when real estate is financed as part of the project can the term extend up to 25 years. A leased property does not qualify the loan for the longer 25-year real estate term.","example":"A buyer acquires a manufacturing business for $1,200,000, leasing the building it operates from. Even if the lease has 15 years remaining, the SBA acquisition loan will have a maximum term of 10 years, not 25 years.","what_lenders_check":"Lenders strictly adhere to SBA maximum loan terms based on collateral type. Using a 25-year term for a non-real estate backed loan would be a non-curable eligibility issue, impacting the SBA guaranty.","required_facts":["Leased real estate","Acquisition only","Loan term","SBA maximums","Collateral type"],"source_families":["SOP 50 10 - Lender and Development Company Loan Programs","13 CFR Part 120 - Business Loans","7(a) Loan Program Terms, Conditions, and Eligibility"],"official_sources":[{"title":"SOP 50 10 - Lender and Development Company Loan Programs","url":"https://www.sba.gov/sites/default/files/2025-05/SOP%2050%2010%208%20Technical%20Updates%20effective%206.1.2025.docx"},{"title":"13 CFR Part 120 - Business Loans","url":"https://www.ecfr.gov/current/title-13/chapter-I/part-120"},{"title":"7(a) Loan Program Terms, Conditions, and Eligibility","url":"https://www.sba.gov/partners/lenders/7a-loan-program/terms-conditions-eligibility"}],"related_questions":[],"related_terms":[{"term":"Real Estate Acquisition","url":"https://dealroom.so/glossary/real-estate-acquisition"},{"term":"Business real estate","url":"https://dealroom.so/glossary/business-real-estate"},{"term":"Commercial Real Estate Acquisition","url":"https://dealroom.so/glossary/commercial-real-estate-acquisition"},{"term":"Business acquisition loan","url":"https://dealroom.so/glossary/business-acquisition-loan"},{"term":"Passive real estate business","url":"https://dealroom.so/glossary/passive-real-estate-business"},{"term":"Real Estate","url":"https://dealroom.so/glossary/real-estate"}],"related_tools":[{"name":"SBA 7(a) payment & fee calculator","url":"https://dealroom.so/sba-7a/calculator"},{"name":"Find an active SBA 7(a) lender","url":"https://dealroom.so/lenders"}],"data_freshness":{"last_reviewed":"2026-06-13","sba_rule_sources_checked_through":"2026-06-13"},"citation":{"label":"DealRoom.so SBA 7(a) Q&A","url":"https://dealroom.so/sba-7a/questions/if-the-business-real-estate-is-leased-can-the-acquisition-loan-still-be-for-a-25-year-term","source_type":"DealRoom Q&A"},"caveats":["Grounded in the current SBA rulebook; verify against official sources before relying on it for a live deal.","Not legal, tax, or financial advice and not an approval decision."]}