For SBA lenders
Short answer
The maximum loan term for a 7(a) loan used solely for working capital or equipment, without real estate, is 10 years.
SOP 50 10 specifies maximum loan terms for 7(a) loans. For working capital and equipment, the maximum maturity is 10 years. Loans used for real estate (purchase or construction) can have a term up to 25 years. This differentiation is based on the useful life of the assets being financed.
A borrower requests a $300,000 7(a) loan to purchase new machinery (equipment) and for additional working capital. The lender structures the loan with a 10-year repayment term.
Insider move
Lenders must adhere to the maximum loan terms established by the SBA based on the use of proceeds. Granting a longer term than allowed can lead to a guaranty repair or denial.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
SOP 50 10 - Lender and Development Company Loan Programs
Last checked 2026-06-13. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-13 · SBA sources checked through 2026-06-13. DealRoom analysis of public SBA 7(a) lending records (FY2020–present). Grounded in the current SBA rulebook; verify against the official sources above before relying on it for a live deal. Not legal, tax, or financial advice, and not an approval decision.
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