For SBA lenders
Short answer
The maximum loan term for an SBA 7(a) loan used solely to acquire or construct real estate is 25 years, including any business acquisition costs tied to the real estate.
SBA loan terms are tied to the useful life of the assets being financed. Real estate generally has the longest useful life, allowing for terms up to 25 years. Loans financing only business acquisition (without real estate) or equipment have shorter maximum terms (typically 10 years).
A borrower uses an SBA 7(a) loan to purchase a commercial building for $1,500,000. The loan can be structured with a 25-year repayment term. If they also purchased the business within the same loan, the entire loan would follow the real estate term.
Insider move
Lenders must ensure the loan term aligns with the primary use of proceeds and the useful life of the assets. Misrepresenting the use of proceeds to achieve a longer term is a serious compliance issue.
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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