Glossary · Reading the business
In short
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.
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.
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Defined by DealRoom.so SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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