Glossary · Reading the business
In short
This is how long an asset is expected to be productive and generate revenue for the business. Lenders typically tie the loan term to the weighted average useful life of the assets being financed.
The SBA limits the maximum loan term based on the useful life of the assets you're acquiring, usually 10 years for business acquisition (plus real estate if applicable). Understanding this affects your monthly payments; a shorter useful life means a shorter loan term and higher payments.
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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Send us the asking price and the seller's cash flow — we'll show whether the deal services SBA debt and where the add-backs are likely to hold up.
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