SBA 7(a) Q&A
Short answer
No, generally, an SBA 7(a) loan for a business acquisition without a real estate component is capped at a maximum repayment term of 10 years.
The SBA sets maximum loan terms based on the use of proceeds. For loans primarily funding business acquisition, working capital, or equipment, the maximum maturity is 10 years. Only when a significant portion of the loan is used to acquire or improve real estate can the term extend up to 25 years.
If you acquire a software company for $1,000,000, including goodwill and equipment, but no real estate, your SBA 7(a) loan would be structured with a maximum 10-year repayment schedule, even if you prefer a longer term to lower monthly payments.
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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