SBA 7(a) Q&A
Short answer
For an acquisition loan that includes a working capital component, the maximum repayment term for the working capital portion is typically 10 years.
SBA 7(a) loans have different maximum maturities depending on the use of proceeds. For working capital, the maximum term is generally 10 years. If the acquisition includes real estate, the real estate portion can go up to 25 years, and the working capital would be amortized over its own 10-year term, or a blended term if the loan is structured as one note with multiple uses.
You acquire a business for $1,000,000, including $100,000 for working capital. The working capital component would typically be amortized over 10 years. If the loan also included real estate, that portion could be up to 25 years, creating a blended average term if combined into one note.
Insider move
Lenders must ensure the loan terms comply with SBA maximums for each use of proceeds. Properly structuring the working capital portion with its own maximum term ensures compliance and appropriate repayment schedules.
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 2026-06-14. Official sources control — verify before relying on any rule for a live deal.
Last reviewed 2026-06-14 · SBA sources checked through 2026-06-14. 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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