SBA loan basics
Short answer
The repayment period for an SBA 7(a) loan depends on what the funds are used for, typically up to 10 years for working capital and equipment, and up to 25 years for real estate.
The SBA sets maximum loan terms based on the use of proceeds. Loans for working capital or equipment generally have shorter terms because these assets depreciate faster, while real estate has a much longer useful life, allowing for longer repayment.
A business takes a $300,000 loan. If $250,000 is for real estate and $50,000 for working capital, the loan term can be up to 25 years because real estate is the primary use. If it was all working capital, the term would be up to 10 years.
Insider move
Lenders structure the loan term to match the useful life of the assets financed and to ensure affordability for the borrower, while still complying with SBA maximums.
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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