SBA loan basics
Short answer
The longest possible repayment term for an SBA 7(a) loan depends on the use of funds: 10 years for working capital and equipment, and up to 25 years for real estate.
The SBA sets maximum loan terms based on the average useful life of the assets being financed. For loans primarily funding working capital or equipment, the maximum term is 10 years. If the loan includes real estate, the term can extend up to 25 years, aligning with the longer useful life of property.
A business takes a $300,000 loan, with $100,000 for equipment and $200,000 for working capital. The maximum term for this loan would be 10 years. If $200,000 was for real estate and $100,000 for working capital, the maximum term could be 25 years.
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
SBA 7(a) Loans Overview
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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