SBA loan basics
Short answer
The repayment period for an SBA 7(a) loan varies based on what the money is used for, typically up to 10 years for equipment or working capital, and up to 25 years for real estate.
The SBA sets maximum loan maturities based on the use of proceeds. For working capital and equipment, the maximum term is 10 years (or the useful life of the equipment, whichever is less). For real estate (purchase or construction), the maximum term is 25 years. Loans combining these uses will have terms based on the primary use or a blended average.
A business owner takes a $500,000 loan: $100,000 for equipment, $100,000 for working capital, and $300,000 for a building purchase. The loan will likely have a 25-year term due to the real estate component.
Lenders must ensure the loan term aligns with SBA maximums and the use of proceeds. They assess the business's ability to service the debt over the chosen term, balancing borrower affordability with prudent lending practices.
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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