SBA loan basics
Short answer
The maximum repayment period for an SBA 7(a) loan depends on the use of proceeds: 10 years for working capital and equipment, and up to 25 years for real estate.
The loan term is determined by the useful life of the assets being financed. For working capital and equipment, the maximum maturity is generally 10 years. If real estate is a significant component of the loan, the maximum term can extend up to 25 years. A blend of uses will result in a blended maturity, typically weighted by the real estate portion.
A business acquisition loan financing goodwill and working capital would typically have a 10-year repayment term. However, if the same acquisition included a $500,000 real estate purchase, the loan term could be extended to 25 years.
Insider move
Lenders structure the loan terms to comply with SBA maximums and ensure the borrower's ability to repay. They consider the useful life of assets and the project's overall cash flow when determining the appropriate term.
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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