Glossary · The loan itself
Amortization Period
In short
This is the total length of time over which a loan is scheduled to be repaid through regular principal and interest payments. Buyers need to know this period as it dictates the size of monthly payments and the total interest paid.
What it means in a deal
For SBA 7(a) business acquisitions, the maximum amortization period is typically 10 years, though it can extend to 25 years if real estate is included. A longer amortization period means lower monthly payments but more total interest paid over the life of the loan. Balance payment affordability with total cost.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Amortization Period
- Can a lender approve a deferment period without prior SBA approval?
- What is the typical repayment period for an SBA 7(a) loan?
- Can a full standby seller note accrue interest during the standby period?
- What is the usual repayment period for an SBA 7(a) loan?
- What happens if the acquired business declines significantly during the loan underwriting period?
- What is the maximum repayment period allowed for an SBA 7(a) loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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