Glossary · The loan itself
Blended Term
In short
When an SBA loan includes financing for both real estate and a business acquisition, the loan term is "blended" to accommodate different asset types. Buyer cares because it impacts the overall loan repayment schedule and monthly payments.
What it means in a deal
If your 7(a) loan finances real estate (up to 25 years) and a business acquisition (up to 10 years), the lender will average these terms. The blended term will be shorter than a pure real estate loan but longer than a pure business acquisition loan, which can improve your cash flow.
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 Blended Term
- When can a lender approve a short-term deferment or modification of a 7(a) loan's payment terms without prior SBA consent?
- Can an SBA 7(a) loan finance tenant improvements on leased property if the lease term matches the loan term?
- If I am buying a business that leases its property, can I get a longer loan term if the lease is long-term?
- What is the typical repayment term for working capital only?
- What happens if the seller terminates the purchase agreement mid-process?
- Should a business choose term or permanent life insurance for key person protection?
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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