Glossary · The loan itself
Extended Term
In short
Refers to a longer repayment period for your loan, up to 10 years for a business acquisition and 25 years if real estate is included. This typically lowers monthly payments.
What it means in a deal
A key benefit of 7(a) loans for acquisitions is the extended term compared to conventional loans. Longer terms mean lower monthly principal and interest payments, which significantly improves your cash flow after debt service. This flexibility can be crucial for a new owner.
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 Extended 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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