Glossary · The loan itself
Term loan
In short
A term loan is a lump sum of money lent for a specific period (the "term"), repaid in regular installments with interest. Most SBA 7(a) acquisition loans are structured as term loans.
What it means in a deal
Your SBA 7(a) acquisition loan will be a term loan, usually with a 10-year term for business-only acquisitions or 25 years if real estate is included. Understand the fixed repayment schedule and how it impacts your cash flow and loan obligation.
Related terms
Common questions about Term loan
- 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 average repayment term length for an SBA 7(a) loan?
- What is the typical repayment term for working capital only?
- What happens if a guarantor moves out of the country during the loan term?
- When can a standby seller note accrue or pay interest during the loan term?
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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