Glossary · The loan itself
Term / maturity
In short
How long you have to repay. Business purchases get 10 years, or up to 25 if real estate is most of the deal.
What it means in a deal
The SBA sets maximum maturities: ten years for a straight business acquisition, up to twenty-five if real property makes up the majority of the deal. Longer terms mean lower monthly payments, which improves your DSCR on paper — but you pay more interest over the life of the loan. When you're sizing a deal, run the payment both ways to see how the term choice affects your cash flow after debt service.
Official sources
7(a) Loan Program — Terms, Conditions, and Eligibility
U.S. Small Business Administration · Official SBA source
Last checked 2026-06-16. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Term / maturity
- What steps should a lender take if a borrower with a 7(a) loan requests an extension of the loan maturity date?
- 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?
- Should a business choose term or permanent life insurance for key person protection?
- What is the average repayment term length 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 2026-06-16 · 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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