Glossary · Reading the business
Weighted Average Useful Life
In short
This is a calculation used to determine the maximum loan term for an SBA loan, based on the average useful life of the assets being financed, weighted by their cost.
What it means in a deal
For a business acquisition, your lender calculates the Weighted Average Useful Life (WAUL) of all assets you're buying (equipment, inventory, goodwill, real estate). This calculation dictates the longest possible loan term, typically up to 10 years for a business-only purchase, or 25 years if significant real estate is included.
Official sources
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 Weighted Average Useful Life
- Is there a typical average loan size for an SBA 7(a) loan?
- What is the average repayment term length for an SBA 7(a) loan?
- What is the average timeframe for a typical SBA 7(a) loan closing after authorization?
- What is the average interest rate range for an SBA 7(a) loan for a business acquisition?
- What is the average interest rate range for an SBA 7(a) loan in the current market?
- What is the average time it takes to get an SBA 7(a) loan from application to funding?
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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