SBA loan terms refer to the maximum repayment periods allowed under SBA loan programs, which vary based on the loan type and how the funds are used. The SBA sets term limits to align repayment length with asset lifespan and borrower repayment ability, rather than allowing arbitrary loan durations. 

Current as of January 2026

SBA loan terms and duration are established by the U.S. Small Business Administration and do not change on a regular schedule. As of this update, there have been no changes to maximum SBA loan terms for the 7(a), 504, or Microloan programs.

Quick summary.

  • SBA loan terms range from up to 6 years to up to 25 years
  • Longer terms apply to real estate and major fixed assets
  • Shorter terms apply to working capital and revolving needs
  • Lenders must use the shortest appropriate term under SBA rules
  • Term length affects monthly payment size, not just total cost

SBA loan term limits by program.

Based on SBA program guidance from the U.S. Small Business Administration.

SBA program Typical maximum loan term
SBA 7(a) Up to 5-25 years
SBA 504 Up to 10-25 years
SBA Microloan Up to 10 years

SBA 7(a) loan program - term limits by type and use of funds.

Under the SBA 7(a) program, maximum loan terms depend on the program, loan structure, and how the loan proceeds are used.

SBA 7(a) loan program term limits by type and use of funds
SBA 7(a) program loan type Common use of funds Maximum term length
SBA 7(a) Standard Working capital, inventory Up to 10 years
SBA 7(a) Standard Equipment, fixtures, or furniture Up to 10 years; up to 15 years if IRS useful life estimate supports the term
SBA 7(a) Standard Commercial real estate purchase, renovation, construction, or improvement Up to 25 years (plus construction or renovation period, if applicable)
SBA 7(a) Standard Leasehold improvements (except leasehold improvements to land) Up to 10 years (plus 1 year to complete improvements)
SBA 7(a) Standard Farm land and farm structures Up to 20 years
SBA 7(a) Standard Farm machinery and equipment 15 years (plus up to 1 year for installation)
SBA Express Term loan Same as 7(a) Standard, up to 25 years
SBA Express Line of credit (revolving or non-revolving) Up to 10 years total maturity
SBA Express Revolving line of credit (draw period detail) Revolving period up to 5 years, remaining balance termed out within 10 years total
SBA CAPLines Builder's CAPLine (construction) Up to 5 years
SBA CAPLines Working Capital, Contract, or Seasonal CAPLine Up to 10 years
SBA Export Express Term loan Same as SBA 7(a) Standard, based on use of funds, up to 25 years
SBA Export Express Line of credit Up to 7 years
International Trade Finance Working capital, inventory Up to 10 years
International Trade Finance Equipment, fixtures, or furniture Up to 10 years; up to 15 years if IRS useful life estimate supports the term
International Trade Finance Commercial real estate purchase, renovation, construction, or improvement Up to 25 years (plus construction or renovation period, if applicable)
International Trade Finance Leasehold improvements (except leasehold improvements to land) Up to 10 years (plus 1 year to complete improvements)
International Trade Finance Farm land and farm structures Up to 20 years
International Trade Finance Farm machinery and equipment 15 years (plus up to 1 year for installation)
Export Working Capital Program Transaction-specific export financing Up to 36 months (terms over 12 months require SBA justification)
Export Working Capital Program Transaction-based line of credit Typically up to 12 months; renewable annually up to 36 months
Export Working Capital Program Asset-based (ABL) export financing Typically 12 months; renewable annually up to 36 months
Manufacturers' Access to Revolving Credit (MARC) Term loan Up to 10 years
Manufacturers' Access to Revolving Credit (MARC) Revolving loan Revolving period up to 10 years, maximum loan termed out within 20 years total

Important notes on 7(a) program term limits:

  • Maximum term length is determined by use of funds, not just loan program.
  • When IRS useful life estimate is referenced, the asset’s estimated life must support the extended term.
  • SBA lenders must generally use the shortest appropriate repayment term allowed under SBA guidelines.
  • Construction or renovation periods are separate from loan amortization. When construction or renovation is included in the use of proceeds, the SBA allows an additional period reasonably necessary to complete that work to be added before amortization begins.

SBA 7(a) Standard loan term limits.

SBA 7(a) loan terms vary based on how funds are used rather than a single fixed maturity.

In general:

  • Working capital and inventory loans are capped at up to 10 years.
  • Equipment terms may extend up to 15 years if supported by IRS useful life estimates.
  • Real estate-related uses may extend up to 25 years, with construction or renovation time added where applicable.
  • Farm-related uses follow separate term limits for land, structures, and equipment.

See the table above for use-specific maximums.

SBA Express loan term limits.

SBA Express loans follow different maturity rules depending on whether they are structured as a term loan or a line of credit.

  • Term loans follow the same maturity limits as Standard SBA 7(a) loans, based on use of funds, with maximum terms ranging up to 25 years for real estate-related uses.
  • Lines of credit, whether revolving or non-revolving, have a maximum maturity of 10 years.

For revolving lines of credit:

  • The revolving period is limited to up to 5 years
  • During this time, funds may be drawn, repaid, and re-borrowed
  • After the revolving period ends, any outstanding balance is converted to a non-revolving loan and must be fully repaid within the 10-year total maturity limit

For non-revolving lines of credit:

  • Funds may be drawn up to the approved limit
  • Re-borrowing is not permitted
  • The line must be fully repaid within the 10-year maturity limit

SBA CAPLines term limits.

SBA CAPLines are designed for short-term and cyclical financing needs, and have program-specific maximum maturities, depending on the type of CAPLine:

  • Builder’s CAPLine loans are capped at up to 5 years
  • Working Capital, Contract, and Seasonal CAPLines may extend up to 10 years

These maturity limits define the maximum legal repayment period for each CAPLine program.

Seasonal CAPLine Clean-Up requirement.

Seasonal CAPLines include a mandatory clean-up period each season. The borrower must reduce the outstanding balance to $0 for a minimum of 30 consecutive days. This demonstrates that the business is not dependent on borrowed funds year-round, but instead uses the CAPLine to support seasonal operating cycles.

CAPLines exit strategy requirement.

All SBA CAPLines require a defined exit strategy. The final advance under the CAPLine must occur far enough in advance of the maturity date. This ensures any assets acquired or financed through the CAPLine can be converted back into cash. This converted cash must be sufficient to fully repay the loan balance by maturity. 

SBA Export Express term limits.

SBA Export Express loans have different maturity limits depending on how the loan is structured.

  • When structured as a term loan, Export Express loans follow the same maturity rules as Standard SBA 7(a) loans, with maximum terms based on use of proceeds and extending up to 25 years for eligible real estate uses.
  • When structured as a line of credit, the maximum maturity is 7 years, regardless of whether the line is revolving or non-revolving.

For Export Express lines of credit:

  • Funds may be drawn up to the approved limit
  • Revolving and non-revolving structures are permitted
  • The full balance must be repaid within the 7-year maturity limit

International Trade Finance term limits.

International Trade Finance loans follow the same maturity rules as Standard SBA 7(a) loans.

  • Maximum loan terms are determined by use of proceeds
  • Real estate-related uses may extend up to 25 years
  • Equipment and working capital uses follow standard SBA 7(a) limits

The International Trade designation affects eligibility and purpose, but does not alter maximum maturity limits. 

Export Working Capital Program (EWCP) loan term limits.

Export Working Capital Program (EWCP) loans are designed for short-term, transaction-based export financing and have a maximum allowable maturity of 36 months.

Actual loan terms are often shorter and depend on the structure of the EWCP loan.

Transaction-specific EWCP loans.

When an EWCP loan is structured to support a single export transaction:

  • The loan term may extend up to 36 months
  • Any maturity longer than 12 months must be supported by lender documentation and justification to the SBA
  • The term is tied to the lifecycle of the underlying export transaction
Transaction-based EWCP lines of credit.

When structured as a transaction-based line of credit:

  • The loan term is typically up to 12 months
  • The line may be approved for up to 36 months through annual renewals
  • Each renewal is treated as a new loan, subject to new SBA guarantee fees
Asset-based (ABL) EWCP loans.

Asset-based EWCP loans follow a similar renewal structure:

  • Typically issued with a 12-month term
  • May be renewed annually for up to 36 months total
  • Each renewal is treated as a new loan and requires a new SBA guarantee
Important notes on EWCP maturity:
  • The 36-month limit represents the maximum allowable maturity, not a guaranteed loan length.
  • EWCP loans are structured as self-liquidating, short-term financing tools
  • EWCP renewals are treated as new loans. Each renewal is subject to a new SBA guarantee fee and independent approval.

Manufacturers’ Access to Revolving Credit (MARC) loan term limits.

MARC loans follow different maturity rules depending on whether they are structured as a term loan, or a revolving loan.

  • Term loans have a maximum maturity of 10 years. 
  • Revolving loans have a maximum maturity of 20 years.

For revolving loans:

  • The revolving period is limited to up to 10 years.
  • During this time, funds may be drawn, repaid, and re-borrowed.
  • After the revolving period ends, any outstanding balance is converted to a non-revolving loan and must be fully repaid within the 20-year total maturity limit.

SBA 504 loan program - term limits by type and use of funds.

SBA 504 loans provide long-term, fixed-rate financing for major fixed assets. Term lengths are standardized at 10, 20, or 25 years, depending on the project and asset type.

  • Fixed-rate, asset-based financing
  • Term tied directly to asset class:
    • 10 years - equipment (but could qualify for 20-25 years depending on useful life)
    • 20-25 years - real estate
  • When the 504 loan is used for mixed assets, such as real estate and equipment, the term of the asset that the majority of the funds are used for will apply.

SBA Microloan loan program - term limits.

SBA Microloans are capped at up to 10 years, regardless of use of funds, reflecting their role as small-dollar, short-term financing.

What determines the length of an SBA loan?

SBA loan terms are determined by four primary factors:

  1. SBA loan program rules
  2. Use of proceeds
  3. Asset type and useful life
  4. Structural requirements defined by the SBA

Loan length is not determined by borrower preference alone, and longer terms are not automatically available for all uses.

What longer vs. shorter SBA loan terms mean in practice

  • Longer terms = lower monthly payments, longer payment horizon
  • Shorter terms = higher monthly payments, faster payoff
  • Term length does not change SBA eligibility rules

What SBA loan length does not tell you.

An SBA loan’s maximum allowable term does not:

  • Guarantee approval for that term length
  • Indicate interest rate or total cost
  • Replace lender underwriting requirements
  • Apply uniformly across all loan structures

Why SBA loan length rules are often misunderstood.

SBA loan term rules are frequently misunderstood because:

  • Maximum maturities vary by use of funds, not just program
  • Some loans include draw periods or construction phases
  • Certain programs rely on annual renewals, not single long terms
  • Many summaries oversimplify SBA guidance

In summary, SBA loan lengths vary widely by program and structure, with maximum terms determined primarily by use of proceeds, asset type, and SBA program rules rather than borrower preference.

Sources

The information in this article is based on official guidance and program rules published by the U.S. Small Business Administration and is intended to explain general SBA loan term limits and structural requirements.

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