SBA loans are crucial financial tools that come with distinct terms and lengths to meet various small business needs. Typically, these loans have more flexible duration options than traditional financing, ranging from short to long-term. This flexibility allows business owners to secure funding and meet the operational and expansion needs of their businesses, without damaging their long-term financial health. 

Each SBA loan program has maximum loan maturities depending on the use of the proceeds, with flexibility for the maturity based on the borrower’s ability to repay. We’ll go over typical loan lengths below, as well as long-term vs. short-term options. We’ll also cover term details for each SBA loan program and their maximum maturity limits.

What is SBA loan maturity?

Like other loans, loan maturity refers to the date when your SBA loan term ends, and the principal balance plus any outstanding interest is due. In other words, it’s the final payment deadline for your loan.

Understanding SBA Loan lengths

SBA loans are designed with a range of maturities to accommodate diverse business needs and objectives. The typical loan duration depends on the type of SBA program. 

These variable timelines allow business owners to choose a loan structure that best aligns with their capacity to repay and their strategic growth plans. Many SBA loan programs have loan terms of 10-25 years, while others are designed with shorter terms of 36 months to 5 years.

It’s important to note that simply because there is a maximum, it doesn’t mean you will get the longest term possible on your SBA loan. Lenders must state a maturity on the loan, which is the shortest appropriate term based on the use of proceeds, and your ability to repay. Although lenders determine the loan maturity, the loan length must comply with SBA rules around the specific loan program and use of funds.

Types of SBA loans and their lengths

There are three main SBA loan programs: the SBA 7(a) loan program, the SBA 504 loan program, and SBA microloans. Under each of these umbrellas, there are many different types of SBA loans, each with its own limits and rules around term length.

SBA 7(a) Loan terms

The SBA 7(a) loan program encompasses several types of loans, from the Standard 7(a) to CAPlines. Below, each loan type is broken out with term lengths.

SBA Standard 7(a) and 7(a) Small loan length

Standard 7(a) loans, and 7(a) Small loans have the same maturity rules around use of proceeds. In the chart below, you can see the maximum loan term length for both loans, based on what the loan proceeds are used for.

SBA Standard 7(a) and 7(a) Small loan lengths
Standard 7(a) and 7(a) Small loan use case Maximum loan term length
Working capital, inventory loans, or intangible assets 10 years
Equipment, fixtures, or furniture 10 years
15 years if IRS useful life estimate of the asset supports the term
Real estate purchase, renovation, construction, or improvements 25 years (plus construction or renovation time, if applicable)
Leasehold improvements (except leasehold improvements to land) 10 years (plus a maximum of 1 year to complete improvements)
Farm land and structures 20 years
Farm machinery and equipment 15 years (plus a maximum of 1 year for installation)

If standard 7(a) loans or 7(a) small loans are used for mixed purposes, i.e. land and building, working capital, and/or machinery and equipment, or refinancing any of these, the maturity can be a blended maturity. This means the lender can combine the maturities for each of the different uses to create a weighted average, or reasonable blended maturity.

However, if 51% or more of a mixed-use loan is used for real estate, the entire loan can have a maturity of 25 years.

Blended maturity also applies to all types of ownership changes, depending on what the business purchase entails.

SBA Express loan length

SBA Express loans, when structured as a term loan, have the same maturity rules as Standard 7(a) loans. 

However, if an SBA Express loan is structured as a line of credit, either revolving or non-revolving, the maturity limit is 10 years.

If the line of credit is revolving, you can draw, repay, and re-borrow funds during the revolving period, which is 5 years maximum. After that, any outstanding balance is termed out to a non-revolving loan that must be repaid fully within 10 years.

If the line of credit is non-revolving, you can draw funds up to the limit, but can’t re-borrow the funds. The line of credit must be fully repaid within the 10-year limit.

SBA CAPLines and their loan lengths

CAPLines have set maturity for each type, but also come with rules to keep in mind when it comes to time needed to pay back the loan.

SBA CAPLine loan lengths
CAPLine Program Maximum Maturity
Working Capital CAPLine 10 years
Contract CAPLine 10 years
Seasonal CAPLine 10 years
Builder's CAPLine 5 years (plus construction period)

Seasonal CAPLines have a mandatory “clean-up” period each season. This means a 30-day period where the borrower must bring their balance to $0. This shows the business isn’t dependent on borrowed funds year-round—just during seasonal peaks. This is required for Seasonal CAPLines, but is optional for other types.

CAPLines also require an exit strategy. The final receipt of funds from the CAPLine must occur far enough in advance of the maturity date, so that any assets acquired with the loan can be converted back into cash to make the final payment on the loan by the maturity.

Export Express loan lengths

SBA Export Express loans have different lengths depending on the structure of the loan.

If the Export Express loan is structured as a line of credit, or a revolving loan, the maximum maturity is 7 years.

If the Export Express loan is structured as a term loan, it carries the same maturity rules as a Standard 7(a) loan.

Export Express maximum loan lengths
Export Express term loan use case Maximum loan term length
Working capital, inventory loans, or intangible assets 10 years
Equipment, fixtures, or furniture 10 years
15 years if IRS useful life estimate of the asset supports the term
Real estate purchase, renovation, construction, or improvements 25 years (plus construction or renovation time, if applicable)
Leasehold improvements (except leasehold improvements to land) 10 years (plus a maximum of 1 year to complete improvements)
Farm land and structures 20 years
Farm machinery and equipment 15 years (plus a maximum of 1 year for installation

Export Working Capital Program loan lengths

EWCP loans have a maximum loan term of 36 months, although loan terms are typically much shorter depending on the loan structure.

If the EWCP loan is a single transaction-specific loan, the term may be up to 36 months, but the lender will have to justify any maturity over 12 months with documentation to the SBA.

If a transaction-based line of credit is used, this EWCP loan typically doesn’t exceed 12 months, but can be approved up to 36 months with annual renewals.

Asset-Based (ABL) EWCP loans are typically issued for 12 months, and then renewed annually up to 36 months. 

For both Transaction-Based Line of Credit and ABL loans, each renewal is treated as a new loan, and is subject to new SBA guarantee fees.

International Trade Finance loan lengths

Similar to Standard 7(a) loans, International Trade Finance (ITF) loans follow the same maturity limits based on use of the proceeds.

Internation Trade Finance maximum loan lengths
International Trade Finance loan use case Maximum loan term length
Working capital, inventory loans, or intangible assets 10 years
Equipment, fixtures, or furniture 10 years
15 years if IRS useful life estimate of the asset supports the term
Real estate purchase, renovation, construction, or improvements 25 years (plus construction or renovation time, if applicable)
Leasehold improvements (except leasehold improvements to land) 10 years (plus a maximum of 1 year to complete improvements)
Farm land and structures 20 years
Farm machinery and equipment 15 years (plus a maximum of 1 year for installation

SBA 504 Loan terms

The SBA 504 loan program offers long-term, fixed-rate financing for major assets like real estate and equipment. Loan lengths are determined by the type of asset financed by the loan, with terms designed to match the useful life of the project. 10, 20, and 25-year debenture options are available.

Here are the maximum loan term lengths for 504 loans, depending on the project:

SBA 504 loan maximum loan lengths
504 loan use case Maximum loan term length
Real estate 25 years
Machinery and equipment 10 years minimum - could qualify for 20-25 years depending on the asset
Mixed (real estate and equipment) Based on the asset category receiving the majority of the funds

Third-party loans (a required loan from a private lender that is paired with the SBA portion) are required to have terms of at least 7 years for 10-year maturity loans, and 10 years for 20 to 25-year maturity loans. If multiple third-party loans are used, a weighted average maturity must be calculated.

SBA Microloan loan terms

When it comes to loan length for SBA microloans, things are a little simpler. Any SBA microloan issued has a maturity of 10 years from the note date.

Key Takeaways: What influences SBA loan length?

Key takeaways: What influences SBA loan length?

- The use of proceeds: Loans for working capital wil lhave shorter loan lengths than loans for real estate.

- The type of SBA loan program: Standard 7(a) loans follow flexible rules, whereas programs like SBA Express and Export Express have specific maturity limits for lines of credit. 504 loans tie loan length directly to the asset category of the project.

- Loan structure: the SBA has different term rules depending on the structure of the loan, from term loans to lines of credit.

- Ability to repay: Your businesses ability to repay within the proposed schedule factors into loan terms.

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Ultimately, SBA loan terms are designed to match the asset’s expected economic life, and your ability to repay within the term limits., ensuring these small business loans are structured for both stability and sustainability.