Borrower guide · Process & cost
SBA loan repayment terms
The SBA’s long terms are half of why the payments are manageable. What you get depends on what the money is for.
Terms by use of proceeds
- Real estate: up to 25 years.
- Equipment: up to 10 years, or the equipment’s useful life.
- Working capital and acquisitions: generally up to 10 years.
Mixed-use loans blend the terms proportionally to how the money is spent.
No balloons
Unlike much conventional commercial debt, SBA loans fully amortize — there is no lump sum due at the end and no refinance risk built into the structure. That, plus the length, is what keeps the monthly payment low relative to a bank note.
Why term drives your payment
Stretching a real-estate loan to 25 years versus a 10-year note dramatically lowers the payment for the same amount — which is exactly why property deals favor the long term, and why 504’s fixed 25-year rate is so attractive. See the effect in the rates guide.
Loan cost calculator
Change the term and watch the monthly payment move for the same loan amount.
See term vs. payment →Common questions
How long are SBA loan terms?
Up to 25 years for real estate, and up to 10 years for equipment, working capital and acquisitions. Mixed-use loans blend the terms.
Do SBA loans have balloon payments?
No. SBA loans fully amortize, so there is no lump sum due at the end and no built-in refinance risk.
Why are SBA payments lower than bank loans?
The long, fully-amortizing terms spread the balance out, which keeps the monthly payment low relative to shorter conventional debt.
Keep going
Rules described here follow SBA SOP 50 10 8 (effective June 1, 2025) and can change; lenders add their own overlays. This is education, not advice — confirm specifics with your lender. Figures cited as “our data” come from the SBA 7(a) & 504 FOIA record, released 2026-06-30.