What will it cost to pay this off early?

Three things people get wrong about this, and each one costs money. A ten-year loan has no penalty at all.

Balance outstanding

Original term

The penalty only exists on terms of 15 years or more.

Year you would repay

Penalty

Rate this year

Exempt from the penalty

Cost of repaying, by year

Three things people get wrong here. The penalty applies only to terms of 15 years or more — a ten-year loan has none at all. It lasts three years, not the life of the loan. And the first 25% of the balance each year is exempt, so partial paydowns are often free.

Applies 7(a) terms of 15 years or more Schedule 5% / 3% / 1% in years 1–3 Exemption 25% of balance per year

Why this matters when you choose a term

If there is any chance you will sell the business or refinance inside three years, a 25-year term is not just more interest — it is a lock. Weigh that against the extra borrowing capacity a longer term buys you.