How many years do you have to pay back an SBA loan?
Up to 10 years for working capital, equipment and a business purchase, up to 25 years for real estate. 504 loans run 10, 20 or 25 years.
The answer,
in full.
Checked against the current SBA rules and forms on October 28, 2026.
It depends on what the money buys. For 7(a) loans, SOP 50 10 8.1 caps working capital, inventory and the goodwill in a business purchase at 10 years. Equipment is 10 years, or up to 15 when the IRS asset-class life supports it. Real estate can run 25 years (13 CFR 120.212), and a mixed-purpose loan can take the 25-year term when 51% or more of the proceeds buy real estate.
504 loans come as 10, 20 or 25-year debentures, with 20 and 25 the norm for buildings. An SBA Express line has to be fully repaid within 10 years, with no new draws after month 60, and the 7(a) Working Capital Pilot runs up to 60 months.
Longer is not always cheaper. A 7(a) loan with a term of 15 years or more carries a prepayment penalty of 5%, 3% and 1% in its first three years if you pay off 25% or more of the balance. Ask the lender which maturities your use of proceeds allows, then run both in the SBA loan calculator to see the difference in total interest.
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