Code of Federal Regulations (Last Updated: May 6, 2024) |
Title 13 - Business Credit and Assistance |
Chapter I - Small Business Administration |
Part 120 - Business Loans |
Subpart B - Policies Specific to 7(a) Loans |
Maturities; Interest Rates; Loan and Guarantee Amounts |
§ 120.212 - What limits are there on loan maturities?
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§ 120.212 What limits are there on loan maturities?
The term of a loan shall be:
(a) The shortest appropriate term, depending upon the Borrower's ability to repay;
(b) Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years; and . The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.
(c) A maximum of 25 years, including extensions. (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements.)
[61 FR 3235, Jan. 31, 1996, as amended at 87 FR 38908, June 30, 2022]