Terms for a working capital or inventory loan should be appropriate to the borrowerâ€&#x;s ability to repay up to 7 years. If written justification, may be up to 10 years. When maturity exceeds 10 years, lender must document the loan file that the reasonable economic life of the assets acquired is greater than 10 years and final maturity must not exceed the useful economic life or 25 years, whichever is less. Bank alone = 3 years. With SBA = 7 years.
43