7(a) Loan Repayment Terms

image showing the inside and outside view of a small business

7(a) Loan Repayment Terms

Maturity Terms

The SBA’s loan programs are generally intended to encourage longer term small-business financing. However, actual loan maturities are based on the ability to repay, the purpose of the loan proceeds and the useful life of the assets financed. However, maximum loan maturities have been established: 25 years for real estate, up to 10 years for equipment (depending on the useful life of the equipment) and generally up to seven years for working capital. Short-term loans and revolving lines of credit are also available through the SBA to help small businesses meet their short-term and cyclical working capital needs.


Most 7(a) term loans are repaid with monthly payments of principal and interest. For fixed-rate loans, the payments stay the same because the interest rate is constant, whereas for variable rate loans the lender can require a different payment amount when the interest rate changes. We may establish the loan with interest-only payments during the start-up, construction and expansion phases (when eligible) to allow your business time to generate income before it starts making full loan payments. There are no balloon payments or call provisions on these loans. We do not charge a prepayment penalty if the loan is paid off before maturity, but the SBA will charge the borrower a prepayment fee if the loan has a maturity of 15 or more years and is prepaid during the first three years.


All SBA loans funded by Community Commerce Bank are secured by real property at loan to values up to 90%.

Tarzana Branch

19538 Ventura Blvd.
Tarzana, CA 91356
(818) 992-5661
Fax: (818) 992-5669

Monterey Park Branch

2323 S. Atlantic Blvd.
Monterey Park, CA 91754
(323) 268-6100
Fax: (323) 265-0342

Claremont Branch

390 W. Foothill Blvd.
Claremont, CA 91711
(909) 625-7891
Fax: (909) 621-2512

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