How many years is the SBA equipment/inventory loan payback?

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Multiple Choice

How many years is the SBA equipment/inventory loan payback?

Explanation:
The key idea is that SBA loan terms for financed assets align with the asset’s useful life. For equipment and inventory, lenders typically set the repayment period to up to the asset’s life, with a maximum of 10 years. So you repay over 10 years unless the asset’s actual life is shorter. That’s why 10 years is the standard payoff period. Longer terms like 15, 20, or 25 years don’t fit the usual SBA guidelines for these types of loans, since they would exceed the asset’s useful life.

The key idea is that SBA loan terms for financed assets align with the asset’s useful life. For equipment and inventory, lenders typically set the repayment period to up to the asset’s life, with a maximum of 10 years. So you repay over 10 years unless the asset’s actual life is shorter. That’s why 10 years is the standard payoff period. Longer terms like 15, 20, or 25 years don’t fit the usual SBA guidelines for these types of loans, since they would exceed the asset’s useful life.

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