# How long can an SBA 7(a) loan to a farm run?

**Short answer:** It depends on the use. When land and structures are 51% or more of proceeds, the maximum is 20 years. When machinery and equipment are 51% or more, it is the useful life of the equipment, up to 15 years. SOP 50 10 8.1, Appendix 17, Para. A.7 sets both.

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Last checked: 2026-11-08

SOP 50 10 8.1, Appendix 17, Para. A.7 (p. 390) sets farm maturities by the main use of proceeds. These limits differ from the general 7(a) limits.

## Land and structures

Where land and structures for farming are 51% or more of proceeds, the maximum maturity is 20 years. The SOP names poultry houses as structures. If the real estate use includes construction or renovation, a reasonably necessary construction period may be added. SBA Information Notice 5000-882227 (p. 3) confirms that addition.

General real estate has a longer limit: 25 years, plus any reasonable construction or renovation period (Para. A.3).

## Machinery and equipment

Where machinery and equipment are 51% or more of proceeds, the maximum maturity is the useful life of the equipment, up to 15 years. An added period of up to 12 months can cover installation.

## What Para. A.7 does not address

The paragraph covers those two cases only. If neither use reaches 51%, ask your lender how it sets the term.

Any term must still be the shortest appropriate term based on the use of proceeds and the borrower's ability to repay. Terms vary by lender.

## A related fee waiver

Several farm codes are on the FY2027 Upfront Fee waiver list, including NAICS 1111, 1112, 1121 and 1122. The fee is 0% on loans of $700,000 or less (SBA Information Notice 5000-881797, p. 1).

## Sources

- [SOP 50 10 8.1, App. 17, Para. A.3 and A.7 (p. 390)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)
- [SBA Information Notice 5000-882227, p. 3 (Sept. 25, 2026)](https://legacy.sba.gov/document/information-notice-5000-882227-issuance-technical-updates-sop-50-10-81)
- [SBA Information Notice 5000-881797, FY2027 7(a) fees, p. 1 (effective October 1, 2026)](https://legacy.sba.gov/document/information-notice-5000-881797-fy-2027-7a-program-fees)