# How long can an SBA loan for leasehold improvements run?

**Short answer:** Up to 10 years, plus up to 12 months to complete the improvements. SOP 50 10 8.1, Appendix 17, Para. A.4 sets that limit. Improvements to a leasehold interest in land are treated as real estate, with a 25-year maximum.

Canonical page: https://www.sbaexpress.loans/answers/sba-leasehold-improvement-loan-term/
Last checked: 2026-11-08

SOP 50 10 8.1, Appendix 17, Para. A.4 (p. 390) limits loans for leasehold improvements to 10 years. An added period can cover completion of the work, based on the nature of the improvements. It may not exceed 12 months. 13 CFR § 120.212(b) allows the same added period.

## Ground leases are different

Para. A.4 excludes leasehold interests in land. Para. A.3 treats improvements to those interests as real estate, with a 25-year maximum. A ground lease must also contain specific clauses set out in Section A, Chapter 3, Para. C.

## Your lease has to fit the loan

Section A, Chapter 3, Para. C (about p. 57) applies when $500,000 or 30% of proceeds, whichever is less, goes to leasehold improvements. The same test applies to collateral attached to leased real estate.

In those cases the lender must get your written lease. The lease term, with renewal options only you can exercise, should equal or exceed the loan term. If the lender cannot get a lease assignment or landlord's waiver, that term match becomes a requirement.

## Within the limit

The term must be the shortest appropriate term based on the use of proceeds and the borrower's ability to repay. A shorter term may apply, and practice varies by lender.

## Sources

- [SOP 50 10 8.1, App. 17, Para. A.3 and A.4 (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)
- [13 CFR § 120.212(b), loan maturities](https://www.ecfr.gov/current/title-13/section-120.212)
- [SOP 50 10 8.1, Sec. A, Ch. 3, Para. C, Responsibilities When the Borrower is Leasing Space (about p. 57)](https://legacy.sba.gov/sites/default/files/2026-10/SOP%2050%2010%208.1%20Technical%20Policy%20Updates%20effective%20%2010.1.2026.docx)