10-Year Business Loans: Everything You Need to Know

Ten-year business loans have a life of 10 years, paid down in monthly installments. When the repayment terms are long, the associated monthly payments are smaller since the total amount owed is broken down into more segments. This helps business owners manage cash flow over the life of the loan. 10-year business loans are most useful when you’re planning for steady growth over time, instead of addressing immediate needs.

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Pros of 10-year business loans

If you’re looking for long term financing and manageable payments, a 10-year business loan is the way to go. Here are the pros for this type of financing:

  • Potential for low interest rates
  • Good for long-term investment
  • Monthly payments instead of daily or weekly payments
  • Good option for large equipment or property purchases
  • Timely repayments can help build credit scores
  • 10-year term SBA loans do not have a prepayment penalty

Cons of 10-year business loans

Here are things to consider before exploring a 10-year business loan:

  • Many have a rigorous approval process
  • Approval may take longer than with other lending products
  • Collateral may be required
  • High credit scores typically required
  • Established businesses preferred
  • May have prepayment penalties
  • May require an in-depth business plan*

* A business plan is not required for a 10-year SBA loan from a SmartBiz® marketplace bank.

How to decide between a short-term and long-term business loan

The funding option you go with will depend on the needs of your business and how you plan to use the funds. Often, a short-term business loan is more appropriate for a small business because the funds are available quickly.

However, long term financing helps small business owners meet their overall business objectives. Consider time to funding and the overall loan cost.

Things to consider before applying for 10-year loan.

Before applying for 10-year loan, it’s important to have your finances in order. Here are factors to consider:

Personal credit score

Your personal credit score is a number that represents your creditworthiness and tells lenders the potential risk of lending money. In other words, how likely are you to pay back the money you’ve borrowed. For in-depth information about this important number, read Your Personal Credit Score: What It Is, Why It’s Important.

Business credit score

In the same way that your personal scores serves as financial ratings, your business credit scores rank the creditworthiness of your business. A number of factors influence your business credit score, including payment history, credit utilization ratio, company size, industry risk, and more. For additional information, read What are Business Credit Scores, and Why are They Important?

Number of active years in business

Most lenders want to work with businesses that have been in operation for more than two years. For startups and new businesses, getting 10-year term funding can be challenging.



Collateral is a physical asset, like equipment or real estate, that the lender can seize and sell if you default. Some 10-year small business loans require colleterial. Check with your lender for specifics.

Annual revenue

This is another factor that varies. Discuss annual revenue requirement with your lender for the 10-year term loan you’re seeking. Typically, businesses approved for a 10-year SBA loan from banks that participate in the SmartBiz marketplace have $50,000 to $5 million in annual revenues.

Use of proceeds

Approved use of proceeds for 10-year business loan may vary but can include:

Determine if your business is loan ready before you apply
SmartBiz Advisor** is a free online tool to help you track the financial health of your business over time. Simply answer a few simple questions about your business and then upload your most recent business tax return. SmartBiz analyzes your tax return in seconds and gives you key insights on your loan readiness. Learn more through a short video on the SmartBiz Small Business Blog: About SmartBiz Advisor.

** The information provided through SmartBiz Advisor, including the Loan Ready Score, is for educational purposes and is not the same as scores used by lenders for credit decisions. SmartBiz Advisor is not a financial or legal advisor as defined under federal or state law. Use of this information is not a replacement for personal, professional advice or assistance regarding your finances or credit history.

Where to apply for a 10-year business loan

With low-rates and a 10-year term, SBA loans are known as the “gold standard” for small business financing. The SBA doesn’t make the loans. Instead, they provide a guarantee on the loan, promising to reimburse the bank for a certain percentage of the loan if there is a default. This guarantee lowers the risks to lenders, encouraging them to offer these loans to more American small businesses. Many banks and other financial institutions offer SBA loans, but the process, requirements, and fees can vary.

SmartBiz Loans® helps streamline the application process for an SBA loan with 10-year terms, saving you the time and hassle of applying to multiple banks. Our experienced financial professionals use our unique technology platform to help match you with the trusted lender most likely to fund your business. The banks in our marketplace have funded over $1.5 billion in small business loans, and about 90% of qualified applications we refer get funded.

Discover if you’re prequalified here. It only takes 5 minutes and doesn’t impact your credit score.* For more information about long term and short term financing options available through banks and non-bank lenders in the SmartBiz marketplace, visit the SmartBiz Loans website today.

*We conduct a soft credit pull that will not affect your credit score. However, in processing your loan application, the lenders with whom we work will request your full credit report from one or more consumer reporting agencies, which is considered a hard credit pull and happens after your application is in the funding process and matched with a lender who is likely to fund your loan.