---
kind: "section"
citation: "13 C.F.R. § 120.212"
title: "13"
number: "120.212"
heading: "What limits are there on loan maturities?"
url: "https://uscodex.org/cfr/13/120.212"
---

# §120.212. What limits are there on loan maturities?


The term of a loan shall be:

- (a) The shortest appropriate term, depending upon the Borrower's ability to repay;
- (b) Ten years or less, unless it finances or refinances real estate or equipment with a useful life exceeding ten years. The term for a loan to finance equipment and/or leasehold improvements may include an additional reasonable period, not to exceed 12 months, when necessary to complete the installation of the equipment and/or complete the leasehold improvements.
- (c) **A maximum of 25 years, including extensions.** (A portion of a loan used to acquire or improve real property may have a term of 25 years plus an additional period needed to complete the construction or improvements.)

## Notes

### Amendments

[61 FR 3235, Jan. 31, 1996, as amended at 87 FR 38908, June 30, 2022]

### Authority

Authority: 15 U.S.C. 634(b) (6), (b) (7), (b) (14), (h), and note, 636(a), (h) and (m), 650, 687(f), 696(3) and (7), and 697(a) and (e); sec. 521, Pub. L. 114-113, 129 Stat. 2242; sec. 328(a), Pub. L. 116-260, 134 Stat. 1182.

### Source

Source: 61 FR 3235, Jan. 31, 1996, unless otherwise noted.

### Amendments

[61 FR 3235, Jan. 31, 1996, as amended at 87 FR 38908, June 30, 2022]