First Federal Extends Business Loan Terms to 40 Years

The lender now offers a 40-year maximum term and accepts commercial property as security for business loans.

Updated on Nov. 5, 2026 in Business — General

First Federal Extends Business Loan Terms to 40 Years

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Do you think longer business loan terms help owners more than they add long-term debt?

First Federal has launched the First Business 40 loan, extending its maximum business loan term from 30 to 40 years. The product also accepts commercial property as security for the first time.

Why it matters

A longer repayment term spreads repayments over more years, which First Federal says could lift borrowing capacity and ease monthly cash flow pressure for small businesses. The move comes as small business collectable tax debt reached $35.9 billion in 2024-25.

First Federal's maximum business loan term has moved from 30 to 40 years, with commercial property now accepted as security. Small business collectable tax debt reached $35.9 billion in 2024-25, a 118% rise since 2018-19, and the uptake of the new product is not yet known.

The players

First Federal

First Federal is an Australian lender that offers business and commercial loan products to small and medium enterprises.

Australian Taxation Office

The Australian Taxation Office is the federal agency responsible for administering tax collection and debt recovery across Australia.

Australian National Audit Office

The Australian National Audit Office is the independent federal body that audits government agencies and publishes performance reviews.

The details

First Business 40 is aimed at SME borrowers refinancing business debt, including ATO liabilities, consolidating debts, or funding business asset purchases. Commercial property is accepted as an eligible security for these borrowers.

2018-19: Baseline year for the 118% rise in small business collectable tax debt.
2024-25: Small business collectable tax debt reaches $35.9 billion.
5 November 2026: First Business 40 product launch is reported.

Market Landscape

The rise in small business collectable tax debt, documented by the Australian National Audit Office, has pushed more SMEs toward refinancing options. First Federal's longer loan terms and acceptance of commercial property as security position it to compete for that refinancing business.

Small business owners with existing debt may find the longer term lowers monthly repayments, though total interest over 40 years is likely higher. Owners considering refinancing ATO liabilities or consolidating debts can now compare the 40-year option against shorter terms.

The takeaway

Business owners should compare total repayment cost over the full term, not only the monthly figure, before choosing a longer loan. Reviewing debt options early can reduce pressure before tax obligations escalate.