Glossary · People and paperwork
Assignment of lease
In short
The transfer of a tenant's rights and obligations under an existing lease to a new tenant, typically the buyer of the business. The landlord's consent is usually required.
What it means in a deal
If the business operates out of leased premises, you'll need the landlord to agree to an assignment of lease, making you the new tenant. Ensure the landlord approves you as a tenant and that the lease terms are favorable for your business plan before closing the deal.
Related terms
Common questions about Assignment of lease
- If the business property is leased, can the SBA loan finance a security deposit for the lease?
- If the business property is leased, can an SBA 7(a) loan finance security deposits for the lease?
- How does a collateral assignment of life insurance protect a lender?
- Can an SBA 7(a) loan finance tenant improvements on leased property if the lease term matches the loan term?
- If I am buying a business that leases its property, can I get a longer loan term if the lease is long-term?
- When does the SBA typically mandate collateral assignment of life insurance for a business loan?
Defined by CapBench SBA Intelligence — plain-English definitions for business buyers, lenders, advisors, and AI agents, grounded in public SBA rules and records. Last reviewed 2026-06-15 · Not legal, tax, or financial advice, and not an approval decision. Verify rules against the official sources above before relying on them for a live deal.
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