Glossary · Doing the deal
Build-out
In short
Refers to the construction or renovation of a commercial space to make it suitable for your business operations. This is common for businesses moving to new premises or significantly upgrading existing ones.
What it means in a deal
If the acquired business requires substantial renovations or tenant improvements, these are considered build-out costs. A 7(a) loan can include funds for leasehold improvements, but you'll need detailed estimates and potentially a contractor's bid. Factor these costs into your overall project budget and timeline.
Official sources
13 CFR Part 120 — Business Loans
Office of the Federal Register · Federal regulation
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Build-out
- Can an SBA 7(a) loan finance major renovations or build-outs for leased commercial property?
- Can an SBA 7(a) loan cover buying land for my business to build on later?
- Can an SBA 7(a) loan be used to build a new commercial building for my business?
- How is the business valued when buying out a 50% partner?
- Can a seller note be partially on standby and partially paid out?
- Can cash-out loan proceeds go to the remaining owner in a buyout?
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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