Glossary · Doing the deal
Lease agreement
In short
A contract outlining the terms under which one party agrees to rent property owned by another. This defines your occupancy costs and security.
What it means in a deal
If the business operates from leased premises, a new lease or an assignment of the existing lease from the seller to you is a critical closing condition. The SBA requires a lease term, including options, that matches or exceeds the loan term. Negotiate favorable terms and ensure the landlord is willing to work with you.
Official sources
SOP 50 10 — Lender and Development Company Loan Programs
U.S. Small Business Administration · SBA Standard Operating Procedure
Last checked 2026-06-15. Official sources control — verify before relying on any rule for a live deal.
Related terms
Common questions about Lease agreement
- Does a shared commercial lease agreement between two separate businesses trigger affiliation for SBA size standards?
- What happens if the business's current lease agreement for its premises is short-term or expiring soon?
- Can a buyer contribute a pre-paid lease agreement for the business premises as part of their equity injection?
- 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?
- What if the business I am acquiring needs to relocate immediately after the purchase due to lease expiration?
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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