Glossary · Reading the business
Leased Property
In short
This refers to real estate or equipment the business uses but doesn't own, instead paying rent or lease payments.
What it means in a deal
When buying a business that operates on Leased property, you must understand the existing Lease agreement. Ensure the lease is transferable or assignable to you, or that a new lease can be negotiated. The terms of the lease significantly impact your Operating plan and Cash flow projection.
Related terms
Common questions about Leased Property
- Can an SBA 7(a) loan finance property improvements on leased land or buildings?
- What happens if the business I am acquiring is located in a leased property?
- Can an SBA 7(a) loan finance the renovation of a leased business property?
- Can an SBA 7(a) loan finance major renovations or build-outs for leased commercial property?
- 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?
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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