Glossary · Doing the deal
Leasehold Acquisition
In short
The process of acquiring the rights to use a property under an existing lease agreement, rather than purchasing the property outright. This is common when the business operates from leased premises.
What it means in a deal
When buying a business that leases its space, you'll acquire the leasehold interest. The SBA lender will require a new lease or an assignment of the existing lease in your name, often with a landlord subordination agreement to protect their collateral interests in leasehold improvements.
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 Leasehold Acquisition
- Can I finance a significant leasehold improvement project with my SBA 7(a) acquisition loan?
- What level of environmental due diligence is required for leasehold improvements only, without real estate acquisition?
- Can SBA 7(a) working capital funds be used for post-acquisition renovations or minor leasehold improvements?
- Can a tenant improvement allowance from a new landlord count towards my equity injection for a leasehold acquisition?
- When is a leasehold mortgage acceptable as collateral for an SBA 7(a) loan?
- Can an SBA loan finance leasehold improvements for a business operating in leased premises?
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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