Glossary · People and paperwork
Long-term lease(Extended lease)
In short
A lease agreement for an extended period, typically 10 years or more, often required for SBA loans. It provides stability for your business location and assures the lender you have a place to operate.
What it means in a deal
For an SBA 7(a) loan, if you're not purchasing the real estate, the lender will usually require a long-term lease matching or exceeding the loan term, or with options to renew to cover the loan term. Negotiate this carefully, including an Early Termination Clause and ensuring the rent is Fair Market Rent.
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 Long-term lease
- If I am buying a business that leases its property, can I get a longer loan term if the lease is long-term?
- Can an SBA 7(a) loan finance tenant improvements on leased property if the lease term matches the loan term?
- What happens if the business's current lease agreement for its premises is short-term or expiring soon?
- Why is long-term disability insurance considered a vital complement to business life insurance?
- 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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