Glossary · Reading the business
Pre-leasing
In short
Securing lease agreements for a property or space before it's fully developed or ready for occupancy. This is more common in real estate development.
What it means in a deal
While less common for existing small business acquisitions, if your deal involves acquiring a business that's moving into a new, not-yet-ready space, pre-leasing agreements would be part of your due diligence. Evaluate the terms and conditions to ensure the new location will be ready and suitable for operations on time.
Related terms
Common questions about Pre-leasing
- Can a business whose primary income is from owning and leasing real estate be eligible for a 7(a) loan?
- Which pre-closing business expenses can count towards equity?
- What documentation is required if a business owner contributes pre-existing business equipment as equity?
- Can I pre-qualify for an SBA 7(a) loan before finding a specific business?
- Are pre-closing legal and accounting fees eligible to be counted towards my equity injection?
- If I contribute inventory purchased pre-closing for the acquired business, can it count as equity?
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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