{"ok":true,"canonical_url":"https://dealroom.so/glossary/lease-with-an-option-to-purchase","api_url":"https://dealroom.so/api/public/glossary/lease-with-an-option-to-purchase","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"lease-with-an-option-to-purchase","term":"Lease with an option to purchase","group":"Doing the deal","definition":"A lease agreement that includes a clause giving the tenant the right to buy the property at a predetermined price and timeframe. It provides flexibility and a path to ownership.","what_it_means":"This arrangement allows you to operate the business from the seller's property while deferring the real estate purchase. The SBA allows an \"option to purchase\" as long as the terms are reasonable and the option period is clearly defined. This can be a strategic move if you need to conserve cash or want to confirm the location works before committing to a purchase.","url":"https://dealroom.so/glossary/lease-with-an-option-to-purchase","official_sources":[],"related":[{"slug":"lease-agreement","term":"Lease agreement","url":"https://dealroom.so/glossary/lease-agreement"},{"slug":"owner-occupied-real-estate","term":"Owner-occupied real estate","url":"https://dealroom.so/glossary/owner-occupied-real-estate"},{"slug":"collateral","term":"Collateral","url":"https://dealroom.so/glossary/collateral"},{"slug":"project-cost","term":"Project cost","url":"https://dealroom.so/glossary/project-cost"}],"related_questions":[{"question":"How does a lease with an option to purchase the business real estate impact my SBA 7(a) loan?","url":"https://dealroom.so/sba-7a/questions/how-does-a-lease-with-an-option-to-purchase-the-business-real-estate-impact-my-sba-7-a-loa"},{"question":"What if the business I am acquiring needs to relocate immediately after the purchase due to lease expiration?","url":"https://dealroom.so/sba-7a/questions/what-if-the-business-i-am-acquiring-needs-to-relocate-immediately-after-the-purchase-due-t"},{"question":"What are the requirements if I plan to develop raw land purchased with an SBA loan?","url":"https://dealroom.so/sba-7a/questions/what-are-the-requirements-if-i-plan-to-develop-raw-land-purchased-with-an-sba-loan"},{"question":"Is an SBA 7(a) loan an option if I want to buy out a business partner's share?","url":"https://dealroom.so/sba-loans/basics/is-an-sba-7-a-loan-an-option-if-i-want-to-buy-out-a-business-partner-s-share"},{"question":"When does an unexercised option to acquire ownership in a business trigger affiliation for SBA size standard purposes?","url":"https://dealroom.so/for-lenders/questions/when-does-an-unexercised-option-to-acquire-ownership-in-a-business-trigger-affiliation-for"},{"question":"Can I use an SBA 7(a) loan to purchase a business with a negative net worth?","url":"https://dealroom.so/sba-7a/questions/can-i-use-an-sba-7-a-loan-to-purchase-a-business-with-a-negative-net-worth"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Lease with an option to purchase","url":"https://dealroom.so/glossary/lease-with-an-option-to-purchase","source_type":"DealRoom Data"}}