{"ok":true,"canonical_url":"https://dealroom.so/glossary/leasehold-improvement","api_url":"https://dealroom.so/api/public/glossary/leasehold-improvement","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":"leasehold-improvement","term":"Leasehold improvement","group":"Reading the business","definition":"These are modifications made to a leased property by the tenant. As a buyer, you need to know if these improvements are included in the sale or if you'll need to invest in your own.","what_it_means":"When acquiring a business with an SBA 7(a) loan, leasehold improvements might be part of the assets being purchased or a planned use of loan proceeds. Ensure the value of existing improvements is accounted for, and budget for any necessary upgrades or repairs you'll make post-acquisition.","url":"https://dealroom.so/glossary/leasehold-improvement","official_sources":[{"slug":"sop-50-10","title":"SOP 50 10 — Lender and Development Company Loan Programs","official_url":"https://www.sba.gov/document/sop-50-10-lender-development-company-loan-programs","official_label":"View on SBA.gov","authority_tier":2,"publisher":"U.S. Small Business Administration","source_guide_url":"https://dealroom.so/sba-7a/sources/sop-50-10"}],"related":[{"slug":"asset-purchase","term":"Asset purchase","url":"https://dealroom.so/glossary/asset-purchase"},{"slug":"working-capital","term":"Working capital","url":"https://dealroom.so/glossary/working-capital"},{"slug":"use-of-proceeds","term":"Use of proceeds","url":"https://dealroom.so/glossary/use-of-proceeds"},{"slug":"tangible-asset","term":"Tangible asset","url":"https://dealroom.so/glossary/tangible-asset"}],"related_questions":[{"question":"Can I finance a significant leasehold improvement project with my SBA 7(a) acquisition loan?","url":"https://dealroom.so/sba-7a/questions/can-i-finance-a-significant-leasehold-improvement-project-with-my-sba-7-a-acquisition-loan"},{"question":"What triggers the need for an Environmental Questionnaire (SBA Form 1081) for a leasehold improvement loan?","url":"https://dealroom.so/for-lenders/questions/what-triggers-the-need-for-an-environmental-questionnaire-sba-form-1081-for-a-leasehold-im"},{"question":"Can a tenant improvement allowance from a new landlord count towards my equity injection for a leasehold acquisition?","url":"https://dealroom.so/sba-7a/questions/can-a-tenant-improvement-allowance-from-a-new-landlord-count-towards-my-equity-injection-f"},{"question":"Can an SBA loan finance leasehold improvements for a business operating in leased premises?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-loan-finance-leasehold-improvements-for-a-business-operating-in-leased-premises"},{"question":"Can an SBA 7(a) loan finance significant leasehold improvements for a business being acquired?","url":"https://dealroom.so/sba-7a/questions/can-an-sba-7-a-loan-finance-significant-leasehold-improvements-for-a-business-being-acquir"},{"question":"Can an SBA 7(a) loan cover leasehold improvements for a business operating in leased premises?","url":"https://dealroom.so/sba-loans/basics/can-an-sba-7-a-loan-cover-leasehold-improvements-for-a-business-operating-in-leased-premis"}]},"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 — Leasehold improvement","url":"https://dealroom.so/glossary/leasehold-improvement","source_type":"DealRoom Data"}}